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Home My WebLink About2005-11-22 CorrespondenceIOWA LEAGUE of CITIES Priorities · Se ng Iowa Cit ens - Prope y Refo . ro ng Iowa Co ities - Econo c Development . Protecting Iowa T payers - Pensions The League's mission is to keep cities moving fo~ard ~hrough innovation, e~oiencies, and collaboration. The Les~ue strives to retsin Lhe ability for cities to provide the semites, facilities, 8nd quali~ of life pro,rams desired by its citizens. More than YY percen~ of Iowans live wiLhin 8 ci~ and ~he League 8nd its members want ~o ensure that these citizens are ssfe 8nd ~ble to enjoy life wiLhin their communi~, re~srdless of size. Small, medium or large, each ci~ is unique and must be embraced. The members of the Iow8 League of OJtJes adopted three legislative priorities for 2006 focusing on essential issues crucial to the future of lows and our communities. Our priorities are 8imed at achievin~ one common goal: providin2 qu81i~ semites effectively and efficiently as cities pave the way to the future. Prope Refer: Se ng Iowa Cithens J P~iorit~: Suppo~ 8 prope~ tax reform initiative that eliminates inequities caused by rollback; improves 8ocountabili~ to ~axpayers: allows cities to continue to provide local determined semites effectively 8nd e~cienily; enables and protects revenue 81ternstives. ~c~o~: The League will a~ain coordinate a comprehensive re[cfm initiative wi~h ~he iowa 5~a~e Association of Counties, s~reamlined from our original join~ proposal made in 2005. The proposed 2006 language oudines problems ~ha~ ~rue re(cfm mus~ add~ess including eliminating ~he rollback formula, improving ~he budge~ ~epo~dng p~ocess, es~ablishin~ reasonable limitations and pro~ecdn~ curren~ ~ax base. Any proposals ~o erode exis~- in~ ~ax base, such as ~eciassi[yin~ apartments or makin~ ~he ~ollback [o~mula worse, will be opposed. Alternative revenues will be promoted in ~he in~e~es~ o[ holding ~he line on prope~y ~axes. During ~he ]as~ census, pe~ capita ~eneml revenues in Iowa were $1,046 compared ~o $1,492 [or ~he average U.S. ci~. This means ~he cities of iowa operate on ~wo-~hi~ds ~evenue o[ ~he average city in ~he nation. S~a~ ~d ~-T~e ~rso~el Comp~sons Gener~ Revenue per CapBa g Prope~ Taxes ~$t ~ m sa~es ~ u~e Ta~ i~ ~' ~lncome Taxes ~W Enf°~em~t 2~,38 24:~5 27:16 35,476 ~ All other Taxes ; . .. ~Aid from Federal Fire 5.74 8.65 15.87 40,537 42,973 47,941 ~Aid from State S~em & Roads &9.~ &5.&6 10~6~ 3&,737 31,695 33,692 ~ Aid from Local . ~ General Charges Transit 2.75 3.94 6.45 28,148 33.726 44,542 ~ Misc. Revenues Air,As 0;62 1.~2 1:33 ~ 35,572 37,918 4~,7~ Hospitals 35.88 17,1 18.41 29,785 29,238 ~5,230 ~ Parks & Rec 6.~ 7.8 7,62 28~842 28,309 28,9~ ~ Libraw 5.81 5.24 4.26 22,249 25,563 28,110 ~ Elemen~ Ed 233.6A 226.39 2~1,72 29,64& 32,371 35,064 General Fund Revenue Source Higher Ed 20.17 10.97 10.94 33,622 37,041 39,210 Source: U.S. Data collected from the 2000 U.S. Census, complied by the Iowa League of Cities. Census Data Midwest = IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI the t.ea~te's P~i, orittes These blue frames contain the exact priority language ratified by the Iowa League of Cities' J Jmembership. If you have questions regarding the League's legislative priorities, please contact the League office. Economic Development: Growing Iowa Communities Priority: Protect and enhance economic development tools enabling cities in Iowa to promote economic improvement throughout the state. Background, Cities drive ~ Iowa Taxpayers3 economic development in Iowa. Tax increment financ- Priority: Support legislation that lng (TIF) is the primary strenathens actuarial soundness local development tool and and fairly allocates the contribu- must be protected or tion rates among participating parties while enhanced. Local govern- opposing any expansion of benefits under ment financing vehicles the Iowa Public Employee Retirement need to be diversified. System (IPERS) or the Municipal Fire and Successful quality of life Police Retirement System of Iowa (MFPRSI). programs need continued funding, such as Vision Iowa, Iowa Great Places, Municipal Fire and Police and tax credits for historic preservation. Retirement System of Iowa The role of city govern- ~~ Requirements ment in economic develop- 40% ment is crucial. Economic · City Contribution activity requires roads, streets, airports, water, and sanitation. New 35% Member Contribution jobs necessitate more and better housing. Growing businesses seek · State Contribution quality of life amenities for employees and families, such as parks, 30% recreation, and libraries. Protection and safety of property and life must be assured. This can only be accomplished with the strong sup- 25% While state contributions declined and member port of an effective city government. Cities must provide much more 20% contributions have than just the tangible services that support local industry and com- remained consistent merce. Local leadership is an essential ingredient in attracting and lS% over the last five years, retaining quality jobs, and promoting economic opportunities in our the city contribution has state. Economic development is local development, lo% dramatically increased, placing a burden on 5% property tax payers. O% 2001 2002 2003 2004 2005 Background: The League will advocate for a rea- sonable distribution between employer and employee should the IPERS contribution rate be increased, while recognizing that MFPRSI policy has a more significant impact to many cities. Any new benefits or expansion of existing bene- fits will be opposed. Increased state contribu- tions to the MFPRSI system will be sought. ~-~ The Iowa League of Cities is the oldest, continuously operating municipal league in the country. Founded in 1898, the League is a not-for-profit organization that advocates for issues affecting cities throughout Iowa. The League IOWA provides wide-ranging services for cities including research, workshops, reports, publications, pooled investments, LEAGUE and risk management. 317 Sixth Avenue, Suite 800 · Des Moines, IA 50309 9f CITIES Phone: ($15) 244-?282 · lax: (515) 244-0740 · www, iowaleague.org ISAC's Top Priorities Property Tax Reform Last year ISAC and the Iowa League of Cities jointly proposed a comprehensive package to reform Iowa's complicated property tax system. The plan included systemic changes in assessment procedures, city and county budgeting processes, and a responsible property tax limitation on general and rural fund revenues. Several provisions were too controversial with various stakeholder groups. This year we offer a revised plan that maintains important principles but avoids the most controversial provisions from last year. The 2006 package stabilizes the tax base, improves accountability in the budgeting procedures for both cities and counties, and ties city and county property tax growth to an inflationary index. Most importantly, it maintains the local control necessary for county officials to provide services to the citizens they serve. Auditors' Technical Elections Bill The voters of Iowa expect and deserve an elections system that is beyond reproach. County auditors are the commissioners of elections in each county and are charged with the stewardship of each voting matter that goes before the public. Because of their role, county auditors are in a unique position to know specific changes in the Iowa Code necessary to help ensure the best elections service possible. Accordingly, the Iowa State Association of County Auditors, along with ISAC, is recommending a package of non- controversial elections changes to facilitate the operation and integrity of this important process. For each of the last five years, this technical elections legislation has become a vehicle for controversial issues and partisan politics, which has consistently led to defeat or a veto of this legislation. 2006 offers an excellent opportunity to keep politics aside and enact these necessary updates and changes in the elections process. Eminent Domain On June 23, 2005, the U.S. Supreme Court issued its ruling in Kelo et al. v. City of New London et al. upholding the right of state and local governments to condemn real property for economic development purposes. For years, the Supreme Court has said that local governments can condemn private land if it will fulfill a "public purpose." The Kelo decision supports the longstanding interpretation of economic development as a "public purpose." Kelo says that it is constitutional to condemn private land for economic development purposes. But it is important to note that, constitutional or not, this practice is already severely restricted by Iowa law. Iowa counties are already prohibited by statute from condemning agricultural land for private development purposes (Iowa Code §6A.21(c)). Therefore, when it comes to agricultural lands, Iowa law already forbids the use of eminent domain for economic development. Thus Iowa counties are already prohibited by law from doing what the City of New London did in the Kelo case. Condemnation is used as a last resort by Iowa counties in some circumstances, most often to acquire land for roads, which are essential to the economy of rural Iowa. ISAC therefore opposes any further weakening of counties' ability to use eminent domain and supports continued local control of eminent domain for use of obtaining road right-of- way. Food Code Enforcement In the early 1990s, the Iowa Department of Inspections and Appeals (DIA) requested that counties enter into contracts with the state to conduct food safety inspections. The contracts relied on food license fees to cover inspection costs. In 1996, 33 contracting agencies, including three cities, were responsible for conducting inspections in 78 counties under the regulatory requirements of the Food and Drug Administration (FDA) Food Code. Over time, several problems have developed with the food inspection program. Since the early 1990s, inspection fees have become increasingly inadequate to cover program costs, thus shifting the program's fee-based expense from the state to local property tax payers. Currently, the state's responsibilities for the food protection program are divided between DIA and the Iowa Department of Public Health (DPH), which results in a fragmented regulatory system. The current Iowa regulatory requirements are outdated, neglecting to address the most current FDA recommendations. In order to help ensure excellence in food safety for Iowans, the Legislature should establish fees at adequate levels to compensate for the cost of providing inspection services, adopt the current FDA Food Code by reference, thereby eliminating the need to continually update regulatory compliance, and consolidate the food protection program functions within the Environmental Health Division of the DPH. Adult Rehabilitation Option Audit As a result of a federal audit of the Medicaid Adult Rehabilitation Option (ARO), the state of Iowa must pay back $6.2 million. When ARO was adopted, the state reduced the counties' growth funds in anticipation of the savings they would experience through implementation of ARO. Therefore, the funds to pay back the federal government should come from either the providers or the state, but not from the counties.