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HomeMy WebLinkAbout2009-12-07 TranscriptionDecember 7, 2009 Minutes of City Council Meeting With Legislators Page 1 December 7, 2009 City Council Meeting With Legislators 5:00 P.M. COUNCIL PRESENT COUNCIL ABSENT: STAFF: OTHERS PRESENT: GUESTS: Bailey, Champion, Hayek, Wright, O'Donnell, Wilburn Correia Karr, Dilkes, Helling, Fosse Shipley, UISG Senator Robert Dworsky, Representative Dave Jacoby, Senator Joe Bolkcom, Senator Mary Mascher Bailey/ I think we'll get started. Thank you for being here. We appreciate it. Um, we're going to just go around and do introductions for the benefit of checking mic balance, for one thing, and then making sure that we all know one another. So, we'll start with you, Senator Bolkcom. Bolkcom/ Um, good afternoon, Joe Bolkcom. Mascher/ Mary Mascher, House District 77. Dvorsky/ Bob Dworsky, State Senator (mumbled) Wilburn/ Ross Wilburn, Iowa City Council. Jacoby/ Dave Jacoby, House District 30. Wright/ Mike Wright, Iowa City Council. Hayek/ Matt Hayek, Iowa City Council. Bailey/ Regenia Bailey, Iowa City Mayor. Helling/ Dale Helling, Interim City Manager. Champion/ Connie Champion, Iowa City Council. Shipley/ Jeff Shipley, UI Student Government. Bailey/ Okay. Thank you. I think what you have in front of you is our resolution, um, for establishing our legislative priorities. Before we jump into those, um, I just really wanted to express our thanks, um, on behalf of the City, as well as the Council, for all the work that you've done, um, last legislative session, but particularly with flood recovery efforts, um, we've gotten some great advice from you, we've gotten some great support, and some great advocacy, and we've really appreciated (noise on mic) huge difference, um, to our I- This represents only a reasonably accurate transcription of the December 7, "lUUy, ~:ity Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 2 Jobs applications, as well as our CDBG funding and...and just that funding going forward. So thank you very much. We know that that was, uh, above and beyond what, um, your great compensation that you get for being a legislator, so we really appreciate it. Um, so with that, I think we'll just jump right in. We know that the upcoming session is going to be a short one, or at least it's anticipated to be short, and many of our...priorities are kind of do-overs. You've heard many of them before. So, um, the first one, I think we've talked about before, of taxing non-owner occupied condominiums as commercial properties. As you know in Iowa City, um, there are many, um, apartments that have been sort of condominiumized, and we estimate the rental condos in Iowa City, this is a cost to us of about $2 million in lost property taxes, if they are taxed at residential versus being taxed at commercial. Um, from our perspective we have no problem of owner- occupied condominiums being taxed as residential. That just makes sense! But the fact that, um, many of them are being used as rentals, um, by essentially... as an apartment and changed in name only, um, is I think problematic for us. Did anybody have anything to add? Eleanor, Dale, other Council Members? Champion/ I know this is a constant problem because it doesn't affect a lot of areas in the state, but $2 million is a tremendous amount of money in our budget, and we...wouldn't be talking about franchise fees or anything if we had this regular property tax from rental property basically. Helling/ Yeah I...my recollection is last year, and I don't know if there's a bill introduced or just talk about it, but to make all, uh, multi-family, um, taxed at residential. Am I...I don't know who...I don't remember who was talking about that. Bolkcom/ We...I mean, we...we took up a bill, um, the Senate actually passed a bill, the House (mumbled) to do...to give a residential rollback to all apartments. Helling/ Okay. Bolkcom/ That was two...two years ago. Helling/ Was it two years? Okay. Cause I know it was still being talked about. Something like that would...would probably... Bolkcom/ That went away, and... Helling/ Okay. Well, hopefully...because that would cost us another about $3.4 million. Bolkcom/ The, uh, that...that legislation actually called for back...it was a four or five year phase out and it was...the State was going to backfill local governments to the tune...I think fully phased in was about $80 million. It was a very expensive, uh, bill in this environment too. There's no money. Bailey/ Right! This represents only a reasonably accurate transcription of the December 7, 2UU9, t;ity Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 3 Helling/ Yeah that (both talking) Bailey/ So don't change it! Helling/ ...if that was $8 million for the whole state. Bolkcom/ $80 million. Helling/ Oh! $80 million! Oh, okay. (several talking) Bailey/ Any other thoughts on that? Bolkcom/ So this has just been a difficult issue, I mean (mumbled) was working on this issue back in like seven, eight years ago and...we...at one point we, I thought, had this solved and then the Department of Revenue made some changes and kind of made their own judgment about it and kind of put this under water for us. And, um, I...I'd be happy to do a study bill on this. I don't know what the chances are, as Connie points out, it's largely here, and Ames, although maybe a little bit in Des Moines. Bailey/ I could see it increasing in Des Moines potentially, so...if there's anything, as you put a study bill together that you need from us, let us know. Champion/ And I do think also that legislators, not you because I know we've talked to you blue in the face about this, but I don't think they understand that, um, developers now are building condominiums to rent, not to sell, just to rent them. And I don't think they pass that on to the renters. At least I'm sure they don't here. Jacoby/ Well there was one proposal being batted around three years ago, and two years ago. Any time we talk about property tax and rollback, you know, the only thing that rolls back are people's eyes, but uh, we were looking at, you know, talk about residential - do you freeze it? Do you talk about what's really the integral problems with our property tax system and could arguably be, are we ever going to be (mumbled) and set up different SILOS for commercial and, you know, commercial and industrial themselves being separate SILOS. One of the things being discussed for what we're talking about right now for condo...condoization, if that's even a word, is going with the 75th percentile. In other words, not the full commercial, because (mumbled) 100% or 99.7 at its lowest, is if there's a way we could put that in a separate category, and that means if you're an owner and have one other condo that's, you know, the two, three unit, once you get over four then we're talking that condo SILO is 75% for the taxation, but I, you know, I...I think...I think it affects more communities than just the college communities. In fact, I think we're seeing it a little bit in rural Iowa where homeowners or people buy more than one unit and then they're...they're renting them out and so they're...they're...not paying a commercial tax, or as I would say, a condo tax. They're paying for another house. I see it quite a bit in northwest Iowa where people own five, six houses or two four-plexes. Hopefully it'll get some discussion, but I'm not...uh...property tax system change in This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 4 Iowa, uh, I'll probably have a full head of hair before it happens! (laughter) But we'll keep trying, I mean, we do (several talking) Champion/ Well, you know, this area is especially affected by it, I think, and I'm sure it's growing. It will probably grow even more for (mumbled) eventually. Bailey/ Okay, let's move on then. Hayek/ Yeah, um, I'll take up the second point, which is also (mumbled) consistent request, uh, from this community and that's the hotel/motel tax, um, if we could get it from 7 to 9% and if the communities around here supported that, um, we estimate that, uh, that 2% increase would result in additional revenues to Iowa City alone of, uh, almost $215,000, that's 215 thousand a year, um, and that's uh... average increase of $1.62 per guest, uh, per day. Put that in perspective. Um, and...in terms of the timing of this, if the Legislature were to put this through and for it to be signed, uh, realistically we wouldn't, uh, be able to generate collections until the end of FY11 and wouldn't even really see a substantial impact until FY12. It would take...takes quite some time to get those collected, but um, a goal of this municipality and...and would have an impact here. Bailey/ 50% of our, um, hotel/motel tax revenue goes to support police, our police department. So, it's also of interest to the wider community, um, and as we believe, it's paid predominantly from people outside the community, so it just makes sense. And it would have...I have the numbers for Coralville, as does Josh, if you were interested in seeing them. It would have a huge impact in our area, and it simply is enabling legislation as you know, so... Hayek/ Good point. Bailey/ So, any...you hear it every year! Bolkcom/ When was the last time we...I mean, it was part of the broader property tax reform proposal with (mumbled) option (several talking). I don't remember the last time (several talking) Bailey/ I don't... Bolkcom/ ... as a standalone. Bailey/ Do you know? Helling/ Uh, it's...I...I've gotta think it's in the neighborhood of fifteen years or so, since we've had the, uh, the...the hotel/motel tax, and that was the 7%. I don't...I don't recall that it's been revisited... since it was originally passed, and I'm... as I get older, time sort of slips away, but I'm thinking something like fifteen years (several talking). It could be! Champion/ It does seem like the years go by really fast as you get older. This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 5 Wilburn/ You lead to, um, I think a point to help put in several of our requests related to, uh, financing, in perspective, um...because of the Iowa City's heavy reliance on property tax, and our interest too in looking at the fairness question with, uh, you know, commercial, ag, and all of that, um, that fairness question does come up and as we continue to look at, uh, how we're going to pay for appropriate city services, um, just until that...property tax reform debate ever happens when, uh, Representative, uh, Jacoby here grows the hair, until that happens, uh, we feel it's important for us to look at some, uh, alternatives, and a lot of these, uh, revenue-type questions are...are specific, uh, line item revenue things that would be helpful for us to have the local debate, uh, you know, if given certain adjustments at the state level enabling municipalities to do this, then we can have that debate with out own communities to see what's going to be the appropriate mix and...and the fair mix for people, depending on what services (mumbled) police, fire, etc., etc. Bailey/ Okay. Connie, you were... Champion/ The other thing that we're interested in maintaining is our TIF districts, which we think we've used quite judicially but it's a really great economic tool when you're talking to a small industry and larger commercial...ventures that people have in mind, and we...use it really well, and um, I...this is interesting that Dale...only 13% of the TIFs in Johnson County are in Iowa City. So we actually are quite cautious with it, but it is a great economic tool (mumbled) most of you are aware. Bailey/ I think this is something we say every year, again, but um, we believe that we're using it well and um, as Connie pointed out, it's a small percentage, and it's less than 5% of our property value in Iowa City is...is TIF and in fact, later tonight we're going to be talking about some, or some projects rolling off and the opportunity of that...that that will provide to us. Um, to look at a very challenging budget, so... Bolkcom/ Those TIFs that are rolling off, are they ending or you're making a decision to end them or...I mean, they could go on... Helling/ Well...some of'em are ending, uh... Bolkcom/ By way of... say 20 years or.. . Bailey/ (both talking) we don't do 20 year TIFs. Helling/ ...less time than that but...but, uh, yeah, but one of 'em is the downtown district and a large part of that is the, uh, Plaza Towers that, uh, Marc Moen's project, and that's been so successful that...that we're actually...what we're going to be doing there is, uh, we've got...we'll have enough money in the escrow to meet our payments unti12014, and then call the bonds and pay them off, and we should have that by the end of this year so that...for fiscal 11 we can actually roll that money back into the normal tax distribution to the School District and the County and the City, and it means, um, that alone...I don't know exactly what it is, but that along with the other TIFs that are rolling off are going This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 6 to...something maybe in the neighborhood of a million three in additional revenue that we hadn't anticipated. Wilburn/ And a key point there is that the other tax bodies will have that revenue coming back in too, and I think that's something that I think Iowa City has looked at in being, um, careful with the terms of the TIFs that we do. Helling/ Yeah, we'll actually be defeesing those bonds and converting them over so that we don't...so we can do that, rather than pay into the TIF. Bailey/ And typic...typically what we do, um, for businesses that are requesting incentives, and many of these come, uh, brought to us by the State, um, we do a tax rebate so they have to certify the terms of the agreement and these typically run...what would you say? Seven, not longer than ten years, is our... is our typical practice, at least since I've been on Council. So...um, that's the way we use them. If you have any questions specifically about...there is a presentation on our City's web site about our TIFs and the projects that we have. (unable to hear person away from mic) Bolkcom/ Well, there's about $271 million statewide in diverted revenue from TIFs and the State picks up the school aid formula, and...and in 2010 the projection is $45 million of State support to basically backfill the...all the education stuff. Um, and $45 million, uh, represents, you know, it equals any of the largest economic development programs of the State, and the State doesn't have any say-so over any of the spending. So I...I do think there's going to be some policy discussion around looking forward, uh, that...talked to a couple members who have come to me with this issue; said going forward we should require a city that would create a new TIF to pick up the school aid formula, so that the State's contribution doesn't continue to...to rise. I mean, six...five or six years ago we were at probably $27, $28 million, so we've seen fairly significant increase. Hayek/ Is the...is the concept to cap the State's backfill, or to... Bolkcom/ Right now it's on automatic pilot. There's not really been a conversation about what the number should be. Hayek/ Uh-huh. Bolkcom/ I don't know...I wasn't around when they created TIF and said that the State would pick up the local contribution for the (mumbled). But, um, I do think...there will be policy...there will be a bill introduced to basically require the local...any new TIF... Bailey/ Cover the schools. Bolkcom/ Yeah. (mumbled) anywhere, but it'll be out there. I think the other thing about this, in terms of the...the use here, obviously you...put this to good use. TIF is a really important tool. It's been the virtually the only way the local governments have had to raise money, uh, that our local communities, especially those that are growing. Most of This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 7 it's city-created TIFs, uh, I want...I continue to wonder whether a 20-year term, uh, is...is needed, that if...that if you have an economic development project whether you need to have, uh, that kind of term to pay it off, that we think about making it...making it a ten- year term. We have about 30 TIFs that never...that never expire, that go on into perpetuity, uh, there was legislation a year ago about that and cities and the local economic, the chambers, basically killed it, um... so there, you know, there's kind of...there's been kind of a line in the sand on this issue that, you know, don't touch it, but I do think there's...there's reason, and there's the reporting is pretty weak. I mean, $271 million of revenue every year coming, and then...cities come with the...we need more resources and there's a lot of...there's a lot of money diverted, so I don't know what the $271 million's being spent on every year, but it's a lot of money. Bailey/ Well, we regularly get a report, I mean, I think that our Council is always aware of what projects are still on the length of time. Most of our projects, I neglected to mention, have a cap as well, so if they come....if they meet the cap early, they come off early, um, so, I mean, that's how...we feel like we're using it as a good tool and it works for us, as an economic development tool. So... Champion/ Well, there's some development that couldn't take place without a TIF. Plaza Towers could not have taken place without a TIF. It wasn't economically feasible, and as it's turned out, it's turned out to be a really good thing. Bailey/ Yeah, it was a good....a good catalyst for downtown for sure. Bolkcom/ I actually think it's been a very good tool, as I noted, but I do think that a little...it could use a little more structure and a little shorter term. Champion/ I don't object to that. Bailey/ Any other comments? Okay. Bolkcom/ None of it's easy, I mean... Bailey/ We know that! Bolkcom/ ...in terms of getting something accomplished. Bailey/ Um, the next one is increased fees for cigarette licenses. These are at $100 and have not been increased for over 20 years, and Marian, did you want to speak to this, because I think this really came as your perspective, um (mumbled) Karr/Um, well, it's pretty self-explanatory. It's been close to 30 years. It's a little over 20 since it was at $100. I didn't go back any farther than 20 years. I don't recall it being higher than that, and I've been here 30. Uh, it is retained locally. Many of our expenses have not changed in that period of time, even though the number of licenses have decreased, we still have the same mailing costs, we still have the same processing costs, we still have This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 8 the same, uh, paperwork type things, so I think it's really something nominal that it would be. It certainly is also a time as we take a look at the health concerns across the state and the other legislations that were made in cigarettes, that we take a look at the...the front end of the permitting process. The only change that was certainly dramatic in the last number of years is...is the additional charge and changes dealing with, um, vending machines and out-of--sight sales, which was not...though it affected our enforcement, it certainly did not affect the licensing fee. Bailey/ Um, municipal fire employees' retirement systems. We intend to work with the Iowa League of Cities to contain future costs to employers under this system, and I think Dale is probably in the best position to speak to this. Helling/ Yeah, it's our understanding and everything we're seeing is that projected that the...the, uh, the raise is going to go...I think it was 17% up through last year, and then it went up to 19.9 this year. Projecting 5% increases over the next few years and, uh, predicting an ultimate ceiling of about 38-plus percent. That's...that's the numbers we're hearing. Uh, which is...an awful lot of money for...for us, and we're amid-sized city with...with, you know, in the system. Uh, we calculated that a 5% increase is going to be roughly about $450,000 in additional funds that...what we would have to pay in, um, and that's if it's just an increase, but now I'm...I'm hearing that there's also, uh, a bill or...or some discussion about a bill that I guess it's a recommendation from the...from the, uh, MFPRSI board that all overtime be included and...and we pay on that as well, and that's a significant amount of money too. So, I could easily see the 5% plus those other changes costing us an extra half a million dollars a year, until we get up to that...that 38%. Now, again, I understand if that fluctuates it can come back down. It was in the high 20's at one time. Uh, and then got back down to 17, but given what the actuaries are telling them, it sounds like this is something that...that would have to be sustained for a period of time...to build that fund back up. So, that's what we're hearing at this point. Maybe you know... Mascher/ Dale, I served on that interim committee, um, for the retirement systems for (mumbled) and um, and giving us the information from that committee, obviously we want the funds to stay sound, and there's some concern right now about the fact that they aren't self- funded, they aren't fully funded, and um, and at some point you just...you can't pay out the benefits, and so if we don't do something proactive, then we are in jeopardy of putting that fund at risk. And for all of those employees who are in the system now, who are counting on that for their retirement, and then those individuals who are obviously retired and drawing from it, um, we have a responsibility and obligation to make sure that that fund is...that fund is fully funded, and uh, and it is currently not and uh, obviously the projections aren't good either, and so that's one of the reasons why those recommendations came forward, um, IPERS is a little different than the 411 system in that they have a benefits advisory committee, um, IPERS recommends to us and one of the things that we talked about it having a benefits advisory committee for 411 and PORS, as well, so that they are also able to give us recommendations and, um, move things forward in that...in that light, because in IPERS they've been willing to make some concessions in order to, uh, change that contribution rate, and uh, to put more of This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 9 their dollars into it as well. And um, obviously there's an employee and an employer contribution that goes into that and we take that into consideration, uh, on anything that we put forward to the legislative body, um, these are just recommendations from our committee, the legislature still needs to act upon them, and um, we feel it's important that we send the message that we want to make sure that those funds are safe, and that they will be there for the future. We did not put an enactment date until 2011 because we wanted cities to be able to plan for that, and to give them more time to be able to budget accordingly. Helling/ Fisca12011? Yeah! Okay. Well, and my understanding, the League is going to be, you know, coming back with some...maybe some, uh, suggestions on how to soften the blow a little bit, and so, you know, we would certainly be working with them and... Mascher/ And we will certainly listen to any recommendations (mumbled) Helling/ Yeah. Champion/ It amazes me, and don't anybody shoot arrows at me, that municipal employees have a guaranteed retirement amount. None of us have that...that aren't working for a city, or a municipal employee. I don't have any guarantee in my retirement fund. I...I think it's amazing! Now I've said it! Mascher/ That's why it's called a benefit. Hayek/ We've had a defacto hiring freeze for two years here, um, and many factors contribute to that, but...but we're...we're swimming upstream with...with this one, just to try to absorb those...those expenses each year, um, so it's...it hurts our ability to expand our services, even though we're an expanding population with expanding needs. Mascher/ Matt, I also think that people forget that, it's one of the ways that cities and counties and school districts have of recruiting people. It's a benefit, and it's one of the ways that you can entice people to come and to be employed, sometimes at a lesser salary, um, than they would make in the private sector, and so you have to take a look at that, in terms of why it was put in place, and why it's an advantage in terms of being able to recruit quality people and keep them. So, I...I think you need to think about that. I...I think the defined benefit package is one that, um, has benefitted city and county and state governments very well, and um, I would hope that nobody would be looking at changing that system at this point, uh, in light of the fact that it would put a lot of people in jeopardy. Bailey/ I think part of the challenge for budgeting, of course, you can understand this and part of the challenge it sounds like in the system is the predictability. I mean, if we had a sense years and years out what it would be, I mean, that's...that's part of the challenge for us. Jacoby/ Well, I think ten years ago the defined benefit versus a defined contribution discussion would have been most interesting because in...in the 90s, uh, people were saying the...defined benefit's fine, but you're going to do much better in your defined This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 10 contribution plan. In fact, many people around this table were probably advised if you had a choice to go one way rather than the other. So it is cyclical. I don't know that the core of the discussion can really...the costs are up. How do we address those? The League of Cities will be bringing some proposals to us, but I...I shy away from the discussion on contribution versus benefit, because like I said, a dozen years ago we would have had a whole different discussion saying that the defined benefits are falling far short of those in defined contribution plans. So it's...I think we have to weather this economic storm a little bit and hopefully, Connie, you and I will be able to retire in the next 25 years. Champion/ I don't plan on retiring. Jacoby/ Yeah, I... Bailey/ Some of us will never retire. Jacoby/ Or as people look at their 401 Ks, you know, death and retirement are synonymous. Bailey/ Uh-huh. (mumbled) Okay. Um, funding support for passenger rail initiatives. We've...we've been talking about this for years. You're very familiar, um, we both...put both commuter rail and the expansion of Amtrak. Commuter rails, um, continues...there continues to be interest, um, between Iowa City and River Landing in Coralville, of course, but seems very natural and then the University is still very interested in getting, uh, a rail line out to the...the research park, and that makes a lot of sense as they adopt green initiatives. So, um, that...that discussion will be continuing and then the Amtrak. Actually it's exciting to see the Amtrak possibility moving forward a little bit, um, I think you're familiar with the study. I know that you were...many of you, I think all of you were on the ride, um, and um, the $3 million to the DOT last year, in last year's budget, I think was very beneficial. Of course it was intended to be used as match for FRA applications, and um, our, yeah, anticipated match for Iowa projects, and then for applications, so I think things are moving ahead at the State level. I'm on the Passenger Rail Advisory Committee. Just urge your continued support through the DOT for that. I think it'll be important as we, um, figure out where Iowa falls in sort of the...the stimulus funds, and being a player on the federal level, and I think that advocacy in the legislature is going to be important in making sure that we can get this line over to Iowa City, potentially to Des Moines, and then they're talking Omaha, as well. So...it looks really...um, people are getting excited about it, and it just makes sense. Any other...comments about... Wright/ I think I would just underscore that that...that people are getting excited about it. Regenia used...I probably have at least two conversations a week about this. Bailey/ And this is, um, you know, we just had, I don't know, about a month ago we had a...a session with the...Riverfront Crossings and that neighborhood, that close-in neighborhood south of Burlington Street is, the rail access from Crandic, as well as this Amtrak line, is very exciting to a lot of... a lot of community members, and that will be a This represents only a reasonably accurate transcription of the llecemper i, Luuy, ~.iry Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 11 very critical part of planning, that neighborhood, that development of that neighborhood. So, it's, um, it's exciting to do that kind of infill, um, urban neighborhood. So, it gives us a lot of opportunities. Um... Jacoby/ On... on rail.. . Bailey/ Yeah? Jacoby/ Could I... ask our rep how you feel about rail, and how that would affect you or what are the...the younger crowd thinking in terms of...would you ride the train? Shipley/ I probably would not ride the train. Uh, I've brought this up to a few people. I haven't heard or experienced a lot of demand for it, um, I really can't say either way. (both talking) um, but I know the business community tends to be favorable, so...but I probably would not ride the train, no. Wright/ Just out of curiosity, why not? Shipley/Um, well, I really don't like traveling home too much (laughter) Bailey/ Okay, we don't need to (laughter and several talking) Look at the (several talking) Shipley/ Yeah, I could see freshmen particularly benefit from it, um, I, yeah, I don't know. Mascher/ And you have a vehicle. Shipley/ I do. Which, um, I've privileged. So... Wilburn/ In two weeks my daughter will be traveling from Rochester, New York to Mt. Pleasant on the train, coming back from school in New York, so...there's a few (several talking) Champion/ Is it going to take her four days? Wilburn/ Uh, no! No, just, uh, matter of fact she, uh, when she came back...when she went back for Thanksgiving, she was driven to Chicago and took the train from there and so...be nice to...be able to (both talking) Bailey/ Not make the trip to Mt. Pleasant! Wilburn/ Or Chicago! Mascher/ When are we supposed to find out about the federal grants? Bailey/ I think February. Mascher/ Is it February? This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 12 Bailey/ Yeah. Wright/ Just another anecdotal story. Last summer we had a large conference, uh, in Chicago, and uh, we decided to drive to Galesburg, Illinois and pick up the train so we didn't have to deal with parking, and I got there and there was a whole contingent from Iowa all waiting for the train. In Galesburg! Bailey/ Well, those, um, ridership numbers in the Amtrak study are very, um, they look very good, but I was...I've been told that Amtrak studies tend to be very conservative. So, it's pretty incredible, I think, the possibilities. I think it's...so...um, our next, uh, and this is a request. This is a handout request. We, um, encourage the legislature to consider another I-Jobs, uh, round of funding, at least at the same amount as the last session. Um, as you know, we received about $2.3 million for Fire Station #4, and uh, about $3.5 for the north waste water treatment plant relocation, and had about $6.5 of that grant application deferred until more funds become available, either through other projects ahead of us falling off, or the opportunity for additional funding. Um, regarding the fire station, um, we anticipate that the final plan review will be, um, this week and that, uh, construction will begin on that, um, in March. So we're really moving ahead on that, and...and you were all at the groundbreaking -thank you for...for being there, so it's...it's really benefitting our community and I know that, um, I think it's a great program across the state. I...I think you guys know the benefits and the challenges for some communities with their waste water plants and...and what they have to do. So it would just make sense, Iowa as one of eleven states with atriple-A bond rating. I think...I think we're in a position even in difficult, challenging economic times to bond again to have that kind of stimulus, infrastructure stimulus in the state. So...and of course we would be there with other applications, I'm sure, but uh...I think it's a good thing, and thank you all very much for your support of the initial round of funding and your help on our applications. Champion/ We did benefit from that...greatly. Bailey/ So, any other comments about that? We know it's a challenging session, but we did want to say that if... if this was something you brought forward, we would be there behind you loudly...in support. Hayek/ Is there initial.. Bailey/ Any thoughts? Hayek/ What's the smart money say? Mascher/ Have you seen our budget? (laughter) Bolkcom/ I think things are so tight in the...the (mumbled) funds, which is the money that's (mumbled) there's not a lot of head room there to go out and borrow money, cause we don't have another stream of money to pay it back. This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 13 Jacoby/ But I think between the natural disasters and the applications that came in for I-Jobs, it kind of heightened the awareness of the infrastructure shortfalls that we have in Iowa. Uh, and, you know, without getting political, the problem with politics is it gets too darn political and people say why, but the fact of the matter is, we are where we are and there's a lot of critical infrastructure in Iowa that needs to be addressed, and that's roads and bridges, uh, the fire department is critical, not only to Iowa City, but the fire department you're building is critical to West Branch and Coralville for mutual aid, especially in terms of natural disasters and other fires that go on. So I think it's important for all of us here to make sure that people out in the community know how important these monies are and how...how they affect the whole community. Bailey/ Well, and...and the challenge in these kinds of times is we...we forego the infrastructure improvements or the ongoing sort of projects that need to happen, and we get farther and farther behind, and a state like Iowa where there are really huge infrastructure needs right now, and how are we going to address them? Are we really going to start closing roads in...in counties, you know, our grid is...is pretty substantial. Are we really going to do that, so I don't know what the balancing act is, and I'm glad you guys have to answer that question and not me, but um... Champion/ There are a lot of roads in Iowa. Bailey/ Yeah. Champion/ A lot of roads! Hayek/ Aren't there more miles of roads per capita than anywhere (both talking) Champion/ Yes! I think so! Jacoby/ I think there's...are there literally more miles of road than there are in Texas? (several talking) Texas first? Bailey/ Texas is first, but we're up...we're up near the top. Jacoby/ We're close. Bolkcom/ I bet if you figured, uh, swine in, the per capita thing would go way down (laughter). Bailey/ Well, and I think that closing roads (several talking) yes, I think you'll hear from the Farm Bureau if you talk about closing roads. I was in a... a committee talking about that. Champion/ Although I think Texas has decided they're not building any more roads. The people have to deal with the roads they have. Bailey/ Well, let's talk about alcohol. (several talking) This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 14 Wright/ It wouldn't be, uh... Bailey/ Iowa City. Wright/ Iowa City without some discussion of alcohol issues, although these are issues that really don't just affect Iowa City. Of course the first one, uh, I know you're seen before, talking about the...a state statute to restrict price specials and similar promotions, uh, encouraging excessive consumption. That's not just an issue in Iowa City. That's...it's obviously one that we are quite concerned about, um, and...especially when you have the...the issue of, uh, adjoining jurisdictions. We could pass a similar legislation, or an ordinance here to restrict the price specials, but Coralville might not or...North Liberty might not. There'd be a real advantage to everybody if this were to come down from the state. Something that we've gotten some significant, uh, unfortunately it's not hard evidence. It's more anecdotal, but uh, the examination of business cover charges. We have quite a bit of anecdotal evidence in town that there are huge receipts for cover charges in bars, that are being held out on cash only, no receipt basis probably not being reported. And if this is indeed the case, and we think it is, this is a significant...could be a significant revenue source for the state. Uh, and the last one kind of goes hand-in-hand with our discussion about the cigarette license tax. Uh, increase the fees for beer and uh, liquor licenses, which again have been unchanged for over 20 years, although there are more types of licenses now and more, uh, paperwork to keep up with all of them. Um, the City receives 100% of these fees. It would be very useful. Again, not just to Iowa City, but for other cities across the state, uh, to generate a bit of additional revenue. This is one of those situations where inflation hasn't been accounted for in a licensing process. Bailey/ Going back to the cover charge. I did talk to the State Auditor about that, um, there was a...sort of a conservative estimate by a downtown business owner, um, that...about $6 million annually, potentially, in downtown Iowa City is, you know, acash-only business that's happening by the bars, um, that was based upon a $5.00 cover charge three nights a week and based upon the capacity of...of the downtown bars. The State Auditor indicated that they felt that their measures, um, for cash-only businesses were sufficient, and that they were...they were doing the kind of oversight that was appropriate. So, there wasn't a lot of interest there. Um, insofar as the...the impact on Iowa City, of course, now that we have a local option sales tax that's supporting flood projects, it also affects us as well as state revenues. Wright/ And I should have added too that in general these cover charges are cash-only. There are no register receipts given. There's, uh, there appears to be no tracking. Bailey/ Somebody told me once that sometimes they just put'em in like a...a grocery bag or something as they come in at the door. So...I don't know. Maybe Jeff is more aware (laughter) Shipley/ I haven't seen that! (laughter) This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 15 Wilburn/ We also hear from our, um, partner cities in Metropolitan Coalition, nine of the top ten areas that alcohol related issues are a concern for them, as well, and um, in some ways our border, our state border communities they get, uh, maybe a little anxious or tentative related to the competition they have from, you know, the other sides of the rivers, but uh, the issues still impact them as well. Bolkcom/ How many other cities allow under...under 21 (mumbled) Wilburn/ I missed the... Bolkcom/ How many...how many, uh, major metro... Bailey/ Ames does not. Does Cedar Falls? Wilburn/ (several talking) I don't think so. Yeah, but I'd have to... Dilkes/ I think Cedar Falls used to, but they had so many...so much game playing with it I think they repealed it. Des Moines does not allow 21...under 21 in...in bars. Bailey/ I talked to some people in Des Moines regarding the use of cover charges and they...I mean, it's becoming more frequent in Des Moines, as well, I mean, just generally, not...not specifically toward, you know, if they allow 19-year-olds in the bars or anything like that. Wilburn/ I know Des Moines and Dubuque have had some experiences with, um, alcohol, uh, violence, you know, the areas immediately outside of their...as you're very well aware of (several talking) Bailey/ I think (both talking) Bolkcom/ ... is a difficult bill cause you, okay, so I'm drinking, I leave the bar and then I'm in a parking lot two doors down, is the bar owner really responsible...I mean, we got into quite a debate about...the bill went away, but it sounds like it might come back. Bailey/ It will. Bolkcom/ Regarding the cover charges, I...I just, I saw the stories in the paper about it. I haven't been in touch with the Department of Revenue about what they would recommend. The...the folks obviously in the paper said they're paying taxes on the cover charges. One of the downsides of the budget we're facing is Department of Revenue's probably going to lay off some people that do auditing, that...circumstance like this might be an audit situation where you could kind of get in there and see. There are other businesses that are cash-only. Bailey/ Uh-huh. This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 16 Bolkcom/ Uh, I can think of the Farmers Market, you know, paying money...I don't get a receipt, um, so...how you deal with these in some sort of consistent way, I don't know, but...I'd be happy to make an inquiry to Revenue about... Bailey/ That would be great. Bolkcom/ ...about this, and about the cover charge issue. Champion/ Well, they make so much money on the cover charges that they're...can sell alcohol really, really cheap. Alcohol in Iowa City is usually cheaper than water, than our water anyway! (laughter) Bailey/ And certainly cheaper than bottled water (several talking and laughing) Wright/ But then that does feed right back into the price specials and promotions. Dilkes/ Can I just say one thing about the...the, both the price restrictions and the increases in fees, um, given the Supreme Court's precedence in the Home Rule area, um, our abilities are limited in that respect, um, they've already ruled that we can't increase the liquor license fees. Des Moines tried to do that, um, with respect to the, uh, price specials, in addition to evening the playing field, um, it has to be a criminal sanction for us. It could be done civilly, um, by the Alcoholic Beverages Division in your, um, in Chapter 123 would make that much easier and the precision you need for a criminal sanction. In addition as we've seen with, um, the challenges we're getting to our PAULA rate for the renewal of liquor licenses, I mean, one of the big challenges we're getting on that is a Home Rule challenge that we don't have the authority to do that, um, so those kinds of issues would go away if it was done at the State level. Dvorsky/ That brings up a question that I would think a lot of this should probably go through the Alcoholic Beverages Commission. You actually have somebody from our city who sits on that (several talking) but you...so it might be helpful to just bring those up, uh, they had a meeting the other day in my district in Swisher because they talked about a, uh, a person that wants to be able to, uh, make brandy (mumbled) right on site and sell it there, which you can't do now, and the Chambers been working on that for years, so...there's a lot of issues out there and, uh, I think they'd be...it'd be good if we had a recommendation from (mumbled) or a neutral body, instead of, you know, Iowa City's slightly self-serving to come up with yours, but somebody from a neutral position like that would be very helpful, I think. So you might want to talk about that and get a hold of Mr. Walding there and see what... Bailey/ I'm having lunch with him in a couple weeks. Dilkes/ I think the price special...the price restrictions or the specials' restrictions have been suggested to the ABD on a number of occasions. This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 17 Bailey/ And I know that Jim has brought the concern about cover charges to the ABD as well. So...Jim Clinton. So...okay? Ross, did you have any... Wilburn/ Um, the...last...the last item really reflects, um, support with our partner cities through the League and as well as the Metropolitan Coalition. I will, uh, refer to my earlier comments though in terms of those revenue alternatives. Uh, that's an issue that consistently comes up amongst the, um, for us and for the other cities, um, linking that to the disaster recovery, um, the, um, assistance and support related to the sales tax and being able to direct that to flood recovery was very, uh, very helpful for us, so we, you know, thank you for your work on that. Um, and I think you brought up too the infrastructure needs, uh, again, this is more of just kind of a blanket issue, but a lot of them do come down to that mix of... of where the money comes from and what are the appropriate services, and we're, um, I guess, uh, again, until that larger debate, discussion happens at the state level, um, the ability for cities to, um, have that, uh, plate of alternatives to have the conversations in the communities about what is acceptable for our community is very helpful and valuable for us, and uh, and Joe, the issue you brought up in terms of, you know, revenue and being able to, you know, that's a clear example of, um, you know, the um, the services have to be paid for, and if... if the... if the tax, if that goes away, if the revenue for that particular item goes away, then we are doing without a service, and it's our responsibility to work with the public, try to make sure they're aware of what it is they're both giving up, but also getting for their tax dollar, but, um...but otherwise if there's any suggestions that you all have, uh, guidance that you can give to us in terms of, um, any of these items on here, which are key (mumbled) talked to, yeah, uh- huh. Dvorsky/ I guess I need a clarification. I believe last year we passed allowing cities to raise the franchise fee, and we also did the flood related sales tax. Can you identify when is the last time we did any alternative revenue for cities before that? Champion/ The local option sales tax. Dvorsky/ Well, all I'm saying is, this is the first time in probably 15 or 20 years we've done something, so we are moving in the right direction (several talking) and you know would be good to sort of encourage us to do that. We can't get everything at once, but that's very incremental, you know... Wilburn/ Yeah, well, I... Dvorsky/ Maybe thank us for what we've done, and then kind of move forward.. . Champion/ We love you for what you've done! Dvorsky/ ... (mumbled) this is the first time in 15 or 20 years we've done something. Wilburn/ Right. And if I indicated that in my comments I apologize for (both talking) This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 18 Dvorsky/ No, but I mean people need to focus on what's, you know, what's being done and how significant maybe that was. That hasn't been done in 15 or 20 years. That's fairly significant! Wilburn/ Right. Dvorsky/Now we have it open, now we can start talking about things and doing things. Wilburn/ And that's great, and I hope that my comments earlier...I thought that I had alluded to thanking you... Dvorsky/ But I mean, that is important (both talking) Wilburn/ Oh sure, absolutely. Dvorsky/ ...always bring up in Des Moines is you're not going to raise any sales or... or income tax. When's the last time we did that? That's another 15 or (several talking) Jacoby/ I'm with you on that one, Mary! Mascher/ Thank you (laughter and several talking) Dvorsky/ ..last time we raised income tax, you know, the last time we actually addressed income tax we lowered it, so...you know (both talking) Bailey/ And that's one of the reasons we did mention hotel/motel tax because it is an alternative revenue, and it is enabling legislation, and it was our thought that that might be something that, I'm not saying more palatable, but I mean, it requires a discussion among cities. Mascher/ ...franchise fee was that too. Bailey/ Right (several talking) Mascher/ ...able to raise that...was also... Bailey/ Yeah. Wilburn/ And we're having that discussion here in Iowa City now, and it was, you know, that enabled us to start that conversation here, and um, we'll see where we end up with...with that, but... Bailey/ One of the questions that I've gotten about, um, the state budget cuts is...is you know the impact to our community and I just did want to note for you all so you had this dollar amount. The homestead tax credit reimbursement, um, those cuts will cost us about $36,000 so if...if that comes up, I just wanted to make sure you had that number. And This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 19 then...like I said at the beginning, we know that the session will be shorter. We know that it will be challenging. We know that you've got a lot of, well, it's...it's just going to be really tough, but we'd be really interested in hearing what you anticipate from the session, what may be some of the things that you'll be working on, um, and how we can help you in your work, as we're back here in Des Moines and those sorts of things, if you care to address that, that would be very helpful for us. You want to start, Senator Bolkcom? Bolkcom/ I'd be happy to start. Um, well, it's going to be...you know, we're...we're...we're in kind of unchartered territory. We've seen about a half a billion dollar revenue decline in the last seven months. We'll get another number next week. I don't expect it to go up. It may go down. Um, we've got about a billion dollar, uh, gap, about a...20% of the State budget is...would equal about a billion dollars. Um, so I think it's going to be challenging. I mean, I...there's really no discussion...we've talked almost everything we've talked about here was new revenue, uh, and there's not going to probably be any new revenue, uh, to the State, um, I think Iowans expect us to try and figure this out without new revenue at this point. Um, I do think we run the risk of making some significant cuts to things that we've made historic investments in over the last...number of decades, whether it's education and healthcare or public safety. So I think that...I think we're...you know, we tend to muddle through. We will do that here, but I think members probably...I don't think we have a full sense of how hard it's going to be at this point, um, last year we held steady, the stimulus money really helped, uh...like many states, um, and whether there'll be some federal stimulus money, I think there's some belief that there might be some Medicaid money coming, um, and I think...I think other states are interested in another round, um, I'm going to be working in... on the area, in the tax policy area on the tax credit issue. In the last six years, uh, tax credits have increased 350%, uh, and I think it's...don't have much of a process in place to evaluate whether we're getting our money's worth for about $400 million worth of state spending, so I'm going to be working on...on a set of ideas around that, just uh, to make sure we're getting our money's worth, especially now when job creation is so important. Um, and uh, just trying to get through the session. Mascher/ And I'm really focused on the government reorg, um, Senator Appel and I have been the co-chairs of that and um, we've been meeting on a regular basis since session was out, and uh, meeting with all different kinds of state agencies, uh, both private and public, uh, entities in terms of getting input, um, there are probably about, I think 500 pages of suggestions that have come into our web site, and we've been very judicious about reading them and paying attention to what, um, the people are saying, and what do they want government to pay for, um, we're reevaluating programs. There will be program elimination. There will be, um, boards and commissions eliminated. Um, there will be, uh, a lot of scrutiny in terms of what we are doing internally, within State government, um, in all of our agencies, in terms of purchasing and, um, our technology efforts. So uh we're looking for ways to find savings there, um, but also recognizing that we just can't afford to keep doing everything we're doing, so I look at this as an opportunity for us to make some changes, um, that would be difficult in other times, that this is an opportunity for us to say, um, we just can't do this anymore, or these programs were pilots...I think This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 20 there are over 200 pilot programs that have been started in State government that have never gone statewide, either because they weren't programs that we thought should go statewide. They worked in one area, but maybe not, um, everywhere else, or we just never had the money then to take them statewide, and we've talked about the fact that we can't just keep doing that, creating pilots and then not acting on them. So we talked about sunsetting some programs and um, maybe that that is one of the efforts that we need to be looking at is, um, sunsetting programs after five years and then determining whether they need to be, uh, initiated or taken statewide, or um, is this something we really and truly shouldn't (mumbled) doing, so...um, I think there's going to be a real examination of what we are doing. It's amulti-year approach. We know this isn't going to be done in one year. Um, we recognize that it's going to take a number of years to be able to implement some of these, uh, procedures and putting things in place just as simple as, if we create a border commission, is there really not an existing border commission that could do that job, and why do we really need to create a new one, um, we need to be much more careful about how we go about that. Um, there are 12 different boards and commissions that deal with early childhood. Five different boards or commissions that deal with, um, disability groups, I mean, I could go on in terms of explaining the duplication that exists in state government, and I can even explain why each of those occurred, but again, it doesn't make a lot of sense for us to continue that, and uh, we want to put things in place that are really and truly going to address ongoing, um, reorganization, not just a fix this year, but uh, we'll put things in place that really and truly will have an impact (mumbled) Bailey/ Thank you. Mascher/ So that's what I'm focused on! Bailey/ Yeah! Senator Dvorsky. Dvorsky/ Uh, obviously I'll be focused on the State budget, trying to get out of Des Moines alive, and (laughter) I really do think that, uh, we're going to...one, we're going to be focused mainly on probably K-12 education, because that's really going to be the key to dealing with the budget, figure out some way to deal with that, so that's...that's probably going to be the crux of the State budget that's (mumbled) I'm... semi-optimistic about the REC meeting next... Jacoby/ This Friday, isn't it? Dvorsky/ Yeah, this Friday the 11th, so uh...yeah, I think, well, they're less down (laughter) so that's (several talking and laughing) Jacoby/ They're more better? (laughter) Dvorsky/ ...Michael Leppman was talking about some indications (mumbled) Department of Revenue, that there's some small indications there, so hopefully we can go with that. Uh, also going to work... continue on the Rebuild Iowa Committee. There's still lots of This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 21 flooding situations (mumbled) I think there will be another attempt to do something with I-Jobs. I...I think there's still some money, uh, available that, uh, they...they, uh, bonding situation we did with I-Jobs, uh, Treasurer, uh, Mike Fitzgerald's actually up for a national aware on how that was handled. So I think that, uh, we might, uh, we didn't use much funds from (mumbled) we thought... anticipated using, some little amount there to maybe (mumbled) probably not $118 million, but second round. And it is a Senate piece of the Governor's so that's (mumbled) those two items should keep me busy, uh, in Des Moines, but thank you for all your input and...and coming to Des Moines. That's always important. It's also important to know, I mean, the League of Cities really does a nice job representing us in Des Moines, right, David? Jacoby/ Yes they do! Dvorsky/ Otherwise they'll let us know...but they do a nice job representing you in Des Moines, but it's also useful to know locally, you know, exactly how some... some of the ideas they came up with, uh, affect you so that's important, so...thank you. Bailey/ Thank you. Representative Jacoby. Jacoby/ I...I think the theme, you know, for the...will be the economy and there'll be consolidation, streamlining, and at the same time, improving services. So everything we do will take a look at those three criteria and hopefully we're meeting all three. If not, two out of three. One thing that comes to mind when we're talking earlier about, uh, about uh...the fees for...for, uh, tobacco tax and liquor licenses. One thing I've heard, and people have already talked about, we have our web site that we're getting a lot of input. Part of the problem I see, and I'm sure as a small business owner you see it too, part of the problem is paying the fee. And...why should I have to pay more, but I know the flip side is, is taking the two hours to fill out the darn forms to pay the fee. So, and then you have multiple fees. So I think what we need to do is have a little responsibility toward the businesses or people filling out the paperwork, that we're already asking to pay the fee, if we can consolidate that or streamline that paperwork, somehow make it a one-stop, somehow do it once, so you're not spending hours on end filling out the forms. I mean, I just know personally from the little shop we have in Cedar Rapids that it's one thing to write the check for $35.00, and if the fee is $40.00, I'm not going to be happy. The other thing is spending the two and a half hours filling out the paperwork to write the check. To get... so, uh, no one wants the higher fees. I don't want to see 'em either, but if...if...we're looking at things we have to make it fair and make sure we try to streamline that a bit. Champion/ I just want to bring up something, um, not related to Iowa City, but when you...when you talk about making budget cuts, and I know you're going to be dealing with a lot of different stresses with money in the State, but for instance...the...the furloughs for the judges, I mean, that just passes on more expense to the County. It keeps people in jail longer, uh, add costs; also they're not at work if they're in jail. I mean, I think some of these cuts are really critical to a lot of individuals that might (mumbled) out of jail at our drug court the next morning, instead of being there for two or three days, uh, but I think This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 22 that was a bad decision. I would like to see something else done than cutting court time down. We're already short of judges anyway. (several talking) Dvorsky/ ...they are in discussions by the way (mumbled) about that. Champion/ Good! I just bring it up because I've been on the jail task force, I don't know, longer than I've been alive I think, and uh, it's really, you know, we're feeling it in our jails and (mumbled) keeping people in there longer than they need to be. It's terrible! Mascher/ Can I ask a question? Do you know if the City participates in the State purchasing agreement? Bailey/ I did ask Dale about that, and he can speak to that. Helling/ We do, um, in a number of different cases. For instance, an example is the, uh, contract for purchase of police vehicles. We don't always buy through that, but that is an option that we have, and we can compare that against our bids, um, that we can get locally, because we also have the 'buy local' issues that we...we try to work with too. Mascher/ And that's what I was hoping was that if you didn't participate in that that you were able to get (mumbled) from your local vendors if it's a'buy local' issue because, um, I think we need to be very judicious about all of our (mumbled) Helling/ Yeah. Mascher/ And...and if the locals can't, you know, compete then you deal with that accordingly. And I think it's important that, um, we let the taxpayers know that we're paying attention to that, both at the City, County, and State and School District level, as well. Helling/ Of course we can't, you know, everything isn't available through State contracts, or even through the...the, and I can't remember the name of it, but the national...some of the (mumbled) co-ops for lack of a better word, that we also have access to, um, so it's always a balance between that and trying to...to purchase locally, as well. Um, but where...where it's available we certainly take that into account in terms of the prices when we're doing our... for those things where we have some flexibility. Uh, certainly with the major public improvements and that we have the low-bid requirements and, uh, so we don't have any options there, but we do, yeah, we look at...we use that as one measure in terms of how cheaply we can, uh, we can purchase certain commodities or services in some instances, as well. Bailey/ Eleanor? Dilkes/ I...I think the State statute requires that we, uh, provide a local preference for commodities and services, all else being equal. So, but it's that all else being equal, I mean, I don't think we could do that if we, you know, had a better price outside the (mumbled) This represents only a reasonably accurate transcription of the December 7, 2009, City Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 23 Champion/ On the other hand, spending money locally in the region, so to speak, also guarantees job retention and lots of other reasons to buy locally. I mean, obviously you're not going to pay $2,000 more for a car, but I think it's really important to keep in mind that money spent locally keeps local jobs here, and I...I feel very strong about that. Bailey/ Anything else? Well, once again we thank you for your service to the people of Iowa City and to the people of the State, and um, if you need to have information or need our support, you know where to find us. And we know where to find you! So...(several talking) more importantly. So, thank you, and thanks for meeting with us tonight. We really appreciate you taking the time. (several talking) Yeah! Let's just hope that at least you have decent weather traveling back and forth. There's something, even though it's going to be tough. So... Mascher/ You know, I often think that people forget, and Bob reminds me of this (mumbled) we're one of the second best states in the nation in terms of our budget management, and...and people forget that. I mean, I...I recognize that we have our challenges and obviously we're going to be making some difficult decisions this year, but we are so much better off. Bailey/ We're not California! Mascher/ ...than 48 other states! Wright/ Well, Wisconsin! Mascher/ And... and I think (several talking) reminded about that, um, in light of the fact that sometimes we focus on, I think that's just Iowans, um, we focus on the negative, but the positive is that we have managed our fiscal house and will continue to do so. Champion/ ... do with our size too though, I mean, we all know our local legislators. That doesn't happen in a lot of...in a lot of states, and...and people in Iowa are keeping their eyes on you. I don't mean you specifically, but there is a lot of control by knowing your legislators and...and people knowing what's going on. Bolkcom/ I think the other thing that's unspoken...Regenia and I were at a meeting (mumbled) since 1998 we've cut taxes by a billion dollars a year so this year, based on probably about 50 different tax changes, the biggest being the 10% reduction (mumbled) um, so we have a billion dollars less in revenue, um, than...than we had. We are one of a few states over the last decade that has not raised any taxes, I mean, between 2002-2004, the last time we had a recession most states raised taxes. This year 30 states have raised taxes in response to the downturn. We've not...the State of Iowa, we have not done that. I think that... so, what most people think 'gosh I'm paying too much in taxes; I'm really not'...we've seen the situation where we've been able to improve education, improve health care, every kid has access, uh, we've (mumbled) moved on (mumbled) with no new revenue. We've gotten some growth revenue, uh, it's actually more extraordinary This represents only a reasonably accurate transcription of the llecember ~~, Luvy, t,iry Council of Iowa City Meeting with Area Legislators. December 7, 2009 Minutes of City Council Meeting With Legislators Page 24 than just, we've got...we've managed well, but we've done it as we've cut taxes, improved services. I think we're manning our new environment now where there's revenue decline is going to get into the bone in certain areas (mumbled) as we look at the efficiencies and (mumbled) we're going to find some things to save money, but we may turn around at some point in the next year or two and have this revenue conversation, uh, we've made substantial investments (mumbled) in my judgment the revenues...well, we might see some dedication here, we're not going to have $5 or $600 million more dollars in the State budget, uh, in the next (mumbled) hard to tell a 4th grader just hang on a little longer, uh, or we'll cut your teacher. So I think we've got some tough decisions that way, but in thinking about the revenue (mumbled) Champion/ Why do people object to, I mean, I don't...this is just a personal comment. I never (mumbled) my state taxes. (several talking) I never mind paying State taxes, especially when (several talking) you could raise them and I (mumbled) Bailey/ Well, thank you so much. If you have any (several talking) really appreciate your time here, and the time that you spend taking care of us, really. Thanks! Karr/ Madame Mayor, did you wish to recess the work session, or, and start the formal, or do you want to talk about the schedule before you start the formal? Bailey/ Um, I would like to take a break of the work session and then we can talk about the schedule (mumbled) (break) Let's do scheduling issues. Discussion of Meeting Schedule Karr/ You have a memo, uh, that was, uh, prepared by me this afternoon. I talked to each of you individually. There is a... it's necessary to revisit the meeting schedule for the first week in January, and that would be what we tentatively had set aside as the organizational meeting, the overview on the budget, and the CIPs. It was originally intended or thought to be the 5th and 6th. After talking to each of you, um, I'm recommending for the purposes of discussion this evening the January 2nd for the organizational meeting, cancelling or moving the 5th and 6th, and the special budget session for the CIPs and the budget overview, and Council committee appointments on the 8th. Um...if that is...what that represents is a majority, uh, a summation of a majority of your decision, or discussions, today. I certainly am not wedded to this. Just let me know. Bailey/ (mumbled) for people? (several responding) Okay. All right. You have a schedule. Karr/ I'll revise it and get it out in the, um, on the Internet and get everything in the packet Thursday then as well. Bailey/ Thank you, Marian. I know it was a lot of work. Okay, should we move right into the special formal? All right. This represents only a reasonably accurate transcription of the lvecemner i, wvy, ~,i~y Council of Iowa City Meeting with Area Legislators.