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Home My WebLink About2009-12-07 CorrespondenceIowa City City Council 2010 Legislative Priorities 1. Tax non-owner occupied condominiums as commercial properties. 2. Hotel/Motel Tax increase maximum tax option from 7% to 9%. IF the state were to agree to allow the cap to be raised from 7% to 9% and IF Iowa City/Coralville were to ask the community to increase from 7%-9%, here is an estimate of what the additional revenue would be based upon the most recent reporting year (FY09). Iowa City FY09 Hotel Sales $10,747,485 7% Tax 752, 324 9% Tax $967,273 Variance $214,941 The year-to-date ADR (average daily rate) for all Iowa City/Coralville/North Liberty hotels is $80.99. At that rate, current hotel/motel tax would be $5.66. At 9%, it would be $7.28-an increase of $1.62 per guest. Timeline • IF state were to increase to 9%, the ability for city's to increase their tax wouldn't go into effect until July 1, 2010. The earliest a city could put this on the ballot would be November of 2010 which, if it passed would mean that collections at 9% would start on January 1, 2011. Hotel/motel tax revenue is collected quarterly. Jan-Mar 2011 collections would be returned to the city in June 2011 catching the very tail end of FY11. Any significant impact of moving to 9% would be noticed in FY12. 3. Tax Increment Financing no changes or further restrictions Iowa City: • 2006/2007-approximately $78 million in value of increments-value of increments is $1,250 per capita. • 10 areas/districts-8 TIF districts and 2 property tax exemption areas. • Less than 5% of Iowa City's property value is `TIF-ed.' • Just under 13% of TIFs in Johnson County are in Iowa City. 4. Increase fees for cigarette licenses. • These are at $100 and have not increased in over 20 years. 5. Municipal Fire and Police Retirement System work with Iowa League of Cities to contain future cost to employers under this system. Currently, this is at 19.9% (was at 17% floor last year). We estimate that a 5% increase would cost approximately $450,000. 6. Funding support for Passenger Rail initiatives: a. Commuter Rail • There continues to be interest in the CRANDIC line from Iowa City to River Landing and then to the University Research Park. b. Extension of AMTRAK to Iowa City from the Quad Cities • Projected annual ridership in the AMTRAK study looks very favorable-from around 44,000 riders at the current speed to around 76,000 at 79 m.p.h. • The State continues to be optimistic about the Illinois portion of this being completed (the Wyanet connection) and the continuation of this to Iowa City. • The $3 million to IDOT in last year's budget-used for Federal Rail Administration (FRA) applications and anticipated match for Iowa projects. (80/20) 7. IJOBS support another round of funding of at least the same amount as last session $118.5 million. • Iowa City received $2,268,867 for Fire Station #4 and received $3,495,293 for the North Wastewater Treatment Plant and has had a $6,504,708 grant deferred until more funds become available-either through other projects falling off the list or additional funding. 8. Alcoholic beverages a. State statute to restrict price specials and related promotions that encourage excessive consumption. • State mandated price special restrictions eliminate the adjoining jurisdiction competition, the exception being border cities. b. State examination of the cash only business of cover charges. • In a conservative estimate by one downtown business owner, cover charges in downtown Iowa City may bring in just under $b million annually (based upon a $5 cover charge, 3 nights a week). In general, cover charges are collected in cash with no cash register present and no recording made. c. Increase fees for liquor and beer licenses. • Fees have remained unchanged for over 20 years, although there are more types of licenses. The City receives 100% of a beer license fees and a percentage of the fees from other types of licenses. 9. The City supports the legislative priorities set forth by the Iowa League of Cities for the 2010 legislative session. • City Revenue Options and Property Taxes: more diverse local funding options by creating alternative sources; lessen dependence on property taxes. • Economic Development Initiatives: fund and support ED programs (like TIF) • City Infrastructure: TIME -21 funding [Emphasize Road Use Tax fund erosion]; address City drinking water, wastewater, and storm water infrastructure needs. • Pensions: Insure integrity and long term sustainability of public employee retirement systems. • Disaster Rebuilding and Recovery: Continue to support recovery policies and rebuilding and future mitigation initiatives. In addition: State budget cuts resulting in cuts to the Homestead Tax Credit reimbursement will cost Iowa City about $36,000. r Yr,,.p~r~ CITY 4F iC)WR CITY ~E~ORA -~ DATE: December 7, 2009 TO: Mayor and City Council FROM: Marian K. Karr, City Clerk RE: PROPOSED Meeting Schedule for first week of January It is necessary to re-visit the meeting schedule for the first week in January. After discussing the matter with each of you individually today I am recommending the following change: January 2 -Saturday Special formal Organizational* meeting (election of Mayor & Mayor Pro tem), 8:30 AM January 5 -Tuesday No meeting January 6 -Wednesday No meeting January 8 -Friday Special BUDGET work session (CIP's) & BUDGET overview, 8:00 AM - 5:00 PM Special formal (City Council Committee appointments) Remaining schedule remains unchanged. U:schedule -revised 1209 (January)