It has taken nearly eight months, since the Flood of 2008 rolled through the City of Cedar Rapids, but a Rebuild Iowa Office has opened a satellite location here in Cedar Rapids. For more information on recovery in the Corridor... the following web site has been set up since the early days of recovery.
Information on the 1% LOST, local option sales tax vote for March 3, 2009.
The City of Cedar Rapids Budget in 2006 was $292 million. Today, the city budget stands at $351.7 million.
From the sounds of it, city water rates will increase 14% and property taxes will raise six to ten percent, depending on whether it is commercial, industrial or residential property. The new 1% local option tax could raise the budget as much as $18 million per year. Plus, a six to ten percent increase in property taxes, which account currently for 24.1% of the $351.7 million budget, could likely add another $5 to 6 million?
It looks like the $292 million city budget before the vote to change the Cedar Rapids form of government in 2005 has gone from $292 million to a future budget of roughly $375 million, in less than four years into the new form of government?
The City of Cedar Rapids have a long recovery ahead, as The Gazette article on July 12, 2008 predicted, one month after the June 2008 flood. Our City Manager pointed out recently...
“So far, the City of Cedar Rapids has only received $38 million in Community
Development Block Grant funds. In comparison, ten years ago the City of
Grand
Forks, ND received $135 million from the federal government within 90
days of
its devastating flood,” - Mr. James Prosser, City Manager
Cedar Rapids was and needs again to be an economic engine in the State of Iowa. With a $5 to $6 billion now being communicated, the early projections appear to be vastly understated from today's figures being discussed within the community. This link talked about $1 billion for Cedar Rapids. It appears early numbers may have hurt our community, as compared to other cities that received aid in the past.
Further, unlike back in April 1997, when the Grand Forks was devastated by a flood, the City of Cedar Rapids faces road blocks in Washington D.C. and with the current economy. Further, leadership needs to come from somewhere.
Regardless of the Flood of 2008, efforts by our City Manager and City Council were in place to find ways to increase revenue for the City of Cedar Rapids. Lobbying efforts were in full gear as the City of Cedar Rapids celebrated the "Year of the River" in 2008.
The Solution likely isn't in new taxes. But, like the advise that Ed Failor, Jr. President of Iowans for Tax Relief gave to State of Iowa and our Governor: "The problem is out-of-control government spending and budgets."
What if Cedar Rapids took the current budget and cut out-of control government spending and took the savings and put it into Flood mitigation and infrastructure priorities?
"We know from experience that when you raise taxes during an economic
downturn, you hurt the economy," - Steve
Forbes
"Raising taxes — we tried that in the Great Depression.
We tried
that in the 1970s. We tried that in the 1990s. I don't know why we
have
to run
this bad movie again." - Forbes
We currently have a $351.7 million budget. The solution for the near future is better priorities and cuts in wasteful programs. Not more taxes. If we don't maintain our economic engine in Cedar Rapids, we may end up even worse off than we are now.
Further, Iowa's Tax System isn't outstanding. Instead of overhauling the system, our State Legislature is looking to expand tax options for cities and counties. We need to find ways to encourage growth in Cedar Rapids, not discourage it.
Per the Chamber of Commerce release today:
The 1% local option sales tax is not for flood mitigation infrastructure, but...
"The ballot language states that 90% of the tax will fund the acquisition andThe original discussion reported last week was as follows: "the draft language calls on the revenue raised by the tax to be used in Cedar Rapids in two ways: 20 percent of the revenue would be used for property-tax relief; and 80 percent would be used for flood protection and for the acquisition and rehabilitation of flood-damaged housing," according to The Gazette's Rick Smith and comments from the Mayor.
rehabilitation of damaged homes, as well as, support relief efforts toward
damages caused by the 2008 Cedar River flood. While 10% of the funding will be
used to offset the property tax burden."
peace
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