Happy New Year: 2011 will be an important year for Cedar Rapids, Iowa USA

Happy New Year to all ...

The past three years have been like no other for many in the City of Cedar Rapids

• Flood of 2008


• Recession of 2009


• Change over in the City Manager position of 2010

What will come in the New Year? 2011 has arrived and there will be many questions ahead.

How will the City of Cedar Rapids handle the review of the Home Rule Charter in 2011? Will applications be taken and will they expand the number of people who serve on the Home Rule Charter Review Commission?

Right now, the City plans nine members to review the Home Rule Charter. Early thoughts were for each member of the City Council, including the Mayor, suggesting a name, with the five districts representatives picking a person from their district. In the past, applications, like other boards and commissions, were requested and names were selected from the applications received. The past two charter commissions for the City of Cedar Rapids each had 15 members.

Wow, is this what we expected, when 69% of the voters selected the Council-Manager form of government in 2005?

In February 2011, we will see the Five Seasons Hotel close. Work will formally begin on the Convention Center and U.S. Cellular Center project. The City Council has purchased the hotel, so they can include it in the redevelopment project. When the Five Seasons Center (U.S. Cellular Center) was built, the hotel was built together. Infrastructure was shared. The land has always been the City's, but the hotel and air rights have been private.

What will happen with Flood Mitigation in 2011? Will Cedar Rapids get construction started to protect Downtown, as reinvestment continues there? Will the West Side be protected as well?

In November 2011, our City will have an election of one at-large council member and the district representatives for District 2 (non-downtown/east side district) and District 4 (mainly NW side district).

Some stories to follow in the City of Cedar Rapids as we head into 2011 ...

Branstad sets focus on jobs, economy - The Gazette

VIDEO: Greene Square Park building demolished - The Gazette
Demolition on the Cedar Rapids' park building in Greene Square Park is wrapping up this morning (Dec. 31). The building was used by the Green Square ...

Commission to review Cedar Rapids’ charter, form of government - The Gazette
CEDAR RAPIDS — Is nine the best number of members for the City Council? Should the mayor be a full-timer? Can you imagine a return to five, full-time council members who also manage city departments? Those are apt to be some of the topics discussed by the Charter Review Commission, which the City Council Tuesday ...

Cedar Rapids mayor reflects on his first year in office - The Gazette
One of the great City Hall dust-ups in the decade before the Flood of 2008 centered on a city handout to help replace a tiny, aged grocery with a shiny, specially designed, neighborhood store in a highly visible spot in the 1500 block of busy First Avenue NE. It took years of back and forth ...

Council hires second lobbying firm to secure funding for flood-protection - The Gazette

Council takes steps toward flood-protection system - The Gazette

Branstad says taxes, regulations blocking Iowa job creation - The Gazette
Commercial property tax and regulatory relief are needed for the state’s private sector to create more jobs, according to Governor-elect Terry Branstad. Speaking to a capacity crowd at the Marion Public Library Tuesday, Branstad said commercial property taxes need to be lowered to encourage business expansion and attract new enterprises to Iowa, but not at ...

Hall-Perrine Foundation gives $3 million for new Cedar Rapids library - The Gazette
The Hall-Perrine Foundation of Cedar Rapids has announced yet another award for a city building project. This time, the foundation is giving $3 million to the Cedar Rapids Public Library Foundation, an amount which equals about half of the foundation’s fundraising goal for the city’s $45-million library project. The library foundation already has about $1 ...

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City Council in Cedar Rapids leaning to appoint interim City Manger

The transition from the Commission to the Council-Manager form of government has not been smooth for the City of Cedar Rapids. Especially, with the first two city councils and with the hiring of the first city manager for the City of Cedar Rapids. The City Manger resigned this spring. Now, news out of City Hall has a new development coming forward, within our community.

City Council May Hire Interim City Manager on Tuesday, May 25Th

Possible Interim City Manager - City of Cedar Rapids
The City Council will consider hiring an interim city manager during tomorrow night's meeting ...

Various News agencies are reporting ...

Cedar Rapids to hire Thoms as interim city manager - The Gazette
City set to hire Allan Thoms, who held key posts in state government, as interim city manager ...
Cedar Rapids to Hire Interim City Manager‎ - KCRG
Former Dubuque mayor to be hired as interim city manager in Cedar Rapids - Dubuque Telegraph Herald
AP Cedar Rapids is planning to hire former Dubuque mayor Alan Thoms as the city's interim city manager. Mayor Ron Corbett said Monday that Allan Thoms ...

The City of Marion hired a former mayor of Cedar Rapids to serve as City Manager in the past. Now, the former mayor of Dubuque is likely in line to serve the City of Cedar Rapids as interim City Manager.

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Final Weekend before Tuesday's Municipal Election in Cedar Rapids

Cedar Rapids mayoral candidates debate city manager’s merits - The Gazette
Posted on Oct 30, 2009 by Rick Smith.

• We would suggest that Mr. Jim Prosser's being named the state’s “City Manager of the Year” a year ago was due to his lobbying efforts on behalf of Cedar Rapids and all municipal governments throughout the State.

BizPac Endorses Cedar Rapids City Council Candidates - KCRG-TV
By Rick Smith, Reporter

• Don't forget to Vote on Tuesday, November 3, 2009 in Cedar Rapids
• A run-off election will be held on December 1, 2009, if necessary

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What's local in Cedar Rapids: the Good, the Bad and the Ugly

Cedar Rapids airport commissioners go green with netbook computers - The Gazette
The Eastern Iowa Airport is using technology to replace reams of paper, the latest in a series of green moves. ...

Sorry, but how are accrued property tax calculations considered quirky? The system hasn't changed over, forever ...

Cedar Rapids leaders: We were wrong on tax abatement period - The Gazette
We got it wrong.
That was the message out of City Hall on Thursday after city officials acknowledged that a council decision this week to recommend a partial abatement of property taxes for flood victims was premised on a faulty understanding of a quirky basic of local government — property taxes. ...

A look back at August 2006, when our first City Manager arrived in Cedar Rapids.

"I'm not coming in here to run the show. I play a role. My role isn't more
important than anyone else in this organization." - City Manager Jim Prosser

Jim Prosser's Plan for Cedar Rapids KCRG-TV9 Cedar Rapids, Iowa ... - KCRG
CEDAR RAPIDS -- Jim Prosser is now Cedar Rapids first City Manager. ...

It would be interesting to poll how people look at the City Manager's role in the City of Cedar Rapids today or even before the Flood of 2008.

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Where's the Oversight on the 1% Local Option Sales Tax for Cedar Rapids?

Re: The March 3, 2009 Sales Tax Vote for the City of Cedar Rapids.

Today, we received the following cover letter ahead of a short one question e-mail survey on the 1% local option sales tax (LOST) for the City of Cedar Rapids from the Cedar Rapids Small Business Recovery Group.

The Cedar Rapids Small Business Recovery Group would like to take a
straw poll of flood affected businesses to gauge where the flood affected small
business community is on the Local Option Sales Tax issue:

Framework of the sales tax:

Rate of Tax: 1% Sunset Period: 5 years and 3 months (4/1/09-6/30/14)

Oversight Committee: A citizens committee will be formed to decide the
funding priorities and options for the money raised

Ballot Language: For the City of Cedar Rapids: 10% for Property Tax
Relief; and The specific purposes for which the revenues shall otherwise be
expended are: 90% for the acquisition and rehabilitation of flood damaged
housing caused by the flooding of 2008, and matching funds for federal flood
dollars to assist with flood recovery or flood protection.

We have supported the need for discussion of a 1% local option sales tax, ever since the change in the form of government. Property tax relief and infrastructure repairs and replacement were certainly needed prior to the Flood of 2008. The State of Iowa and the City of Cedar Rapids have an over reliance on property taxes. Right now, the City Manager and City Staff are recommending a 14.7% increase on property taxes for next year's budge. The City Council disagrees at this point on such a high increase.

But, here are our real problems with the 1% local option sales tax:

1. Ten percent isn't significant property tax relief for the City of Cedar Rapids, especially after 20 percent was discussed by our Mayor.
2. The Tax isn't defined as the Small Business Recovery Group's survey pointed out: "A citizens committee will be formed to decide the funding priorities and options for the money raised"
3. So, who is going to oversee the oversight committee?
4. We are concerned about inequities in the tax as it is defined on the ballot.

The local school SILO tax was specifically spelled out and there was a clear oversight committee to review the performance of the tax that it was going to the items laid out in the ballot language. Of course, the State of Iowa has decided to strip the local school tax and take it statewide permanently.

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Is Washington going the right direction on Stimulus?

The Thursday, February 5, 2009 edition of The Washington Times features a story, Obama prods senators on stimulus.

It's interesting to see other cities wanting stimulus, while Cedar Rapids waits for Federal aid due to the Flood of 2008, reflecting on our City Manager's comments regarding the first 90 days for Grand Forks compared to relief received for Cedar Rapids.

The size of the House plan and the pork elements in the plan give cause for concern in the Heartland? For more on economic reform read the Public Interest Institute Brief: Ryan's roadmap.

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Freedom of Information Act: City of Cedar Rapids

KGAN-TV has reported that they are taking the City of Cedar Rapids to court, under the Freedom of Information Act, requesting copies of City Council members e-mails dating back to the day just before the Flood of 2008.

It will be interesting to see how this story plays out. An Iowa City newspaper used a similar approach to get information from the University of Iowa during the resent high profile sexual assault case involving Iowa Football athletes with another female athlete.

Iowa Open Meetings Act and the Freedom of Information Act are two very important public policy issues locally and through out the State of Iowa.

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Iowa needs to eliminate it's over reliance on Property Taxes

How many studies will it take, until we can finally see Tax Reform in the State of Iowa?

Impact Fees appear to be a topic on the horizon...

Will the Flood of 2008, ironically get the movement towards Impact Fees out ahead of Tax Reform in Iowa?

The subject has been popular the past 12 months with Cedar Rapids' City Manger. Will the subject be pushed forward with a special session of the Iowa Legislature this fall?

Will the State of Iowa eliminate it's over reliance on Property Taxes anytime soon? Will the impact of the Flood of 2008 open the door to new taxes and fees for local municipalities?

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The New Face for the push of Impact Fees for the State of Iowa?

We saw the topic of Impact Fees for the State of Iowa crop up in Des Moines earlier this year from a messenger from the City of Cedar Rapids back during the 2008 Legislature Session.

How much will lobbying impact advisory boards suggestions for solutions on the impact of the Floods of 2008?

Andy Peterson's blog at WMT600 commented about Jim Prosser's position on impact fees:

"Why are Jim Prosser
and the CR City
Council suddenly a big fan of "user fees" - a pet license, a fee
for your
street to be re-paved, a fee for the police to call a tow truck if you
get
into an accident, and so on, at the same time property tax revenues are
going up? Because you and I aren't likely to notice them or get up in arms
about them like we would a bigger tax increase, that's why!"

Another new fee on the landscape in 2008 is the Basic Fire Inspection and Life Safety Report fee implemented by the City Manager for Cedar Rapids. As the Code Enforcement Division - Fire Inspections points out in the letter to business owners: "No invoice will be sent regarding this $20.00 fee. Please pay using the top portion of the inspection sheet that the Fire Crews leave with you."

Earlier in the letter, the following explanation was given: "The fee is designed to give the department a minimal off-set to the time and expense put forth by fire crews and apparatus." But, don't forget, the fire crews have been providing this function for years as a part of fire crews normal time and if a "call" arises during the inspection, they immediately stop the inspection and get back to the primary function of the Fire Department. So, what do commercial and industrial property taxes to the City of Cedar Rapids pay for?

So, will the Flood of 2008 open the door for new discussions for the justification of Impact Fees during a special session in the Fall of 2008?

"Do we have needs? Yes," Prosser said. "Do we have a clear path to get that
money? No." "Casey Drew, the city's financial director, said the city also would
seek the ability from the Iowa Legislature to raise money in other ways in
addition to property taxes."

It's up to Governor Chet Culver and the Democrat controlled Iowa Legislature to decide, whether there will be a special session, but all signs point to one. All signs point to the push for Impact Fees, as well.

Look at the current impact gas prices have had on the gas tax receipts. Further, they are a hidden tax that can have a very negative impact on economic development and the ability for a rural state, like Iowa, to compete with other markets around the country.

One of the many consultants that the City of Cedar Rapids uses had this to say...

Levy encouraged the council to continue to hunt for "every alternative" source
of revenue to cover the city's upcoming cash-flow needs, per The Gazette story.

One issue I would love to see the State of Iowa take up very soon is the issue of comprehensive tax reform. Iowa's over reliance on property taxes needs to be reformed, since we have had plenty of study. Adding impact fees, without a comprehensive tax reform could have a negative impact on Cedar Rapids and our State.

A local option sales tax can be taken to the voters to aid with the infrastructure issues impacting the City of Cedar Rapids. The City of Cedar Rapids presently has no local sales tax.

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Checks and Balances: Impact from the Flood of '08

Are Impact Fees just around the corner in our State? Will the impact of the Flood of 2008 play a role in opening the door? Will impact of the flood, lobbying by our city and a special session of our State's Legislature this fall, all come together and lead to the legalization of impact fees in the State of Iowa?

We need a comprehensive overall of our State's tax system. The State of Iowa is over 150 years old and much of its infrastructure and government needs to be revisited and improved.

Today's headline in The Gazette, written by Rick Smith, "C.R. to request state's help" is a revisit to our City Manger's lobbying efforts this spring in Des Moines for "options for diversification" in local tax and revenue authority. Without the Flood of '08, the city was pushing for authority to raise money other than through property taxes.

There is no question. The State of Iowa relies too much on property taxes.

Locally, taxpayers should visit with our City Council, neighbors and community leaders to suggest a 1% local option tax for the City. We should have a discussion and strongly consider use of a local sales tax in flood recovery and improves to our infrastructure. Look at city like Sioux Falls. Sioux Falls uses a sales tax for both operations and infrastructure.

However, our State needs to be careful, not to jump on the Impact Fee bandwagon. Economic development and our ability to compete with other cities and states could be greatly impacted.

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