May 3, 2011: How should we pay for Infrastructure Needs in Linn County, Iowa?

Yes, it's the last day of the month, the 30Th of April 2011.

On Tuesday, May 3Rd, voters in Linn County, Iowa, except for people in three small townships, will vote to extend the local option sales tax for twenty years through 2034. Those other three cities have already done that. The sales tax will remain seven percent, which it is currently.

In Cedar Rapids, Marion, Hiawatha and Robins, each City is planning to use the 20 year extension of the L.O.S.S.T or local option sales tax as an Infrastructure Tax [PDF of ballot]. The fifth city in the voting block of five (Hiawatha) is not.

The infrastructure in Linn County and our communities is getting older. Like with our pools in Cedar Rapids, they reached the age where they needed to be replaced. Much of the infrastructure in Linn County has reached an age, where replacement is needed. In Cedar Rapids, four tenths of every cent (40 percent) will be used for existing street infrastructure.

The City of Cedar Rapids choose to not allocate funds, since 1967 to ward off the historical flood that occurred in 2008. The 1967 Flood Study predicted the Flood of 2008. It is time to have a funding source for flood protection systems. Several plans are being discussed. The City of Cedar Rapids needs a funding source for the final plans.

Sales tax is a natural option for local communities for infrastructure projects. The State of Iowa limits municipal and county governments to one percent. In many cases, like with roads, people who use our roads, can help in funding them. A sales tax over a property tax provides us with that opportunity for those who work and visit our community to help in maintaining that infrastructure.

We are voting "Yes" on May 3Rd. We support a local Infrastructure Tax.

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Happy Easter weekend to everyone; May 3Rd L.O.S.S.T vote moves closer in Cedar Rapids, Marion and Linn County, Iowa

Thursday night was a big night, when both sides on the local option sales/service tax vote came together for a community forum sponsored by ImpactCR, among others.

The March 2009 local option tax approved by the voters of Cedar Rapids has come with a price. The ballot language was very broad and it has ruffled feathers, since 2010, when Mayor Ron Corbett and the current City Council began utilizing the tax. Sadly, it is in place through 2014 and can't be replaced immediately by the improved language in the May 3Rd ballot language.

On May 3Rd, the voters of Cedar Rapids will have the opportunity to approve a 20 year tax for the following:

• Property Tax Relief (10%),



• Flood Protection Systems for the East and West sides of the Cedar River in Cedar Rapids (50%) and



• Existing Road Improvements (40%).

We support the L.O.S.T.T. for the City of Cedar Rapids, along with the other infrastructure tax votes in Marion, Hiawatha and Robins. Fairfax is the fifth community voting as a metro block on May 3Rd with the City of Cedar Rapids. We believe a sales tax, as opposed to higher property taxes, is a more prudent approach to resolving the deferred road issues impacting the Cedar Rapids community. Further, in 1967, a flood report recommended flood protection needs for the City of Cedar Rapids. If flood protection is going to become a reality in Cedar Rapids, sales tax is a fair approach to paying for our flood protection needs in our community.

Most communities the size of Cedar Rapids have a sales tax. One percent is very fair tax rate. Take a look at local taxes throughout the Midwest. Currently, five percent of the sales tax collected moves to the State of Iowa in Linn County. An additional one percent of the sales tax collected moves to the State of Iowa for school districts. The final one percent can be used for local municipal purposes. The State of Iowa doesn't allow a higher rate for local communities.

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Thirty days and counting until May 3 Tax Extention Vote in Cedar Rapids, Linn County, Iowa

Happy April to everyone ...

March Madness has ended, with the Final Four this weekend and the NCAA Championship Game on Monday night, which will feature UConn vs. Butler.

Major League Baseball has opened for 2011. How long will Chicago Cubs fans carry there hope in 2011?

On May 3Rd, the City of Cedar Rapids voters, along with voters throughout Linn County will consider a twenty year extension of the Local Option Sales Tax. The Pro-Tax folks in Cedar Rapids have started to place blue yard signs supporting the Tax. The group called, Protect Cedar Rapids Committee, is going to be campaigning throughout the month of April holding daily neighborhood meetings during the work week.

In February, the City Council approved the ballot language for the May 3, 2011 vote.

On Friday, April 1, the first Pro-Tax neighborhood meeting was held at Harrison E.S. in NW Cedar Rapids. A neighborhood hit hard from the Flood of 2008.

Cedar Rapids Holds First Public Meeting on LOST Extension‎ - Eastern Iowa Government Option sales tax in Cedar Rapids draws a crowd at a local elementary school. ... Corbett has planned until the LOST vote happens May 3 of this year. ...

Prior to starting the neighborhood meeting circuit, the Pro-Tax supporters meet with The Gazette Editorial Board.

Baird, Corbett test sales-tax pitch before neighborhood meetings - The Gazette

Top Stories - New L.O.S.T Campaign Ad Featuring CR ... - KGAN CBS 2 Mar 24, 2011 ... The Push is on Ahead of May 3rd L.O.S.T. Vote · Iowans Get First Glimpse at New Iowa ... Your 2 Cents with Cedar Rapids Mayor Ron Corbett ...

There are groups opposing the Local Option Sales Tax extension in Cedar Rapids. One of the leaders of the local Tea Party group suggested orally they would have an alternative for how Flood Protection for the east and west sides of the river should be funded, but we haven't heard formally how it should be handled differently?

• Sales Taxes


• Property Taxes


• Do nothing - Flood Insurance?


• new local Income Tax

Another group is very vocal against our current Mayor, City Council and the proposed extension of the local sales tax. This group prides itself with the following slogan: "We commit to the citizens of Cedar Rapids that we will work to protect the citizens from the antics of the CR City Council." There web site has the following statement: "Vote No on the Local Option Sales Tax Extension on May 3, 2011." The group has said it is not a political organization.

The another part of the $375 million proposal to build flood protection on the east and west sides of the Cedar River in Cedar Rapids will come from the State of Iowa.

Cedar Rapids flood protection funding begins to take shape in Iowa Legislature - The Gazette DES MOINES – A plan that could provide up to $30 million a year for Cedar Rapids area flood recovery is beginning to take shape in the Iowa Legislature. Although the plan is in draft form, meaning no bill has been filed or assigned to a committee, representatives of Cedar Rapids reminded a 12-member legislative ...

City Manager Pomeranz: “We can never let Cedar Rapids flood again” - The Gazette CEDAR RAPIDS — Invite the public for a visit with high-profile, hotel-buying, Second Avenue-closing Mayor Ron Corbett, and you’re apt to get a crowd. Last night, though, City Manager Jeff Pomeranz held the first of three, Thursday-evening “meet-and-greets” as a way to introduce himself to the community and had only about 15 residents come out to ...

The final step will come from the Federal Government. Sadly, the U.S. Corp. of Engineers recommendation to the Feds does not include funding any protection for the west side of the Cedar River in Cedar Rapids.

Flood Report for Cedar Rapids, Iowa, Calls for Better Protection ... - Insurance Journal Sep 7, 2010 ... The U.S. Army Corps of Engineers has released a draft report that calls for a better, if limited, flood-protection system in Cedar Rapids, ...

Cedar River, Cedar Rapids, IowaFlood Risk Management - US Army Corp of Engineers

• City of Cedar Rapids flood information


• City's Flood Recovery Plan

The upcoming ballot item is extremely important for the Citizens of Cedar Rapids and throughout Linn County. Hopefully, the community dialogue will be a productive one that gets out the facts and truth about the issue coming before the public.

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We welcome March: Two months away from L.O.S.T. vote in Linn County, Iowa

On February 22, 2011, the Cedar Rapids City Council during a regular council meeting passed the following for a May 3Rd public measure ...

Discussion and Resolution requesting a special election be held on May 3, 2011 on the extension of a local option sales and services tax to establish and maintain a flood protection
system for both the east and west side of the Cedar River, existing street improvements and
property tax relief. (Angie Charipar) CIP/DID#654114

Exhibit A

(Insert letter to be assigned by the Commissioner of Elections)

SHALL THE FOLLOWING PUBLIC MEASURE BE ADOPTED? YES □ NO □

Summary: To authorize extension of a local sales and services tax in the city of Cedar Rapids at
the rate of one percent (1 %) to be effective from July 1, 2014, until June 30, 2034.

A local sales and services tax shall be imposed in the city of Cedar Rapids at the rate of one
percent (1 %) to be effective from July 1, 2014, until June 30, 2034.

Revenues from the sales and services tax shall be allocated as follows:
Fifty percent (50%) to establish and maintain a flood protection system on both the east and west side of the Cedar River; and Forty percent (40%) for existing street improvements; and
Ten percent (10%) for property tax relief.

*** *** ***

This year's State of the City address is a little late per the City Charter ...

Mayor Corbett to Present State of the City Address Tomorrow ... - The Gazette
Mar 1, 2011 ... Cedar Rapids Mayor Ron Corbett will present his “State of the City” address

tomorrow, March 2, 2011 at noon at the Hotel at Kirkwood Center, ...

Here's a look back at his first State of the City address in 2010.

Corbett On State of the City Speech: "I Just Want To Be Realistic ... - KCRG-TV9
Feb 24, 2010 ... CEDAR RAPIDS - Mayor Ron Corbett said flood victims in Cedar Rapids feel it ... of about 350 people for his first State of the City address.

In June 2011, the City of Cedar Rapids will celebrate the third anniversary of the sixth worse natural disaster in U.S. history. The gulf oil leak surpassed the disaster in Cedar Rapids in 2010.

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Closing Streets vs. Buying Hotels or doing neither in the City of Cedar Rapids

The Gazette is reporting in the Sunday edition of the newspaper in the story titled Cedar Rapids will announce purchase of Crowne Plaza that the City will acquire the Crowne Plaza Five Seasons Hotel as part of the U.S. Cellular Center/Events Center redevelopment plan.

Other recent news for Cedar Rapids:

• Privatizing parking in C.R. no simple matter - The Gazette


• Payments to renters complicated for Cedar Rapids - The Gazette

Closing streets for the benefit of a private entity is very unusual, though it has been done once already for PCI, with the closing of Seven Street SE between Eighth and Seventh Avenue nearly twenty years ago. PCI has been awarded the 1000-1200 blocks of Second Avenue SE for their medical mall development.

Other local government news for Cedar Rapids:

• Local-option revenue could help buy land for key projects - The Gazette


• Corps endorses flood-protection for east side - The Gazette


• First major wave of flood demolitions nearly finished - The Gazette


• Area flooded in 2008 targeted for new Cedar Rapids housing - The Gazette

Unemployment rate, Linn County, IA - Source: U.S. Bureau of Labor Statistics
6.3% of the labor force - Not seasonally adjusted - Sep 2010

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Election Eve in Cedar Rapids and Linn County

Don't forget to vote tomorrow March 3Rd in Cedar Rapids and Linn County. Polls open at 7 a.m. The polling places for Tuesday's local-option sales tax vote per The Gazette.

Other recent articles from The Gazette, regarding the upcoming 1% Local Option Sales Tax, Tax Policy and Flood Recovery:

Online users oppose sales tax

According to a GazetteOnline survey conducted
two days last week, 28 percent of the respondents said they were in favor
of... More >>

Huge bills for steam hurt downtown property owners per The Gazette.

FEMA reviewing grants, may pay more

Cutting property tax credits a 'stealth tax increase'? Governor Chet Culver and Iowa Legislature may pass on a property tax increase to property owners in the State of Iowa. This is on top of possible local property tax increase by local governments that is under discussion by taxing bodies as they formulate budgets locally.

If you have questions tomorrow regarding the Local Option Sales Tax vote, please contact the Linn County Audtior's Office.

If the Local Option Sales Tax passes on March 3rd, the Public Measure will take effect on April 1, 2009 and will run through June 30, 2014. The proposed Public Measure is for 5 years, 3 months.

Again, don't forget to Vote on March 3Rd. Polls open at 7 a.m. in Linn County.

Final Swing: To accept the LOST or Say "No" to an extra 1% in Cedar Rapids?

We have choices, very important choices locally on March 3Rd and beyond...

There is no fast cure to our Flood Recovery and to our economic crisis that we are faced with today. We have decisions to make and we have options to pursue. Is a five year and three month period a good time frame for the LOST, when other decisions and funding sources will be needed over the next five years and beyond?

"Approve tax for the future of our city" The Gazette headline reads above Gary Hinzman's guest column. We didn't notice an opposing guest column today, but we did notice final arguments in the Election Letters both pro and con for the 1% Local Option Sales Tax (LOST) for the City of Cedar Rapids and Linn County for the upcoming March 3Rd vote.

The Gazette calls the March 3Rd vote "A referendum on ourselves" in The Gazette's Editorial in support for the tax. Has The Gazette been fair and balanced on this issue? With the timing of the Hinzman guest column and the paper's own pro-stance today, where's the other side represented in today's overall editorials?

By the way, the City of Cedar Rapids certainly has more options on the table than one vote on March 3Rd? Unlike the City of Iowa City, the City of Cedar Rapids rushed to get the ballot written and thrown together to make the deadline to hold a March 3Rd vote.

The City of Iowa City decided to take it's time and get it ballot language written for a May 5Th vote. While Flood Recovery is part of the City of Iowa City vote, they are also using the 1% local option sales tax for areas not impacted by the Flood of 2008.

Let's scan the Today's Letters...

"The negative attitude about government no help" - Dale Todd's headline to his letter to the editor today. Mr. Todd is co-chair for the Pro-tax group.

Alan Witt, Chairman of the Cedar Rapids Chamber of Commerce, in his letter today talks about Cedar Rapids, but when he talks about how much "the tax will raise an estimated $29 million in annual support and $145 million over its five-year life span," he's talking about Linn County.

The $145 million figure is not all for Flood Recovery. Actually, the Gazette used a figure of $17 million per year in their Editorial today, which would be closer to $85 million, in what The Gazette calls "dedicated to making a major dent in the $200 million-plus housing problem."

By the way, why is the sales tax the only way to "show our local and federal funding sources that we as Cedar Rapidians are willing to support and lift each other up?" A local taxpayer and flood victim suggested yesterday, why is raising taxes the only option to show we have a "skin" in the game?

The "skin" in the game reference has been promoted heavily by Gary Ficken, the other co-chair of the Pro-tax group and recently won support from another group in Linn County. "Results of the ballot are in: the LCDCC will endorse the Local Option Sales Tax."

Further, housing isn't the only problem. The Economy of Cedar Rapids is a major problem. Not just due to the flood, which the Hinzman article points out, "the U.S. Chamber of Commerce states that upward of 40 percent of small businesses will fail in the four years after experiencing a disaster," but the Economy in general, as this story from CNBC points out about current and upcoming Tax Policy.

It's interesting to see the local Chamber of Commerce lobbying voters to pass the 1% local option sales tax in Cedar Rapids. In most communities, you don't see local chambers taking an active stance. When you read the ballot language, it's even a little more surprising.

Why five years, and three months for the tax?

Paul T. Larson of Cedar Rapids brings it up in his letter headlined "Give up option tax in season of Lent." He suggests "be sure to read thoroughly the vague and broadly defined ballot language in Cedar Rapids, before casting your vote."

The letter by Bruce Johnson of Cedar Rapids is headlined "Leaders need to give specifics on money use" and points to both the Cedar Rapids City Council and Linn County Board of Supervisors lacking in "SPECIFICS" and in "VISION" in the ballot.

If our "elected leaders" do not well define what is to be done in
advance,
how can we, as taxpayers, benchmark if our money is being spent
wisely?- Bruce Johnson - Cedar Rapids

The letter by Russ Madden of Cedar Rapids is headlined "Voting on tax doesn't make forced charity OK" as he questions "the (good) ends do not justify the (bad) means." Madden's comments place a focus ends justifying the means approach from the Pro-tax group. Further, the City Council hired a City Manager who favors the Carver governance model, which is a ends process for organizational purpose. How much does Carver figure into our process taken at the local level currently, under our new form of government, here in Cedar Rapids?

Other headlines from those asking for the LOST to be voted "NO" -

"Money from sales tax will come to late to help" - Diane McLain - Cedar Rapids headline on her letter against the LOST. "We absolutely must help flood victims, but they need help now." McLain is concerned that "some of them could have to wait up to six years to obtain flood relief from such a tax."

"All money from sales tax should be for recovery" and "Only flood victims should benefit from tax"... similar thoughts in headlines from the letters from Cedar Rapids residents Rob Sandquist and Ron Nezerka, respectively. Both appear to feel all residents of Linn County should support Flood Recovery. Nezerka said "money that should be used only by and for flood victims throughout the county and not for any other purpose other than possibly property tax relief to replace lost dollars because of the flood."

If the City of Cedar Rapids had not placed a measure on the ballot, other cities would not be discussing other uses. "Sales tax would fund Linn County roads," as this story tells us. The City of Cedar Rapids rushed to get a ballot together for March 3Rd, which forced others in Linn County to rush as well.

"Sales tax money will be mishandled; vote no" - Robert Scott of Cedar Rapids as the headline on his letter against the LOST.

"Sales tax won't solve C.R.'s red-tape problems" - Bryon Flint of Cedar Rapids as the headline on his letter as he closes with "I'm voting no on the local-option tax."

"Sales tax money will fund too many pet projects" - David Sheets of Toddville as the headline of his letter against the LOST. "This lack of public control over the manner in which sales tax revenues are spent makes it easy to argue, when the tax is set to sunset, for the tax to be extended, as by then the original project is likely complete and some other project has come to depend on the sales tax money."

"Increasing tax will drive more to shop online" - Richard Greer of Cedar Rapids as the headline of his letter suggests as he points out "I know people are supposed to voluntarily pay the sales tax but I'm also sure many do not. That gives the Internet a significant advantage over local retailers."

I find it ironic how the city governance chose to "wait and see" concerning
flood relief. However, last fall, as I was rebuilding my home it made the
decision to dispatch property tax assessors. When confronted, I was told
my valuation would go down. Guess what? It went the other way,
as did all of my neighbors. - Gary Wilhelm -Cedar Rapids

"We can't afford more taxation, lies" - Gary Wilhelm of Cedar Rapids the headline of his letter and he closes with "please vote no, I can't afford any more taxation or lies."

In closing, we began under this new form of government with around a $297 million annual city budget. Today, it is roughly $370 million annually and the City of Cedar Rapids is asking for $17 million more for what is on the ballot March 3Rd. The Gazette states "this debate boils up to three words for Cedar Rapids: money, measure and message."

The money is about the priorities for our $370 million budget. As Tim Pugh from the Cedar Rapids Tea Party has pointed out, why not start with a 5% cut in our current budget and reallocate that portion of the money (roughly $18 million annually) towards what the City Council members unanimously and specifically committed 90 percent of all the option tax revenues for?

Since the Flood of 2008, what cost saving move has the City of Cedar Rapids undertaken? We hear about government furloughs across the country, even within the State of Iowa. We hear about salaries and benefits being frozen. But, what is going on in Cedar Rapids? Public opinion for the vote.

The Gazette closed with the following statement: "target, temporary sales tax boost is one Cedar Rapids simply can't afford to reject during this extraordinary time." Sadly, the ballot isn't very targeted in the ballot language and 63 months isn't viewed as temporary, in light of the current economic conditions in the State of Iowa and in the eyes of many local taxpayers.

We should vote NO on March 3Rd. Then, we should get everyone back at the table and truly get the "money, measure and message" right. Options exist for a August 4Th and November 3Rd ballot measures, as well.

Still have questions? What are they? Q&A from The Gazette.

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March 3Rd Local Option Sales Tax approaching for Cedar Rapids and much of Linn County, Iowa

Is the Cedar Rapids ballot language clear and well written? Unlike Iowa City, the City of Cedar Rapids rushed to get the sales tax thrown together and on the ballot for a March 3Rd vote. The City of Iowa City took their time and will vote May 5, 2009, as Iowa law provided.

Does Cedar Rapids have other options? Yes, they can redraft the language and get it right for taxpayers for an August 4, 2009 or November 3, 2009 vote. The City of Cedar Rapids can re-write the language and a re-vote is possible, if the voters in the City of Cedar Rapids turndown the March 3Rd ballot language. The following article by The Gazette's Adam Belz answers questions on the local-option sales tax points out this option for the City of Cedar Rapids and taxpayers (voters).,

For more information on the upcoming vote on March 3rd in Linn County, visit the Linn County Auditor's web site.

The Gazette has another interesting development on the upcoming Local Option Sales Tax.
Sales tax law change affects amount to counties The Gazette points out...

A little-noticed change that is part of the state's new local-option sales
tax law significantly reduces the amount of revenue coming to unincorporated
Linn and Johnson counties and increases the revenue that could go to the city of
Marion and Iowa...

Cedar Rapids State Senator Rob Hogg worked out a change in the State's formula, as the article points out.

The City of Cedar Rapids did rush the vote for March 3Rd. They are completing resolutions to clean up the damage, but voters should be careful, because like the Board of Supervisors pay issue, the City Council can change resolutions as easy as they create them. The ballot language is what really is key, when reviewing the merits of a 5 year and 3 month local option sales tax.

On Monday, Doug Neumann of the ERPC discussed with the Rotary Club of Cedar Rapids as The Gazette reported in the following article Cedar Rapids recovery group asks for $22.4 million.

What happens if local-option sales fails... as The Gazette web site is painting...

Ask Rob Hogg what will happen if the proposed local-option sales tax fails
March 3 in Cedar Rapids, and he paints a grim picture. The state senator
envisions blocks and blocks of abandoned homes rotting in the summer heat and
humidity, surrounded by... More
>>

Well, one real option for the City of Cedar Rapids and taxpayers have is a re-vote and better ballot language. There is more than one way to skin a cat. If Cedar Rapids needs to get a "skin in the game" shouldn't it be done right?

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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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