More Public Spending on the way for the City of Cedar Rapids

Talked to a newer Cedar Rapids resident who was concerned about his rising property taxes today at work. He estimated his taxes were going to rise as much as $2,200. He found out about the changing tax climate in our community, when he and his wife went to refinance his house of two years and property taxes came up.

City seeks $12.2 million in I-JOBS funds for amphitheater, fire stations - The Gazette
The City Council is seeking to secure $12.2 million more in state I-JOBS disaster-related funds in a statewide competition for a remaining pot of about $30 million in such funds ...
Council members look at sprucing up gateways into city - The Gazette

While the City of Cedar Rapids needs to rebuild, the questions regarding the designs and costs of flood mitigation infrastructure leads one to pause. The State and Local community typically has to come up with a 35% match with the Federal government.

The Corp of Engineers is still working on the recommendations for our community. Right now, there are significant differences between what our community wants to see vs. what the Corp has been suggesting.

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Welcome to Cedar Rapids: Where some our local leadership since the '05 City Election want it both ways?

Folks, we want our cake and eat it too ...

Cedar Rapids is a vibrant urban hometown - a beacon for people and businesses invested in building a greater community for the next generation. - City of Cedar Rapids

The key word of concern is "urban" ...

By the way, the Federal Government classifies "urban" as

populations of 500,000 people or more.

A good resource to discuss some of our current and future challenges is the League of Cities and Counties in the State of Iowa. Prior to the change in the Form of Government vote in June 2005, The Gazette held a good forum with the League of Cities and Counties in 2005.

How many U.S. House members does our "urban" community have in Washington D.C. representing us today? How many does the City of Chicago have? Are we really "urban" folks?

But, go no further than our most recent "Conflict of Interest" story unfolding in the City of Cedar Rapids right now ...

"It’s a small town. It’s no different from all the other people that come before
the council that I know or have some relationship with.” - Council member Pat
Shey

Say, what? Could this be part of our branding problem that the City of Cedar Rapids has right now? Maybe, we need to rethink our "urban" thing we are trying to force down our public. Maybe we need to look at our hometown culture and determine what really exists today in our community?

"It's a small town." No, we would say Algona is a small town. While, Cedar Rapids isn't "urban" in the true sense. Suggesting Cedar Rapids is a "rural" community like Algona isn't the direction we should turn to either. But, the words of one of our council members says a lot of the disjointed messages we hear in our community often these days.

Actually, the banking model (Urban, Community or Rural) would seem most appropriate for Cedar Rapids. Cedar Rapids is in the middle.

We should stop branding Cedar Rapids as an "urban" community; when in fact, we are more like that "small town" of Algona, Anamosa or Marion, than clearly Kansas City, Charlotte, Memphis or whatever "urban" community one of City Council or City Consultants want to think up next?

Council’s $540,000 yard-cart fix raises appearances of conflict - The Gazette
It’s a small world. It didn’t seem so much so Thursday evening when only one of eight City Council members at a budget hearing ...

The Parlor City needs to get back on track. The "City of Five Seasons" went through some outstanding times with Urban Renewal in the 1960s and 1970s, but the Farm Crisis of the 1980s created a chic in the armour of our fine community.

We lost some of our industrial base in the 1980s, with losses in heavy manufacturing. We didn't lose our step immediately, but a variety of factors have slowly arisen over the past 15 years. Now, the Flood of 2008 and the recent economic and financial crisis have seen another round of losses in our manufacturing sector.

As a neighbor often says: Pay Taxes! Our economic engine in Cedar Rapids is hammered hard with the burden placed on industrial and commercial property taxes right now in the State of Iowa. There is current pressure to increase property taxes again for new infrastructure and the cost of government services ...

• Rising salaries of city and county employees


• A proposed new $45 million downtown library


• The new Cedar Rapids Community School District board building


• Expansion and recovery of Linn County infrastructure - post Flood


• Expansion and recovery of City of Cedar Rapids infrastructure - post Flood

When, we formed our new Council-Manager form of government in 2004-05, we identified the need for an Ethics component. Sadly, the original members of the City Council, stalled in the creation of Article VI of our City Charter.

Both the transition from the Commission form of government and now the Flood of 2008, has our City Government at times stuck in the mud. Could more mud be in the forecast? Let's hope not.

peace

P.S. - How much does our local government plan to get into commercial operations, such as yard-cart devise? The City of Cedar Rapids has expanded into housing and development over the past four years. Now, we hear this from the "Council’s $540,000 yard-cart fix raises appearances of conflict" story ...

"Gulick said he has an interest in Brokaw’s invention if it holds out the
potential of making the city some money, adding that the council has not cast a
final vote on the purchase." - The Gazette

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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Spring is in the Air, as are taxes, budgets and crime...

The Friday, March 13, 2009 edition of The Wall Street Journal highlighted a newspaper article titled, God Will Provide - Unless the Government Gets There First. For more on a related subject, read Public Interest Institute Brief: Is the U.S. "Stingy" With Foreign Aid to Developing Countries.

Where will Cedar Rapids head, as we rebuild from the tragic Flood of 2008? In public policy and as a community, what direction are we headed in 2009 and beyond?

The City of Cedar Rapids plays a big role in Iowa Lottery sales per The Gazette. Iowa's top voluntary tax is popular in Cedar Rapids.

How will Cedar Rapids fare among the LIST: 3,800-plus projects vying for Iowa bond money per The Gazette story? Several projects are related to Flood Recovery, but certainly not all.

University of Iowa's new flood damage estimate: $743 million per The Gazette.

Is there a Crime problem on the horizon in Cedar Rapids? Shots fired during robbery at McDonald's in Cedar Rapids per The Gazette. With the economy and impact of the Flood of 2008, what direction will Crime take in Cedar Rapids? Shots fired in one of three overnight robberies to 89 cited for violating Cedar Rapids flood curfew.

With Spring approaching, 2Nd half property taxes are becoming due, corporate and individual income tax deadlines are coming up. Local governments and schools are working on their budgets for the next fiscal year. The City of Cedar Rapids is still preparing their final budget. KCRG reports budget almost done.

Linn County, Iowa: The Gazette reports Linn certifies new budget and earlier story: Linn County supervisors to certify budget.
Kirkwood Community College story: Kirkwood board OKs budget.
K-12 spending is likely to rise for 2009-10 as the House and local school boards prepare for the upcoming budget year.

The City looks to raise revenue through Red-light cameras coming to Cedar Rapids by June per The Gazette. Hopefully, public safety will be a by-product as well, but that will have to be determined.

The City of Cedar Rapids successfully passed the 1% local option sales tax on March 3Rd. Now, May 5Th the communities that defeated the 1% will take a community re-vote on the local option sales tax. Marion to be specific on option tax projects per The Gazette.

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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.

Linn County, Iowa is ready to send Property Tax bills out

According to the Linn County online Property Tax payment link today, a new message is present:

Tax bills will be mailed on Thursday, October 2nd. The last day to pay without
late interest will be Friday, October 31st.

You may not be able to pay online yet. I tried a couple of tests and found not everything working fully. But, we should get our Tax Bills in the mail very soon.

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The Gazette headline: "High waters force higher taxes"

"Cedar Rapids property taxes likely to increase," the sub-headline reads in today's The Gazette.

We should be surprised, but it is a tall order, with the already over reliance on Property Taxes in the State of Iowa. The water faucet appears to be on at times at City Hall, before, during and after the Flood of 2008.

I guess that should be City Hall North, since the Flood of 2008.

Is the City Council and our City Manager... moving the City operations into a post-flood budget? Are we working to avoid encouraging businesses and people to move out, due to high property taxes? The impact on most, since most people are on fixed income, will be high.

A Limited Government is important. The burden of government is continuing to rise. The Flood of 2008 will only put more pressures on businesses and citizens.

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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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