Presenting Our Case

Presenting Our CaseJessica Harder, Iowa League of Cities and Megan Peiffer, Iowa League of Cities Handouts and presentation are available online at www.iowaleague.org

1Agenda2011 Session Timeline and ClimateImportant issues of the sessionUpcoming issuesElectionsHow to use the League Bill tracking system2

Session Climate: Difficulty in CompromiseBudget and Other Two Year BudgetAllowable GrowthPreschool FundingMental HealthNuclear PowerCommercial Property TaxSocial IssuesGay MarriageAbortion

3

Session AtmosphereDivisive legislative session38 new legislatorsNew LeadershipGovernor BranstadClear agenda and strong push to implementUse of veto power House R & Senate D Initiatives

4

First Day: January 10110th Day of Session & Per Diem Ends: April 29Final Day: June 30 9 weeks of overtime

5Session TimelineFor Anything to PassThere must be compromise That meant a comparatively small number of bills passed last session compared to the average.2011 session:131 bills and 2 resolutions197 = Average number of bills passed over the past decade*184 = Fewest number of bills sent to Governor over past 22 years*

*SourceIowa legislature bills hit new low, Associated Press. Wednesday May 18, 2011 Omaha World-Herald.6Property TaxesA major new piece of property tax legislation--HSB240--was filed on April 26 (just days before the scheduled last day of session).Discussions on property tax legislation went all the way until the last day of session.

7House Bill

HF9House Republican proposalDivision I school financeEssential city servicesTied together ag, residential AND commercial property and restricted growth to the lowest assessment growth of each class under the 4 percent assessment limitation

8House BillTimeline:Subcommittee held in January on the bill. The League and some cities testified.Passed out of Ways and Means Committee at very end of March, during second funnelLanguage League fought to removeessential city serviceswas taken out in CommitteeBecame HF671---Bill sat for many weeks with no further actionLeague tried to stay abreast of backroom discussionsAll indications still pointed to this bill being the vehicle for property tax reform in House

9Governors Original Bill

HSB129Governors proposalRolled back commercial property to 60 percent by rolling back 8 percent per year for 5 yearsImmediate rollback to 60 percent for new commercial propertyDid not include backfill (stronger language added later into other legislation)Did not include industrial property (added later in amendments)Subcommittee held on bill in FebruaryBill did not move out of subcommittee for an apparent lack of support, looked to have diedAt this point, all indications still pointed to HF671, not the governors proposal as main bill10Senate Plan

SSB1205 filed week of second funnellate in session (or so we thought)!Creates a new business property tax credit program targeted to small businessesCredit would go directly to business owner.Sets aside $50 million first year, and can increase $50 million per year up to $200 million if state revenues projected to increase by at least 4 percentEssentially rolls back to residential on first $32,000 of valuationLeague supported this bill because accomplished goal of commercial property tax reduction (which League supports) without harming citiesCame out of Ways and Means and renumbered SF522Although more highly touted by Senate Ds, bill passed out of Senate (mid-April) on bipartisan 46-4 voteIdeas in bill not taken up by House

11Governors NEW Bill

A major new piece of property tax legislation was filed on April 26 (just days before the scheduled last day of session) in the HouseHSB240 (HF641)Contained: School finance portion from HF9,Governors 60 percent rollback on commercial PLUS industrial at 8 percent a year for 5 years Cap on residential rollback at 2 percent instead of 4 Intent to backfill languageMidwest CPI cap on city general fundNew parameters on city ending fund balancesHF641, passed House renumbered in a procedural move as SF522, on a 58-40 largely partisan vote.Floor amendment added back in language which was not in the original bill to roll back to 60 percent immediately for both new commercial and industrial properties.

12FinaleIn the end, the issue came down to the standings bill After modified versions of the House legislation and Senate legislation were volleyed across from their respective chambersNew House legislation included in a larger omnibus budget bill moved to address some city concerns including stronger backfill language, and moving to a 25 percent rollback rather than 40 percent.Senate legislation in standings bill moved closer to house version with a modified CPI cap and their tax credit plan.Property tax was dropped from the standings bill, after down-to-the-wire negotiations. No agreement could be reached!

13Open meetings/records Many years of working on this issue. Two major bills: One that made some substantive changes to the OMOR laws that all stakeholders worked out a compromise on. Another that the Senate and Governor wanted that would have created an agency with enforcement and rulemaking powers over Chapters 21 and 22. Exempted Governors office. Major pressure from Gov office and Transparency AdvisorDied in House after strong League opposition.Narrow escape!14How SF289 affects existing law:

Reconvened meetings:Changes the meeting notice requirements for reconvened meetingsClosed sessions:Adds to what can be discussed in a closed session to include discussion of purchase of real estatePenalties and Defenses: Repealed criminal penalties, butEnhances damages assessed for knowingly violating Chapters 21 and 22 Clarifies language regarding defenses which preclude an award of damages for violations of those laws

15Personnel FilesClarifies and changes the open records act exemption for confidential personnel files under Section 22.7 (11). The exemption from disclosure remains intact, except for the following:Name and compensation, including any written agreementDate the individual was employed by the government bodyPositions the individual holds or has heldEducational institutions attended by the individual, including diplomas and degrees earnedNames of previous employers, positions held, and dates of employmentAny final disciplinary action taken that resulted in discharge

16Settlement AgreementsChanges the open records act requirements applicable when a government body reaches a final, binding written settlement agreementUnder current law, Section 22.13, a written summary of the terms of settlementhas to be filed with the body and constitutes a public record.SF289 changes the requirements as follows: When a final, binding written settlement resolves a legal dispute which concerns money damages, equitable relief or a violation of a rule or statue, on request and to the extent allowed under applicable law, the governmental body must prepare a brief summary of the resolution of the dispute which identifies the parties involved, the nature of the dispute, and terms of settlement. The governmental body is not required to prepare a summary if the settlement agreement includes all of the information required to be included in the summary. The settlement agreement and any required summary are both public records.

17LeMars BillDeals with time period and classification for taxation purposes of undeveloped platted residential lots. Currently, these lots are taxed at a rate as if they were developed after either 3 or 5 years, depending on county population.Final House version would have extended to 10 years indefinitely for commercial and residential.Battled all session to correct this legislation, which would have hurt some cities and helped others, to allow for home rule.Final House version would have had blanket approach. Stopped in Senate.

18LeMars BillDuring standings bill negotiations a version was compromised on with developers: Creates window: Directs that any undeveloped residential lots platted between January 1, 2004, and December 31, 2010, get an extra five years before they are taxed at a rate as if they were developed, for a total time period of either 8 or 10 years, depending on county population. Gets rid of the existing county population distinction, so going forward, all lots would get 5 years at the lower tax rate. Allows cities and counties by ordinance to extend this window for platted lots in the city for an additional five years. Specifies that the change does not entitle a property owner to a refund.

19Iowa Partnership for Economic Progress (IPEP)Made sweeping changes to the administration of the states economic developmentOne of the primary goals is to enhance collaboration between the public and private sectorSF 590 Provides for two new entities1) Iowa Economic Development AuthorityReplaces the Iowa Department of Economic Development2) Iowa Innovation CorporationThese two entities will work in concert to further economic development policy20IPEPIowa Economic Development AuthorityMany of the same duties as the former DepartmentBut is required to develop an annual strategic plan outlining the authorities goals for coming year and measure their progress in achieving the goalsLimited capacity to issue negotiable bonds and notes to finance the cost of business enterprises, to finance the working capital needs of businesses and to refinance existing indebtedness21IPEPIowa Economic Development AuthorityGoverned by a Board11 voting members appointed by the Governor and subjected to confirmation by the Senate4 ex officio non-voting members of the legislature and 3 ex officio non-voting members representing the Board of Regents, Community Colleges, and Iowa private colleges22IPEPIowa Innovation CorporationEstablished nonprofit corporation (by Authority)May receive and disburse funds from public and private sources to further the overall economic development and economic well being of the StateGoverned by a Seven Member BoardMay employ personnel necessary for the performance of duties assigned to the corporation not state employees

23Automated Traffic Enforcement SF 129Prohibited use of ATEs Did not make it out of subcommittee

HF 105 Mandate that all funds accrued from ATE fees be allocated to a citys own street construction fundDid not make it out of committee

24Automated Traffic EnforcementHSB 93/HF 549 Limits red light camera violations to $50Limits speeding camera fines to the amount which could be charged under the state traffic law for the same offenseRegulated signage requirements and due processDoes not allow a city to impose fees for administrative costsAdds reporting requirement for cities to the Dept of Public Safety to compare the type and rate of accidents that occurred at each location of an ATE camera to the previous yearAlmost died in House because papered by RsDied in the second funnel -Senate would not move the bill through committeeHouse attempted again by amending it into a budget bill Senate took it out

25Other BillsAgainst:Guns (did not pass)Eminent domain (died in Senate)TIF/LOST-TIF (did not pass)For:GASB45 (passed)Elections (passed one chamber)Brownfields/Grayfields (passed)Delinquent utility bill certification (passed)Changes to Disadvantaged Community Variance for wastewater infrastructure (passed)

262012 Session27League PrioritiesResponsible Property Tax ReformReform Iowas property tax system by implementing equitable reforms that work for all property tax payers and local governments.

28League PrioritiesReform and Maintain Strong Pension SystemsAddress needed systemic changes to the Municipal Fire and Police Retirement System of Iowa (MFPRSI), aimed at creating a fair, sustainable system while controlling costs to cities. Ensure the sustainability and fairness of the IPERS system.

29League PrioritiesRemove Unfunded MandatesEliminate unfunded state mandates and increase home rule.

30League PrioritiesIncrease Transportation Infrastructure FundingIncrease the TIME-21 fund for city transportation infrastructure through additional funding methods.

31League PrioritiesProtect Economic Development ToolsMaintain funding for economic development programs and support policies aimed at improving city economic development.

32Issues Expected Next SessionProperty Tax ReformPensionsGas Tax/Infrastructure FundingTIFRed Light CamerasEminent domainBe ready for anything! Election year.

33Interim Committees34Public Retirement Systems Committee (2 days)411IPERSOther state pension systemsLegislative Tax Expenditure Committee (1 Day)Evaluate any tax expenditure available under Iowa law and assess its equity, simplicity, competitiveness, public purpose, adequacy, and extent of conformance with the original purposes of the legislation that enacted the tax expenditure, as those issues pertain to taxation in Iowa.Tax credit wheel of reviewIn 2011:(1) The high quality jobs program under chapter 15, subchapter II, part 13.(2) The tax credits for increasing research activities available under sections 15.335, 15A.9, 422.10, and 422.33.(3) The franchise tax credits available under sections 422.11 and 422.33.(4) The earned income tax credit available under section 422.12B. Mental Health and Disability Services Study Committee (3 Days)

Election Year35More than half of the 50 seats in the Iowa Senate and nearly half of the 100 seats in the Iowa House are impacted by the legislative reapportionment mapSenate14 Senators reside together7 Senate districts have no incumbentFour of these seats have a Republican registered voter advantage and another seat is a toss upHouse27 Representatives reside together14 House districts have no incumbentSeven of those Districts favor Democrats, and seven favor Republicans

Election Year36Senate3 new Senate districts with more than one party3 districts with GOP incumbents paired together1 district with Democrat incumbents paired together

House1 district with incumbents of more than one party3 districts where Democrat incumbents are paired together9 districts where GOP incumbents reside together

Election YearSome legislators will be moving in order to avoid running against another incumbentExample: Senator Pat Ward moving to a new district the map put her in the same district as Senator Matt McCoyReturn of the legislators!Some former legislators are returning to run in the HouseRich OliveBill HeckrothFrank WoodArt StaedMany decisions will be played out in the next year37Big New Development38Resignation of Senator Swati Dandekar, District 18 (swing district)Appointed by Branstad to Iowa Utilities BoardSpecial election set for November 8If Republican wins, could create 25-25 split in SenateShared leadershipCould greatly impact outcomes on many issues

League Website Legislative Section: Sign up for Legislative LinkRespond to Action CallsUse our bill tracking systemLet us know what feedback you hear from legislatorsjessicaharder@davisbrownlaw.com (lobbying)juliesmith@mchsi.com (lobbying)meganpeiffer@iowaleague.org (lobbying)erinmullenix@iowaleague.org (research)

39CommunicationLeague Bill TrackingAccess from League legislative pageBill tracking toolLists all legislation and registrations

40

41

4243

44

45

46

47What Questions Do you Have?