January 20, 2023

• Several bills that significantly impact local governments are already filed. Read more about property tax proposals, assessment limitations, additional bond requirements and more below.
• We encourage you to visit the Capitol to tour, see the process, and meet with your legislators. It is essential that you be a resource of information about policies that impact the operations of cities and projects within your community.
• This week saw fewer bills introduced than last. We do not expect this lull to continue as we know many impactful bills in both the Senate and House need to be released.

The Iowa House's first draft of property tax reform has yet to receive a subcommittee hearing. The subcommittee will be the first opportunity for the League to make a public statement on the legislation. This bill will likely be revised considerably before it advances through the process.

The League recognizes that it is valuable to study Iowa’s governmental revenue generation methods to ensure it meets the needs of Iowans.

However, concerns exist that HF 1 will negatively impact local decision-making and projects, Iowa's economic development tools and the ability to provide needed services.

We appreciate Senators' and Representatives' willingness to take the time to understand the complexity of these issues. It is important that municipal subject matter experts, including mayors, council members, city administrators, city clerks, and other city staff, initiate a productive conversation with state policymakers.

You are encouraged to read the bill, analyze its impacts on your community, and share this information with your legislators and the League.

• TIF Impacts: Division 1 impacts the school aid formula, shifting 50 cents of the current $5.40 school aid foundation levy to state aid. This impacts local governments that use tax increment finance (TIF).

• Assessment Limitation: Division 2 limits future assessments of "actual value" on individual parcels to 103% of the previous assessment year (3% increase). Exceptions are made for new construction and improvements, changes to the classification of the property, sale of properties and lack of previous assessments.
• Bonding: Division 3 requires cities to deposit 10% of the cost of a project into a fund before seeking bond approval for the project or issuing bonds. Adds individual notice requirements by mail for bonds for every property taxpayer affected.
• Essential Corporate Purpose: Division 3 also moves projects under Chapter 403 (urban renewal and 28E matters) out of Essential Corporate Purpose and places them in General Corporate Purpose.

• This legislation would, for the assessment year 2022 and following, remove property formerly known as multi-residential from the calculation of the Residential Rollback. These properties were included in the rollback calculation due to legislation passed in 2022.
• The Legislative Service Agency has published this document for specific impacts you should consider during your budgeting process.
• If this legislation passes, it will alter the Residential Rollback for your budget process, which is currently taking place. Because this legislation is so new, we do not yet have a prediction for the viability of SSB 1056.
• This legislation has yet to receive a public hearing, the impacts listed above are estimates and we are working on finalizing our understanding of the legislation.

• Several bills have been filed which seek to provide additional benefits to veterans by reducing their property tax burden. Both proposals will provide this benefit by reducing local government revenues.
• Projections of statewide local government reductions from this legislation have not been published but are estimated to be nearly $20 million annually. Once a fiscal note is published, the League can distribute a more accurate estimate.
• Both bills passed out of subcommittee and will be eligible for consideration by the House Veterans Affairs Committee.

• Removes the authority of local governments to provide exterior and facade requirements for residential construction. Makes exceptions for historical districts, TIF districts, overlay special districts, homeowners’ associations or safety concerns.
• Passed out of subcommittee and will be ready for consideration in the Senate Local Government Committee.
• The League is registered in opposition.

• The League supported legislation creates and authorizes cities to utilize Land Redevelopment Trusts (LRT).
• LRT focus on the redevelopment of chronically blighted or dilapidated properties which have not seen private investment.
• Grants special powers to the LRT that allow local governments to acquire and sell property, clear delinquent taxes, recapture increases in taxes for the purposes of furthering the LRT.
• Passed out of subcommittee and will be eligible for consideration by the Senate Ways & Means Committee.

• Deletes Code of Iowa Section 69.16A, which requires political subdivisions to make a good faith effort to achieve gender balance on boards and commissions.

• Enhances penalties for cyber-attacks against governmental entities outlined in the bill.
• The League is seeking an amendment to include city government in the groups covered under the enhanced penalties.
• Passed out of subcommittee and will be eligible for consideration in the House Economic Growth and Technology Committee.

• Requires cybersecurity events against local governments to be reported to the Iowa Office of the Chief Information Officer (OCIO).
• Passed out of subcommittee and will be eligible for consideration in the House Economic Growth and Technology Committee.

Local governments are engaged in a broad variety of activities, and are therefore impacted by a large number of bills moving through the legislative process. This list is intended to provide a broad list of legislation impacting cities, but it is not an exhaustive list. A list of all legislation filed this session can be found here. 

Senate

SSB 1056: Residential Rollback Calculations

House

HSB34: Satellite Video Service Franchise

HSB42: Uniform Expression Protection Act

HF56: Sale of a Utility

Subcommittees can be scheduled or canceled at any time, so the list below will only be accurate for a short time. An up-to-date list of subcommittees can be found here.

• January 23, 12 p.m, Room 102 -  HSB42 Expedited Actions Involving First Amendment
• January 24, 12 p.m., Room 304.1 -  HSB19 Volunteer Firefighter Length of Service Award
• January 24, 12 p.m., Room 217 -  SSB1001 Public Safety Maximum Age Removal 
• January 25, 8:30 a.m., Room 217 - SF46 Cybersecurity as an Essential Corporate Purpose

• 2023 Iowa Legislative Session Timetable
• Find Your Legislator
• Find Committee and Subcommittee Meetings
• Find Legislation

• Iowa Property Tax Information

Saturday, January 21 - Fairfield Legislative Forum 
Where: Greater Jefferson County Fairgrounds - Activities Building (2606 West Burlington Avenue, Fairfield, IA 52556)
Time: 7:30 - 9 a.m.
Invited Participants: Sen. Adrian Dickey; Rep. Helena Hayes; Rep. Jeff Shipley 

Saturday, January 21 - Hiawatha Legislative Forum
Where: Kirkwood Linn Regional Center at Kirkwood Community College (1770 Boyson Road, Hiawatha, IA 52233)
Time: 10 - 11:45 a.m.
Invited Participants: Rep. Elizabeth Wilson; Rep. Eric Gjerde; Rep. Jeff Cooling; Rep. Sami Sheetz; Rep. Tracy Ehlert, Rep. Art Staed; Rep. Cindy Golding; Rep. Thomas Gerhold; Sen. Molly Donahue; Sen. Bennett; Sen. Todd Taylor; and Sen. Charlie McClintock.

Friday, January 27 - Council Bluffs Legislative Forum 
Where: Council Bluffs Public Library (400 Willow Avenue, Council Bluffs, IA 51503)
Time: 11:30 a.m. - 1 p.m. 
Additional Information: This is open to Council Bluffs Chamber members only. The fee to attend is $10.00 per member. More information here. 

Saturday, January 28 - Oskaloosa Eggs and Issues 
Where: Smokey Row Coffee (109 South Market Street, Oskaloosa, IA 52577)
Time: 8:30 a.m. - 9:30 a.m.
Confirmed Participants: Senator Ken Rozenboom; Rep. Helena Hayes; and Rep. Barb Kniff-McCulla

Saturday, January 28 - Camanche Legislative Coffee 
Where: City of Camanche City Hall (818 7th Avenue, Camanche, IA 52730) or virtual via Facebook Live
Time: 9 - 10  a.m.
Confirmed Participants: Sen. Chris Cournoyer; Rep. Norlin Mommsen; and Rep. Tom Determann

Saturday, January 28 - Waverly Townhall 
Where: Waverly Public Library (1500 West Bremer Avenue, Waverly, IA 50677)
Time: 9 a.m. - 10 a.m. 
Confirmed Participants: Senator Sandy Salmon 

Saturday, January 28 - Iowa City Legislative Forum 
Where: Iowa City Senior Center - Assembly Room (28 South Linn Street, Iowa City, IA 52240); Live streamed on City Channel 4 and its YouTube channel along with the LWVJC Facebook page and website
Time: 9:30 - 11 a.m.
Invited Participants: Sen. Dawn Driscoll; Sen. Zach Wahls; Sen. Janice Weiner; Rep. David Jacoby; Rep. Heather Hora; Rep. Elinor Levin; Rep. Amy Nielsen; Rep. Brad Sherman; Rep. Adam Zabner

Saturday, January 28 - Clarinda Legislative Forum 
Where: Lied Public Library - Public Meeting Room (100 East Garfield Street, Clarinda, IA 51632)
Time: 10- 11 a.m.
Confirmed Participants: Sen. Tom Shipley and Rep. Devon Wood

Saturday, January 28 - Carroll Legislative Forum 
Where: New Hope Village (1211 East 18th Street, Carroll, IA 51401)
Time: 10 - 11 a.m.
Confirmed Participants: Sen. Jason Schultz and Rep. Brian Best

Saturday, January 28 - Urbandale Talk With Officials Forum
Where: Urbandale Chamber of Commerce Office (2830 100th Street, Suite 110, Urbandale, IA  50322) and virtual via Zoom
Time: 10:30 a.m.  - 12 p.m.
Confirmed Participants: Sen. Brad Zaun
Invited Participants: Rep. John Forbes; Rep. Eddie Andrews; Rep. Dan Gehlbach; Urbandale Mayor Robert Andeweg; Polk County Supervisor Robert Brownell

Saturday, January 28 - DeWitt Legislative Forum 
Where: DeWitt Community Center (512 10th Street, DeWitt, IA 52730) or virtual via Facebook Live
Time: 11 a.m.  - 12 p.m.
Confirmed Participants: Sen. Chris Cournoyer; Rep. Norlin Mommsen; and Rep. Tom Determann

Saturday, January 28 - Charles City Town Hall 
Where: Floyd County Museum (500 Gilbert Street, Charles City, IA 50616)
Time: 11 a.m.  - 12 p.m.
Confirmed Participants: Sen. Sandy Salmon 

Saturday, February 4 - Greene Townhall
Where: Greene Public Library (231 West Traer Street, Greene, IA 50636)
Time: 9  - 10 a.m.
Confirmed Participants: Sen. Sandy Salmon 

Saturday, February 4 - New Hampton Townhall 
Where: New Hampton Public Library (20 West Spring Street, New Hampton, IA 50659)
Time: 11 a.m. - 12 p.m.
Confirmed Participants: Sen. Sandy Salmon

Our mailing address is:
Iowa League of Cities
500 SW 7th St Ste 101
Des Moines, IA 50309-4506