116 3rd St SE
Cedar Rapids, Iowa 52401
Text of Mayor Ron Corbett's State of the City address
Kelli Sutterman / Admin
Mar. 2, 2011 12:10 pm
Cedar Rapids Mayor Ron Corbett gave his annual State of the City Address on Wednesday. The speech is posted on the City's Web site. Here is a synopsis of the statement he provided at today's event:
Good afternoon, everyone. I want to thank the League of Women Voters of Cedar Rapids and Marion for again hosting this year's State of the City luncheon. The League does an outstanding job of educating the public on a variety of issues. I want to recognize my council colleagues. I also would like to recognize our City Manager Jeff Pomeranz and his leadership team. Jeff is an outstanding leader and will serve our community well over the next 10 years. There are also other elected officials here today that I would like to recognize and thank.
The title of my State of the City speech is “Are We Our Brothers' Keeper?” When I conclude, you will see why I have chosen that as the title.
They say you should start a speech with a joke or a little humor. I had a guy tell me the other day, “I would pay $30,000 not to be mayor!” I am still trying to figure out if that was a compliment. I am sure it was just an acknowledgement of how difficult the job of the mayor can be. The job is difficult. However, it can be rewarding… as with any job.
There was one big downside last year… Have you heard of the freshman 15? They say freshmen gain 15 pounds their first year in college. Well, I gained the “Mayor 15.” Last year. Don't worry. I am back to running five miles per day. But you didn't come to hear about my weight, or my hair or goatee for that matter.
I am going to talk about three things today: first, the current state of the city; second, trusting government; and third, the future of Cedar Rapids. If you attended last year's State of the City luncheon, I said we were some place between a car running on all eight cylinders and one cylinder. Let me stay with the engine/car analogy…
I had a chance last spring to participate in a “Legend” car race at Hawkeye Downs. It was a promotional event and a fundraiser for the children's cancer unit at University of Iowa Hospital and Clinics. I competed with Barry Boyer, president of Van Meter Industrial, and Bob Bruce, a local radio personality. These race cars are fast. They go 85 miles per hour. You have to be careful. You don't just jump in the car and hit the gas. We had a couple of practice sessions the week before the race. These cars are small and it is a tight fit. At that time, I was already 8 pound into my “Mayor 15.”
My driving instructor was telling me how to go into the turn, how to accelerate and how to use the car to gain speed and momentum. He said the key to winning a race is to hit the gas pedal as you get halfway around the turn, look ahead and keep your eyes on the straight away.
I think that is where our city is today. We are turning the corner and approaching the straight away. Through our flood recovery efforts, we have demolished 708 properties. We have purchased or bought-out almost 800 houses. We have 115 businesses on the buyout list. Over 900 flood-damaged houses are being rehabbed. We are going to build over 200 housing units in the core neighborhoods, which will invest a total of $40 million in new single family home construction.
We've selected the location for the new Central Fire Station and the new library is breaking ground later this year. We will also be breaking ground on the new Amphitheater-Levee Project later this year. The Paramount Theatre Restoration is on track. The U.S. Cellular Center will be renovated and so will the hotel. Construction of the new Convention Center will begin this year, too. City Hall is moving back downtown. The new Animal Control Facility will be located on the Kirkwood Community College campus.
And other non-city projects are moving forward, like a new year-round market. The National Czech & Slovak Museum is ready to move to its new location. The Legion Arts-CSPS Hall is making progress and county facilities are on track for reconstruction. These are all in addition to projects that are already completed, like Theater Cedar Rapids and the new Human Services Campus.
For a complete list, please pick up a “Signs of Progress” brochure before you leave. They are located on the table outside this room. When you combine the funding for all of these projects, it adds up to $778 million. That includes federal, state and private sector support from local companies. And the Hall-Perrine Foundation has stepped up with major awards. And of course, the total includes donations from individuals like you. This truly has been a community effort.
On the jobs front, we have a new $30 million PCI Medical Mall. Mercy Medical Center is adding a $25 million cancer center. Rockwell Collins is moving 400 jobs to downtown Cedar Rapids to make room for 400 new engineers at their other locations. And Rockwell just last week announced another 200 new jobs. Ruffalo Cody, Security Coverage, Danisco, CRST and Divine Engineering have all added jobs. These are just some of the companies that are providing new jobs. There are also 7 to 10 other major companies that will be announcing expansions later this year, thanks to the work of our economic development partners, the Chamber of Commerce and Priority One. Not all signs are positive, but the optimism is better today than a year ago.
One of my favorite recording groups and singers is Queen and lead singer Freddy Mercury. In one of their songs, they sing, “We are the champions.” I am sure most of you have heard that song. The verse goes, “I've had my share of sand kicked in my face, but I've come through. We are the champions, my friends, and we will keep on fighting until the end. We are the champions, no time for losers.”
We certainly have had our share of sand kicked in our face, but we have to keep fighting. The day of that Hawkeye Downs race, I settled for second place. Barry Boyer won. Cedar Rapids should not have to settle for second place to anyone. We should lead in job creation, work ethic, quality of life, education, health care, recreation and cultural amenities.
Do you know why Barry Boyer won that day? He put his foot on the gas as he was coming out of the turn. I just pressed down a little. If you don't press the gas, you end up just putt-putt-putting around the track. What happens? You get passed and end up last place.
In some cases, we have been passed by other communities. So this year, as we are coming out of the turn, we need to put our “pedal to the metal” as they say in racing terms. I know that makes some of you a little nervous. When you hit the accelerator, it can get a little unnerving. Some of you will dig your finger nails into the arm chair. Some of you will close your eyes. Some of you will check your seat belt to make sure it is secure and nod your head. And some of you will roll down the window and stick your head out and say, “Faster! Faster!” Everybody is a little different. It depends on your comfort zone.
Earlier this year, the Governor of California, Jerry Brown, said in a speech to the California Legislature, “It's time to get out of our comfort zone.” Why did he say that? Because California faces some very big challenges. Big challenges require getting out of your comfort zone.
We have big challenges too. I am out of my comfort zone on some of our projects, like the downtown hotel. Just as I know you are a little out of your comfort zone on some of the projects. Barry Boyer didn't win that race because he was reckless. He was smart. He navigated the corners and used his car for momentum. He was willing to use the accelerator. We are not being reckless. None of us wants to put the City of Cedar Rapids in financial ruin - which is the equivalent of crashing into the wall.
When it is all said and done, you will walk into the newly remodeled Paramount Theatre, the new convention center, the new library, the new year-round market, the new central fire station, the renovated event center, the renovated hotel, the new amphitheater and the city hall and you will be proud of each of these community accomplishments.
And as you walk into each of those buildings, think of the words by Freddy Mercury of Queen, “We have come through.” There are those who will look to the Flood of 2008 and view them as the defining moment. I disagree. I believe it's not the catastrophic event that defines a community, but instead, it's how that community responds to the catastrophe.
Pearl Harbor was an American tragedy, but it was our response in the Pacific that defined American greatness.
To suffer the largest disaster in the State of Iowa's history and to come back is something to be PROUD of, and each and every one of you should be PROUD.
I said I was going to talk about three issues: the current state of city; trusting government; and our future.
The issue of trust in government is a little tricky to discuss, because it can easily be misinterpreted. There is a lot of strife around the world today. All around this country, we see turmoil daily in various states and the pending shut-down of the federal government. This issue about trusting government, specifically “not trusting,” keeps cropping up. It is very fashionable to beat up on government and those involved.
You are not going to see me pile on and join that band wagon today. Maybe that is a mistake. Are we doing ourselves any good when we do? Is there a difference in people's minds between branches or levels of government?
Don't confuse decision-making with trust. Your City Council and City management team are trying to lead Cedar Rapids. We lead by making decisions. We know you might not agree with all the decisions, but at least we are making decisions.
Let me challenge you with a series of questions... How many of you took a shower today or brushed your teeth this morning? Maybe I should ask: who did not take a shower nor brush their teeth? You don't have to raise your hand. We know who you are.
Well, if you did shower and brush your teeth, you trusted government this morning. The water system with its miles of water mains, valves and disinfecting units are maintained by about 105 people in the Water Department. Many that will be on call any time a water main breaks. This is all run by your government.
You probably didn't think twice when you turned on the faucet and took a drink of water or coffee. I guess it is just something we take for granted every day… until our last well is almost destroyed by flood waters. Then what happens? Thousands of people show up to bag sand and save the water system. Did you know that every day you are drinking the “Best Tasting Drinking Water in the State”? The City of Cedar Rapids won this award in 2010.
Now… how about flushing toilets? Did you flush the toilet this morning? Don't worry. I am not going to use any potty humor. Good thing it flushed right? It can get a little messy when it doesn't work. Again, you trusted government. Government runs your sewer system, including miles of pipes, lift stations and the treatment facility – which is run by about 100 people who are making sure our sewer system works.
Remember the big blizzard of a couple of weeks ago? Did you think to yourself, “That was a big storm. They will never get the streets plowed”? You probably thought that getting streets cleaned might take them awhile. As we were all nice and toasty in our beds, crews were out plowing at 3:00 a.m. When I ventured out, my first thought was, “Wow, I can't believe the crews got all these streets done so fast!”
Speaking of that plow crew, there are eight of them at the table over here. Do you mind if we give them a hand for the outstanding job they did?
Again, you trusted government and now, you just thanked government.
I ran into police Chief Greg Graham on Monday. I asked him if he was coming to the State of the City event. He said yes, he wouldn't miss it. Then he asked if I was going to talk about him. Chief Graham, you shouldn't have asked me that, because now, I am going to talk about you. Well, everyone knows Chief Graham administers the red light/speed cameras. If you drive 70 miles per hour on the I-380 S-curve, you can trust that he will send you a ticket.
Finally, I am willing to make a wager that's if anyone wants to take me up on it. I bet that if I dial 911 now on my phone that before my speech is over the police, fire and ambulance will walk into this building. You might say that is not a fair bet because you know I can talk forever.
You all believe that they will show up. Again, you trust government with something very personal: your health, your safety, your life.
We don't have a Department of Agriculture or a Department of Energy. We have Water, Fire, Street, Sewer, Public Works, Parks and Police Departments. Each is made up of people like these snow plow drivers - your neighbors.
City government is really all about public safety and public infrastructure - infrastructure that allows businesses, people, and the entire private sector to grow and thrive. That leads me to my final issue: our future.
Former President of the United States Ronald Reagan said, “Government's first duty is to protect the people, not run their lives.” Health… Safety… Jobs…
Our economic future depends on our ability to protect our city from future flooding. There has not been a day since I was elected, that I haven't thought about flood protection. That brings me to the title of my speech “Are We Our Brothers' Keeper?”
You might know the story from the bible in the Book of Genesis. Pretty profound question: “Are we our brothers' keeper?” It is a question that each of you will be debating over the next 60 days. Why do I say that? Let's go back to the statement by President Regan. “Government's first DUTY is to protect the people.”
It all starts with that first question in the decision making tree process. Do we want flood protection? That in and of itself is a pretty simple question. Yes or No.
The bigger question is: what happens if we do have protection? Or what happens if we don't? The business case for flood protection is easy. It comes up in every conversation I have relating to businesses that want to expand, locate or relocate in Cedar Rapids. It boils down to risk.
By having flood protection it lowers the risk of flooding, the greater the opportunity for new investments. We know many reinvested after the flood, but not everyone. We have many businesses that did not: mid-size companies like Swiss Valley Farms, small businesses like Polena's meat market.
Flood protection gives businesses the confidence and security necessary to invest and create jobs. The business community is only part of the equation. Home owners have re-invested. Those investments remain at risk without flood protection. I think many of you can answer “yes” to this first question. We should protect our community.
The next question then becomes: do we want to protect both sides of the river? Common sense would say protect both sides of the river. Most people understand if you protect one side, the east, it will only make flooding worse on the west side.
Why did the Army Corps of Engineers only recommend protecting the east side then? A formula, that's why. A formula that one could argue is outdated and doesn't take into account social reasons or even regional or State economic impacts. Are we going to govern or make decisions about our community based on some formula? I would hope not. So most of you think we need flood protection and both sides of river should be protected. Questions start to get a little harder from here, just like in the show, “Who Wants to be a Millionaire?” Easy ones first and then the more difficult ones follow.
How do we get our local match? I hope everyone appreciates the fact that we have to have some skin in the game. The federal government has a cost share requirement of 65/35. They pay 65-percent of federally-approved projects, state and local governments pay 35-percent. Since the Army Corps cannot recommend federal participation on the west side, the state and local governments will have to pay for 100-percent of the cost on west side.
The $375 million dollar flood protection system will only receive $65 million from federal government, leaving state and local with a balance of $310 million. We have this three-legged stool we are trying to put together: federal, state and local. The federal government wants to see if a local match is in place.
I have people ask why an election in May? Why can't we wait until November or wait until the current penny option tax expires in 2014? Every 5 to 7 years, Congress approves the Water Resources Development Act. This is the year they are scheduled to approve the bill. You may have heard of the farm bill? It is approved about every 5 years, like the water resources bill.
Congress has all these projects approved by the Army Corps. The pressure builds on Congress to approve these projects. One of the big criteria is local match. If local match is in place, the project has a better chance of getting funding. Having a local match enhances our chances of getting our project in the Water Resources Development Act.
If we don't get approval in the bill this year, it could be another 5 to 7 years before they do another water resources bill. That is the reason for the election in May. So, how did we come up with the idea of using sales tax as local match? Cities are limited to few revenue sources. We have a franchise tax which is a tax on utility bills. Not a good tax, because it is really regressive, since people don't have a choice when it comes to paying utility bills. Second, it raises the cost of doing business for businesses and industries in our community.
A second option is to raise property taxes. We need to come up with a match of around $170 to $180 million. The city's annual general fund budget is $99 million. You can see that it would be a significant increase in property taxes, making the dream of homeownership more difficult. And again, it would raise the cost of doing business in Cedar Rapids for businesses and industries, hurting our chance to create more jobs. In addition, it puts the entire burden on Cedar Rapids, when the whole region will benefit from job growth in Cedar Rapids.
That brings us to the final revenue stream for cities: the local option sales tax. It is a tax that is already on the books, so we won't be raising the cost of doing business in Cedar Rapids. People ask, “Why 20 years? It is just too long of a time. Can't it be shorter? Can't it be for five years or ten?” We looked at that; it's called front end loading the project. This is a major infrastructure project, and projects like this are normally financed over time, similar to financing a house. Most have a mortgage of 20 years, some even 30 years. The other reason for spreading out the cost is that future “Cedar Rapidians” will help pay.
Why should the taxpayers of today pay a disproportionate share of the project? Is it too much to ask that people who will move to Cedar Rapids 10 or 15 years from now and who will be enjoying the benefits of flood protection to help pay for part of the cost?
People tell me they understand the three-legged stool and they understand we have to have a local match, but what about the other two legs? Is state and federal funding in place? We are working on that. We have a plan for both state and federal funding. It is like three kids going to the swimming hole on a late spring day. Water is still cold as they each dip their toes in the water. Nobody wants to be the first to jump in. They prod each other to go first. This is our flood protection project. We have to step-up first, sending a strong message to state and federal government. By us going first, we leverage them.
People tell me, “It is just a lot of money. It is a lot. I just don't like it!” I don't either - too much money and for too long. Do we really need it?
Let's go back to the top of the decision tree. Do we protect or not? Let's go over to the side of not having protection. Let's take the risk. It was a once in a forever event anyway. We need watershed management upstream instead. Water shed management is important and the city is supporting all the efforts on that front. That really is long term. Weather patterns, river flow, climatologists, meteorologists, study after study show increased risk of flooding. Can we ignore science, in addition to ignoring the business case?
Why is Quaker building its own flood protection? They can't wait. PepsiCo is a $60 billion company and they are not willing to take the risk or even wait. Not everyone can build their own protection can they? Quaker, maybe a few others, but not grandma, she can't.
Mother Nature is a formidable opponent. She has a way of getting the best of you. Last time we were unprepared. Do we really want to be defenseless the next time?
People tell me, “Ok, I see the business case. I understand science, it is not worth the risk so I am back to supporting flood protection”. That brings us back to the question: Do we protect both sides of the river, or just one, the east side? What if we just protect the east? This is the Army Corps' plan. Just let the west side flood. We are buying out 115 businesses and over 1,200 homes - basically all the homes in the 100-year flood plain. Move people out of harm's way. The water was 2.8 miles wide by 1.7 miles long. We can't buy the entire west side out.
What happens to the value of property if it can't be protected? Is it likely to depreciate or appreciate? We all know the answer: it will depreciate. Would you invest? This leads to a downward spiral of depreciation and decay. The core of our city deteriorates. The tax base in flood areas falls and gets shifted to you. This also leads to sprawl.
This past year the city did not annex one acre of land. Growing geographically adds to the cost of government. The Army Corps doesn't take into account other social effects in their formula. Maybe someday they will, but not today. On top of social effects, you have a moral question. Mother Teresa said, “I want you to be concerned about your next door neighbor. Do you know your next door neighbor?” If she were here today, I would tell her, “I don't know all the Westside neighbors, but I know a lot of them”. You know them too.
When you look at the aerial view of Cedar Rapids, you see a bunch of dots. Those dots are houses. People live in those homes. Can we really look them in the eye and tell them, “No protection for you, and expect flooding to increase since the water will be pushed to your side!”? I can't. And the council can't. And I hope you can't either.
So now people tell me, “I see why we need flood protection and I see why we have to protect both sides.” That leads us, again, to how do we come up with local match? I can hear some of you saying, “Mr. Mayor, this is heavy stuff. I thought I was coming here today to network a little and see how the city is doing. I didn't expect such a serious discussion about our community's future.” It is serious. I don't know if I took a simple issue and made it more complicated or took a complicated issue and made it simple.
Do you know how many times I, the council and the management team have gone through this decision making tree? A million times, maybe more. Start from the top, go down, go back to the top; protect; don't protect; both sides; only one side; sales tax or property tax. It can get exhausting… Maybe now I understand why that guy said he would pay 30 thousand dollars NOT to be mayor.
It is a big decision and that is why the council wants the community to help make the decision. One night it finally crystallized for me. I was sitting in my kitchen working on emails from my laptop. I was listening to Pandora Internet Radio and a Michael Jackson song came on called, “Man in the Mirror.”
Most of you have heard that song. On Pandora, you can click to read the lyrics. I began reading them, as Michael sang them. The words go, “If you want to make the world a better place…” You know the song and I am NOT going to start singing. It goes on saying, “When you close your heart, you close your mind.”
So I am sitting there, looking at my own reflection in the screen of my laptop and I said to myself: “I am… I am my brothers' keeper.”
I believe with all of my heart and all my mind that we need to protect our community - both sides - and give the business community confidence to invest and create jobs. The question is: “Do you and does the community believe that “We are our brothers' keeper”?
Our city manager, Jeff Pomeranz, has told me, “Nobody ever washes a rented car. It's about ownership.” On May 3rd, our community will have a chance to take ownership in the future of Cedar Rapids. It is a heavy decision, but we don't have to have a heavy heart as we make that decision.
I would like to close with a story that my friend John Langhorn tells at the end of his speeches, but before I do…
I have quoted the Bible, Queen and Freddy Mercury, Governor Jerry Brown, a democrat, Mother Teresa, President Ronald Regan, a republican, and the king of Pop, Michael Jackson. I think I covered a lot of bases!
Here's the story: A man is walking down a cobblestone street and comes across a stone cutter. It is hot and he is sweating as he is chipping away. Stone pieces are flying everywhere. The guy is swearing and cursing as he is cutting the stone. The man asks him, “What are you doing?” The stone cutter replies, “I am cutting a stone,” and using plenty of foul language.
The man continues his walk through the town. He comes across a second stone cutter. This man is chipping away at a stone, exactly like the first. He, too, is sweating and working hard. The man thinks to himself, “Both of these stone cutters are working on the same task. He asks the second man, “What are you doing?” The man looks up with a disinterested look and says, “I am cutting a stone for some building.” He goes back to work.
The man continues his walk through town and comes across a third stone cutter. It is still hot outside and this guy is sweating just like the others. He is working just as hard, chipping away at the stone. This guy has a smile on his face and he is whistling on top of that. The man thinks back to the first guy, angry and mad, and he thinks back to the second guy, acting indifferent. He just has to ask the third stone cutter, “What are you doing?” The man puts down his chisel and hammers and says, “Thanks for asking.” “What am I doing?” he repeats. With a big smile on his face, he says, “I am building a cathedral.” The third man was a stone cutter just like the other two. However, he had a little joy in his life because he saw that he was part of a bigger picture.
My friends, we are not building a cathedral, but we are building a city. It is my hope and prayer that we can stand together, building, with a little joy in our hearts. Thank you.