State panel rejects Cedar Rapids budget appeal

DES MOINES - The State Appeal Board ruled Friday the city of Cedar Rapids acted properly and within its home rule authority to adopt a $513 million budget that was challenged by a group of citizens unhappy with 'excessive” employee salary levels and other concerns.

The board - made up of State Treasurer Mike Fitzgerald, State Auditor Mary Mosiman and David Roederer, director of the Iowa Department of Management - voted unanimously to sustain the fiscal 2016 budget as adopted by the Cedar Rapids City Council based on the recommendation of an appeal panel that conducted a hearing in Cedar Rapids last month.

'It appears to me that everything was properly followed,” said Roederer. Fitzgerald said Iowa law provides an avenue for citizens to challenge a city's budgeting decisions which was followed, But the fact-finding process determined the city followed the prescribed rules and regulations, leading State Appeal Board members to a 3-0 conclusion that the challenging petitioners 'failed to satisfy the burden of proof for any requested expenditure reductions.”

Cedar Rapids City Manager Jeff Pomeranz called the state board's decision a 'vote of confidence in our budgeting process,” while Lisa Kuzela, a leader of the appeal effort, said state officials were 'extremely limited” in what they could do in addressing the budgetary grievances that were raised.

'It was very important that we were heard on the issue regarding our city and the expenditures. That's something that we do not get at all with the local government with the city of Cedar Rapids,” Kuzela said after the meeting at the Iowa Capitol Building.

'I will continue to work for further accountability for some of the things that the city's been doing,” she added. 'I think as long as the city of Cedar Rapids doesn't listen to the regular taxpayers in regards to how they're spending our money that it is probable that we will do this again unless the city changes their ways.”

Among the issues raised in the appeal were objections over 'excessive” salaries for the city's top officials, and complaints about debt and use of revenue from the state road use tax, the local-option sales tax and hotel-motel tax. The petitioners also criticized the city's purchase of a downtown hotel, its nuisance abatement program and its transparency.

The appeals panel that considered the complaints concluded that Iowa law designates employee salaries 'are a local policy matter” and the State Appeal Board's limited scope 'does not include specific salary objections.” The review panel also noted instances where the state board lacked authority to prevent the sale of bonds and would not interfere with a city's ability to meet debts and legal obligations.

'It's our job to make sure we do things properly,” Pomeranz said after the meeting. 'We need to continue to make sure we're clearly communicating out budget, that we're as open as possible and we're committed to doing that in the future.

'Certainly we feel positive about the action that was taken, but we're not sitting back and resting on our laurels. We're going to make sure we continue to do the best job we can for our citizens,” he added. 'We're not arrogant. We're open. We're gratified that our budget has been affirmed and that the state is comfortable with the decision making of the city as far as the budget.”