Cedar Rapids flood protection funding begins to take shape in Iowa Legislature

DES MOINES – A plan that could provide up to $30 million a year for Cedar Rapids area flood recovery is beginning to take shape in the Iowa Legislature.

Although the plan is in draft form, meaning no bill has been filed or assigned to a committee, representatives of Cedar Rapids reminded a 12-member legislative task the state's second-largest city is racing against two clocks. Not only does Cedar Rapids need a plan before the Legislature adjourns this spring, but it needs it in time to put together a proposal to take to federal officials who will be allocating money later this year through the Water Resources Development Act that provides funding for most flood-protection projects. About $65 million is at stake in that congressional funding stream. The act is not funded every year.

So in a cramped and stuffy conference room overlooking the House chambers, task force members rolled up their sleeves and pored over a rough plan that incorporates much of the Growth Reinvestment Initiative proposed by Mayor Ron Corbett to allow Cedar Rapids to capture a percentage of future sales tax revenues growth to pay the city's $200 million share of a $375 million plan million to protect the city on both sides of the Cedar River with a system of levees, concrete walls, removable flood walls and pumps to protect the city's downtown core, major industries and neighborhoods.

The plan would establish a Natural Disaster Mitigation Board, appointed by the governor, with authority to approve state financial aid to mitigate future natural disasters.

Locally, projects would be overseen by a board, appointed by the city council and Linn County supervisors. Task force members alternately compared it to a tax increment financing district and a self-sustaining municipal improvement district. The local board could approve plans, let bids and sell revenue bonds that would be backed by the growth in sales tax revenue.

Although a single project would be eligible for up to $30 million a year for 20 years, it's unlikely Cedar Rapids-Linn County sale tax revenues would grow that much. Corbett's projections show sales tax growth of about $6.5 million next year and he has laid out alternatives for paying for flood mitigation in 16 to 19 years. Linn County sends the state about $180 million a year in sales tax collections.

Much of the task force discussion centered on the criteria for spending that money, including the prevention of future damage as well as protection of existing economic activity. Criteria include local support, such as the county-wide local option sales tax voters are being asked to extend for 20 years, upstream and downstream impact of the flood mitigation plans and the value of the property to be protected to the economic vitality of the state.

“If we are going to invest public money we have to make sure we can make the case we are protecting the state and keeping the doors of opportunity open,” said Sen. Bill Dix, R-Shell Rock.

Another criteria should be the likelihood of the state being asked to fund similar disaster recovery in the future, Rep. Kirsten Running-Marquardt, D-Cedar Rapids, said.

At the same time, she called for flexibility “because we don't know what the next disaster will look like.”

Not too flexible, others warned.

“If we think this will be rarely used we're fooling ourselves,” Sen. Tom Courtney, D-Burlington, said.

“If that's the case, we haven't set the parameters tightly enough,” said Sen. Tim Kapucian, R-Keystone, “

It will be easier for future Legislatures to expand the scope of the program than to narrow it, Sen. Rob Hogg, D-Cedar Rapids, added.

The task force will meet again at 7:15 a.m. March 31 at the Capitol.