Tickers: June 3
A Polk County judge has ruled that the city of Des Moines collected an illegal tax for nearly a decade by charging certain fees, one of which he described as “novel,” for servicing rights of way and border areas carrying gas and electric services. Judge Joel Novak said the illegal tax amounted to $9 million of a $12.6 million charge that is collected on utility bills. He placed the city’s actual administrative costs for providing various services to extend gas and electric utilities on public rights of way and land bordering them at $3 million a year. Novak said the city will have to refund some of the illegal tax. “The message this court is sending is there must be financial consequences from the illegal taxation of the city’s residents,” he wrote in an opinion released today. A law signed earlier this month by Gov. Chet Culver will allow all municipalities to charge a utility franchise fee of up to 5 percent for actual costs associated with providing the services.
Planned job cuts announced by U.S. employers totaled 111,182 in May, a 16 percent decline from the 132,590 job cuts announced in April, according to the latest report on monthly job cuts released this morning by global outplacement consultancy Challenger, Gray & Christmas Inc. So far this year, employers have announced 822,282 job cuts, more than double the 394,193 announced through this point last year. Corporate downsizing may remain slow in the summer months, but the pace could accelerate in the latter half of the third quarter through the end of the year, officials at the firm said.
Gov. Chet Culver will preside over the first meeting of the I-JOBS board by telephone today from Quebec, Canada, where he is attending an international trade conference. The board, which will meet at 1:30 p.m. in the old Supreme Court chamber in the Capitol, was formed by Culver to administer the $830 million infrastructure and jobs creation initiative. The bipartisan board is charged with managing applications for I-JOBS funds, and ensuring that funds are distributed in an efficient and transparent manner. All award recipients are accountable to the board, and Iowans will be able to track all awards at the I-JOBS Web site, which will go online next week.
The number of parcels delinquent on property taxes in Polk County rose 13 percent from last year to 5,984 and the amount rose 50 percent to $11,875,584. The county will hold its annual tax sale beginning on June 15 at 7:30 a.m. at the Polk County Convention Complex, 501 Grand Ave., Des Moines. To avoid the tax sale, payments on delinquent properties must be made by June 12. Learn more at www.iowataxandtags.gov.
Donn Hutchins, president and CEO of Delta Dental of Iowa, has been appointed chairman of the board of the Delta Dental Plans Association. He was originally elected to the board in 2008 and began his second term in May. The association, based in Oak Brook, Ill., is a national network of independent not-for-profit dental service corporations specializing in providing dental benefits programs to 54 million Americans in more than 89,000 employee groups throughout the country. www.dmbusinessdaily.com/DAILY/editorial/060309_Donn_Hutchins.jpg
Shoppers will be able to check out library books at Merle Hay Mall beginning in July. The Franklin Avenue Library, 5000 Franklin Ave., will temporarily relocate to the mall’s south wing near Target while the branch is renovated. The branch will close on June 19 at 6 p.m. and reopen at the mall on July 6 at 10 a.m. The $6.2 million project is expected to take approximately two years. The Des Moines Public Library’s busiest branch will be expanded to more than 25,000 square feet and include additional children’s services, two meeting rooms, new study rooms, cozy reading spaces and more convenient book returns.
The Polk County Housing Trust Fund will kick off a $725,000 fund-raising campaign this afternoon with an event at the Polk County Administration Building, 111 Court Ave., beginning at 5 p.m. in the Heritage Gallery. Speakers will include J. Barry Griswell, president of the Community Foundation of Greater Des Moines, who will share the story of his family’s struggle to find safe and affordable housing when he was growing up. The trust fund provides funding to several nonprofit housing organizations in Greater Des Moines as well as financial assistance for the development and rehabilitation of affordable housing units.