WDM City Manager Jeff Pomeranz has accepted the City Manager position in Cedar Rapids. While I am sad to see Jeff leave, it’s not surprising that he wants to take on a new challenge.

Jeff has accomplished much in WDM. He has been instrumental in moving WDM from a quiet suburb to a thriving entertainment, retail and employment center. WDM has become a source of growth in a state that has been battling for decades to plug its “brain drain.”

I think it’s fair to say that all of us on the Council wish Jeff were not leaving. I am excited for him, however, as he enters into a new chapter in his professional career. I can certainly understand his enthusiasm for taking on a new challenge, and wish him well.

Finance & Administration Committee

I attended the March 31 DART meeting with City Managers. I am pleased to report that DART and the other City Managers in attendance agreed to support West Des Moines’ suggestions to limit the amount of bonds that DART can issue, and to limit the purposes for which they can be issued. Specifically, those in attendance agreed to:

• Limit the amount of bonds that DART can issue to $3.5 million, which DART believes to be the maximum amount it will need to pay in legal settlements resulting from recent accidents;

• Limit the purpose for which the bond proceeds can be used to paying settlements for accidents incurred prior to March 1, 2010;

• Provide that this is a one-time grant of authority to DART to issue bonds.

Additionally, DART agreed that it will not raise taxes to pay bondholders.

I’m pleased with this agreement for many reasons. First, it protects taxpayers by ensuring that DART will not raise taxes, limiting the amount of bonds that will be issued, and limiting the purpose for which the bonds can be issued. Second, it lets DART free up enough resources to not have to close additional routes. Third, all parties showed flexibility in the discussions. This agreement is a testament to the ability of our communities to work together.

Bicycle Master Plan Steering Committee

The Steering Committee met with our consultant from ALTA on March 24. The purpose of the meeting was for ALTA to share with us the results of: (1) their review of previous and ongoing planning efforts affecting WDM and its streets, and (2) their assessment of the current trail and on-street bikeway network in WDM.

The next meeting is scheduled for April 28. At this meeting, ALTA will present its initial draft recommendations to the Steering Committee. The next day (April 29), there will be a public workshop to share information that ALTA has gathered up to that date, and to collect public input.

The topic that generated the most talk at the March 22, 2010, Council meeting was DART’s request that its member communities grant it the ability to issue $6 million in general obligation bonds. DART told us that it wants to raise the money to help it reduce financing costs for settlement payments relating to its recent accidents. DART told us that it believes these settlement payments will be between $3 million and $3.5 million. All of the cities that are a part of DART must agree to allow DART to issue these bonds before it can legally do so.

As I reported at the Council meeting, I have serious reservations about letting DART issue $6 million of bonds:

• DART has not explained why it wants to borrow $6 million from taxpayers when it believes that it only needs up to $3.5 million to pay the remaining settlements. I am concerned that DART will use the additional money for existing (or new) operating or capital expenses that it can’t support with existing revenues. This would result in higher taxes.

DART may want the extra money to serve as a cushion in case settlements will cost more than $3.5 million. If that’s the case, then that appears to me to be a poor strategy. DART would basically be inviting larger settlements, at taxpayers’ expense.

• DART hasn’t told us whether or not it will increase its tax levy to pay for the bonds. I am not going to support a tax increase.

• DART hasn’t asked that this be a one-time, or even a sole-purpose, issuance. Thus, DART is asking us to give it the power to issue general obligation bonds at any time in the future and for any purpose. I am not comfortable giving DART more sources of tax revenue than it already has.

To be clear, I do want to help DART find cost savings if it can be done in a fiscally responsible way. A more fiscally responsible approach, in my mind, would include the following:

• DART issuing no more than it believes it will need to fund the settlements. It has told us that it will need no more than $3.5 million.

• DART agreeing that it will not raise its tax levy to issue the bonds.

• DART not be allowed to issue bonds at any other time or for any other purpose.

Issuing bonds with these conditions in place will let DART save money by using the bond proceeds to pay down an existing line of credit with its bank. Its bank charges DART more interest than DART will have to pay to bondholders. Thus, DART will immediately save money in interest payments, which in turn will save DART from making additional service reductions. At the same time, it will also protect taxpayers.

Work on the City’s Economic Development Plan Update, which began this past summer with a series of focus groups, is almost complete. Angelou Economics, the consultants hired for the project, were in WDM on January 25th for their final meeting with the Steering Committee (of which I am a member). They presented a draft plan to the City Council at a workshop after the Council meeting. The plan has identified five industries on which the City should focus (IT, Life Sciences, Advanced Logistics/Manufacturing, Financial Services, and Retail/Hospitality) and includes six goals with 27 strategies that encompass business attraction, business retention, entrepreneurship, workforce, and quality of life. The plan also includes action items that need to be completed in order to implement the plan successfully. The Council has decided to further consider the plan at a goal setting session this summer so that more discussion on roles and responsibilities can occur.

Here are a few good news items worth mentioning:

MOODY’S, S&P AFFIRM CREDIT RATINGS

As most of you probably know, cities typically fund their capital improvements by issuing bonds and paying back the debt over a period of time. Having a high credit rating is important for taxpayers because it allows cities to issue debt with low interest rates.

S&P recently affirmed its ‘AAA’ long-term rating assigned to West Des Moines. AAA is S&P’s highest rating. It based its rating for West Des Moines on the following credit factors:

• Status as an employment and residential center for the entire Des Moines metropolitan area,

• Access to the large and diverse Des Moines area economy,

• Economic indicators that compare favorably with state and national averages, and

• A historically strong financial position with conservative management.

Moody’s also recently affirmed its Aa1 rating for West Des Moines. Moody’s stated that the rating is indicative of West Des Moines’ sizable tax base experiencing ongoing diversification and supported by individuals with a favorable socioeconomic profile; and solid financial operations bolstered by sizable General Fund reserves.

REFINANCING SAVES TAXPAYERS $1.3 MILLION

I voted with the rest of the Council members at the October 5, 2009, Council meeting to issue refunding bonds to take advantage of a favorable interest rate climate and save taxpayer money. The bid we voted to approve will result in a net savings of almost $1.3 million to taxpayers.