Bettendorf will know next week whether the city's bond rating will be downgraded by Moody's Investor Service, a move that would boost interest rates on more than $20 million of general obligation bonds scheduled for sale April 1.

City Administrator Decker Ploehn told the city council he and City Finance Director Carol Barnes are scheduled to have a conference call Tues., March 18 with Moody's representatives and the city's bond counsel, Springsted, Inc. He conceded that the city's large amount of debt scheduled to be issued next month might push the rating higher along with the interest rate on the debt to be issued.

Despite promises of lowering the debt to 70 percent of the city's debt limit two years ago, the new bonds to be issued this spring would push the city's debt limit to 86 percent, the highest of any municipality in the state.

Ploehn pointed out the city's large debt issue this spring is actually to cover two years of debt financing of capital projects, a move estimated to save the city $300,000 in bond issuance expenses. Interest payments on the $20.17 million 30-year bond issue would total nearly $8 million.

After the bond issue next month, the city will have outstanding debt of $133 million, or about $4,000 for every resident of the city. The city administrator says the high debt level is needed to meet the capital improvement demands of a growing community.

Owners of The Lodge Hotel would receive up to $3.1 million in property tax and hotel sales tax rebates under a development agreement being considered by the Bettendorf City Council.

The proposed agreement with Spruce Hills Investment Partners, LLC would provide $1.75 million in Tax Increment Financing (TIF) rebates over a 10-year period and another $1 million in hotel sales tax rebates over a 5-year period. If the developers complete a 6,000 square foot retail/office center on the hotel property prior to Dec. 31, 2024, they also would get an additional two years of the TIF rebates, or $350,000.

The Lodge, formerly Jumer's Castle Lodge, has been a Bettendorf fixture at the I-74 and Spruce Hills Drive location since it opened in 1973. Peoria businessman James Jumer built three German-themed lodges, two in Illinois and the one in Bettendorf. All had Bavarian decor, authentic antique furnishings and German food specialties on the hotel restaurant menus.

The growing disparity between those who have and those who have-not, and the injury poverty inflicts upon the poor, here in the United States and around the world, has received growing attention in recent months.

A “Century Marks” report by Oxfam (The Oxford Committee for Famine Relief) noted in its January issue that the 85 richest people in the world have as much wealth as the poorest half of the world’s population, or 3.5 billion people.

Oxfam’s executive director observed in the report that “this tiny elite … could all fit comfortably on a double-decker bus.”

The Oxfam report concluded that “world poverty cannot be tackled without addressing wealth inequality and the political power that often accompanies it.”

Bettendorf's bond consel has raised the possibility of a downgrade in the city's bond rating by Moody's Investor Service, a move that would mean higher interest rates on $20.17 million in general obligation bonds slated for approval by aldermen at Tuesday's (3/4) city council meeting.

"in January of this year, Moody's Investor Service released its new methodology on U.S. Government General Obligation Debt," Springsted, Inc., Bettendorf's long-standing advisor on bond issues, stated in its list of "risks and special considerations" prepared for the city. "Along with this release, Moody's provided a list of local government general obligation rates that they currently have under review for upgrade or downgrade. The City of Bettendorf was on the list as a potential downgrade."

Moody's assigned an Aa1 rating to the city's $14.4 million general obligation bonds issued last spring.

"If such a downgrade does transpire, this could result in higher interest rates than what we have currently projected in the attached bond schedules," Springsted wrote in the letter to the city. "Higher interest rates will impact the projected savings on the refunding transaction and potentially require adjustments to the principal amounts of the new money financing to meet the city's levy constraints."

Thanks to a $12-million tax benefit from the recent sale of its Davenport Rhythm City Casino, the Isle of Capri Casinos, Inc. today (2/27) reported net income of $10.66 million for the third quarter ended January 26, compared with a $2.2 million loss for the same period a year ago.

The one-time tax benefit resulted in earnings of 24 cents per share for the quarter, compared with a 6 cent per share loss a year ago.

"Income from continuing operations for the quarter ended January 26, 2014 was impacted by the reversal of a $2 million litigation accrual due to a recent favorable court ruling, and the $12 million reversal of a previously recorded tax valuation allowance, as a result of the recent sale of our Davenport property," Isle President and CEO Virginia McDowell said in the company news release.

Bettendorf plans to issue more than million of general obligation bonds this spring that would boost the city's debt to more than $133 million, or nearly 86 percent of its legal debt limit. The city's debt would be the highest in the state of Iowa as a percentage of the legal limit at 85.52 percent.

However, City Administrator Decker Ploehn voiced his confidence to the city council about the plan to issue millions in new general and corporate bonds, telling aldermen the city has ample capacity to raise property taxes should it need additional funds for unexpected future projects or expenses.

Bettendorf is one of just a few Iowa cities with a general fund property tax levy well below the maximum allowed $8.10 per $1,000 assessed valuation, according to Ploehn. The city's general fund levy currently is $5.44 per $1,000 assessed valuation. "This allows for future growth capacity of 48 percent, equating to nearly $5 million of potential property taxes," Ploehn stated in the budget presentation he made earlier this month.

According to statistics compiled by the city, even though Bettendorf ranks high in total debt and the debt service tax levy, Bettendorf is the third lowest when combining property taxes, storm water fees, sewer charges and solid waste disposal fees for an average homeowner (median home value of $165,260) among 30 Iowa communities of 10,000 people or more.

He also points to the city's Aa1 bond rating in support of the decision to add debt, rather than raise property taxes, to pay for new capital projects.

While investors may feel secure in buying the city's bonds (debt), city taxpayers end up paying more for every new street and municipal improvement since interest costs on the bonds add to the total price of those improvements.

The Quad City Times Sunday and weekday newspaper circulation continued to decline in 2013, but at a slower rate than in the past five years.

Circulation numbers are the basis for determining advertising rates and newspapers across the country have seen subscriptions fall dramatically over the past 15 years as digital delivery of news and information has proliferated via the Internet.

The Times Sunday circulation fell 2.5 percent in 2013 from the previous 12 months and the average weekday circulation declined 3 percent, according to figures included in the Lee Enterprises, Inc. 2013 annual report sent shareholders in advance of the company's annual meeting Feb. 19.

Lee Enterprises – owner of the Times – reported overall weekday circulation among its 46 daily newspapers declined 3.5 percent while its Sunday "circulation units" increased 7.4 percent "as a result of an increase in branded editions."

A non-profit charitable organization – organized and run by powerful telecommunication industry interests in Washington, D.C. – has collected nearly $33 million of taxpayer money to push its vision of expanding broadband communication strategies around the country including Iowa, paying six-figure salaries to its top officials and spending millions each year on advertising, legal and management fees, research and travel.

The tax-exempt 501(c)3 organization – Connected Nation, Inc. – has received $32.7 million to date in federal stimulus money, forming dozens of state spin-offs – including Connect Iowa – that develop broadband coverage maps and push its mantra that expanding the availability of high-speed Internet services to "overlooked" and "underserved" people and places will lead to "great economic and social advantages."

In the organization's most recent 990 federal tax return required of public charities, Connected Nation directors included the president of the Telecommunications Industry Association (TIA) in Washington, D.C., the CEO and president of CTIA - The Wireless Association and a vice president of World Ahead, an Intel Corporation subsidiary formed with the express purpose to expand broadband and technology around the world.

More than 50 business owners attended a meeting at the QC Waterfront Convention Center Monday (1/13) to hear how road realignment during construction of the new Interstate 74 bridge will impact traffic in downtown Bettendorf in the coming years.

The Bettendorf Business Network sponsored the session, in cooperation with the Isle of Capri Casino, Inc. and the City of Bettendorf.

A private dekhockey operator is seeking a 10-year lease of Crow Creek Park property – at essentially no cost – under an agreement to be considered by the Bettendorf Park Board Wednesday (1/15).

While the lease calls for QC Dekhockey to pay $4,000 per year for the use of park land, the city is required under the lease to construct a second rink and install lighting at an estimated cost of $37,500.

The required outlay by the city does not include the cost of building additional parking adjacent to the rinks, which was estimated at more than $10,000 in discussions of the proposed lease last fall.

Also under terms of the proposed lease, the city would pay for electricity used by the two dekhockey rinks.