Appendix g

Qualifying Wage Thresholds, Project Completion Date, Maintenance Period

Quarterly Qualifying Wage calculations
The Department updates all program wage thresholds on July 1, October 1, January 1, and April 1 of each fiscal year using the most recent four quarters of available wage data from Iowa Workforce Development.

Definitions
“Average county wage” means the average the department calculates quarterly using the most current four quarters of wage and employment information as provided in the Quarterly Covered Wage and Employment Data report as provided by Iowa Workforce Development, audit and analysis section.  Agricultural/mining and governmental employment categories are deleted in compiling the wage information.

“Average regional wage” means the wage calculated annually by the department using a methodology in which each particular county is considered to be a geographic center of a larger economic region.  The wage threshold for the central county is calculated using the average wage of that county, plus each adjoining Iowa county, so that the resulting figure reflects a regional average that is representative of the true labor market area.  When the average regional wage is calculated, the greatest importance is given to the central county by “weighting” it by a factor of four, compared to a weighting of one for each of the other adjoining counties.  The central county is given the greatest importance in the calculation because most of the employees in that central county will come from that same county, as compared to commuters from other adjoining counties.

Qualifying Wage Threshold Requirements
For each financial assistance and tax credit program administered by the Department, there are minimum wage threshold requirements that must be met in order for the project to be considered to receive an award.  The qualifying wage threshold varies from program to program and according to funding source.  This rule describes the qualifying wage thresholds, by funding source and by program, which a project must meet.

Qualifying wage threshold requirement—projects receiving IVF(FES) assistance.  Awards funded during the time period beginning July 1, 2003, but before June 16, 2004, from IVF(FES) shall meet the wage requirements in effect at that time as reflected in the contract between the department and the business.  Awards funded after June 16, 2004, using IVF(FES) moneys shall meet the qualifying wage thresholds for the programs through which funding is sought. 

Qualifying wage threshold requirement—projects receiving IVF (2005) assistance.  In order to receive financial assistance from the IVF (2005), applicants shall demonstrate that the annual wage, including benefits, of project jobs is at least 130 percent of the average county wage.  If an applicant is applying for IVF (2005) moneys, the department will first review the application to ensure that the IVF (2005) wage requirement is met.  The department will then review the application for compliance with the requirements of the department program from which financial assistance is to be provided.
Qualifying wage threshold requirement—projects funded by program funds (“old money”).  Prior to July 1, 2003, direct financial assistance programs administered by the department were funded through state appropriations.  After the creation of IVF(FES) and IVF (2005), these programs no longer received separate state appropriations.  These programs were funded with IVF(FES) and IVF (2005) moneys.  Moneys remaining, recaptured or repaid to these program funds remain available for awarding to projects.  The department will review an application for compliance with the requirements of the department program from which financial assistance is to be provided.

Qualifying wage threshold requirement—projects receiving EDSA funds.  EDSA is the job creation component of the federal CDBG program.  The department will review an application for compliance with the federal CDBG EDSA requirements.

Qualifying wage thresholds, by funding source and by program.
a.   IVF (2005).  Projects that are funded with IVF (2005) moneys through the following programs shall meet the qualifying wage threshold listed below:

b.   IVF(FES) and program funds.  Projects that are funded with IVF(FES) through the following programs or directly from available program fund moneys shall meet the qualifying wage thresholds listed below: