FY2022

Convention & Visitor's Bureau 25.00% Police Patrol 47.50% Parks & Recreational Facilities 27.50% Total Hotel Motel 7% Tax 100.00%

In addition, fifty percent (50%) of the hotel/motel taxes generated by the Hilton Garden Inn are transferred to the Tax Increment Financing Fund and then rebated back to the developer. This agreement started in fiscal year 2018 and will continue until fiscal year 2029. b) Utility Replacement Excise Tax: The Gas and Electric Excise tax is collected on the generation, distribution, and delivery of electricity and natural gas. This tax replaced the taxation on utility property in 1999. Cities are required to calculate property tax revenues with and without gas and electric utility property valuations. The calculated difference is required to establish the General Property Tax Equivalents which is the basis of the Iowa Department of Revenue distribution formula. c) Utility Franchise Taxes on utility customers: Senate File 478 was enacted by the Iowa state legislature during its 2009 session, establishing cities’ right to impose a franchise tax on gas and electric utilities. On February 16, 2010, the Iowa City Council passed and approved an ordinance establishing a one percent (1%) tax to be expended for the following purposes: 1) Inspecting, supervising and otherwise regulating the MidAmerican Energy Company’s gas and electric franchises. 2) Public safety, including the equipping of fire, police and emergency services. 3) Public infrastructure to support commercial and industrial economic development. Of the $883,660 estimate for fiscal year 2022, approximately $570,190 will remain in the City’s general fund for maintenance of street right-of-way and for operational costs associated with Fire Station #4. The remaining $313,470 is for capital improvement projects (CIP) in the right of way. 3. Licenses & Permits - This category consists of revenue received for building and rental housing permits/inspections, franchise fees, plumbing license and taxi license fees; beer, liquor and cigarette permit/license fees (state regulated), sign permits, burial permits, animal licensing and some miscellaneous fees. Fiscal year 2022 budget for Licenses and Permits is estimated at $2.56 million. The fiscal year 2022 revenue is an increase of 0.2% over the fiscal year 2021 revised budget of $2.56 million, but the average over the last five years is a decrease of 5.1%. These decreases have been primarily due to decreases in construction permit and license revenue from fiscal year 2017 to 2018 and then again from 2019 to 2020 due to the COVID-19 pandemic.

118