FY2022

TAX INCREMENT FINANCING FUNDS Tax Increment Financing (TIF) Districts have been established in various locations in Iowa City to encourage economic development. TIF revenues are used to repay debt incurred for specific projects and to pay property tax rebates on increased valuation per development-specific agreements within the districts. As TIF agreements expire and/or their legal requirements are satisfied, tax revenue generated by the incremental valuation (increase in property values for the district since it was established) is distributed to all taxing authorities. The objective of Iowa City’s TIF capacity is to provide gap financing for development projects which meet the adopted goals and criteria of the respective TIF district. The City has established thirteen TIF districts. The table below presents debt that has been certified against the City’s TIF districts and their respective collections to repay those debts. Not presented in the budget are the Industrial Park Road, Highway 6 Industrial Park, Northgate Corporate Park, Lower Muscatine Road, and the Camp Cardinal urban renewal areas; these areas have no outstanding tax increment debt.

Outstanding TIF Debt Previously

Estimated TIF Receipts FY21 2,022,516 $

Estimated TIF Receipts FY22 3,168,797 $

TIF Debt Certified 12/1/20

Estimated TIF Debt 6/30/2022 32,903,608 $

Certified 6/30/2020

Urban Renewal Area

$

38,661,211

$

(566,290) (749,851)

2603 - City-University I (1) 2604 - Sycamore & 1st Ave (2)

341,622

1,309

149

(409,687)

2607 - Scott 6 Industrial

183

1,032

- - -

1,032

183

2608 - Heinz Road

-

149

149

-

2613 - Moss Green Village 2614 - Towncrest Area

1,988,014

- - -

-

1,988,014

822,907

154,696 414,682

108,816 417,165 429,420

559,395

2615 - Riverside Drive 2616 - Foster Road

2,516,370

1,684,523 5,706,822

-

6,136,242 4,821,282

-

Total

$

44,330,307

$

2,593,203 $

4,125,528 $

42,432,858 $

(1) Does not include reductions f romHotel/Motel Tax rebates for the Hilton Garden Inn (2) Excess funds collected on Sycamore Mall rebate w ill be returned to Johnson County.

TIF debt certified on December 1, 2020 included dollars requested from the Foster Road Urban Renewal Area for the first time.

338