FY2022

SELF-SUPPORTING MUNICIPAL IMPROVEMENT DISTRICT (SSMID) – DOWNTOWN In fiscal year 2013, the City in conjunction with Iowa City downtown businesses created a Self-Supporting Municipal Improvement District (SSMID) in downtown Iowa City as allowed under Iowa property tax code. The City collects a special property tax levy on property that is within the boundaries of the downtown district which is then remitted to the Iowa City Downtown District (ICDD). The ICDD uses the funds to promote and enhance the downtown district. The SSMID was renewed for a ten-year period starting on July 1, 2016 and ending on June 30, 2026. The levy rate was approved to increase from $2.00 to $2.50 per $1,000 of taxable value on July 1, 2021 along with a boundary expansion of the district. The SSMID levy rate remains at $2.00 in fiscal year 2022. Below is a map of the improvement district:

All of the funds received by the City through the SSMID property tax levy are remitted to the ICDD, therefore the fund does not maintain a fund balance. Revenues include the SSMID levy collections and the State backfill for commercial property taxes. SSMID payments to ICDD in fiscal year 2020 totaled $367,177, and estimated payments in fiscal year 2021 total $496,696. In fiscal year 2022, estimated SSMID distributions total $470,394, a decrease of 5.30%. This decrease is primarily related to an increase in the amount of SSMID district valuation being taken for tax increment financing.

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