FY2023 Adopted Budget

SELF-SUPPORTING MUNICIPAL IMPROVEMENT DISTRICT (SSMID) 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 Downtown 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 2023. In fiscal year 2022, the City in conjunction with the South District businesses created a SSMID in the South District as allowed under Iowa property tax code. Similar to the process for the downtown SSMID, the City collects a special property tax levy on properties within the boundaries of the district which is then remitted to the South District. The South District SSMID was approved for a period of five years with a rate of $5.00 per $1,000 of taxable value commencing with the levy of taxes for collection in the fiscal year beginning July 1, 2022. All of the funds received by the City through the SSMID property tax levy are remitted to the ICDD and South District, 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 2021 totaled $507,191, and estimated payments in fiscal year 2022 total $470,394. In fiscal year 2023, estimated SSMID distributions to ICDD total $455,938, a decrease of 3.07%. This decrease is primarily related to a decrease in the Commercial & Industrial Property Tax Backfill and a decrease in property values. The South District SSMID distributions are estimated to be $100,093 in fiscal year 2023.

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