FY2024 Proposed Budget
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
TIF Debt Certified 12/1/22
Estimated TIF Receipts FY23 3,072,887 $
Certified 6/30/2022
Estimated TIF Debt 6/30/2023 28,965,160 $
Urban Renewal Area
2603 - City-University I (1) 2604 - Sycamore & 1st Ave (2)
$
32,236,335
$
(198,288)
149 266
- -
-
149
2607 - Scott 6 Industrial
27,640 209,003 69,865 49,211 424,302 260,825
(27,374) 159,299
2608 - Heinz Road
93,962
274,340
2613 - Moss Green Village 2614 - Towncrest Area
1,974,582
- - - -
1,904,717
559,395
510,184
2615 - Riverside Drive 2616 - Foster Road
1,721,935 5,986,180 42,572,804
1,297,633 5,725,355
Total
$
$
76,052
4,113,733 $
38,535,123 $
(1) Does not include estimated 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.
410
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