FY25 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

Estimated TIF Receipts FY24

TIF Debt Certified 12/1/23

Estimated TIF Debt 6/30/2024

Certified 6/30/2023

Urban Renewal Area

2603 - City-University I (1) 2604 - Sycamore & 1st Ave 2607 - Scott 6 Industrial (2)

$

29,081,104 12,202,988 $ $ 2,999,395 38,284,697 $

149

- -

149

- - -

-

- -

2608 - Heinz Road (3)

22,709

(22,709)

2613 - Moss Green Village 2614 - Towncrest Area

1,904,717

(985) (847)

68,738 42,540 417,719 280,290

1,834,994

509,379

465,992 889,836

2615 - Riverside Drive 2616 - Foster Road

1,315,159 5,842,117

(7,604) (7,369)

5,554,458

Total

$

38,675,334 12,163,474 $ $ 3,808,831 47,029,977 $

(1) Does not include estimated reductions from Hotel/Motel Tax rebates for the Hilton Garden Inn (2) Scott 6 Industrial Area sunset in fiscal year 2023. (3) Expect to receive $251,016 in TIF revenues for FY24 on Debts already paid out.

403