FY26 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 12/1/24

Estimated TIF Receipts FY25

Certified 6/30/2024

Estimated TIF Debt 6/30/2025

Urban Renewal Area

2603 - City-University I (1)

$

38,228,037

$

415,616 3,639,600 $

$ 35,004,053

2613 - Moss Green Village

1,834,852

(1,176)

69,900

1,763,776

2614 - Towncrest Area

464,697

(1,067)

42,500

421,130

2615 - Riverside Drive

894,353

(12,194)

355,500

526,659

2616 - Foster Road

8,683,263

(19,430)

280,600

8,383,233

Total

$

50,105,202

$

381,749 4,388,100 $

$ 46,098,851

(1) Does not include estimated reductions from Hotel/Motel Tax rebates for the Hilton Garden Inn

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