FY27 Proposed Budget

T ax 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 seven 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 Highway 6 Industrial Park and Muscatine & Highway 6 urban renewal areas; these areas have no outstanding tax increment debt.

Outstanding TIF Debt Previously

TIF Debt Certified 12/1/25

Estimated TIF Receipts FY26

Certified 6/30/2025

Estimated TIF Debt 6/30/2026

Urban Renewal Area

2603 - City-University I (1)

$

35,278,042

$

(180,603)

$ 3,611,100 31,486,339 $

2613 - Moss Green Village

1,764,987

(93)

69,900

1,694,994

2614 - Towncrest Area

422,157

(152)

42,500

379,505

2615 - Riverside Drive

531,945

(6,306)

162,400

363,239

2616 - Foster Road

5,521,929

(23,697)

280,900

5,217,332

Total

$

43,519,060

$

(210,851)

$ 4,166,800 39,141,409 $

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

364