Master Proposed Book FY2023

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 FY22 3,168,797 $

Estimated TIF Receipts FY23 3,072,887 $

TIF Debt Certified 12/1/21

Estimated TIF Debt 6/30/2022 29,611,365 $

Certified 6/30/2021

Urban Renewal Area

2603 - City-University I (1) 2604 - Sycamore & 1st Ave (2)

$

35,879,608

$

(26,559) (750,000) 27,640 209,003

750,149

149

-

-

2607 - Scott 6 Industrial

1,180

1,032

27,640 209,003 69,865 49,211 424,302 260,825

148

2608 - Heinz Road

149

149

-

2613 - Moss Green Village 2614 - Towncrest Area

1,988,014

- - -

13,432

1,904,717

668,211

108,816 417,165 273,800

510,184

2615 - Riverside Drive 2616 - Foster Road

2,146,026 6,136,242 47,569,579

1,304,559 5,601,956

339

Total

$

$

(539,577)

3,983,340 $

4,113,733 $

38,932,929 $

(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.

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