HomeMy WebLinkAboutA047 - Council Action Form dated November 28, 2017 ITEM # 9
DATE: 11-28-17
COUNCIL ACTION FORM
SUBJECT: TAX INCREMENT FINANCING (TIF) AND REPORTING RESOLUTIONS
FOR ANNUAL URBAN RENEWAL REPORT AND CERTIFICATON AND
ANNUAL APPROPRIATION OF KINGLAND TIF REBATE
BACKGROUND:
The 2012 Iowa Urban Renewal and Tax Increment Financing (TIF) Reform bill included
provisions for reporting, including the Annual Urban Renewal Report, which must be
approved by the governing board and provided to the Iowa Department of Management
to be made available to the public on an internet site.
This report includes uploading documents related to the urban renewal districts, such as
the plan document and City Council action establishing the district, as well as financial
information on TIF funds related to urban renewal districts. The due date for the report
filing is December 1 of each year. The penalty for non-compliance is withholding
certification of tax levies. The attached report includes financial information for the
South Bell, ISU Research Park, and Campustown (Kingland) TIF districts. The attached
Annual Urban Renewal Report is for the fiscal year ending June 30, 2017.
In addition to the state reporting, the City is required to certify TIF debt with the County
Auditor for the upcoming fiscal year. The ISU Research Park and South Bell debt are
both general obligation bonds approved by Council when issued, so no additional action
is required. The Kingland TIF involves a rebate of incremental property taxes subject to
annual appropriation by the City Council. A resolution is required for the annual
appropriation for the collection and rebate of incremental taxes per the agreement with
Kingland. Incremental taxes for the Kingland TIF are estimated at $302,218 for the
upcoming fiscal year.
ALTERNATIVES:
1. Approve the City's annual 2017 Urban Renewal Report and resolution appropriating
the payment of a rebate of incremental taxes for the Campustown TIF district.
2. Do not approve the report and resolution and refer back to staff.
MANAGER'S RECOMMENDED ACTION:
In order for the City to comply with mandated reporting requirements and fulfill
requirements under the development agreement with Kingland, it is necessary to submit
this report to the Iowa Department of Management by December 1 of this year and
approve the appropriation of the tax increment rebate.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1 , thereby approving the City's annual 2017 Urban Renewal Report and
resolution appropriating the payment of a rebate of incremental taxes for the
Campustown TIF district.