Loading...
"Tax Increment Financing in Dubuque: 2010-2025" Utility BillCopyrighted March 2, 2026 City of Dubuque ACTION ITEMS # 9. City Council ITEM TITLE: "Tax Increment Financing in Dubuque: 2010-2025" Utility Bill Insert SUMMARY: City Manager providing a copy of the "Tax Increment Financing in Dubuque: 2010-2025" flyer that will be distributed with City utility bills from March 12 through April 2. SUGGUESTED Receive and File DISPOSITION: ATTACHMENTS: 1. TIF Explanation and 15-Year Impact - 2026 Page 936 of 939 40� $95 million in TIF has leveraged $836 million in private investment TAX INCREMENT FINANCING IN DUBUQUE: 2010-2025 in 91 projects. Private Investment to TIF ratio = 9:1 For every $1 of TIF funding, private investors invested $9. This strong return highlights the value of the City's incentive program. Public dollars have helped generate major private investment and job creation. Tax Increment Financing (TIF) is one of the main tools Iowa cities use to encourage growth. It helps communities in three ways: • supporting economic development, • eliminating slum and blight, and creating housing. In Dubuque, TIF has been an essential part of the City's nationally recognized success in attracting private investment and creating jobs in urban renewal districts. WHAT IS TAX INCREMENT FINANCING? HERE'S HOW IT WORKS: Step 1: A TIF district is created. The City of Dubuque creates a TIF district in an area that needs development or improvements. Step 2: A starting "base" value is set. The current property value becomes the "base" value. Step 3: Regular taxes continue. Taxes on the base value continue to go to all local taxing authorities (City, school district, county, etc.) for the entire life of the TIF district, which typically lasts up to 20 years in Iowa. Step 4: Property values grow. When new buildings are constructed or properties improve, property values may increase. The increase is the "increment." Step 5: The increment funds improvements. The City can use tax revenue from the increment to fund projects and improvements in the district. THE CITY OF DUB E Masterpiece on the Mississippi HOW CITIES USE TIF TO DRIVE DEVELOPMENT Cities often use TIF to fund public improvement projects or provide financial assistance for private projects that involve developing or redeveloping parts of the city. This can include revitalizing blighted areas, supporting residentirI development, and boosting economic growth. Depending on the size of the project, cities may use the annual tax increment to pay for improvements or may need to borrow money to finance larger projects, such as infrastructure (streets, water mains, sewers). ,A Page 937 of 939 TIF FOR DUBUQUE JOB CREATION: 2010-2025 From small, local companies to global brands, TIF has supported a variety of Dubuque employers over the last 15 years, including: • Andersen Window & Door • AY McDonald Manufacturing • Cottingham & Butler • Dubuque Screw Products • Dupaco Community Credit Union • Geisler Brothers • Giese Manufacturing • Green Industrial Supply • Hormel • Klauer Manufacturing • McCoy Group • Prairie Farms • Rite Hite • Rousselot • Simmons Pet Food • Theisen's Supply • Tri-State Quality Metals • Unison Solutions • Universal Tank • Vanguard Industries • Woodward Communications TIF FOR DUBUQUE HOUSING CREATION: 2010- 202 5 Green Industrial Supply $34.5 million in TIF spread across 60 projects leveraged $326 million in private investments to create nearly 1,500 housing units within the city. Projects are located throughout the community and ranged in size from 2 units to 201 units, with individual TIF grants ranging from $15,000 to nearly $7 million. TIF HOUSING REQUIREMENT By state law, when TIF is used for housing development: • Approximately 38% of future tax increment revenues must be used to support housing for families earning no more than 80% of the city's median income. This helps provide starter housing for Dubuque's current and future workforc and our most vulnerable residents, the elderly and disabled. Page 938 of 939