Dubuque Industrial Center Urban Renewal Area_Advance of FundsMasterpiece on the Mississippi
Dubuque
kital
All- America City
II 111!
2012
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Approving an Advance of City Funds for Repayment from the
Dubuque Industrial Center Urban Renewal Area
DATE: May 31, 2013
Budget Director Jennifer Larson recommends City Council approval of the suggested
proceedings approving an advance of funds for repayment from the Dubuque Industrial
Center Urban Renewal Tax Increment Revenue Fund and directing the filing of
certification under Iowa Code Section 403.19. Previously, the City paid for TIF related
expenses directly out of the TIF fund. These expenses include legal services, property
maintenance, stormwater utility expense, consulting engineers, and bond issuance fees.
Due to the new Tax Increment Financing legislation, the City can no longer pay for TIF
related expenses directly out of the TIF special revenue funds. The City must pay for
the TIF related expenses out of the General Fund to be reimbursed by the TIF fund after
a resolution is approved for the advance and the expenses are certified to the County
on December 1.
In Fiscal Year 2013, $12,862.98 in expenses related to the Dubuque Industrial Center
Urban Renewal Area were advanced from the General Fund to the Dubuque Industrial
Center TIF fund
I concur with the recommendation and respectfully request Mayor and City Council
approval.
kr,„
Michael C. Van Milligen
MCVM /jml
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jennifer Larson, Budget Director
Kenneth TeKippe, Finance Director
THE CITY OF
DUB
E
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
Dubuque
All- America City
11111!
2012
SUBJECT: Resolution Approving an Advance of City Funds for Repayment from the
Dubuque Industrial Center Urban Renewal Area
DATE: May 31, 2013
INTRODUCTION
Iowa's Tax Increment Financing (TIF) laws were changed significantly in the 2012
legislative session with the passage of House File 2460. This new law, effective July 1,
2012, includes important changes, such as:
• Significant changes to the reports required for budget approval
• New limitations on the use of tax increment financing
• Elimination of school instructional support levies from the increment
BACKGROUND
TIF is a reimbursement process. The City certifies loans, advances, indebtedness or
bonds to be repaid by TIF. Three key components are required for an expenditure to be
eligible to be repaid from TIF which include: authority for the urban renewal project in
the urban renewal plan; resolution by City Council approving the expenditure as an
urban renewal project, authorizing payment and qualifying it to be included in the
December 1 TIF certification to the County; and December 1 TIF certification to the
county of the expense.
DISCUSSION
Previously, the City paid for TIF related expenses directly out of the TIF fund. These
expenses include legal services, property maintenance, stormwater utility expense,
consulting engineers, and bond issuance fees. Due to the new legislation, the City can
no longer pay for TIF related expenses directly out of the TIF special revenue funds.
The City must pay for the TIF related expenses out of the General Fund to be
reimbursed by the TIF fund after a resolution is approved for the advance and the
expenses are certified to the County on December 1.
In Fiscal Year 2013, the following TIF eligible expenses totaling $12,862.98 related to
the Dubuque Industrial Center Urban Renewal Area were advanced from the General
Fund to the Dubuque Industrial Center TIF fund:
• Stormwater Utility Fees $2,512.73
• Legal Services $3,852.59
• Consultant Services $2,140.00
• Financial Consultant $1,118.00
• Bond Issuance Fees $3,239.66
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution approving an advance
of funds for repayment from the Dubuque Industrial Center Urban Renewal Tax
Increment Revenue Fund and directing the filing of certification under Iowa Code
Section 403.19.
JML
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Counc
Date of Meeting: June 17, 2013
Time of Meeting: 6:30 o'clock P.M.
1 of the C
ty of Dubuque, Iowa.
Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque,
Iowa
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
X Resolution Approving the Advance of Funds, and Filing of Related TIF
Certifications.
Such additional matters as are set forth on the additional
hereto. (number)
page(s) attached
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
City Clerk, City of Dubuque, Iowa
The City Council of City of Dubuque, Iowa, met in
Historic Federal Building, 350 West 6u` Street, Dubuque, Iowa, at 6:30
the above date. There were present Mayor
the following named Council Members:
June 17, 2013
session, in the
o'clock P.M., on
, in the chair, and
Absent:
1
Council Member Lynch introduced the following Resolution entitled
"RESOLUTION APPROVING THE ADVANCE OF FUNDS FOR REPAYMENT
FROM THE DUBUQUE INDUSTRIAL CENTER URBAN RENEWAL TAX
INCREMENT REVENUE FUND AND DIRECTING THE FILING OF
CERTIFICATION UNDER IOWA CODE SECTION 403.19" and moved its adoption.
Council Member Resnick seconded the motion to adopt. The roll was called and the vote
was,
AYES: Lynch, Resnick, Sutton, Braig, Buol, Connors, Jones
NAYS:
RESOLUTION NO. 179 -13
RESOLUTION APPROVING THE ADVANCE OF FUNDS FOR
REPAYMENT FROM THE DUBUQUE INDUSTRIAL CENTER
URBAN RENEWAL TAX INCREMENT REVENUE FUND AND
DIRECTING THE FILING OF CERTIFICATION UNDER IOWA CODE
SECTION 403.19
WHEREAS, the City of Dubuque, Iowa has established the Dubuque Industrial
Center Urban Renewal Area (the "Urban Renewal Area ") and is undertaking certain
urban renewal projects within the Urban Renewal Area, and has incurred various related
costs in connection with such projects consisting generally of stormwater fees, property
maintenance, consulting engineers, legal services described on the attached schedule
prepared by the Budget Director (the "Project Costs "); and
WHEREAS, in order to advance funds for the Project Costs, it is necessary to
make certain findings under Chapter 403; and
WHEREAS, it is the intention of the City to certify the amount of funds so
advanced, together with interest, for reimbursement under Iowa Code Section 403.19;
and
2
WHEREAS, the amount of funds to be advanced for the Project Costs shall not
exceed the aggregate amount of $12,862.98.
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of
Dubuque, Iowa, as follows:
Section 1. Pursuant to Ordinance No. 70 -08 there has been heretofore
established the Dubuque Industrial Center Urban Renewal Area Tax Increment Revenue
Fund (the "Tax Increment Fund "), into which all incremental property tax revenues
received from the Dubuque Industrial Center Urban Renewal Area are deposited. The
Council finds the Project Costs to be eligible urban renewal project expenses as defined
in Iowa Code Chapter 403, and further approves an advance of City funds for said Project
Costs.
Section 2. It is hereby determined that $12,862.98 has been or will be advanced
during Fiscal Year 2013 to the Dubuque Industrial Center Urban Renewal Area Tax
Increment Fund from the General Fund in order to pay the Project Costs. The advances
collectively shall be treated as an internal loan (the "Loan ") to the Dubuque Industrial
Center Urban Renewal Fund and shall be repaid to the General Fund, from the first
available tax increment revenues.
Section 3. The Budget Director, and other City officials having responsibility
for the books and records of the City, shall take such actions as are necessary to comply
with this Resolution, including but not limited to inclusion of these amounts in the
budget, advance and transfer of funds for the Project Costs, certification for
reimbursement under Iowa Code Section 403.19 and compliance under Iowa Code
Section 403.22.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA, this 17TH day of June, 2013.
ATTEST:
City C -rk, City of Dubuque, owa
3
D
Mayor,
y of Dubuque, Iowa
STATE OF IOWA
COUNTY OF
CERTIFICATE
) SS
CIG -3
I, the undersigned City Clerk of , Iowa, do hereby certify that
attached is a true and complete copy of the portion of the corporate records of said
Municipality showing proceedings of the Council, and the same is a true and complete
copy of the action taken by said Council with respect to said matter at the meeting held
on the date indicated in the attachment, which proceedings remain in full force and effect,
and have not been amended or rescinded in any way; that meeting and all action thereat
was duly and publicly held in accordance with a notice of meeting and tentative agenda, a
copy of which was timely served on each member of the Council and posted on a bulletin
board or other prominent place easily accessible to the public and clearly designated for
that purpose at the principal office of the Council (a copy of the face sheet of said agenda
being attached hereto) pursuant to the local rules of the Council and the provisions of
Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at
least twenty -four hours prior to the commencement of the meeting as required by said
law and with members of the public present in attendance; I further certify that the
individuals named therein were on the date thereof duly and lawfully possessed of their
respective city offices as indicated therein, that no Council vacancy existed except as may
be stated in said proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City
or the right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of said Municipality hereto affixed this
day of , 2013.
SEAL
00840784 - 1V99500 -332
City Clerk, City of Dubuque, Iowa
EXHIBIT A
City of Dubuque
Fiscal Year 2013 Schedule of Project Costs Paid by Other Funds
Dubuque Industrial Center Urban Renewal Area
Description
Amount
Stormwater Utility Fees (Project Related)
$2,512.73
Consultant Services (Bond Issuance)
$2,140.00
Legal Services (General Legal Matters)
$3,852.59
Financial Consultant (Bond Issuance)
$1,118.00
Miscellaneous Services (Bond Issuance)
$3,239.66
Total
$12,862.98