ECIA STIR Proposal Impact EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION
MEMO
DATE: February 27, 2003
TO:ECIA Executive Committee and Council Members
Boards of Supervisors
Mayors and City Clerks within the ECIA Region
City Managers within the ECIA Region
Economic Development Directors within the ECIA Region
CC: Area legislators
Kelley Deutmeyer, Executive Director
Larry Nagle, Assistant Director
RE: Impact of the STIR Proposal on City's General Fund
Suite 200
3999 Pennsylvania Avenue
Dubuque, IA 52002
Per the request of some local governments we have prepared spreadsheets that illustrate
the impact of the Iowa Farm Bureau's STIR proposal on cities in the ECIA region. Two
spreadsheets have been included: 1) Cities with existing TIF (tax increment financing)
districts, and 2) Cities Without existing TIF districts. To make these calculations, we
used the tax values that cities used when preparing their fiscal year 2003 budgets (budget
year ending June 30, 2003).
Using these tax values, we have shown the dollar amount that cities would have gained or
lost under the STIR proposal. As shown, every city without an existing TIF would lose
general fund money. Of those cities with existing TIF districts, some "gain" funds in the
year studied and some would lose funds. It depends upon the level of existing TIt; debt.
However, even those cities who "gain" funds this year will eventually be negatively
impacted as their TIF's are paid off; and cities will continue to lose funds each year
because the STIR is proposed to last twenty years. Another concern expressed by some
cities is the loss of local control over a portion of their tax base and their ability to
respond to economic development initiatives.
For your information, enclosed is a copy of an Action Call letter we received from the
League of Iowa Cities. As noted a copy of these results has also been sent to our local
legislators for their review and consideration.
Should you have any questions please contact one of us at 563-556-4166.
PHONE (563) 556-4166 ]O~5(q ONLY (800) 942-4648 FgY, (563) 556-0348 E-['Ai,- eda@ecia.org V~'EB S~TE vratw.ecia.org
Dubuque Metropolitan Area Transportation Study ~ Eastern Iowa Regional Housing Authorihj * Region 1 Emploltment and Training
· ECIR Regional Planning Affiliation * ECIA Business Growth, Inc
ACTION CALL
The Iowa Farm Bureau Federation has prop6sed'an e~onomic stimulus plan for the state that hinges on
the elimination of tax increment financing (TI~). The proposal buys out all existing TIF debt by issuing
revenue bonds at the state level and levies a statewide tax on 4.5% of all property valuation for twenty
years to pay back the bonds. The money not needed to pay off existing TIF debt would fund school
infrastructure, as well as the Iowa Values Fund for state priority economic development projects. The
state priority projects will focus on rural broadband, life sciences and advanced manufacturing.
Approximately $200 million left over will become one-time seed money for regional economic
development efforts.
The League requests two action steps from members: ·
Action SteP 1: BrainStorm the alternatives
The League has also put together a task force of city officials, headed by Mark Jackson of Story City, to
generate alternative concepts. Please send your responses to the following questions to
~u~aniudldns @iowaleague.org or fax them to (515) 244-0740.
1. Legislators say cities need to contribute funding (or ideas for funding) of the iowa Values Fund.
What are your suggestions?
2. There are perceptions that '1'1t~' is being abused. How can 'rlt~' be controlled?
WE NEED THESE RESPoNsES AS SOON AS PossIBLE.'
Action Step 2: Continue te in TIF success stones
Legislators need io know why TIF has beenan important tool, and the core benefit~ of TII,' should be
preser-ced as we look fo? Ways to improve its application. Emphasize the need fo~'local control, the
variety of industry types that have benefited, the size.of projects and the "non-direct" benefits of the TIF
projex/t, such as the corporate taxes paid, sales tax activity generated by and income taxes from the
employees of TlF--enabled businesses. Contaci is needed immediately. Please call the Senate switchboard
at (515) 281-3371 or the House switchboard at (515) 281-3221. Email addresses may be found at.
http://www.legis.state.ia.us. As always, please copy the League on any correspondence with your
legislators..
Suggested activities:
Motivate· the businesses in Your city ttmt have benefited from :l'llv' to ~ontact their legislafors with their ·
.TIF success stories. They may be interested to know if their industry type would be excluded from the
~tfite priority projects. If not for TII~', would the business be in your city? Would it be in Iowa?
· Send your legislator a summary of the number families impagted by the affordable housing'created by
T~'. Does your residential housing TIF project have a neighborhood association? Their input on this issue
would help to highlight a benefit of TIF that is difficult to quantify.
· Emphasize to your legislator that Seaate File 129, a proposal'to establish a commission to study the entire ·
system of state and local taxatinnj is a much more c0nstmctive approach to moving Iowa closer to the
economic vitality we all envision for om: state. .
The League's CityVoices emall list is a great way to monitor the continuing conversation among city '
officials on legislative issues. If you're not already a member of CityVoices, send an email to .
cv@imvalea e.or' to request that your emall address be added.
Action Call - 03/02
February 19, 2003
Cities without TIF
Impact of STIR on General Fund
Bennett
Clarence
Mechanicsville
0.045
0.045
0.045
4,040.72
34,070.23
34,875.73
8.1( 12,4~i8.60
7.80 12,241.38
SUB TOTAL FOR CEDAR COUNTY
City
Andover
Calamus
Camanche
Charlotte
Delmar
Grand Mound
Tax Value/1000
1,441.08
6,618.62
109,991.94
4,717.52
7,177.80
8,939.75
STIR Reduction General Fund Levy~
0.045
0.045
0.045
0.045
0.04~
0.04:
5.41
8.10
8.10
7.02
8.10
8.10
28,700.70
Money Lost/Yea~
350.96
2,412.19
40,092.06
1,490.27
2,616.31
3,258.54
Lost Nation 6,570.83 0.04= 8.10 2,395.07
Low Moor 4,648.18 0.045 6.71 1,403.73
Toronto 1,026.29 8.10 374.08
8.10
0.045
0.045
2,139.22
779.75
11,457.96 0.04 8.10 4,176.42
SUB TOTAL FOR CLINTON COUNTY
59,349.38
Welton
Wheatland
City
Colesburg
Delaware
Dundee
Earlville
Greeley
Hopkinton
Masonville
Ryan
i Tax Value/1000
6,866.19i
2,955.28!
2,076.29
13,361.65
3,000.t4
9,985.34
STIR Reduction General Fund
0.045
0.045
0.0451
0.045
0.045
0.045
0.045
Money Lost/Y
2,502.73
SUB TOTAL FOR DELAWARE COUNTY
4.24
5.17
8.10 4,870.32!
8.10 1,093 551
8.10 3,639.65
8.10 1,035.85
8.10 2,746.74i
16,935.75
Tax Value = per 1,000 of all real estate for FY '03' Budget
t. Genereal Fund Levy only - Does not include separate levies for taxes and benefits.
2. Money that would have been lost in FY '03',
City ITaxValue/1000 ISTIR Reduction General Fund Levy~
Balltown 1,621.50 0.045 0.64 46.33
Bankston 579.4( 0.045 0.00
Bernard 1,646.31 0.045 5.24 368.35
Centralia 2,294.43 0.04,~ 2.93' 302.42
Durango 533.52 0.045 0.00
Epworth 25,829.73 0.045 4.08 4,742.34
Graf 1,160.20 0.045 3.08 160.80
Holy Cross 6,674.63 0.045 6.77 2,033.43
Luxemburg 5,633.86 0.045 6.70 1,698.61
New Vienna 9,074.19! 0.04,~ 7.86 3,209.54
Rickardsville 4,427.32 0.045 1.00 199.23
Sageville 5,829.72 0.04,' 0.00
Sherrill 3,448.50 0.04,' 0.37 57.73
Worthington 6,844.17 0.04,' 7.95 2,448.81
Zwingle 1,122.59 0.04,' 6.2~ 315.73
SUB TOTAL FOR DUBUQUE COUNTY 15,603.31
I ]
City ITax Value/1000 STIR Reduction General Fund Leery~ Money Lost/Year~
Andrew 5,624.29 0.04,' 7.49 1,896.17
Baldwin 1,280.50 0.04~ 8.10 466.74
LaMotte 5,245.89 0.04~ 8.10 1,912.13
Miles 6,773.86 0.045 7.49i 2,283.74
Monmouth 972.04 0.045 8.10 354.31
Preston 19,288.36 0.045 6.9g 6,067.15
Sabula 11,031.01 0.045 7.96! 3,950.81
Spragueville 930.76 0.04,' 8.t0 339.26
Springbrook 2,330.72 0.045 8.10 849.55
St Donatus 3,046.93 0.045 4.86 665.95
Zwingle 222.69 0.045 6.25 62.63
SUB TOTAL FOR JACKSON COUNTY 18,848.44
GRAND TOTAL FOR ALL FIVE COUNTIES 139,437.58
Tax Value = per 1,000 of all real estate for FY '03' Budget
1. Genereal Fund Levy only - Does not include separate levies for taxes and benefits.
2. Money that would have been lost in FY '03'.
General Fund
w/o STIR/1000
Durant Lowden Stanwood Tipton
67,748.91 22,505.41 21,886.20 119,250.03
West Branch
86,391 ~56
TIF Value/1000 4,649.92 277.74 765.75
Total/1000 72,398.83 22,783.15 22,651.95
7,043.78
126,293.81
92,532.92
STIR Reduction(100% - 0.045) 0.955 0.955 0.955 0.955 0.955
General Fund
with STIR/1000 69,140.88 21,757.91 21,632.61 120,610.5§ 88,368.94
8.10
548,766.17
560,041.i5
8.i0
182,293.82
176,239.06
8.10
177,278.22
i75,224.16
General Fund
Levy/i 000
Taxes w/o STIR/1000
8.10
965,925.24
976,945.77
Taxes with STIPJ1000
Net Effect/'1000 (For FY '03') 1 i ,274.9S -6,054.76 -2,054.06 i i,020.52
8.10
699,771.64
715,788.40
General Fund
w/o STIR/i 000
Clinton DeWitt
676,274.80 90,974.17
Goose Lake
3,069.03
TIF Value/i 000 2i ,232.02 39,798.15 163.04
Total/1000 697,506.82 130,772.32 3,232.07
STIR Reduction('100% - 0.045)
0.955
General Fund
with STIR/1000
666,1i9.01 i24,887.57 3,086.63
General Fund
Levy/i 000
8.10 8.10 8.10
Taxes w/o STIR/1000
Taxes with STIR/'1000
Net Effect/1000 (For FY '03')
* Impact using FY '03' tax data
5,477,825.88 736,890.78 24,859.14
5,395,564.01
-82,261.87 274,698.50
142.53
Delhi Dyersville Edgewood Manchester
General Fund
wlo STIR/1000 10,384.11 3,141.17 9,812.80 117,066.19
TIF~alue/1000 1,700.00 3,991.47 2,655.66 10,900.00
Total/1000 12,084.11 7,132.64 12,468.46 127,966.19
STIR Reduction(100% ~ 0.045) 0.955 o.955 0.955 0.955
General Fund
with STIJ~J'1000 11,540.33 6,811.67 11,907.38 122,207.71
General Fund
Levy/1000 8.10 8.o7 8.10 8.10
Taxes w/o STIR/1000 84,111.29 25,349.24 79,483.68 948,236.14
Taxes with STIR/1000 93,476.63 54,970.19 96,449.77 989,882.46
Net Effect/1000 (For FY '03') 9,365.34 29,620.94 16,966.09 41,646.32
Asbury Cascade Dubuque Dyersville Farley Peosta
General Fund
w/o STIR/1000 57,420.14 34,014.44 1,572,843.17 120,624.98 26,730.02 41,684.36
TIF Value/1000 13,845.28 5,124.70 85,213.17 7,767.90 5,277.36 269.80
Total/1000 71,265.42 39,139.14 1,658,056.34 128,392.88 32,007.38 41,954.16
STIR Reduction ('100% - 0.045) 0.955 0.955 0.955 0.955 0.955 0.955
General Fund
with STIR/1000 68,058.48 37,377.88 1,583,443.80 122,615.20 30,567.05 40,066.22
General Fund
Levy/1000 7.71 7.99 8.10 8.07 5.03 5.75
Taxes w/o STIR/1000 442,709.28 271,775.38 12,740,029.68 973,443.59 134,452.00 239,685.07
Taxes with STIR/1000 524,730,85 298,649.25 12,825,894.82 989,504.67 153,752.25 230,380.78
Net Effect/1000 (For FY '03') 82,021.57 26,873.88 85,865.14 16,061.08 19,300.25 -9,304.29
* Impact using FY '03' tax data
Bellevue Maquoketa
General Fund
w/o STIR/1000 48,887.40 126,875~88
TIF Value/1000 2,560.65 10,430.91
Total/1000 51,448 .o5 137,306.79
STIR Reduction(100% - 0.045) 0.955 0.95~
General Fund
with STIR/1000 49,132.89 131,127.98
General Fund
Levy/1000 8.10 8.10
Taxes w/o STIPJ'1000 395,987.94 1,027,694.63
Taxes with STIPJ'I000 397,976.39 1,062,136.67
Net Effect/'1000 (For FY '03') 1,988.45 34,442.05
* Impact using FY '03' tax data