Greater Downtown Urban Renewal District - Advance of FundsTHE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuqu(
band
AI -America City
r
2007 • 2012 •201;
SUBJECT: Resolution Approving an Advance of City Funds for Repayment from the
Greater Downtown Urban Renewal Area
DATE: June 30, 2014
Budget Director Jennifer Larson recommends City Council approval of the suggested
proceedings approving an advance of funds for repayment from the Greater Downtown
Urban Renewal Tax Increment Revenue Fund and directing the filing of certification
under Iowa Code Section 403.19. Prior to Fiscal Year 2013, 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 2014, $48,910.08 in expenses related to the Greater Downtown Urban
Renewal Area were advanced from the General Fund to the Grater Downtown TIF fund
I concur with the recommendation and respectfully request Mayor and City Council
approval.
ht/1144 V'tt.„7kai,„
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
Dui
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
Dubuque
band
AI -America City
r
2007 • 2012 • 2013
SUBJECT: Resolution Approving an Advance of City Funds for Repayment from the
Greater Downtown Urban Renewal Area
DATE: June 30, 2014
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
Prior to Fiscal Year 2013, 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 2014, the following TIF eligible expenses totaling $48,910.08 related to
the Greater Downtown Urban Renewal Area were advanced from the General Fund to
the Grater Downtown TIF fund:
• Stormwater Utility Fees
• Consultant Services
• Legal Services
• Property Tax
• Recording Fees
$ 211.96
$12,500.00
$10,620.26
$25,555.86
$ 22.00
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution approving an advance
of funds for repayment from the Greater Downtown 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 Council of the City of Dubuque, Iowa.
Date of Meeting: July 7, 2014
Time of Meeting: 6:30 o'clock P.M.
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 3 page(s) attached hereto.
(number)
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 Cl rk, City of Du
ue, Iowa
July 7, 2014
The City Council of City of Dubuque, Iowa, met in regular session, in the Historic
Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the above
date. There were present Mayor Roy D. Buol in the chair, and the following named
Council Members:
Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch, David Resnick, Lynn
Sutton.
Absent:
* * * * * * * * *
1
Council Member Lynch introduced the following Resolution entitled
"RESOLUTION APPROVING THE ADVANCE OF FUNDS FOR REPAYMENT
FROM THE GREATER DOWNTOWN URBAN RENEWAL TAX INCREMENT
REVENUE FUND AND DIRECTING THE FILING OF CERTIFICATION UNDER
IOWA CODE SECTION 403.19" and moved its adoption. Council Member Connors
seconded the motion to adopt. The roll was called and the vote was,
AYES: Connors, Jones, Lynch, Resnick, Sutton, Braig, Buol
NAYS:
RESOLUTION NO. 185-14
RESOLUTION APPROVING THE ADVANCE OF FUNDS FOR
REPAYMENT FROM THE GREATER DOWNTOWN DISTRICT
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 Greater Downtown
District 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 $48,910.08.
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of
Dubuque, Iowa, as follows:
Section 1. Pursuant to Ordinance No. 33-11 there has been heretofore
established the Greater Downtown Urban Renewal Area Tax Increment Revenue Fund
(the "Tax Increment Fund"), into which all incremental property tax revenues received
from the Greater Downtown 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 $48,910.08 has been or will be advanced
during Fiscal Year 2014 to the Greater Downtown 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 Greater Downtown 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 7TH day of July, 2014.
ATTEST:
/�/
City erk, City o 'que, Iowa
3
Mayor, ty of Dubuque, Iowa
EXHIBIT A
City of Dubuque
Fiscal Year 2014 Schedule of Project Costs Paid by Other Funds
Greater Downtown Urban Renewal Area
Description
Amount
Stormwater Utility Fees (Project Related)
$211.96
Property Tax (1860 Hawthorne)
$25,555.86
Consultant Services(TIGER 6 Grant Ap)
$12,500.00
Legal Services (General Legal Matters)
$10,620.26
Recording Fees (Caradco)
$22.00
Total
$48,910.08