Dubuque Industrial Center Urban Renewal Area 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
Dubuque Industrial Center 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 Dubuque Industrial
Center 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, $5,012.50 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.
brih+
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
Dubuque Industrial Center 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
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 2014, the following TIF eligible expenses totaling $5,012.50 related to the
Dubuque Industrial Center Urban Renewal Area were advanced from the General Fund
to the Dubuque Industrial Center TIF fund:
• Legal Services $2,125.00
• Consultant Services $2,887.50
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 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 Clerg, ity of 0 qu-, owa
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 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 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. 186-14
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
projects within the Urban Renewal Area, consisting generally of land acquisition, paving
and grading, construction of public utilities, consultant services, legal services,
landscaping, engineering services, signage and stormwater utility fees (the "Project"); 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 $5,012.50.
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 to be an Urban Renewal Project as defined in Iowa Code
Chapter 403, and further approves an advance of City funds for said Project.
Section 2. It is hereby determined that $5,012.50 has been or will be advanced
during Fiscal Year 2014 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 7TH day of July, 2014.
ATTEST:
3
Mayor, If ty of Dubuque, Iowa
EXHIBIT A
City of Dubuque
Fiscal Year 2014 Schedule of Project Costs Paid by Other Funds
Dubuque Industrial Center Urban Renewal Area
Description
Amount
Consultant Services (Brownfields Grant)
$2,887.50
Legal Services (General Legal Matters)
$2,125.00
Total
$5,012.50