Speer Financial Services

TIF Reports in Iowa

Speer Financial, Inc. has worked for many years with municipal governments and have advised on their use of Tax Increment Finance (TIF) tools. The TIF Report has been developed for municipal clients which provides the information necessary to mayors, clerks and city councils to make knowledgeable TIF decisions.

Section One-Outstanding G.O. Debt
This section outlines the City's total General Obligation Debt Outstanding. By subtracting off any monies used to buy down debt from sources such as Local Option Sales Tax, Road Use Tax, Water and Sewer Revenues, Special Assessment and Tax Increment financing dollars, the city can identify the amount needed to be certified in their budget for their debt service levy annually.

Section Two-Rebate Agreements
The focus of this section is to identify any rebate agreements that the City has entered into with developers, businesses, etc. The length of rebate terms, amount and the value on the building or development are all shown on these pages.

Section Three-TIF Supported G.O. or Revenue Debt
This section of the report identifies the amount of General Obligation debt that is being paid by TIF dollars. This section also identifies any Tax Increment Financing Revenue Bonds outstanding and any other interfund loans that are being paid from TIF. The end of this section outlines how many TIF dollars needed to be moved into the debt service levy fund to pay down property taxes on a yearly basis.

Section Four-Debt Capacity
The General Obligation Debt Capacity section shows city officials the total of their 5% Constitutional debt limit. Also indicated is the total principal outstanding as well as a total obligation of rebate agreements outstanding (which does count against a City's constitutional debt limit). A remaining balance of debt limit is provided with an estimated growth factor for the future.

Section Five-Net Unclaimed TIF Dollars
The final section runs through the City's 100% incremental value in their TIF district. A tax rate minus any city, county or school district debt services levies are used to calculate the amount of Tax Increment Financing dollars the City has available to be used on an annual basis. From that number we subtract outstanding TIF obligations, rebate agreements and any other obligations that are being paid with TIF funds. This leaves the City with an 'Unclaimed TIF Dollars' amount. This section is used to estimate future dollars available for projects.

Annual updates are completed prior to every December 1st (the deadline for certifying TIF dollars to the County). The reports are modified as often as needed to accommodate the City's changing developments, but at least once a year with new valuations.

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