Council
Communication

Office of the City Manager
 
 

Date

November 19, 2007

 

Agenda Item No.       61

Roll Call No.              07-

Communication No.  07-705

Submitted by: Richard A. Clark

 

 

AGENDA HEADING:

 

Resolution approving tax increment needs for FY 2008/2009.

 

 

SYNOPSIS:

 

The City is required to submit its tax increment financing (TIF) needs to the Polk County Auditor on an annual basis. Staff has computed the Fiscal Year 08/09 request based on indebtedness by the City. Based on the current assessed value information, the City of Des Moines TIF request is $26,542,482.  This request uses 61.1 % of available TIF valuations. 

 

The roll call on the November 19, 2007 Council agenda directs the City Manager or his designee to notify the County Auditor of the City’s need for $26,542,482 of tax increment-generated revenue for FY 08/09. The roll call also provides if there are subsequent adjustments in tax increment valuations, the City Manager or his designee is authorized to adjust the TIF needs requirement so as to not violate the Council’s TIF policy.

 

 

FISCAL IMPACT:

 

Based on the projected TIF need, 38.9% of taxable valuation generated in TIF areas will be returned to the taxing jurisdictions. Assuming the current property tax rates, the returned valuation will generate $17,156,000 in tax revenues of which $5,168,000 will be returned to the City of Des Moines’ general operations.

 

 

ADDITIONAL INFORMATION:

 

The request is in conformance with the Council’s policy on use of tax increment funds and is based on the Polk County Auditor’s preliminary taxable valuation figures which, when finalized, will be certified to the State of Iowa. 

The tax increment uses for FY 08/09 are composed of the following:

 

Debt Service Payments………………………………………………..…$18,378,267

 

This amount reflects principal and interest payments on outstanding bonds and notes.

 

Cash Financing…………………………………………………………... $ 8,164,215

 

Airport Commerce Park South (Grant Agreement)                                     592,872

Airport Commerce Park West (Grant Agreement)                                      506,583

Iowa Events Center (28E Agreement)                                                        450,000

600 East Locust Building (Grant Agreement)                                                40,921

Temple for Performing Arts (Grant Agreement)                                             31,000

Hubbell Riverpoint at SW 7th (Grant Agreement)                                        129,333

Eighth and Mulberry Garage (Lease Purchase Agreement)                      1,200,000

Wells-Fargo (Grant Agreement)                                                             1,000,828

Wells-Fargo/Museum (Grant Agreement)                                                     25,000

Allied/Nationwide (Grant Agreement)                                                      1,173,655

Metro Lofts  (Grant Agreement)                                                                 250,000

Planning, Oversight, Administration Reimbursement                                     500,000

Kenyon Building - 301 Grand Ave. (Grant Agreement)                                 20,000

Equitable/Liberty Parking Ramp at Grand & 6th (Grant Agreement)             216,872

Central Library Construction                                                                      729,000

MLK RISE Loan Payment                                                                         555,968

Whiteline Lofts  SW 5th St. (Grant Agreement)                                           250,000

Court Ave. Partners II – Spaghetti Works Housing (Grant Agreement)   62,710

Gateway Lofts 1701 Grand Ave.   (Grant Agreement)                                315,018

Civic Center Improvements                                                                        100,000

Fleur Drive (Grant Agreement)                                                                     14,455               

 

 

PREVIOUS COUNCIL ACTION(S):

 

Date:  November 20, 2006

 

Roll Call Number:  06-2332

 

Action:  Tax Increment Needs for FY 2007/2008.  (Council Communication No. 06-719)   Moved by Hensley to adopt the recommendations contained in Council Communication No. 06-719 and to direct the City Manager or his designee to notify the County Auditor of the City of Des Moines' need for $23,968,682 of tax increment revenue for FY 2008/2009 and if there are subsequent reductions in tax increment valuations, the City Manager or his designee is authorized to decrease the TIF needs requirement as to be in compliance with the Council's TIF policy.  Motion Carried 6-0.

 

Numerous previous annual roll calls on approving annual tax increment request to the Polk County Auditor.

 

 

BOARD/COMMISSION ACTION(S):  NONE

 

 

ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:  NONE