Iowa League of Cities Annual Conference & Exhibit

TIF Reporting, Internal Loans and Certification

Ted Nellesen, City Budget DirectorIowa Department of Management

Handouts and presentations are available online at www.iowaleague.org

Annual Urban Renewal Report (AURR)

• Mandated under HF2460• Due December 1st every year• Report on the data by Legislative Services Agency– Due February 15th

– Data from Report to be filed on Dec. 1st

– Contain list of Cities that haven’t filed by deadline– Submitted to Legislature and Governor

Brief Overview of TIF Certification

• Projects undertaken & debt assumed to fund projects

• New debts certified to County Auditor– Certification also due December 1st each year

• Revenue received in the next fiscal year– Example

• Certification of new debt: 12/1/2013• Revenue received on new certification: 7/1/2014 – 6/30/2015

FY2012 AURR

• AURR is rear‐facing report – always reporting on the FY that just ended

• FY2012 Report Submittal Statistics• 468 Entities Required to File FY2012 Report– 49 Counties– 415 Cities– 4 Rural Improvement Zones

• 437 Entities Filed FY2012 Report– 47 Counties Filed– 387 Cities Filed– 3 Rural Improvement Zones Filed

Process for Completing the AURR

• Completed online – Report form accessed through DOM Website

• PDF of report created– Savable and Printable – Should be included in the Council packet for approval meeting

• Must be approved by motion and majority vote of the seats, not those present

Public Access to Completed Report

• Access to the final reports and supporting documents through public portal:– DOM Homepage– Link –

• https://solr.legis.iowa.gov/tif/public

Public Access to Completed Report

Data Comparison Tool

Data Access Tool

Public Access to Completed Report

Items Required to be Uploaded

• Urban Renewal Plan– 939 UR plan documents in FY2012

• Map of UR Area– 930 UR map documents in FY2012

• Urban Renewal Ordinance– 925 UR ordinance documents in FY2012

• Math doesn’t quite work…– 1,011 UR Areas exist, so we should see at least that many of each of these documents

Projects – FY2012

• Projects were to be reported if…– Being PHYSICALLY COMPLETED in FY2012– Still making PAYMENTS ON DEBT THAT FUNDED THE PROJECT in FY2012

– Project was APPROVED BY COUNCIL during FY2012

Projects Reported of FY 11/12# Commercial Projects 1,217# Residential Projects 283

# Infrastructure/Other/Unclassified Projects 1,891

Total Active Projects 3,391

Project Page

Debt/Obligation – FY2012

• Needed to be reported if…– Debt was OUTSTANDING DURING FY2012– Debt TO BE CERTIFIED in the future was incurred during FY2012Debt ‐ Beginning of FY

Rebates Outstanding 895GO Bonds/Notes Oustanding 1,007

TIF Rev Bonds/Notes Outstanding 121Internal Loans Outstanding 564

Other Debt Outstanding 210Total # Debts Outstanding 2,797

Debt/Obligation – FY2012

Rebates Outstanding 512,886,680GO Bonds/Notes Oustanding 1,623,970,002

TIF Rev Bonds/Notes Outstanding 425,495,310Internal Loans Outstanding 122,879,837

Other Debt Outstanding 177,931,144Total Amount of Debts Outstanding 2,863,162,973

Types of Debt/Obligations

• General Obligation Bonds/Notes• TIF Revenue Bonds/Notes• Agreements

– Tax Rebate Agreements– Developer Agreements

• Internal Loans• Other Debt• Outstanding LMI Housing Requirements

Internal Loans & TIF

• Allowable, and commonly used, form of TIF Debt

• Should always be formalized and approved• Common mistakes with Internal Loans

– Certifying but never making the internal loan (deficit spending TIF Fund)

– Not formalizing internal loans via resolution by Council

– Failing to track and pay back internal loan

Debt Page

Expenditures

• FY2012 only required inputting of itemized expenditure information for rebates and developer agreements.

• No information was required to be input about non‐rebate/agreement expenditures– These expenditures were still requested for voluntary report, but only as a bulk number.

Rebate Expenditures 61,523,398Non‐Rebate Expenditures 229,052,721

Returned to County Treasurer 79,935Total Expenditures 290,656,054

Revenues

• TIF revenue by is reported by tax district• Whole dollar amounts; only amount of revenue for the FY being reported

• Revenues from interest and loan repayments/land sales must also be reported

Tax Revenues 274,088,886TIF Sp. Rev Fund Interest 6,416,714

Asset Sales and Loan Repayments 19,647,203Total Revenues 300,152,803

Levy Authority Summary

• What does it mean?– “Back of the envelope” 

calculation• Trying to find the amount 

of  TIF that should be recouped in future years

– Who has collected too much already

Debt Outstanding– FY2012 Expenses– FY2012 Ending CashYear‐End Net Debt