(Atlantic, Iowa) – The Atlantic City Council held a Special Meeting Tuesday evening (Nov. 26th), and as expected (and previewed in our previous report), passed several measures that it was required to do, in order for them to filed with the State by December 1st.
The Council passed a resolution “Obligating funds from the Southeast Urban Renewal Area Revenue Fund for Appropriation to the payment of Annual Appropriation Tax Increment Financed Obligations which shall come due in the next Succeeding Fiscal Year.” The resolution pertains to tax increment financing for the Redwood Subdivision.
The second resolution that the Council approved, was for “Obligating Funds from the Hotel Whitney Urban Renewal Area Revenue Fund for Appropriation to the payment of Annual Appropriation Tax Increment Financed Obligations which shall come due in the next Succeeding Fiscal Year.”
The City Council eight-years ago passed a resolution for a TIF agreement with the Whitney Group enabling them to make improvements to the Whitney Inn. The annual appropriation allows the City to capture taxes paid by the Whitney Group using TIF. The agreement will continue until the $750,000 cap is reached or 20 years pass. A similar resolution was adopted during the November 15, 2023, meeting.
The Council Tuesday, approved the City’s Annual Urban Renewal Report. Iowa law requires local governments with Urban Renewal Areas to submit an annual Urban Renewal Report to the Iowa Department of Management by December 1, 2024. The report, which is merely a formality, summarizes TIF districts, projects, and previously approved plans, agreements, and budgets. Failure to file the report would have prevented the County Auditor from collecting property tax revenues for TIF obligations.
And, the Council approved the 2023 Road Use Tax Report, which is also required under the Code of Iowa (for all cities). It details spending on street improvements and allows the City to receive Road Use Tax funds.
Atlantic’s report includes spending from the Road Use Tax Fund, Local Option Sales Tax Capital Improvement Fund, bond proceeds, and stormwater utility funds. Failure to submit would halt state funding.