(Atlantic) The Atlantic City Council held a special meeting Tuesday evening to approve items that needed to be filed by December 1st.
The first item approved was 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.”
City Administrator John Lund explained that this is related to the tax increment financing for the Redwood Subdivision.
The second item approved was a resolution “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 approved a tax increment financing (TIF) agreement with the Whitney Group in 2016 for improvements to the Whitney Inn. This 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 then approved the 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, a routine formality, summarizes TIF districts, projects, and previously approved plans, agreements, and budgets. Failure to file would block the County Auditor from collecting property tax revenues for TIF obligations.
And, the Council approved the 2023 Road Use Tax Report. Iowa Code requires cities to submit a report on street spending by December 1 annually 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.
