(Massena) – The Massena City Council expressed concerns about how long the state will continue to allow Tax Increment Financing (T.I.F.), as the Iowa Legislature is considering potential changes to the program.
Mayor Phil Przychodzin welcomed Iowa 3rd District Senator Tom Shipley and Iowa 9th District Representative Tom Moore to Monday night’s regular City Council meeting to discuss the issue.
The city’s T.I.F. funding comes from 32 wind turbines located within a two-mile radius of Massena, generating approximately $860,000 annually. Mayor Przychodzin explained that these funds have allowed the city to pay off a $2 million loan for a new sewer lagoon mandated by the DNR, as well as make a variety of community improvements.
Projects made possible through T.I.F. funding include the installation of stormwater tubing throughout town, upgrades to Main Street, new street lighting, concrete parking areas, a new park shelter, and restrooms used by students during recess. The city has also made improvements to the ballfield and recently completed an Iowa Prison Industries home on a formerly vacant lot, which is expected to go on the market in the next month or two. Additionally, the city has used the funds to improve low-income housing and to make improvements to the community building.
The Mayor said these projects have made a tremendous difference throughout the community — but the work isn’t finished yet. He noted that the city still needs to build a new water treatment facility, estimated to cost between $3 million and $4 million. Additionally, the city aims to continue installing curb and gutter systems throughout the town.
Representative Moore explained that the Ways and Means Committee — the taxation arm of the state legislature — along with its counterpart in the House, are currently focused on Iowa’s top issue: property taxes. Since T.I.F. funding is generated from property taxes, Moore said that both committees have been working for years on tax policy and potential property tax reductions; however, progress has been difficult due to the complexity of the issue.
Moore also questioned whether cities and counties have lowered their levies or returned funds to taxpayers as property tax revenues have increased, or if they are spending the additional money they receive.
State Senator Tom Shipley told the council that he often uses Massena as an example of how effectively T.I.F. funds can be utilized. He praised the community for the numerous positive projects completed through the program and noted that there is still more to be accomplished. “What Representative Moore and I can do,” Shipley said, “is advocate to keep what we have out here.”
Mayor Przychodin thanked the two representatives for coming to the meeting, heard their concerns, and expressed their desire to keep the funding coming and to pass it along to their comrades in the State House.
