WS - C - City of Tiffin 2024 - Auditor's Report - Final

City of Tiffin Notes to Basic Financial Statements NOTE 8 – TAX ABATEMENTS Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax receipts to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. A. City Tax Abatements The City provides tax abatements for urban renewal and economic development projects with tax increment financing as provided for in Chapters 15A and 403 of the Code of Iowa. For these types of projects, the City enters into agreements to rebate a portion of the property tax collected. No other commitments were made by the City as part of these agreements. For the year ended June 30, 2024, the City abated $235,557 of property tax collected under the urban renewal and economic development agreements. NOTE 9 – INTERFUND TRANSFERS The detail of interfund transfers for the year ended June 30, 2024, are as follows: Transfers In Road Use Debt Transfers Out General Tax Service Water Total General $ - $ 113,034 $ 210,750 $ - $ 323,784 LOST - Assessment Reduction 13,900 41,698 - - 55,598 Tax increment financing - - 1,558,462 88,000 1,646,462 Water - - 113,400 - 113,400 Total $ 13,900 $ 154,732 $ 1,882,612 $ 88,000 $ 2,139,244 Transfers above move resources from the fund statutorily required to collect the resources to the fund statutorily required to disburse the resources. NOTE 10 – COMMITMENTS The City entered into construction contracts that were unfinished at June 30, 2024. At June 30, 2024, the City had remaining construction commitments of $2,143,810. 28