G-3, I-4 - Resolution 2025-004 - Declare Necessity, Establish URA and Approve UR Plan Amendment 2025

with incremental property tax revenues to be derived from the Urban Renewal Area. It is anticipated that the City’s use of incremental property tax revenues for the Rec Center Project will not exceed $4,000,000, plus any interest expense incurred by the City on the Obligations. Analysis of Use of TIF: In accordance with the requirement of Section 403.5(2)(b)(1) of the Code of Iowa, the City has analyzed its proposed use of incremental property tax revenues for the funding of the Rec Center Project and alternative development and funding options for the Rec Center Project. The results of that analysis are summarized as follows: A) Alternate Development Options: The City Council has determined the provision of superior recreational facilities are essential to the economic development of the City. The construction of a recreational center will positively impact commerce, growth and development in the Urban Renewal Area. The City Council has determined that the Rec Center Property is the appropriate location for the Rec Center Project because the promotion of other types of development on the Rec Center Property will not meet the public need being addressed by the Rec Center Project. B) Alternate Financing Options: * Local Option Sales and Services Tax Revenues are unavailable to assist with the Rec Center Project because such Revenues have been allocated to other projects in the City. * General Fund: The City is at its $8.10 per thousand levy limit for the General Fund, and the annual proceeds from this levy are fully committed to maintain the operational integrity of the City. The City cannot access its General Fund reserves to aid in funding the Rec Center Project without risking unsound fiscal practice. * Capital Improvements Levy: Revenues from the imposition of the City’s Capital Improvements Levy because such revenues have been allocated to other projects in the City. * Debt Service Levy: The City will use its urban renewal authority to aid in the authorization of general obligations bonds (the “Bonds”) to finance the Rec Center Project. The use of tax increment financing to pay a portion of the debt service payments on the Bonds will lessen the burden on individual taxpayers that would result from a spike in the debt service levy rate and will shift that burden onto valuation increases resulting from the City’s successful economic development initiatives in the Urban Renewal Area. * Utility Surpluses: The City does not have identified surpluses in its sewer and water utility funds that could aid in the funding of the Rec Center Project. * Fundraising: The City will undertake fundraising initiatives to aid in the funding of the Rec Center Project. B.