Resolutions-2011-57

Tiffin/ 436989 - 8 / Internal TIF Advance RESOLUTION NO 2011 - 57 AUTHORIZING INTERNAL ADVANCE TO TAX INCREMENT REVENUE FUND WHEREAS, the City of Tiffin, Iowa ( the " City "), has established the Tiffin Urban Renewal Area ( the " Urban Renewal Area ") and has created the Tiffin Urban Renewal Area Tax Increment Revenue Fund ( the " Tax Increment Fund ") in connection therewith; and WHEREAS, the City will undertake urban renewal projects for economic development within the Urban Renewal Area, including constructing street and waterworks system improvements, municipal park improvements and funding economic development payments collectively hereinafter the " Projects ") and the City intends to use future incremental property tax revenues to pay the costs of such projects; and WHEREAS, in order to facilitate the expenditure of currently held funds for the payment of costs of the Projects and to make the expenditure of such funds eligible to be recouped from future incremental property tax revenues, it is necessary to facilitate an internal advance of funds; NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Tiffin, Iowa, as follows: Section 1. It is hereby directed that ( 1) an amount not to exceed Two Hundred Thirty -Eight Thousand Dollars ($ 238, 000) be advanced from the New Development Fund; ( 2) that an amount not to exceed Two Hundred Eighteen Thousand Dollars ($ 100, 000) be advanced from the Sanitary Sewer Utility Fund; and ( 3) that an amount not to exceed Three Hundred Fifty Thousand Dollars ($ 350, 000) be advanced from the Waterworks System Utility Fund collectively hereinafter the " Advance ") all for the payment of costs of the Projects. The Advance shall be repaid on a pro rata basis to the New Development Fund, Sanitary Sewer Utility Fund, the and the Waterworks System Utility Fund, out of future incremental property tax revenues received with respect to the Urban Renewal Area. The Advance shall bear interest at the rate of 1 % per annum, commencing December 1, 2011. It is intended that the Advance, plus accrued interest thereon, if any, shall be repaid in twelve annual installments to be proportionally disbursed amongst the various funds, commencing on July 1, 2012 and continuing to and including June 1, 2013, provided, however, that repayment of the Advance is subject to the determination of future City Councils that there are incremental property tax revenues available for such purpose which have been allocated to or accrued in the Tax Increment Fund relative to the Advance, and the City Council reserves the right to appropriate funds to the repayment of the Advance, or to withhold such appropriation, at its discretion. Section 2. A copy of this Resolution shall be filed in the offices of the County Auditor of Johnson County, Iowa to evidence the Advance. Pursuant to Section 403. 19 of the