Bettendorf school district property tax assessments took a $122-million hit in 2008 because of Tax Increment Financing (TIF) designations used to lure development or pay for improvements in TIF districts established by the city of Bettendorf.
The $122-million in assessed value amounted to a more than 9 percent reduction in overall school district valuations to $1.142 billion from $1.26 billion, in 2008. The tax values are used for fiscal 2009-2010 tax levies.
By comparison, the Davenport school district had its property tax values lowered $108 million, a 3 percent reduction to $3.65 billion from $3.76 billion because of that city's use of TIF for incentives and improvements.
For Pleasant Valley, the school district's property values in 2008 were reduced from $1.067 billion to $980 million to reflect TIF valuations not available to the school district, an 8 percent reduction.
While taxes on the TIF values are collected by the county, the revenue is turned over to the city for payment to developers or to offset the cost of improvements to the property TIF'ed by the city.
Based on the current rollback and the school tax rate, the lower assessed valuation from city TIF's translates into a nearly $1.8 million reduction in annual property taxes for the school district.
The city does not need approval from the school district or other taxing jurisdictions to set up a TIF district, but Bettendorf officials have sought input and comments from the other taxing bodies prior to making new designations.
When the initial Lady Luck riverfront TIF was proposed, then-Superintendent John Finnessy voiced concern about the revenue loss and the city agreed to make payments to the district to offset the reduction. However, when the new downtown/Isle of Capri TIF was restructured in 2000, the school district stopped receiving any reimbursement.
Here is the city's explanation of TIF districts from its 2009-10 budget:
"Tax increment financing is a means of financing public improvement projects or economic development incentives for cities, counties and community colleges. Cities may utilize TIF for commercial, industrial and residential development. Local government investment in TIF areas enhances development and ultimately reaps additional property tax revenue for all local taxing jurisdictions."
"How does TIF work? A base year for the purpose of assessing taxable valuation is established in the year prior to issuing bonds for debt associated with the district. Any taxes imposed on this base valuation are still directed to the local taxing jurisdictions. In other words, if the property in the pre-development is assessed at $10,000, the local jurisdictions may continue to collect taxes based on the $10,000 assessment. If improvements to the development add an additional $10,000 in value, taxes are still collected on the added value but the taxes are directed towards the project rather than going to jurisdictions."
By "jurisdictions," the city is referring to school districts, the county and other taxing bodies who normally receive property taxes levied on the land/development in the TIF-designated areas.
The Bettendorf TIF development districts and values in 2009 include:
- Downtown - $87,158,535
- Duck Creek Plaza - $15,727,620
- Olympic Steel - $9,141,115
- Spruce Hills (Trinity Medical Center) - $8,544,248
- NEPCO District (Riverside Industrial Park) - $1,296,910
- GRAFCO (Riverside Industrial Park) - $1,281,741
- L3 Properties - $885,350
- Fields Development - $882,947
- Greystone Plastics (Riverside Industrial Park) - $454,880
Total TIF: $125,373,346
Recently, the city added two TIF areas/projects: the I-74 Technology Park, west of Utica Ridge and north of Tanglefoot Lane, and Hometown Harbor low- and moderate-income senior housing, east of Kimberly Road and north of Hobby Lobby. The technology park has a 10-year TIF incentive, but no projects have been approved yet for the area. Hometown Harbor developers received a 10-year, $650,000 incentive.
Here are the other city TIF projects and a brief description from the city's most recent budget:
NEPCO TIF District
Established in 1997 to fund economic development in the city's Riverside Industrial Park area. The project is set to expire in 2012. A total of $35,266 in TIF receipts is expected from this district in fiscal year 2009/10, and the city is expected to be reimbursed by fiscal 2010/11.
Isle of Capri TIF District
Established to fund the overpass over the railroad tracks and the parking ramp located at the Isle of Capri Riverboat Casino. TIF bonds were issued on 7/1/1997, in the amounts $4.17 million and $5.385 million. The TIF taxes fund the payments on both of the bond issues. A total of $1,144,849 in TIF receipts are projected in fiscal year 2009/10. The last payment on the bonds is scheduled for 6/1/2011.
Olympic Steel TIF District
Created in 1997 to fund economic development in the Riverside Industrial Park area. TIF bonds were issued on 11/1/1997 to fund the project. The TIF taxes fund the payments on the bond issue and TIF receipts are projected to generate $170,551 in fiscal year 2009/10. Final payment on the bonds is scheduled for 6/1/2009.
GRAFCO Phase II TIF District
Established to rebate the taxes paid by GRAFCO for 7 years up to $150,000 beginning in fiscal year 2009/10. In fiscal year 2009/10, second year of the designation, TIF receipts are expected to be $34,921.
Trinity Medical Center TIF District
Established to fund the road, sewer and traiffic signal improvements in the district to increase capacity after the Trinity Medical Center was built. TIF bonds were issued to fund a portion of the improvements on 6/1/2002. The TIF taxes fund the payments on the bond issue and the budget is projected to generate $132,480 in TIF receipts in fiscal year 2009/10. Final payment on the bonds is scheduled for 6/1/2018.
Home Depot TIF District
Established to rebate the taxes paid by the Home Depot at Duck Creek Plaza shopping center for 11 years beginning in fiscal year 2005/06. In fiscal year 2009/10, year four of the incentive, $148,921 in TIF receipts are expected.
Greystone Plastics TIF District
Established to rebate the taxes paid by the Greystone Plastics on the improvements made to its building up to a maximum of $250,000 beginning in fiscal year 2005/06. A total of $23,619 in TIF receipts are projected in fiscal year 2009/10.
Eye Surgeons Associates TIF District
Established to reimburse the city for a portion of the improvements made to Tanglefoot Lane. The city will be reimbursed for the taxes paid by Eye Surgeons Associates through fiscal year 2010/11 beginning in fiscal year 2006/07. A total of $87,993 in TIF receipts are projected in fiscal year 2009/10.
The Daly Group TIF District
Established to rebate the taxes paid by the Duck Creek Plaza shopping center for 11 years beginning in fiscal year 2005/06. In fiscal year 2009/10, year four of the incentive, $287,064 in TIF receipts are projected.
State Street Redevelopment/Windmiller TIF District
• Phase I was established to rebate the taxes paid by State Street Redevelopment for the building at 1717 State St. for 10 years beginning in fiscal year 2006/07. In fiscal year 2009/10, year four of the incentive, $37,604 in TIF receipts are projected.
• Phase II was established to rebate the taxes paid by Windmiller Design & Development Co. for the buildings at 1725, 1727, 1733, and 1737 State St. for 10 years beginning in fiscal year 2006/07. In fiscal year 2009/10, year four of the incentive, $57,247 in TIF receipts are projected.
• Phase III was established to rebate the taxes paid by State Street Redevelopment for the building at 1805 State St. for 10 years beginning in fiscal year 2006/07. In fiscal year 2009/10, year four of the incentive, $59,960 in TIF receipts are projected.
QC Realtor Association TIF District
Established to rebate the taxes paid by the Quad City Realtor Association for the building at 1900 State St. for six years beginning in fiscal year 2006/07. In fiscal year 2009/10, year four of the incentive, $34,226 in TIF receipts are projected.
Autotech Technologies (UTICOR) TIF District
Established to rebate the taxes paid for the improvements to the building at 4140 Utica Ridge Rd. for five years beginning in fiscal year 2006/07. In fiscal year 2009/10, year four of the incentive, $14,904 in TIF receipts are projected.
Rivers Edge (downtown events center) TIF District
Established to fund the city's share of bonding and development of the downtown event center. A total of $1,108,839 in TIF receipts are projected in fiscal year 2009/10.
L3 Properties (Logan Equipment relocation) TIF District
Established to rebate the taxes paid for the improvements to the building at 4114 State St.. for five years up to $99,000 beginning in fiscal year 2008/09. In fiscal year 2009/10, year two of the incentive, $24,543 in TIF receipts are projected.
Fields Development TIF District
Established to rebate the taxes paid for the improvements to the Fields Development. For each lot in the development, the rebate is 10 years. A total of $23,175 in TIF receipts are projected for fiscal year 2009/10.
