DEWITT — The city of DeWitt certified an additional $100,000 in its Tax Increment Financing debt at its Monday meeting, bringing the total certified to $1.6 million.
Previously TIF debt certification stood at $1.3 million from 2006 to 2009 and has been increased each year up to $1.5 million in 2012. The city’s financial advisor has advised the city to increase its debt certification to offset any future jump in payments that would negatively impact the school, county and city general funds.
The city takes only 28 percent of the total TIF dollars available and its TIF debt payment next year is an estimated $1.467 million. The increase in TIF dollars taken by the city should be offset by growth in the TIF district. Last year DeWitt had an increase of nearly $5.2 million in taxable valuation, and there is an estimated increase of nearly $2.5 million in TIF taxable value next fiscal year, according to Finance Director Deanna Rekemeyer.
The council also approved annual payments for TIF rebate agreements with a number of developers. The agreements specify an annual amount so that the entire amount of the agreement is not counted against the city’s debt limits.
The first authorization was a $50,000 annual payment for 2013-14 and $60,000 for 2014-15, with a maximum amount over 10 years of $255,000 for Hafner Brothers, LLC, to promote construction of single family homes. The value for Hafner increases every year.
An annual payment of $5,000 for 2014-15 fiscal year goes to the DeWitt Development Company. The payment is a result of additional taxes paid when the spec building property was reclassified industrial.
Custom Pak receives an estimated annual payment of $135,000 for 2013-14 and for 2014-15 with a maximum payout of $1.1 million. The TIF rebate agreement was an incentive for a 25,000 square foot expansion which doubled Custom Pak’s assessed value from about $3 million to $6 million.
A 2014-15 payment to Tiefenthaler Development, Inc., is estimated at $60,000 over 10 years with a maximum payout of $398,000. The TIF agreement promotes development of single family homes.