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Best Practices in Emergency Services

The Iowa EMS Alliance, our City's partnership with Iowa Health Des Moines to provide ambulance service, was featured in the March 2010 issue of Best Practices in Emergency Services. The article highlights the financial savings and improved service levels that the arrangement has created. Read the article.

TIF Districts in Iowa

The 21st edition of our WDM Magazine hit households in West Des Moines yesterday. For my column in this issue, I felt it was timely to address the concept of Tax Increment Financing districts, which are frequently misunderstood. I'd like to reiterate that information here.

Tax Increment Financing, also known as TIF, is one of the least understood economic development tools available to Iowa cities. TIF is used to encourage businesses to locate or expand their operations in our city by directing the tax revenues generated within the TIF district to investments in the district. The ability to create TIF districts is a real asset for the City of West Des Moines, and therefore merits further explanation.

Before creating a TIF district, an urban renewal plan outlining the geographic boundaries of the area slated for development (or redevelopment) is reviewed by the Plan and Zoning Commission and adopted by the City Council. A public hearing is held prior to adoption of the ordinance.

There are several common misconceptions about TIF districts. Here are some realities that clarify why TIF works to benefit an area and the city as a whole.

First, property in TIF districts is taxed. TIF is not a tax abatement. In TIF districts, the taxes generated over and above the base value of the property are retained by the government (in this case, the city, though TIF can be used by counties and community colleges) for use within the district. Only taxes generated on the improved value of the property, known as the increment, are retained for investment in the district.

TIF districts are commonly used for public improvements within the identified district. They can also be rebated back to the developer in exchange for their private investment in new buildings and/or jobs.

Without TIF, we would be at a real disadvantage in competing with other states for significant projects. There are 44 other states that also use TIF to attract economic development.

The use of TIF does not hurt county and school revenues. Counties and schools continue to receive tax revenues calculated on the base value of the TIF property – basically, the same amount of tax revenues they received prior to establishment of the TIF district. When the district expires, counties and schools benefit from the improved value of the property. During the TIF lifespan, schools are reimbursed by the state for lost capacity to levy school taxes for operation. However, public schools and counties benefit immediately from TIF districts with the ability to collect taxes for debt incurred on capital expenditures against all growth in valuations.

Since they are designated for a specific purpose, TIF districts have a 20-year lifespan, but most are retired early. In West Des Moines, we typically retire TIFs in 10-12 years.

We have had success with TIF districts in all areas of our town, not just in our current growth areas to the west and south. For example, our Westown IV TIF, located East of I-35 between I-235 and University Avenue, was created in 1998. That TIF was retired in 2006, at which point there was $140 million in new taxable valuation in the district and over $10,000,000 had been constructed in new infrastructure, such as streets and sewers. This infrastructure was financed entirely by TIF funds, and the area’s debt was paid off in just eight years. Today, there is over $180 million in new taxable valuation in this area, generating over $5.5 million in annual tax revenue for the city, schools, and county.

The City has also used TIF in the Valley Junction/Railroad Avenue area. This TIF initially served to reconstruct Railroad Avenue, make improvements to the Fairmeadows Creek drainage basin, construct Lincoln Street, and purchase residential properties no longer in conformance with current land uses. It has also been used to landscape Railroad Avenue, reconstruct Grand Avenue from E.P True to the Raccoon River Park entrance, and make streetscape improvements in the Valley Junction Business District.

The Valley Junction TIF district was created in 1995 with the expectation that it would require a longer lifespan that our typical TIF district in West Des Moines to accomplish more initiatives. This TIF will be retired in June of this year having accumulated an incremental value of $101,096,220. This valuation will now be available to all taxing authorities for their operating budgets. Our work in this area continues, however, and a smaller TIF district has been created to address specific initiatives like shared sprinkler systems in the commercial blocks, economic development south of the railroad tracks, and further enhancements to the streetscape.

The bottom line: without TIF, we would have fewer new businesses, slower expansion, a smaller tax base, and lower retention rates of businesses in Iowa, resulting in fewer jobs. In West Des Moines, TIF has been used appropriately to the benefit of the entire community, and has been instrumental in getting the right public improvements in place to make exceptional things happen.

Gaga for Google

West Des Moines is part of a nationwide competition to win a Google pilot Internet project. As part of their Fiber for Communities program, Google has expressed a desire to install new Internet connections with data transfer rates faster than 1 Gigabit per second (extremely fast) in the selected communities. In West Des Moines, we hope that our existing infrastructure, commitment to helping the project work, and highly engaged citizens who would truly be able to utilize this faster network will help us stand out. We are focusing our campaign on you. If you want to help West Des Moines catch Google's attention, check out our website news item on the subject for ways to get involved.

Library Survey

The West Des Moines Public Library is currently mailing a survey to 1,000 homes in West Des Moines and the surrounding area. This survey is part of the library's strategic planning effort being conducted by the nationally known library consulting firm Himmel and Wilson. The households receiving this survey were selected randomly. Citizens are encouraged to complete it and return it so the library will have a better understanding of the community's needs. The library will also conduct a web survey during March that will be available from a link on their website and will be distributed electronically.

New Beginnings

The City feels that the future growth and development of West Des Moines is dependent on creating an environment where small businesses can thrive. The City of West Des Moines and Mid Iowa Small Business Development Center along with the U.S. Department of Housing and Urban Development are pleased to sponsor entrepreneur classes for current business owners or those considering an entrepreneurial endeavor in West Des Moines. Twelve scholarships are available for the program, called "New Beginnings" – and there is an application on our website.

Comprehensive Plan Update

The draft Comprehensive Plan, which the Plan & Zoning Commission recommended for approval on September 30, 2009, will be taken to City Council beginning with a public hearing on February 8, 2010. The City Council is scheduled to use six public hearings to complete its review and final adoption of the City's new Comprehensive Plan. The Comprehensive Plan will take effect immediately after the City Council's adoption. Information on the update process, as well as the draft plan itself, is available on the City's website.

If you are not involved in development, you may be asking "what exactly is a comprehensive plan?" The Comprehensive Plan is a statement of the City's policies and intent toward development of the City. Once adopted, it services as a guide for decision-makers regarding future development and redevelopment. It is meant to be a flexible document in that it responds to the changing needs of the City, including changes in development patterns and adjustments necessary to maintain or improve the quality of life to which our citizens are accustomed.

It is truly a tool for long-range planning - our current plan was adopted in 1993, and because we have followed its intent but made the right changes along the way it has served us well. Updating this plan is a complicated process because we must balance the benefits of potential development with the costs and impacts on the character of the community. To us, this is a welcome challenge, and one we feel well-equipped to handle in West Des Moines.