An Ordinance Providing for the Division of Taxes Levied on Taxable Property in the March, 2023 Addition to the Sutherland Urban Renewal Area, Pursuant to Section 403.19 of the Code of lowa
WHEREAS, the City Council of the City of Sutherland, Iowa (the “City”) previously enacted an ordinance entitled “An Ordinance Providing for the Division of Taxes Levied on Taxable Property in the Sutherland Urban Renewal Area, Pursuant to Section 403.19 of the Code o flowa”; and
WHEREAS, pursuant to that ordinance, certain taxable property within the Sutherland Urban Renewal Area in the City was designated a “tax increment district”; and
WHEREAS, the City Council now desires to increase the size of the “tax increment district” by adding additional property;
BE IT ENACTED by the Council of the City of Sutherland, Iowa:
Section 1. Purpose. The purpose of this ordinance is to provide for the division of taxes levied on the taxable property in the March, 2023 Addition to the Sutherland Urban Renewal Area of the City of Sutherland, Iowa, each year by and for the benefit of the state, city, county, school districts or other taxing districts after the effective date of this ordinance in order to create a special fund to pay the principal of and interest on loans, moneys advanced to or indebtedness, including bonds proposed to be issued by the City of Sutherland to finance projects in such area.
Section 2. Definitions. For use within this ordinance the following terms shall have
the following meanings:
“City” shall mean the City of Sutherland, Iowa.
“County” shall mean O’Brien County, Iowa.
“2023 Urban Renewal Area Addition” shall mean the March, 2023 Addition to the Sutherland Urban Renewal Area of the City, the description of which is set out below, approved by the City Council by resolution adopted on March 6, 2023:
Parcel K in the SE1/4 Section 7-94-39
That part of the Southeast Quarter (SE1/4) of Section Seven (7), Township 94 North, Range 39 West of the 5th P.M., City of Sutherland, O’Brien County, Iowa, described as follows:
Commencing at the Northwest Corner of the Southeast Quarter of said SE1/4 (SE1/4-SE1/4); thence South 00º37’04” West on the west line of said SE1/4-SE1/4 and on the west line of Parcel C in said SE1/4 (the Plat of Survey of said Parcel C is recorded in Plat and Survey Book 5, Page 326) for a distance of 285 .04 feet to the Southwest Comer of said Parcel C and to the Point of Beginning; thence South 00º35’45” West on said west line of said SE1/4-SE1/4 for a distance of 393.43 feet to the Northwest Comer of Parcel H in said SEV. (the Plat of Survey of said Parcel H is recorded in Plat and Survey Book 5, Page 719); thence South 89º43 ‘04” East on the north line of said Parcel H for a distance of 400.00 feet; thence North 00º35’45” East for a distance of393.73 feet to the easterly extension of the south line of said Parcel C; thence North 89’45’39” West on said easterly extension and on the south line of said Parcel C for a distance of 400.00 feet to the Point of Beginning, containing 3.61 acres.
SUBJECT TO EASEMENTS, IF ANY, OF RECORD OR APPARENT.
“Urban Renewal Area” shall mean the entirety of the Sutherland Urban Renewal Area as amended from time to time.
Section 3. Provisions for Division of Taxes Levied on Taxable Property in the 2023 Urban Renewal Area Addition. After the effective date of this ordinance, the taxes levied on the taxable property in the 2023 Urban Renewal Area Addition each year by and for the benefit of the State of Iowa, the City, the County and any school district or other taxing district in which the 2023 Urban Renewal Area Addition is located, shall be divided as follows:
(a) that portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the taxing districts upon the total sum of the assessed value of the taxable property in the 2023 Urban Renewal Area Addition, as shown on the assessment roll as of January 1 of the calendar year preceding the first calendar year in which the City certifies to the County Auditor the amount of loans, advances, indebtedness, or bonds payable from the special fund referred to in paragraph (b) below, shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for said taxing district into which all other property taxes are paid. For the purpose of allocating taxes levied by or for any taxing district which did not include the territory in the 2023 Urban Renewal Area Addition on the effective date of this ordinance, but to which the territory has been mmexed or otherwise included after the effective date, the assessment roll applicable to property in the annexed territory as of January 1 of the calendar year preceding the effective date of the ordinance which amends the plan for the 2023 Urban Renewal Area Addition to include the annexed area, shall be used in determining the assessed valuation of the taxable property in the annexed area.
(b) that portion of the taxes each year in excess of such amounts shall be allocated to and when collected be paid into a special fund of the City to pay the principal of and interest on loans, moneys advanced to or indebtedness, whether funded, refunded, assumed or otherwise, including bonds issued under the authority of Section 403.9(1), of the Code of Iowa, incurred by the City to finance or refinance, in whole or in part, projects in the Urban Renewal Area, and to provide assistance for low and moderate-income family housing as provided in Section 403.22, except that taxes for the regular and voter-approved physical plant and equipment levy of a school district imposed pursuant to Section 298.2 of the Code of Iowa, taxes for the instructional support program levy of a school district imposed pursuant to Section 257.19 of the Code of Iowa and taxes for the payment of bonds and interest of each taxing district shall be collected against all taxable property within the taxing district without limitation by the provisions of this ordinance. Unless and until the total assessed valuation of the taxable property in the 2023 Urban Renewal Area Addition exceeds the total assessed value of the taxable property in such area as shown by the assessment roll referred to in subsection (a) of this section, all of the taxes levied and collected upon the taxable property in the 2023 Urban Renewal Area Addition shall be paid into the funds for the respective taxing districts as taxes by or for said taxing districts in the same manner as all other property taxes. When such loans, advances, indebtedness, and bonds, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the taxable property in the 2023 Urban Renewal Area Addition shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property.
(C) the portion of taxes mentioned in subsection (b) of this section and the special fund into which that portion shall be paid may be irrevocably pledged by the City for the payment of the principal and interest on loans, advances, bonds issued under the authority of Section 403.9(1) of the Code of Iowa, or indebtedness incurred by the City to finance or refinance in whole or in part projects in the Urban Renewal Area.
(d) as used in this section, the word “taxes” includes, but is not limited to, all levies on an ad valorem basis upon land or real property.
Section 4. Repealer. All ordinances or parts of ordinances III conflict with the provisions of this ordinance are hereby repealed.
Section 5. Saving Clause. If any section, provision, or part of this ordinance shall be adjudged invalid or unconstitutional, such adjudication shall not affect the validity of the ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional.
Section 6. Effective Date. This ordinance shall be effective after its final passage, approval and publication as provided by law.
Passed by the Council of the City of Sutherland, Iowa, on March 6, 2023.
Kay Gifford
Mayor
Amanda Vanderholt
City Clerk
Published in O’Brien County’s Bell-Times-Courier March 16, 2023