• maintain the operational integrity of the City. The City cannot access its General Fund reserves to aid in funding the Public Works Building Project without risking unsound fiscal practice.
• Capital Improvements Levy: The City does not have a Capital Improvements Levy available, and the imposition of such additional levy would require a successful referendum, which is not feasible at this time.
• Debt Service Levy: The City may issue general obligation bonds (the “Bonds”) to finance a portion of the Public Works Building Project. The use of tax increment financing to pay a portion of the debt service payments on the Bonds will lessen the burden on individual taxpayers that would result from a spike in the debt service levy rate and will shift that burden onto valuation increases resulting from the City’s successful economic development initiatives in the Urban Renewal Area.
• Waterworks Utility to aid in paying a portion of the cost of the Public Works Building Project. * Utility Surpluses: The City will use surplus funds from the Municipal Waterworks Utility to aid in paying a portion of the cost of the Public Works Building Project.
• Grants: The City will pay for a portion of the costs of the Public Works Building Project with the proceeds of a $1,500,000 community project funding grant secured by U.S. Representative Ashley Hinson.

C.

Name of Project: 2027-2029 Peosta Business and Community Alliance Support Program

Date of Council Approval of Project: November 10, 2026

Declaration of Support Program as an Urban Renewal Project: The City Council acknowledges the importance of Peosta Business and Community Alliance (the “Alliance”) in the ongoing promotion of economic development in the Urban Renewal Area. The City intends to provide economic development support payments to the Alliance for a period of three (3) fiscal years. In return for said support payments, the Alliance will commit to continuing its efforts to carry out economic development support programs, promotional events, initiatives and activities within the Urban Renewal Area.

Description of Use of TIF for the Support Program: It is anticipated that the City will pay for the Peosta Business and Community Alliance Support Program with a combination of proceeds of internal advances of City funds on-hand and/or through an economic development agreement with negotiated annual appropriation payments. In any case, the City's obligations will be repaid with incremental property tax revenues derived from the Urban Renewal Area. The amount of incremental property tax revenues to be expended by the City in connection with the Peosta Business and Community Alliance Support Program will not exceed $50,000 over the course of the City's 2027

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