HJ - Standard 600 Council

The annual Urban Renewal Report for Fiscal Year 2019 was approved Wednesday, Oct. 9, by the Clarinda City Council.

Required by the state of Iowa, the report details how they city spent its Tax Increment Financing funds during the year.

Clarinda City Manager Gary McClarnon informed the council the city started the fiscal year with a balance of $3,325. The city then received TIF revenue of $167,565. Total expenses for the year were $111,441 resulting in an ending fund balance of $59,449.

“Ideally, that balance is actually supposed to be zero. The reason why it’s close to $60,000 is because of the Shopko tax rebate. We did collect TIF revenue for that, but since they closed we did not pay the year. So, that is something that will carry over for balance,” McClarnon said.

Due to the timing of the store closing, McClarnon said the city was also collecting the revenue during the current fiscal year. As a result, he will have to decertify $120,000 in rebates. He said the process would probably take two years before the balance returns to zero.

“I have already talked to the state auditors when they were here and they fully understand why we have the balance. They’re not going to ding us for that, at this point, because there is a good reason for it,” McClarnon said.

Other TIF rebates the city will be paying in future years include Boulders Inn, Ice House, Agriland and Bank Iowa.

After approving the Urban Renewal Report, the council passed a resolution obligating funds from the Urban Renewal Tax Revenue Fund for the payment of the TIF obligation to Boulders Inn Clarinda in Fiscal Year 2021. The amount of the payment was $65,694.

“It may vary one way or the other, depending on what the actual tax rate comes in at, but this should be fairly close. As always, of there is a difference, I will either have to decertify or recertify the amount with the auditor’s office,” McClarnon said.

In other business, the council approved an agreement with Allender Butzke for materials testing and geotechnical site observations during construction of the new wastewater treatment facility in Clarinda.

McClarnon said Allender Butzke was recommended by Fox Engineering. The cost of the agreement was $68,710.42.

“What they have to do, first of all, with the sewer plant is they have to compact the soil. How they’re going to do that is they’re going to take soil off half of the property down there, pile it up 15 feet high and let it sit all winter so it can settle. Then, Allender Butzke comes in and does some more tests to make sure there’s the proper compaction was done,” McClarnon said.

Along with testing the soil samples, Allender Butzke would also ensure the foundation is excavated correctly and test the concrete and structural steel used for the facility.

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