Monday, August 09, 2010

West Des Moines - Best for Business

If you've read the Business Record this week for the annual Best Of awards, you've probably noticed that the City of West Des Moines has been honored as the City Government Most Conducive to Business. This is the 13th consecutive year that the City has been so honored and in fact, West Des Moines has received this honor every year that it has been offered. The fact that West Des Moines has once again been named as the city most conducive to business in the metro is a testament to the hard work of elected officials, city employees, and especially the citizens of West Des Moines. West Des Moines has been able to hold on to this award through the years because we have refused to stand pat and have always strived to improve our city in all aspects. Although I am moving on to new challenges, I fully expect to read about West Des Moines winning the award as City Most Conducive to Business for the 14th consecutive year due to the strong infrastructure of people remaining in place.

Monday, July 12, 2010

West Des Moines Named one of Best Places to Live

Money Magazine has named West Des Moines as one of the United States' Best 100 Places to Live. We last received this honor in 2006.

I've included a snapshot of the Money magazine website feature below. As you can see, the authors feel that West Des Moines has a lot to offer in terms of events and quality of life.

If you visit the website, you can compare West Des Moines with the Top 10 cities listed on a number of factors including finance, housing, and quality of life. West Des Moines compares very favorably with those cities in all areas measured.

Congratulations to all involved with making West Des Moines worthy of this honor. In addition to city staff and elected officials, our residents and business community have helped shape West Des Moines into a city that is always in the running for this kind of recognition. Thank you.


Wednesday, May 26, 2010

Tell Us About Your Sustainable Business

In an effort to compile information about sustainable services available here in West Des Moines and promote the use of those services, our City's Striving After Sustainable Solutions team has put together a webpage dedicated to featuring businesses that enter information via a form on the city website. If you offer a service or product you believe meets the definition of "sustainable" or "green," submit it to be considered for inclusion on this new section of our website.

Wednesday, May 05, 2010

Human Services - in the Suburbs

It's clear how the economic shift we've experienced over the last couple years has affected some municipal services - our Department of Human Services, for example, has witnessed a big leap in need, mostly from new clients who have never had to seek help before. A recent article in Governing Magazine about poverty in suburban America addresses just that, as well as other unique challenges suburban cities face in helping those in need. Although the article presents some sad truths, it also makes me feel fortunate that we have an established city Human Services department that was able to meet our increased challenges head-on when the economic decline began. I have heard our Human Services staff comment on many of the same issues mentioned in the article.

It also reminds me to again thank those who sponsored or attended our latest Human Services fundraiser, Sunday Supper in Our Town, which raised over $45,000 that will directly benefit our low-income, elderly, and disabled residents. If you have a moment, please take a look at this list of sponsors and thank anyone you know associated with the event.

Wednesday, April 28, 2010

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Friday, April 23, 2010

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.

Friday, April 02, 2010

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.