Atlantic City Administrator John Lund says the Iowa House Appropriations Sub-Committee has proposed legislation (HSB 681) that would eliminate Tax Increment Financing (TIF), a move that would impact funding for local school districts. Lund said the bill would require an affirmative vote from school boards and the county to allow their TIF levies to be activated for cities. That’s not much of an issue for counties, but because the school districts have traditionally had a “back-fill mechanism” that the State provides when cities begin to TIF, and the districts lose in their basic levy, because the city captures those funds in the form of tax valuation. He says it’s a “Lose, lose, win” situation for schools.

Lund says if the City decides to cooperate with a developer, and the school district contributes to the TIF, the money they would have received directly from the State to support their budget, is taken away from the district and given to the City. He says that gives the district zero-incentive to want to work with the City in TIF situations. But that’s not without risk. John Lund says they run the risk by not cooperating, of not seeing funds come in from valuations, and they may not see growth. But they could also hedge their bets and assume the city will pick up the slack and they’ll see the benefits regardless. He assumes that’s exactly what’s going to happen. If the bill were to pass, Lund says the City would lose about 40-percent of its TIF resources, and “That is way too high to lose, to make this work.” Lund sees some scenarios playing out. The least likely of which is the City stops giving out economic development incentives, and allow the cost of streets and utilities and new developments to be absorbed into the price for the developer.

He said if the City continues to TIF, it won’t be for very much, and it would only cover the General Fund, employee benefits and the same for the County, if they agree to contribute. But then the City would need to make up the difference by raising property taxes on everyone, through General Obligation debt, which would not be popular, but it would not be something that had to be done by referendum, so that would still be an option. He said the City could end up taking 40% longer to retire the TIF debt, which would mean the General Fund and employee benefits levy will be deprived of natural growth, because the frozen tax base will last that much longer.

Lund says there is a fourth option he’s exploring, which he would recommend to the City’s Personnel and Finance Committee, if the bill continues to move forward. He said the future of housing and development in Atlantic is dependent on TIF. Without it, he said it will be very difficult. Mayor Dave Jones recommended the Council and citizens contact their State representatives to voice their displeasure with the bill, before it gets too far. (A copy of the bill can be found at https://www.legis.iowa.gov/legislation/BillBook?ga=87&ba=HSB%20681)

DES MOINES, Iowa (AP) — Investigators have been unable to link any crime to the death of a 71-year-old woman whose body was found in her home on the north side of Des Moines. Officers sent Friday afternoon to the home of Nancy Heimbaugh found that she’d died. Sgt. Paul Parizek says her death is still considered suspicious until autopsy lab results return, which could take several more weeks.

Heimbaugh’s husband died a year ago, and Parizek says she may have been drinking and abusing substances since then while spending time with people whose lifestyles weren’t healthy for her.

Twenty-eight members of the Iowa Senate have voted to send Governor Kim Reynolds a bill that would punish so-called “sanctuary cities” by denying state funds to any local government that refuses to cooperate with federal immigration officials. Senator Julian Garrett, a Republican from Indianola, says polls show Americans and Iowans strongly favor this bill. “We are ensuring that law enforcement’s going to work with ICE in the future,” Garrett said. “…Communities will be able to deport some of their criminals. I don’t know why they wouldn’t want to do that.” Supporters and opponents of the bill agree there are no “sanctuary cities” in Iowa today, but critics say Iowa City’s City Council has tread close to the line, making the bill necessary. Senator Joe Bolkcom, a Democrat from Iowa City, called the bill “fear-mongering.” “The president, Mr. Trump, taught us about that and it’s a terrible lesson in sowing the seeds of hate, bigotry, division,” Bolkcom said. “It plays at election time. You know it and we know it.”

Senator Matt McCoy, a Democrat from Des Moines, says the bill sends an “ugly message” to new Iowans. “As I look around this chamber, we’re all looking pretty white in here,” McCoy said. “I think the people that are going to be impacted by this kind of legislation and the people that are going to be fearful of this kind of legislation are people that don’t look like us.” Senator Jim Carlin, a Republican from Sioux City, says the bill is about protecting people from “criminal elements.”  “The United States is a sovereign nation,” Carlin said. “As a sovereign nation we have every right to define our boundaries and enforce our borders and our primary duty in government is to protect our citizenry.”

The Senate passed this bill last year. The House made a few adjustments and passed it Tuesday night. Last (Wednesday), a majority of Senators ratified those changes and sent the bill to the governor. Governor Kim Reynolds has said she is “strongly opposed” to any Iowa city declaring itself a “sanctuary” in an effort to shield undocumented immigrants from deportation. Reynolds also sent a fundraising email that touted the bill as a way to send a message to “far left liberals in Des Moines and Iowa City.”

(Radio Iowa)

The Adams County Sheriff’s Office reports Gabrial Shatava, of Corning, was arrested at around 11:50-p.m. Wednesday, on an assault charge. Shatava was taken into custody at a residence in the 700 block of Quincy Street, in Corning, at around 11:50-p.m.. He was charged with Domestic Assault – 2nd offense, an aggravated misdemeanor.

Red Oak Police report today (Thursday), a woman from Adams County was arrested on drug charges late Wednesday evening. 20-year old Dakota Lynn Girouex, of Corning, was arrested at around 9:30-p.m., for Possession of a Controlled Substance/Marijuana – 3rd offense. Girouex was being held in the Montgomery County Jail on a $2,000 bond. Red Oak Police were assisted by the Montgomery County Sheriff’s Office K9 Unit in handling the arrest.

Here is the latest Iowa news from The Associated Press at 3:40 a.m. CDT

DES MOINES, Iowa (AP) — Iowa is expected to become the latest Republican-led state to target so-called sanctuary cities by withholding money from local governments that don’t comply with federal immigration laws. A bill outlining an expansive immigration enforcement plan is expected to receive final legislative approval this week. It comes as President Donald Trump ramps up calls for more stringent immigration enforcement.

DES MOINES, Iowa (AP) — A dog impounded by the city of Des Moines two years ago under the city’s vicious animal ordinance won a court battle Wednesday in which the Iowa Court of Appeals declared a portion of the city’s ordinance unconstitutional. Pinky, a 9-year-old mixed breed dog, was taken into city custody in March 2016 after an altercation with a neighbor cat. City officials blamed Pinky and she was taken away from her owner after the city’s chief humane officer concluded she exhibited “vicious propensities.”

DES MOINES, Iowa (AP) — A Republican-led panel in the Iowa House has approved a bill that would cut money from local governments. A three-person committee advanced a bill Wednesday that would reduce a so-called “backfill” of money that goes annually to cities, counties and school districts. The payments were part of a 2013 bill that cut property taxes in Iowa. Opponents say many local governments would raise property taxes and reduce services.