Council authorizes internal advance for downtown core improvement program using TIF‑eligible funds
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Summary
The Oskaloosa City Council authorized advancing funds from the general fund and the utility franchise fee subfund to cover costs for a core downtown improvement program that are eligible for reimbursement through tax increment financing (TIF).
The Oskaloosa City Council approved a resolution authorizing the advancement of funds to cover costs for a core downtown improvement grant program that are eligible for reimbursement through the city’s urban renewal tax increment financing (TIF) plan. Council noted the advancement uses available fund balance in the general fund and utility franchise fee subfund so the program can proceed while awaiting TIF reimbursements.
Staff explained that advancing internal funds is a common practice where the related debt was not included in the current or previous year’s TIF issuance, and that the city will seek reimbursement under the urban renewal plan once tax increment proceeds are available. The council authorized the internal loan motion without additional budget appropriation and indicated the funds are included in the capital improvement plan for fiscal years 2026 through 2028.
Council members asked routine questions and then supported the resolution; staff clarified that eligible costs for the grant program are expected to be reimbursed through TIF as provided under the city’s urban renewal plan. The resolution passed by council vote.