WAPELLO, Iowa — Time is running out on Tax Increment Financing (TIF) money and Wapello city officials don’t want to miss their chance to help renew their city — even if it means taking on a $1.2 million loan.

The Wapello City Council unanimously approved a $1.2 million General Obligation Corporate Purpose Loan during its regular meeting Thursday. The money will go toward ongoing  and planned construction of streets, sewers and water systems throughout the Wapello Urban Renewal Area.

The renewal area includes the Odessa and Patrick’s residential subdivisions, the Wapello Industrial Park and other parts of the community.

During a public hearing prior to the vote, local resident Von Smith criticized the loan, explaining Wapello already had a large amount of potential building lots.

“I have to question spending that amount of money. Why go that extent now?” he said.

City officials said they felt this would be the last opportunity for the city to use tax increment financing (TIF) through the renewal area and they did not want to lose that chance.

“TIF is going to run out … and we felt if we were going to do it, we needed to do it while TIF was in effect,” council member Shawn Maine explained.

According to the agreement, the city will begin payments on the eight-year loan in 2010 with an initial $25,000 installment. In 2011 the payment will climb to $140,000 and then increase $10,000 annually through 2015. In 2016 the payment will climb to $185,000 and in the final year of the agreement the payment will be $190,000.

Revenue to repay the loan will come from a property tax through the city’s Debt Service Fund. Future incremental property tax revenue from property within the renewal area is expected to decrease the actual amount raised through the debt service fund.

City officials did not provide any figures on how the loan agreement would affect the levy for the debt service fund or individual property owner’s tax bill.

In other action

n The Council approved the first reading of a proposed ordinance that would establish a Parks and Recreation Board and eliminate the city’s Swimming Pool Board.

The city currently has a Park Board and under the new proposal, the duties of both that Board and the Swimming Pool Board would be assumed by the new Parks and Recreation board.

The new Board would have seven members and two council representatives.

Council member Kevin Hardin, who is the council representative for the Park Board, said an existing swimming pool task force, which is looking at long-term pool issues, would continue to function in an advisory role.

The Council appointed Ed Hicklin as the city representative to the newly created Mississippi River Partnership Council. 

The Council declined to extend the city’s yard waste burning season, which expired Nov. 15.