March 28, 2024

NDC, NHDC, Newton Main Street receive funding

Three important organizations in Newton will once again receive city funding. The Newton Development Corporation, Newton Housing Development Corporation and Newton Main Street will all receive funding from the city following city council approval.

A Hotel/Motel Tax is charged to all lodging stays in Newton, and the money for these organizations will be allocated from that fund. The current tax rate is 7 percent with $340,000 in tax money budgeted from the 2017-18 fiscal year.

“At least half of the revenue collected by this tax is required by Iowa Code to go toward the promotion of tourism or for the improvements to recreational, cultural or entertainment facilities in the community,” city administrator Matt Muckler said. “The city has traditionally utilized the tax to fund local organizations and support city operations and projects.”

From those funds, $35,000 will go to the NDC, just under half of the $75,000 allotted to the organization. The NHDC will receive $5,000 in Hotel/Motel Tax dollars, a portion of the $32,000 it is under contract to receive.

“The contract delineates expected activities regarding industrial growth, responsiveness to prospects and proactive strategies for boosting the local economy,” Muckler said. “The NDC has been a valuable partner in Newton’s growth for over 50 years. In general, the contract is intended to capture the scope of services that the NDC has long provided and give clarity and detail to the city’s expectations.”

Newton Main Street is under contract with the city after receiving a two-year continuation agreement in 2016. The organization originally received the city’s endorsement in 2013 and was successfully awarded Main Street status in 2014.

In its inception, the city annually provided $25,000 on a three year contract per state requirements. The same amount was approved for the two-year continuation agreement.

Funds from the North Central Tax Increment Finance District will be used to fulfill the agreement.

“Newton Main Street follows the four-pronged national Main Street approach, focusing on promotion, organization, design and economic restructuring,” Muckler said. “Increases in downtown events and building improvement projects are outgrowths of the Newton Main Street efforts. Design guidelines and streetscape plans have been developed, new grant programs have been made available and volunteers have been engaged toward the betterment of downtown.”

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com