Renewal for city improvement district underway

The next phase of the Self-Supporting Municipal Improvement District (SSMID) took a step forward on Monday. The Newton City Council approved the first reading of an ordinance re-establishing a 10-year SSMID for participating downtown businesses.

SSMID is a self-taxing district that collects funds and distributes them for improvements or maintenance within the district above and beyond the city’s provided services. Re-established five years ago after falling relatively dormant during a previous 20-year term, the district is run by a board made up of downtown business district owners.

The current SSMID will sunset on June 30 and at a previous meeting board chair Bob O’Brien requested a new 10-year term for the organization. He also obtained signatures for a petition to establish a rate of fund collection at $1.50/$1,000 of assessed value for the participating downtown businesses.

With those funds, which are expected to total about $17,000 to $18,00 annually, the board will continue to work on improvements in the downtown and keep the area clean for visitors and residents.

“The board itself is it is made up of the property owners from downtown, we do not have sub-committees, we don’t have to answer to anybody ... if we decide to buy trash cans, done. We vote on it and it gets taken care of,” O’Brien said. “I like the fact that it gets taken care of immediately. That is one of the great benefits. Also, the business owners decide what to do with that money.”

In the past five years, the citizen driven, grassroots effort has accomplished quite a bit, mostly notably keeping the downtown area clean. With only around $12,000 banked each year at a rate of $1/$1,000 assessed value, about $9,000 went towards weekly, and during summer months, daily watering of the flowerbeds in downtown along with twice a week cleaning done by Progress Industries.

“They go around, pick up trash and sweep up different areas,” O’Brien said.

More visible examples of SSMID’s work include the metal trash cans placed throughout downtown and the Christmas trees the board purchased in partnership with Newton Main Street during the holiday season. Those types of projects and the speed at which they can come together are one of the reasons O’Brien likes being involved with SSMID.

Planning and zoning director Erin Chambers said while the city is involved with SSMID by providing support staff, the organization is not a city endeavor. The state of Iowa code allows for property owners within a defined geographic area where the property commercially or industrially zone to establish a district where they agree to levy a tax upon themselves for use within that district, Chambers said.

“It is not something the city government wants to impose on the downtown,” Chambers said. “Property owners in the downtown sign a petition, present that to the city clerk and then it goes through a process of approval.”

With the increased funds, the organization hopes to recoup some of the dollars lost due to the fluctuation of property valuations and decision made at the state level on commercial property tax rollback. The board also hopes to work on some more long-term projects with the additional five years to the term.

“(With the) five-year, that seemed like just as soon as they were getting into the rhythm and getting some project ideas and saving up a little cash over a few years, now they have to start all over,” Chambers said. “(Now it will have) enough time for pre-planning and maybe to save back some funds for a number of years for a larger project.”

The ordinance has two additional reading before being adopted into code.

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