MIDA’s Finances

The Military Installation Development Authority (MIDA) uses a project-based funding model to support military installations, strengthen surrounding communities, and facilitate economic development. Its financial operations are governed by Utah law, with requirements for budgeting, reporting, and public accountability.

How MIDA is Funded

To achieve its mission, MIDA relies primarily on revenues generated through its designated project areas rather than ongoing state General Fund appropriations like other state entities, or by levying property taxes like a city or county would.  There are times that the Utah Legislature may provide funding for specific projects or purposes. Cities, counties, and other taxing entities that levy property taxes in MIDA project areas contribute 75% of the growth MIDA generates in the project area to be invested by MIDA to further grow the area. These cities, counties, and other taxing entities retain all taxes on the base values, which is the value of the properties before the properties were added to the MIDA project. These arrangements are agreed to by the city or county through an interlocal agreement that is approved by the city or county council and the MIDA Board. 

A key funding source is property tax increment, also known as property tax allocation. As development increases property values, a portion of the additional property tax revenue is allocated to MIDA for authorized projects and improvements. The taxing entity that levied the property tax retains the remaining portion. 

Tax increment is not a new tax. It uses a portion of the growth in existing property tax revenues to support development and public infrastructure.

Revenues: Where the Money Comes From

MIDA receives revenue from several sources, depending on the activities and needs of each project area:

  • Taxes and Fees in Lieu: Revenue from authorized taxes, property tax allocations, and payments made in place of certain taxes.

  • Licenses and Permits: Fees collected for permits, licenses, and regulatory approvals within MIDA project areas.

  • Charges for Services: Revenue collected for services provided by MIDA.

  • Intergovernmental Revenue: Funding from other government entities, including authorized revenue distributions, grants, and contributions.

  • Investment Earnings: Interest and other earnings from MIDA's invested funds.

  • Special Assessment Revenue: Assessments collected from properties benefiting from certain public improvements.

  • Miscellaneous Revenue: Other income not included in the categories above.

Revenue sources vary by project area and are detailed in MIDA's financial statements.

Expenses: Where the Money Goes

MIDA uses its revenues to support development, improve public infrastructure, and fulfill its responsibilities under state law.

Primary uses of funds include:

  • Public Infrastructure: Roads, utilities, public facilities, and other improvements supporting development.

  • Project Development and Services: Planning, development expenses, and services within project areas.

  • Military and Veteran Support: Authorized facilities, programs, and improvements benefiting military installations, personnel, veterans, and their families.

  • Debt Repayment and Administration: Payments on financial obligations, professional services, and general operating expenses.

How Money Is Reinvested in Project Areas

A central part of MIDA's financial model is reinvesting revenue generated through development back into its project areas.

As development generates additional tax revenue, MIDA can use its authorized share to finance infrastructure, reimburse eligible development costs, and maintain improvements. These investments help support military operations, attract private investment, and create long-term economic benefits for surrounding communities.

Under state law, certain improvements outside a project area may also qualify when they benefit that project area.

MIDA tracks expenditures by project area in its annual audited financial statements.

Bonds: How Major Projects Are Financed

Major infrastructure projects often require significant upfront investment. MIDA can issue bonds to finance eligible improvements and repay those costs over time using designated revenues, including property tax increment.

MIDA issued bonds are not general obligations of the State of Utah or local governments. They are repaid through authorized MIDA funds and revenue sources associated with the financing.

MIDA affiliated public infrastructure districts may also issue bonds for qualifying improvements, subject to applicable laws and financing agreements.

Budget: How Spending Is Planned and Approved

Each year, MIDA prepares a budget outlining expected revenues and planned expenditures for the fiscal year, which runs from July 1 through June 30.

Before adoption, MIDA makes the proposed budget available for public review, provides public notice, and holds a hearing for public input.

The MIDA Board approves the annual budget before June 30. Amendments that increase total authorized spending also require public notice and a hearing.

Additional Financial Information

For annual audited financial statements, financial snapshots, and other reports, visit MIDA's Standard Financials page.

Applicable Utah Law

MIDA's financial operations are governed by the Military Installation Development Authority Act, Utah Code Title 63H, Chapter 1. Relevant provisions include:

·       §63H-1-502 — Allowable Uses of Property Tax Allocation and Other Funds

·       §63H-1-602 — Sources for Bond Repayment

·       §63H-1-701 — Annual Budget Requirements

·       §63H-1-702 — Budget Amendments