Basic Theory of TIF:
1. Freeze property assessments at pre-development level in a designated area (an allocation area").
2. Issue municipal bonds to finance portions of redevelopment.
3. As property value (and assessments) in areas increase, use increment in tax revenues to meet debt service on issued bonds.
4. All public bodies benefiting from redevelopment share the costs of public improvements associated with the redevelopment. When the redevelopment cost have been paid, the tax allocation is discontinued and all public bodies enjoy the benefits of increased property tax value.
You would think as long as Councilman Coffey, McLaughlin, Caesar and Gonder have been SITTING on the council they would understand TIFS.
So, let's do some homework and see what we come up with:
First, Tax Increment Financing (TIF) is an area with designated boundaries (like circles) drawn on a city map and labeled as a TIF area. The taxes in the TIF area are FROZEN at the time the TIF area is approved.
All those new taxes on the "new development go into an account for that TIF area ONLY" for use in the TIF area for improvements such as roads and sewers.
NOT salaries!
Mayor Gahan says: we have plenty of TIF Fund Revenue to make bond payments on a $19.7 million dollar bond. What Mayor Gahan forget to tell the council members that we have $23,000,000 + additional bonds to be paid off by 2038.
Do you know and wonder why we don't have revenue?
2013 - TIF DISTRICT PROJECTED TAXES
TIF Districts...............AMOUNT Projected
Grantline Road ...........$703,004
Charlestown Road .....$844,689
Park East ....................$1,121,596
State Street ................$618,279
State Street Garage...$197,231
Old Monon Corridor..$342,883
Loop Island ................$11,000
____________________________
Total Projected Taxes...$3,838,482
Source:Exhibit A
The above $3,838,482 Taxes stays in the above TIF areas and DOES NOT go into the General Fund.
Freedom Of Speech repeats: when the TIF Bond costs are paid off, the TIF area is discontinued (rescinded) so that the tax money can help the General Fund!
Why can't Gahan and Coffey look the citizens in the eye, tell them TIF'S affect property taxes and our General Fund.
footnote: "At this time the Downtown TIF has NOT repaid the $3,613,698 back to the EDIT Fund." We now understand why our city is on the verge of bankruptcy.
Councilman Coffey, did Freedom Of Speech answer your questions? Isn't this why you six council members are backing this $19.7 million BOND up with out Property Taxes?
See what happens Danny boy, when you know how to read TIF Spread Sheets!
