How are the financial interests of the City protected?
First, the timing of the City infrastructure improvements and the new revenues from the private
investments need to go hand in hand to insure that city costs and revenues match up as much as possible.
Second, the TIF plan could include requirements for Developer Agreements where the developers would
be responsible for any shortfall between the money the City has in the TIF fund and the outstanding
yearly obligations for bond payments. Third, where feasible and appropriate, the exposure of the City for
yearly financial obligations is minimized through the smart use of outside grants and other funds to pay
for the infrastructure improvements without the issuance of bonds.
How is the TIF district administered?
The TIF statute requires the appointment of a district administrator who oversees operations and issues of
the TIF district and plan. Also, an Advisory Board is appointed by the Board of Aldermen, with this
Board providing the Administrator and the Board with input and ideas on the planning and
implementation of the plan. The Board of Aldermen retains control over the expenditure of TIF funds.
What is the lifespan of the TIF?
Once all of the financial obligations for a set of projects are cleared, the Board can abandon the TIF and
the added revenues then flow back into the general funds of the City. But, the TIF plan can be modified in
the future by the Board of Aldermen to add new goals and specific projects, and these modifications can
create a multi-year TIF program(s) & plan(s). There is also the option of keeping the TIF active and
directing some smaller portions of the TIF funds to the ongoing maintenance and upkeep of the
improvements (landscaping, parks, etc.). This would be determined by the Board of Aldermen with the
recommendation of the Administrator, the Advisory Board, and city staff.
A General TIF Graphic to Visually Demonstrate How the Tool Works
TIF Assessed Value (AV) Over Project Life
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a aoe
ie
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Mh New Post-
Z «eo Project AV
= a0? ee a j
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3 Y Total AV now
8 oe incremental AV \' meee el
$ we incremental real property tax : taxing
2 i belongs to TIF authority to pay | districts in
a project costs + project area
| | | |
5 10 15 20
O4__. 23 year TIF__w
Created Terminated
