The City has a long history of responsible use of Tax Increment Financing (TIF) to encourage development and redevelopment in underutilized areas of the City. TIF is the funding mechanism for making investments in a Tax Increment District (TID).
A TID is created by the City Council, which designates a boundary for the TID. Within the TID boundary 100% of the increase in property tax collections over the initial base creation amount goes toward funding infrastructure and development within the TID. The City must make a finding that the development expected in the TID would not occur but for the budgeted funding. TIDs are created with the approval of all property taxing jurisdictions (County, technical college, and school district). When the TID closes, the property tax collections return to the normal distribution, and all jurisdictions benefit from the increased taxes that would not have been generated but for the investment of TIF funds.
Click here to access the November 2013 TID Case Study Report.