1/29/2013 8:43:00 PM TIF generating dollars for future development Unit #1 to receive $8,110 reimbursement
Ann Gill Editor
In its second full year, the village of Coal City's Tax Increment Financing (TIF) district generated over $35,600.
Funds going into the TIF represent new tax dollars generated from the properties that make up the district. When TIF is established a base level of property tax is locked in for a period of up to 23 years. Property tax revenue continues to be distributed to local taxing bodies at the base rate, with the new dollars going to the municipality for TIF-related expenses. Coal City's TIF is comprised of more than 550 parcels of land totaling over 2,000 acres.
Under the terms of an intergovernmental agreement, the Unit #1 School District is to be reimbursed the increment coming from residential properties within the district.
"Since the purpose of the TIF is to increase commercial and industrial development within the village, this payment allows the school to be revenue neutral on the residential properties that are in or are constructed within the TIF district," said village administrator Matt Fritz.
According to figures provided by the village's TIF consultant, the school district will receive $8,110, roughly $2,450 more than did in the first year of the TIF.
In a report prepared by the consultant, The Economic Development Group LTD, the village's TIF fund took in $35,621 during tax year 2011 payable in 2012.
Village Administrator Matt Fritz said that after payment of TIF related expenses the fund balance is at $49,555.
The village established the TIF with the goal of generating funds to improve infrastructure and aid in the development of new business, which in turn would create and increase employment opportunities, expand and diversify the local tax base, manage growth and increase overall value and quality of live for the community.