Deputy City Manager, Elle Cole, Talked with Downtown Business Owners about TIFA and Business Retention

On October 8, Elle Cole visited the Downtown Business & Property Owner's Meeting

Deputy City Manger and City Treasurer, Elle Cole, gave a presentation to downtown businesses and property owners explaining how Tax Increment Financing (TIF) monies are collected and used in downtown. 

To summaraize, when a TIF district is established, property taxes are, in a sense, frozen. Not that they don't increase, only that a percentage of the annual increase goes back into the designated TIF area, rather than being used as part of the City's General Fund. 

These funds must be spent or allocated every year, and the exact caculations of funds changes annually, based on operating millage and other factors. 

How the funds are spent is decided mainly by City Administration and approved currently by three boards the Economic Development Corporation (EDC), the Local Development Finance Authority (LDFA), and the Tax Increment Finance Authority (TIFA). Collectively, these three boards are often called the "Alphabet Boards."  There are going to be some changes made in the near future as to how they operate, but that is for another conversation. 

Some of the highlights of the conversation: 

• The TIF funds can only be used in the TIF district. 
• The TIF district boundaries can't be changed without significant and probably devisive and expensive legal steps taken, and we don't have any reason to do that. 
• We can ask that the funds be used to address different projects or initiatives as a downtown collective. This request would have to go in front of City Council and be approved prior to the next budgeting season. 
• Saline Main Street will be hosting a Workshop with all downtown Businesses and Property Owners to discuss potential priorities they'd like to see in downtown. 

Saline's TIF District