Thursday, June 19, 2014

Republic Reports Columbus Council Has Questions about TIF Proposal

From the Columbus Republic:

City councilmen have expressed hesitation over not collecting $3 million in tax increment financing revenue that could otherwise be used to fund necessary infrastructure improvements and economic development projects.

Councilman Jim Lienhoop said he thinks the city should give up the money if the redevelopment commission is not going to commit the funds to projects. But he wants more information on delayed projects before accepting Mayor Kristen Brown's proposal to pass through $127 million in excess assessed value in the city's Central TIF to the school corporation, the library and other entities that also collect taxes in the TIF district.

The mayor's proposal would drive down tax rates and marginally lower tax bills for some taxpayers, but it would also lower the city's projected TIF revenue from $5.4 million to $2.3 million in the Central TIF in 2015. The proposal has already received the redevelopment commission's approval, but a new state law requires that the city council also give the proposal the green light because revenue in the Central TIF is projected to exceed spending by more than 200 percent.