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3 1. Introduction: Tax Increment Financing District Review Tax Increment Financing (TIF) uses the increased property taxes generated by increased property tax value within a tax increment financing district to pay for certain eligible costs associated with the development. The value that is “captured” (i.e., the increase in value over the year the TIF district was established) generates “incremental” property taxes that go to the development authority or the city authority rather than to the city, county, school district, and other taxing jurisdictions that normally share in the total local share of a property tax bill. The captured taxes are used to finance eligible project costs such as land acquisition, demolition, public and site improvements, and related administrative costs. The value of the property prior to development (i.e., the “non-captured” portion) continues to generate property taxes which are distributed to all appropriate taxing jurisdictions. Tax increment is one of the more powerful financing tools that communities have available to assist with meeting development objectives including tax base growth, expansion and retention of desirable jobs, construction of housing (senior, workforce, affordable, mixed income), and redevelopment and revitalization. In addition to assisting core development and redevelopment, peripheral growth outside of the established TIF districts provides a direct benefit to all taxing jurisdictions. Using the available information, we were able to determine each district’s type which dictates statutory requirements on use, authorized budget authority, and future budget capacity. We prepared a cash flow analysis for each district and projected future revenues & expenditures through the term of existing obligations and districts. In most cases, the TIF Plans authorize the districts to remain open for the entire statutory maximum terms. With this information, we were able to make recommendations for additional spending and the timing of closing districts in the future. Depending on the statutory authorities for the districts, as individual obligations are fulfilled, the districts may be required to be decertified. Therefore, the estimated fund balances may not reflect actual amounts available for pooling or other projects if individual obligations are already fulfilled and if districts then need to pay the balance to other taxiing entities. Depending on the type of district (as further described in this report), the City may have the ability to extend the collection of increment for up to the statutory maximum term of the districts for financing of eligible projects. The estimated amount of increment available for future spending from each district outlined in the report may be adjusted depending on the City’s objectives.