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