Hello. I'm sorry it has taken me until Sunday night to get back with you.
I'll start out by saying I am sorry for not allowing any more comments. To those that have legitimate ideas and questions, call me at 949-1262, (my home phone) and I'll get them published. For those that want to spew their misinformation, sorry but the I don't have the time to waste.
If you read in the Tribune the articles that the managing editor wrote, I want to give you the facts. As always, I hope the people will research what I and others tell them.
1. Not only can the City use EDIT money on sewers, we already do. $870,000 / year was earmarked back in 2002 for the life of the bonds.
2. We all ready pay the City Attorney $150,000 per year. The Sewer board attorney $25,000
per year plus an hourly rate. The City Council is a part-time position. Therefore it makes no sense to hire a full time Council Attorney.
3. You can contract out the grant services. Why pay someone a full time salary, with benefits when you have grant writers that do this same service for a percentage of the grant. All this administration has done is hire or try to hire more administrative people ( their friends) while the Police, Fire and Street Departments are asked to cut back.
DID YOU KNOW?
Two appointed people in the administration account for over $250,000.00 It's time to roll back some salaries!
Jeff. You asked for information regarding TIF. Here goes.
Basic overview of Tax Increment Financing. In general, TIF provides for the temporary allocation to redevelopement districts of increased tax proceeds ( known as " increment) in an allocation area generated by increase in assessed value. Thus, TIF permits cities and towns to use increased tax revenues stimulated by redevelopment to pay for the capital improvements to induce the redevelopment.
Basic Theory of TIF: 1. Freeze property assessments at a pre-development level in a designated area. (Allocation area) 2. Issue municipal bonds to finance portion of redevelopment. 3. As property values (and assessments) in an area increase, use increment in tax revenues to meet the debt service on issued bonds. 4. All public bodies benefiting from the redevelopment share the costs of public improvements associated with the redevelopment. When the redevelopment costs have been paid, the TAX ALLOCATION IS DISCONTINUED and all public bodies enjoy the benefits of increased property tax values.
Here is another way of describing TIF.
Tax Increment Financing (TIF) is an area with designated boundaries drawn on a map, ( can be city or county) and labeled as a TIF area. The taxes in the TIF area are frozen at the time that TIF area is approved. The current property taxes continue to go into the City General Fund, and other entities such as the Library, School, County Government and others. As new development comes to the TIF area, those new taxes collected are used to finance improvements of infrastructure in that particular TIF area, or is also known as a TIF district. This is a way that one can use new tax money to improve an area and entice businesses to locate in that area. While this is a tool to help a community to fix an area of the infrastructure problems, this process is harmful when it is misused. The City of New Albany now has 10 such districts. The designation Of the TIF is to be removed when the work for the infrastructure is completed and the bonds are paid off. This would be a boon to the local Taxing District, except in the case of New Albany, they never pay the bonds off. Instead they keep borrowing more money. So while they are increasing the tax base, it is not helping the homeowners and taxpayers of our community. In my next article, I will post a copy of one TIF district to show how that money is used to benefit certain people or business at the expense of the taxpayer.
In the future, I will also post pictures of how our tax money is being used to benefit a few while others are left to suffer. I hope this helps to answer your question Jeff. Again, feel free to call me.
Thank You and may God Bless! Dan Coffey 1st District Council 949-1262
