Letter: In support of Tax Increment Financing (TIF)

This letter and quotations within is in response to a recent letter opposed to TIF.

In 2010, before I was elected Mayor, the Jasper City Council adopted a new Comprehensive Plan.  On page 26 are these words: “create Tax Increment Financing (TIF) districts”. Following precisely what citizens and council directed us to do, we held numerous public meetings the last three years and learned:

–TIF isn’t a new tax. It’s regular taxation on new business investment in a designated area of Jasper.

–It doesn’t “take all future new tax revenue and redirect it” to the RDC.  TIF uses increased assessment on new real business property in a specific area, times the tax rate, to generate NEW tax revenue so it’s not taking current or future tax revenue from schools, the library, Bainbridge Township, the City and “all other county government entities”.

–TIF funds reside in the Clerk-Treasurer’s office where they’re subject to the spending laws of the City.  The RDC budget must be reviewed by the Common Council and it’s subject to State Board of Accounts audits.

–RDC economic development plans and any borrowing must be approved by the council. Bonds are subject to the same referendum and petition/remonstrance like other City special taxing districts. It cannot condemn property.

–RDCs can’t spend “as much as they want on whatever they want.” There are very specific statutory directives on spending and the use has to be listed in the Plan, which has council approval.

–Like the city, RDCs must obtain appraisals in order to buy or sell property although they have higher discretion in determining the economic development purpose of it.  Prior to my election the RDC and council used this method to purchase the current Resource Recovery Site next to the Street Department.

Our RDC is comprised of Council member-at large Ray Howard, John Kahle, John Bell, Andy Seger, and former council member John Schroeder.  Schools are represented by non-voting school board member Bernie Vogler.  These outstanding citizen volunteers are appointed annually by both the council and Mayor. I’m proud of their focus on our Comprehensive Plan and Jasper’s future.
Terry Seitz,
Mayor of Jasper