The December tax bills brought in the first revenue for the Pettengill Road Tax Increment Finance (TIF) District, which Town Manager Kevin Smith estimates was around $110,000 for the FY14 tax year.
The money is to be used to fund a $250,000 traffic light in the TIF District. Any additional funds the TIF District generates are to be used for improvements in that area.
“Next year we expect it will generate a significant amount more. given the assessments done in April 2014 didn’t include the FedEx and UPS building,” Smith said. “The value will have gone up in 2015 and I’m sure the TIF will bring in much more beyond the $250,000 needed for the traffic light.”
Smith said there are no plans to use the money for any other improvements besides the traffic light.
“It certainly is an option the Council may consider, but I don’t know that they would be inclined to do that,” he said.
As soon as the Town Council meets the Town’s obligation to pay for the traffic light, it may dissolve the TIF.
Once the TIF district is dissolved, the assessed value of the new commercial development will factor into the tax rate and any money remaining from the TIF will go into the general fund, to be split between the Town and the School District.
“The School District will see money coming to it from the TIF, just maybe not this year,” the Town Manager said.