TIF District Taxes Would Otherwise Go to General Fund

The Town’s Tax Increment Finance (TIF) District consists of 77 properties, several of which remain undeveloped parcels.

With major developments like UPS, FedEx, and Milton CAT in progress, Town Manager Kevin Smith said he expects to see tax revenues increase significantly in the coming years as those projects are completed.

Smith said assuming property owners pay their December tax bills on time, the total amount in the TIF account for the end of 2014 is $114,094.

If the TIF had not been established, that revenue would have gone toward offsetting the general fund, Smith said.

“By collecting the TIF money, that money is not offsetting the general fund; but, at the same time, the TIF allows us to make improvements in the area without having to raise taxes or use money from the general fund,” he said. “It’s a way of funding the TIF that doesn’t negatively impact the tax rate.”

The money is to be used to pay for a $250,000 traffic light in the TIF District, with any additional funds the TIF District generates to be used solely for improvements in the TIF area.

Any funds that remain after the TIF is dissolved, which the Town Council may do once the Town has fulfilled its obligation to pay for the traffic light, will go into the general fund.

Smith said using additional funds beyond the $250,000 obligation for other improvements in the area is an option the Council may consider, but he doesn’t know that they would be inclined to do that.

Once the TIF is dissolved, the assessed value of the new commercial development will factor into the tax rate.

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