The Vanderburgh County Redevelopment Commission discussed TIF, or tax increment financing, during Tuesday’s meeting.
Some roadwork, like along Burkhardt Road, is paid for through Tax Increment Financing. Projects in TIF areas are paid off with property taxes attributable to increased assessed value from the development in the area.
In Vanderburgh County, TIF funds are mostly used for infrastructure projects such as road or sewer line work, with much of the financing coming from commercial and industrial properties.
Attorney for the Vanderburgh County Redevelopment Commission Joe Harrison said TIF-funded projects promote local commercial development.
“The funds from those TIF areas have been used to not only construct roadway projects and improve the roads in those areas that the businesses need to succeed and to thrive and want to locate there, but also infrastructure—sewer and water—have been expanded into those areas which have been the catalyst for development,” he said.
Sometimes, TIF areas can help offset tax rates. This happens when portions of assessed value from TIF areas are “passed through,” meaning a certain percentage of the assessed value goes to other overlapping taxing units, such as schools, libraries or the township.
At its June 7 meeting, the Redevelopment Commission voted to pass through several TIF areas. This, Harrison said, will hopefully benefit those areas.
“In the long run, that will make taxes lower in those areas a little lower than without that action by the Redevelopment Commission,” he said.
Evansville city council’s finance committee discussed TIF bonds which have funded construction on Burkhardt Road and Green River Road, in hopes of bringing commercial development to the area.
Harrison also spoke on TIF at this meeting, saying refunding the bonds would allow the county to save money.
“The county is seeking to refinance, refund a portion of the bonds," he said. "These bonds, I think there’s eight more payments left, and this will allow the county to save $300,000 over the next eight years or so.”
Finance committee chairman Dan McGinn related the ordinance proposal to bonds the council voted to refinance last month.
“We’ve just recently done this on our arena bonds, and we understand that governmental entities like to save money," he said.
He asked his fellow council members if there were any questions or comments on "this opportunity to save us all some money.”
The ordinance passed in a unanimous vote.