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New Year’s resolutions for your community’s TIF areas — part 2

The New Year brings new challenges for local governments. As noted in Part 1 of this article, 2020 tax rates and assessed value information need to be considered as you plan for the use of your TIF areas. This part offers more specifics about the TIF area details that should be considered so you can maximize the value of your TIF areas to your community.

A good place to start your analysis is by utilizing parcel-level information available from the county auditor’s office to evaluate the 2019 performance of each TIF area. Once you have that information, you can use it to plan for 2020 and beyond.

Here are the items you should include in your analysis:

1. Review which TIF parcels are driving your captured assessed value and those that are reducing it

2. Assess the impact of potential TIF area amendments on your estimated revenues and the property tax rates, levies, and circuit breaker credits of all overlapping taxing units

3. Evaluate whether the developments you anticipated happening in 2019 were completed

  • If they weren’t, determine whether they will happen in 2020
  • If they were, compare your estimated results with the actual results

4. Estimate the impact assessment appeals might have on your community’s TIF areas as well as on general government funds.

  • Utilize the county assessor’s office to better understand on the number of appeals your TIF area faces
  • Plan for the possibility of significant assessed value decreases and develop strategies to mitigate the effects of such decreases should they occur

5. Evaluate your opportunities for internal and external collaboration

  • Can you utilize TIF to support key infrastructure needs in the community?
  • Are there opportunities to use TIF dollars in partnership with (1) other taxing units or (2) private entities?

One of the most important steps you can take in managing your TIF areas is completing regular analyses of those areas. This process will help you to identify and proactively respond to any issues that may arise in the current year and beyond. The results of this process can also be utilized to facilitate your redevelopment commission’s annual meeting with the overlapping taxing units.

If you have any questions or if we can be of any assistance in helping you evaluate and develop plans for your community’s TIF areas, please contact us.

Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm and provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. ©2024 Baker Tilly Municipal Advisors, LLC

Matt Eckerle
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