Be sure to educate yourself before you vote by reading:
Main Street TIF Article - Braidwood Journal
Why TIFs are a good economic tool
MDH Article on the Seneca Intermodal TIF
TIF Info by Wikipedia
Morris Ordinance 2657 - First ordinance creating the TIF
Morris 1986 Ordiance 2659
Morris 1999 Ordinance 3176
Illinois Tax Increment Association
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51 comments:
If you provide an email address in your profile, I will send you the TIF documents you requested.
grundyville@live.com
Thanks in advance.
An on-line "children's book" that explains TIFs at http://news.medill.northwestern.edu/chicago/news.aspx?id=94075
Rantoul, Illinois forms a TIF. Read article from News-Gazette at:
http://www.news-gazette.com/news/local/2008/06/27/rantoul_board_oks_tif_district
Another community forms a TIF district:
http://www.ssnewstelegram.com/news/2008/June/nt062608-2.html
If it is such a bad thing, why are many communities moving to form TIF districts?
12:48, go back and read up on TIFs. Muncipalities are forming TIF because they create lots of money for city officials to spend. The problem is that this money is taken from the schools and increases taxes for everyone. This is how Morris brags about low tax rates, when in reality, the tax rate imposed by the city is 3X more than they claim.
to 4:49am
What evidence do you have to back this up? Many people feel that taxes are to high and jump on the "slam the TIF" bandwagon but nobody seems to offer evidence to support the claim.
To 12:48,
what taxes are 3x more than anywhere else (real estate, sales, etc.)?
4:49, the Morris TIF generates $3,000,000 per year - this is public record and noted repeatedly in news articles. Where do you think this money comes from?
This $3,000,000 is money that would have otherwise gone to the schools and other taxing bodies. In order to make up the difference, EVERYONE in those taxing districts pays more to make up the difference.
This isn't rocket science.
I'm trying to understand this, so bear with my ignorance.
From the way I understand things (again forgive my ignorance), the money generated by a TIF comes from the excess over a predetermined base (I assume established in 1986 in this case). Theorhetically (I beleive), this excess was generated from the increase in taxes from the betterment and development of the TIF district.
Would there be an excess if a TIF wasn't created? Would there be an increase in property taxes if the TIF district wasn't developed? Could there be a decrease in property taxes if the TIF district wasn't developed (i.e., blighted downtown, outdated infrastructure, etc.) and the schools, and other taxing bodies, would be "less off" than they are right now?
Again, forgive my ignorance, just trying to grasp the situation.
After seeing and hearing of many Midwestern towns literally dying, we may want to continue using TIF.
9:08, that is the theory behind a TIF, and that is how the Morris TIF was sold to the school districts and the public in 1986. But that is not how the city has used TIF. Instead of using TIF to improve blighted areas (if there are any other than the paper mill), the city has been stockpiling TIF money for years to build a new city hall. How much additional property and sales tax do you think the new city hall will generate? ZERO!
p.s., in 1999, the state legislature prohibited the use of TIF money for municipal buildings for this very reason. The sponsor of the legislation called this practice an "abuse" of TIF.
2 more illinois cities/towns considering TIFs:
http://www.pjstar.com/opinions/x1816442512/Cant-get-excited-about-incentives
http://www.rrstar.com/cherryvalley/x2050102668/Officials-wonder-if-TIF-is-best-decision
Many small Midwestern towns are dying. In the world of globalization, many communities have their young-educated people (ages 25-39 with at least a Bachelor’s Degree) leaving in droves to bigger cities, are losing their manufacturing jobs to China and Mexico, and larger farms are being operated by less and less people. Some towns try to compensate their “loses” with casinos and/or by offering free land to all whoever will stay in the community (see http://www.usatoday.com/news/nation/2005-02-08-land-cover_x.htm). One Iowa community has successfully fended off the “death” by focusing on Transcendental Meditation (see http://www.washingtonpost.com/wp-dyn/articles/A50643-2004Aug8.html ).
Some in Morris are hoping that Morris’ proximity to Chicago has it a natural for a “spillover” community. If this is the approach Morris is going to take, then what can we do to better facilitate us being a “spillover” community? To entice newcomers, I believe we need better access to the Chicago Metropolitan area such as a train station and maybe another ramp to route 80 (what about developing Lorenzo/Pine Bluff Road as faster route to I55?). A rejuvenation of some of the parks would increase family interest in the area (I hear many people giving accolades to Channahon’s and Yorkville’s parks (is a Park District in order here?). We also need a school consolidation feasibility study made to ensure we have the most efficient and effective education system in place.
There is little doubt that the Chicago “spillover” will continue in the age of globalization. The question is, “how can we, Morris, make the best of it?
You forgot using the waterways as transportation routes.
School Concerns over TIF:
TIF reform law fails to alleviate some school concerns -- A new law that took effect in November 1999 was designed to close loopholes in the state’s tax increment financing (TIF) statute, but some major school concerns were not addressed. The Illinois TIF statute enables municipalities to redevelop blighted areas by using the increased property tax revenue derived from such redeveloped property to defray the cost of the improvements. School districts and other local taxing districts are locked out of receiving increased tax revenue derived from improved TIF property for up to 23 years.
A key reform provision benefiting schools requires reimbursements to school districts for any new students who enroll as a result of such TIF redevelopment, including the construction of additional residential housing. School advocates decry the fact, however, that the reforms do not ban the use of TIFs for residential development. They point out that the original intent of the TIF statute was to allow business and industrial improvements, not residential development.
The new law revising TIF provisions, Public Act 91-478, not only requires reimbursements for any new students, it also slightly tightens the definition of blighted areas. Blighted areas remain the only places eligible to be designated and redeveloped as TIF districts. The revised law will no longer permit municipalities, however, to use TIF funds to build golf courses and municipal buildings.
Loopholes remain in the TIF law’s definition of blighted areas, however, according to school advocates. School districts still lack the authority, for example, to block the designation of a TIF area that would be harmful to local schools.
While future reforms may close these loopholes, legislative sponsors of the 1999-enacted reforms said they would wait at least a year to see how modifications of the law were working before they submit further TIF proposals.
TIF hurts the schools
The Morris TIF increases taxes for everyone in Dist 54, Dist. 101 and Saratoga by $3.5 million a year, even for people who don't live in the City of Morris. This money should be going to the schools, not the high-priced lawyers and engineers employed by the City.
The schools should hire Ancel Glink to fight the TIF extension. And they should do it right now. The mayor and city lawyers are already scheming for the extension.
To 3:57 am,
One of the school districts already has legal problems to deal with (open meeting act, affirmitatvie action, etc.) and another legal situation will probably do it in.
Hey 11:06,
TIF's do not directly raise taxes. They only take the increase in taxes from the areas they developed. Therefore, TIFs do not raise your taxes.
As far as TIF proceeds going to lawyers and engineers, please provide the numbers, names, dates, and such. I'd be one of the first to go after these people to have the monies returned to the taxpayers.
End the TIF corruption at city hall.
TIF's hurt our children. Money is being diverted everyday to the mayors rich fat cat lawyers and engineers at Morris city hall.
The kids are being cheated out of their education dollars.
Hey Grundryville, you need the 1993 alderman Brian Feeney letter from district 101 expressing their concerns on how much money the 1986 TIF agreement was costing them. That tiger sure has changed his stripes about TIF. maybe because now he holds the city's purse.
According to 101's superintendent the district is losing close to a half million a year alone because of the TIF agreement.
The Morris TIF increases property taxes by $3.5 million per year. This money would have otherwise gone to the schools and other taxing districts. Everyone's taxes go up to make up the difference. This is not rocket science.
Sigh.
OK, one more time—let’s review how the Morris TIF works.
The TIF freezes the amount of property tax dollars the schools, the parks, the library, and other taxing bodies get from that district for 23 years. If the schools were getting $100 from a TIF district when it was created, that’s all they’ll get until the TIF expires. Any extra tax money, generated by rising assessments or new development, goes into the TIF fund.
Think about this. If the schools, parks, and library can only get $100from a TIF district, what do they do when their expenses go up to $200? They have to raise their levies—the amounts they each get from the property tax pie—to compensate for the money diverted to the TIF. When they do that, property taxes go up. No matter what the city tells you, TIFs are tax hikes, plain and simple.
The existing TIFs divert at least $3.5 million a year in property taxes.
Comments by city officials suggesting that the Morris TIF does not raise taxes are insulting to the intelligence of taxpayers. The city is basically saying, We can get away with telling you anything about TIF because you’re too apathetic to care or too stupid to figure out that we’re putting you on. And so far the city has been right.
To Hynds,
Please make a better case against TIFs, essentially you have asserted that the Morris TIF district is indirectly hurting the schools because of inflation!?
Inflation is an unofficial tax mostly levied at the federal level. If inflation is the cause, you'd have to blame the Federal Reserve for ordering the US Treasury to print up the money. You have to also blame the Bush Administration for the costly war on "WMDs" and "big oil" for unnecessarily raising the price of oil.
Let's not blame the city for the Fed's actions/misactions.
To Anonymous 10:02 - If the $3.5 million doesn't come from taxes, just where do you think it comes from? Prove that TIF doesn't raise taxes instead of making unsupported allegations. And why are you afraid to use your name?
To Hynds,
Sigh,
you've already made my case with your 8:40 post.
To Hynds,
As you asserted, inflation is what is hurting schools- not TIF. TIF gets its monies from the increase of taxes that were earned from the development of a TIF area.
Anonymous 10:02
PS I used a name as you requested.
TIF does not come from property taxes. That $3,500,000 a year comes from magic beans.
SILLY MAYOR, TIF ARE FOR KIDS
Hey Hynds, when Richard comments on local
TIF's and then makes a Peter Pan leap to Washington Bush bashing politics all in the same breath there is no amount of logic that can ever be reasoned with that loon.
Morris schools are stuck in some kind of 1986 TIF spacetime continuum which puts a huge damper on state funding.
Hynds and 11:09,
I’m not a Bush-basher (I’m actually a long-time member/advocate of the GOP) but some do consider me a “loon.” I’m merely trying to get you to focus your energies on the TIF situation. You attempted to blame inflation, though a national problem that has been extremely exasperated by the current presidential administration‘s and Federal Reserve Bank’s decisions, it is not the foremost explanation you’re looking for to the problematic situation between the schools and the Morris TIF agreement. Maybe this article will help you “clearly“ see the problem: http://www.kansas.com/opinion/editorials/story/482145.html .
Believe it or not, I believe we are both on the same side.
Best Regards,
Richard, a.k.a., Peter Pan
If the school board and superintendents agree to the 13 year TIF extension they better agree to freeze all of the teacher and administrator's salaries for the next thirteen years.
Hynds, Peter also believes the city's tax rate is $0.65. l
So let's see if I understand Richard correctly.
1. TIF doesn't increase taxes because of inflation.
2. If TIF does increase taxes, it is President Bush's fault.
I think I understand now.
I’m simply responding to Richard Hynds and asking him to make a stronger case against TIFs. He erroneously blamed inflation by stating , “If the schools, parks, and library can only get $100 from a TIF district, what do they do when their expenses go up to $200? They have to raise their levies…”. I simply pointed out that inflation isn’t the foremost trouble with the Morris TIF district agreement. There is a much bigger problem I’m trying to help him discover and apparently some posters here don’t want that to come to fruitation. Did you even look at the website provided in the 9:04 post?
Regretfully,
Peter Pan
P.S. I don’t think the city's tax rate is $0.65. A rate is expressed in the form of a ratio - a comparison of two numbers…$0.65 isn’t compared to anything and therefore not a rate. (snip)
P.S.S. poor “wilford’s” attempt at the Socratic Method is horrendously mangled. (snip)
This is really getting stupid, Richard. I never mentioned inflation or blamed inflation for TIF. You did.
Rich are you sure you do not mean this.
"It depends on what the meaning of the word 'is' is.
LOL, your a good sport.
Hynds,
I apologize if I miss-construed what you were saying. I mistook you saying that a rise from $100 in expenses to $200 in expenses (which is generally the result of inflation) was the fault of the TIF. Sorry.
Richard, A.K.A., Peter Pan
Hmm. Maybe school expenses rise because of factors other than inflation. Such as increasing enrollment, and waste and mismanagment (e.g., hiring Dr. Green at an exorbitant salary). I think the pro-TIF Richard is off his meds.
Richard did say “generally” in regards to inflation and, based on the posts, I don’t think he is pro-tif. Read the posts again - carefully.
To 9:53,
rather than use an example of exhorbant school costs from years ago (Dr. Green), why not use a more relevant one: District 54 pays two administrators, one of which isn't qualified, and pays for the unqualified adminstrator to get her qualifications. Now that isn't inflation, that is down right waste and fraud!
yea, you tell him 9:53, pro-tif richard didn't account for the "imperial margarine" scam at 54in his posts. Nobody saw that one coming, except for board and the duperintendent.
To 11:14: -
You are right. Please substitute your more astute example for my own less astute one.
To 10:31 -
So sorry. I should say that the pro-TIF Richard is "generally" off his meds.
A read about a TIF lawsuit:
http://www.mccookgazette.com/story/1450338.html
The following is an opinion cut and pasted from http://www.mywebtimes.com/bloggers/notebook/?p=57
TIF districts and schools
Posted 8/7/2008, 2:33PM, by Craig Wieczorkiewicz
I’ve covered formation or extension of tax-increment financing districts several times during my career, including twice in Streator. Something I always find interesting is the lip service paid to school districts by city officials.
The names change but the situation always is the same. Because TIF districts freeze how much money can be collected by taxing bodies other than the city imposing the TIF district, school districts often lose the most money and seek to minimize the number of years a TIF district is in existence. City officials always say they are sympathetic to the schools’ plight, but they also always create TIF districts for the maximum 23 years. Yes, TIF district terms can be reduced later, but I’ve never heard of a case where a community did so.
I found myself thinking about this Wednesday evening when Streator Township High School Superintendent Steve Swanson said during a public hearing that he wants the Streator City Council to consider a TIF district term of less than 23 years. Mayor Ray Schmitt said something about wanting to be fair to the school districts, townships and other taxing bodies that will lose additional tax revenues for the duration of the TIF district. But guess what? I guarantee the City Council will approve the TIF district extension for the maximum possible number of years when it makes its decision later this month.
TIF districts aren’t necessarily a bad thing, as they are designed to spur economic development. But school officials are always finding their hands tied regarding money because of unfunded mandates, rising salary costs and more, giving them a legitimate beef against long-term TIF districts.
With that said, city officials aren’t obligated to care about the plight of schools and other taxing bodies affected by TIF districts. I just wish they wouldn’t talk like they will take the concerns of those other taxing bodies into serious consideration when few of them are likely to give a second thought to them before making their decision.
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