Tax increment financing (TIF) is a mechanism that municipalities have to help assist with redevelopment costs such as construction of water and sewer mains, road reconstruction, streetscape improvements, and other public improvements. This tool allows areas to be jump started economically by attracting new development and redevelopment of existing properties. TIF allows for property tax revenues from new and old businesses to pay for the improvements that will affect their properties.
When a TIF District is established, a base property tax level is established. All of the growth in property taxes after the base year are put in a TIF Fund that helps to pay for the improvements. This increased property tax is called the TIF increment. A tax increment is the difference between the amount of property tax revenue generated before TIF district designation and the amount of property tax revenue generated after TIF designation. This increment is collected in a TIF Fund that help to pay for a number of projects in the designated TIF area.
As stated in the TIF Redevelopment Plan, the boundary roughly is the area bounded by Interstate 90 on the southwest, Riemer Way on the east and Higgins Road on the north, and it includes the historic village core along Railroad Street and Galligan Road north of Higgins Road (Illinois Route 72).
The extensive process involved an eligibility analysis and creation of a Redevelopment Plan. Notifications of public hearing were mailed to the appropriate property owners and taxing districts. Notice of the public hearing was also printed in the Daily Herald. The Village Board conducted a public hearing on August 5th, 2008. To complete the TIF creation process, the Village Board will need to approve ordinances adopting the TIF Plan, Designating the TIF area, and Adopting Tax Increment Financing.
The joint review board (JRB) is a collection of taxing districts that are affected by the TIF District. The group is charged with reviewing potential districts based on the areas ability to meet the statutory requirements to constitute a TIF District. This group makes a recommendation to the Village Board. Once a TIF District is in place, the JRB also annually reviews the progress of the TIF District.
Each taxing district will continue to receive the same level of property tax income that they were receiving the year the TIF District is established. Property taxes collected on properties included in the TIF at the time of its designation continue to be distributed to the school districts, county, community college and all other taxing districts in the same manner as if the TIF did not exist. Once the initial improvements are paid for, all of the taxing districts benefit from the taxes generated by the full value of the improved properties that were in the TIF district. The full value of the improved properties is treated as “new construction” under the tax cap restrictions on increased property tax collection.
There are a number of controls that are in place by state statute. All TIF revenue is placed in a specific TIF Fund that can only pay for improvements in the designated TIF area. The Joint Review Board annually reviews the TIF budget to gauge the progress of the project. Legislative action is required to increase the TIF budget by more than 5%, after adjusting for inflation. All of these controls create a structure that helps to safeguard the TIF Fund.
The first option is to wait for sufficient revenue to be available to start projects. Depending on the TIF, this can be a substantial amount of time. Property owners could fund some of the costs early on in the project so the project can get started. The Village could issue a bond that will use TIF increment to pay for the costs of the redevelopment. If a developer is redeveloping the area, the Village could use TIF notes that will reimburse the developer, using TIF revenues, as the projects are completed.
Over the 23 year life of the TIF district, some infrastructure or public improvements might be needed. While no projects are imminent, including Old Town in the TIF District gives the Village options and flexibility if a need arises in the future.
TIF Districts themselves do not raise tax rates or the amount any property owner pays in taxes. TIF Districts instead rely on the increasing property values in the TIF District area. Property owners will continue to pay property taxes at the rates established by the levies set annually by various taxing districts (e.g. school, fire, etc.). The property taxes paid will increase over time to reflect the increased market value of the property, inflation, and the benefits of the TIF-funded improvements.
You may register to vote at the Village Hall. However, the registar has limited hours. Please call prior to coming in to register.
Yes, the Village Hall doe have a notary on staff. Please call prior to stopping by to have documents notarized to ensure the notary is available.
Take a copy of your tax bill to the Dundee Park District office. They will multiply their current tax levy rate times the equalized assessed valuation of your home. That result will be the annual cost to join the park district.
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