A city tax-increment financing district created in 1986 has officially been dissolved after 27 years of use.
Retiring Finance Director Nancy Schneider said the East Central Area Tax Increment Financing Redevelopment Plan, or TIF, was designed to “funnel money into the development fund to improve areas that are underdeveloped.”
“It’s based on increased taxes that come from new development,” she said.
Schneider said during the time it was brought into effect, the city was planning on completing various road projects, infrastructure such as water and sewer lines, sidewalks, water retention areas, storm water improvements and the water tower, which sits on the east side of town.
Anything new that was developed in that TIF district would generate incremental property taxes that would go into the TIF fund.
The life of the TIF officially ended in 2009, Schneider said, after 23 years of use, but the city added a four-year extension for sales tax.
She said the state of Illinois also funneled money into the TIF through state and local sales tax during that four-year period.
The TIF district was involved in an excess of $35 million worth of city projects, Schneider said.
The city council also approved a recommendation to accept bids received for the sale of three city vehicles as submitted by Parks and Recreation Superintendent Jason Woody. The bids submitted were $1,586 and $677.