The Redevelopment Authority met last month and in a 3-2 vote, voted against recommending to Finance that they put the costs of rebuilding Exchange Street, $450,000, into the TIF#5.
Their argument was that 1) these costs were the usual costs of constructing a road; 2) There was zero prospect of any tax increment to these costs; 3) Any inclusion of these costs would be outside the plan that was approved by the city financial consultants and the board of electors that certified to the taxpayer that it was forseeable that the projects included in TIF#5 would have the necessary tax increment to be successful. 4) The inclusion of these costs would increase the likelihood of TIF#5 failure. It would be better to just recognize the costs now on the tax role rather than park the debt and doom TIF#5.
If you review the agenda for the Tuesday night Common Council meeting, you can see on Resolution 2005-50 that the city plans on disregarding the advice of the Redevelopment Authority.
Before the TIF #5 was created, it was suggested that one way to ensure TIF success in an atmosphere of high turnover of city council members, was to create an independent management of the TIF. This did not happen. The fact that Resolution 2005-50 is on the agenda is recognition that the necessary independence is not there. Mr. David Wagner, the city financial consultant testified in open session that his recommendation WAS that the city have an independent administration of the TIF.
The issue is not whether it was good to create the new Exchange Street. Everyone I have talked to loves it and is thrilled with the change. The issue is how to do the accounting for it that will not imperil the TIF#5. The issue is not whether people like TIF's but about making them effective and transparent to the taxpayer. There are important aspects of TIF#5 for the improvement of the lower East Main and Union that might not have enough capital to address if the TIF is jammed with these costs early.
Rather than let these accounting issues become skeletons in the closet for the future, I think it is important for city leaders and citizens to discuss this issue BEFORE the vote occurs on Tuesday.
I have begun the issue clarification. I urge you to contribute to the discussion if you have an opinion one way or another.
You have the answers. I just begin the questions. You make the call.
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