Date: August 14, 2008
TO: WJBD Radio
Salem Times Commoner
Cc: Mayor and City Council
Economic Development Director
Taxing Bodies in TIF #1 District
NOTICE OF SALEM CITY COUNCIL
WORK SESSION MEETING
REGARDING SUNSET OF TIF #1
PURSUANT TO THE OPEN MEETINGS ACT, notice is hereby given that the Salem City Council will meet from 11:00 A.M. to 2:00 P.M., on Tuesday, August 19, 2008, in the Economic Development Office, 321 West Main, Salem, Illinois, for the following purpose:
· To discuss close-out of TIF #1. Consultant, Mike Weber with Peckham Guyton Albers & Viets, Inc. (PGAV) will be present to review procedures.
CITY OF SALEM, ILLINOIS
Jane Marshall, CMC
Dated this 14th Day of August, 2008
CITY OF SALEM, IL
WORKSHOP – TIF #1 SUNSET PROCEDURE
(Westside Redevelopment Project Area TIF Close-Out)
AUGUST 19, 2008
The Salem City Council met on Tuesday, August 19, 2008 at the hour of 11:00 a.m. in the Economic Development Office Meeting Room, 321 West Main, Salem, IL 62881 for the purpose conducting a workshop to review procedures for Sunset of TIF #1.
The Budget Workshop was called to order by Mayor Leonard E. Ferguson.
Council Members present:
Councilman Tom Carr
Councilman Joe Hotze
Mayor Leonard E. Ferguson
Absent: Councilman Harold Blank
Councilman David Black
City Manager Thomas F. Christie
Finance Director Marilyn Shook
City Clerk Jane Marshall
Economic Development Director Tracey McDaneld
Theresa Trebotich, City of Salem
Assistant to City Manager for Planning and Admin. Services Bev West
Mike Weber, PGAV
Also present: The media - WJBD Radio
Felton Jose, Salem Elementary School
Patty Squibb, Salem Elementary School
Mike Squibb, Salem Elementary School
Sam Nall, Marion County
Jim Somer, Salem Fire Protection Dist/Salem Hospital
Roger Mann, Salem Fire Protection District
Barbara Smith, Salem Community High School
Mike Weber, consultant with Peckham Guyton Albers & Viets, Inc. (PGAV) explained that TIF #1, Westside Redevelopment Project Area was created in 1986 will expire in 2009, covering tax period for taxes generated in 2009 and collected in 2010. He reviewed close-out options:
A. TIF Term Expiration:
· Tax Year 2009/Payable 2010
· All expenses must be obligated by City’s FY ending in 2009; otherwise a “surplus” must be declared.
· Notify all taxing districts by November 1, 2009 and explain 23rd tax year collection in 24th year provision
B. Prepare Closeout Spending Plan:
· Increment Estimates
· Plus other sources of revenue
· Less current obligations (e.g., debt service)
· Equals balance to fund other projects that meet the goals and objectives of the TIF Plan
· Confirm total project cost incurred or to be incurred do not exceed total estimated cost in the TIF Plan, as amended, by more than 5% after adjusting for CPI
C. Closeout Scenarios:
· Terminate TIF entirely & distribute surplus, if any. (Table was provided showing estimated impact on taxing districts based upon 2007 tax year figures.)
· Terminate most of the TIF district and seek up to a 12 year extension from the Illinois General Assembly for certain areas yet to be redeveloped. (A table showing potential parcels to remain in TIF was provided.)
Any new TIF district will be subject to most recent version of the TIF Act.
He explained that the sales tax is no longer part of the equation, only the property tax and suggested keeping some of the parcels in the TIF to try go give incentives to development of those areas. Mr. Weber explained that the impact on the tax rates for the schools and other districts may not be a big impact.
Some of the parcels discussed for consideration to remain in the TIF were in the area of the former Wal-Mart location and the parcels near I-57 Exchange.
Comments were received and questions answered from those in attendance. Mr. Weber invited all taxing bodies to contact him any time with any concerns or questions they may have regarding this issue.
Buffet lunch was served at 11:55 a.m.
Following lunch period, City Manager Christie solicited questions or concerns regarding the sunset of the TIF #1 stating that when this TIF ends, it will change the environment of the community. He explained that TIF #1area connects the other two TIF areas and when it is gone, that engine disappears to be able to offer incentives to businesses. He indicated it is a lot easier to extend the TIF District than to create a new one.
Mayor Ferguson commented that he does support using some of the properties to extend the TIF, indicating it gives an opportunity to make something happen.
Meeting was adjourned.
Jane Marshall, CMC
Reviewed by City Council 9/02/08.