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What types of projects use TIF funds?
Municipalities can use funds raised through TIF for a range of uses that spur
redevelopment and enhance the TIF area. The Village of Mount Prospect is using
TIF funds to acquire property for redevelopment, the streetscaping in the
downtown, façade renovations and environmental clean up of contaminated sites.
Will the TIF increase my taxes?
Having a TIF does not increase taxes of the entire community. In fact, the
additional taxes collected as a result of any newly developed or redeveloped
property lessens the tax burden on other properties. For example, if a vacant
lot becomes a shopping center, which has a significantly higher value, then the
new tax revenue will decrease the burden on other owners once the TIF expires.
What are the benefits of a TIF?
The advantage of a TIF is the new revenue it generates. Without the TIF funds,
the money for redevelopment would have to come from other sources within the
Village affecting other services. More likely, the redevelopment and
beautification that occurs in these areas with the help of TIF funds would not
occur because either private developers or municipal general funds could justify
the unique costs associated with redevelopment sites. Thus these under-utilized
areas become more viable. Ultimately the TIF will aid the Village remain
competitive in seeking tax base and jobs.
How do homeowners benefit from a successful TIF?
Generally, homeowners will see their property values improve. Certain public
improvements such as water, sewer, streets, etc., can be paid for through
sources other than general property taxes. Increased business activity can also
mean that fewer homeowner property taxes are required to provide for essential
services such as police, fire, public safety, etc.
Does TIF require the issuance of Debt?
The establishment of a TIF District does not mean that any debt will be
incurred. If the municipality decides to incur debt to provide for public
improvements, then funds for debt repayment will generally come from taxes
generated in the TIF District and not from any municipality-wide property taxes.
The municipality has the option of utilizing other revenues and issuing other
forms of debt should it deem the particular development justifies such
utilization of funds and/or taxing powers.
If you have any questions about TIF or the downtown redevelopment project,
contact the Planning Division at 818-5328.
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