Chubbuck officials create a project wish list for potential unallocated funds as TiF retires | economy
CHUBBUCK – The community’s largest tax hike financial district is about to retire, and officials have created a wish list of projects that could be funded with potential unallocated revenue.
The district is slated to close at the end of 2023. Devin Hillam, the city’s director of planning and economic development, estimates up to $ 1 million in unallocated funds could be raised beginning in tax year 2022.
Hillam is also the executive director of the Chubbuck Development Authority, which manages the city’s TIF districts.
“It’s pretty preliminary,” said Hillam.
Approved projects to be carried out within the district this year include an expansion of the New Day Parkway, the addition of two new streets near the future City Hall, the completion of work on other streets in the new downtown area and the Preparation of “underutilized” properties that CDA bought for redevelopment
On the wish-list, if there is any money left, build a skate park, safety improvements on Hawthorne Road from James Avenue to Canal Street, a pedestrian crossing at the intersection of Chubbuck Road and Yellowstone Highway, and other improvements to improve the new downtown area more intimate, said Hillam.
The TIF district has approximately $ 2 million in annual revenue, much of which will be returned to the general tax authorities upon retirement.
When a TIF district is created, property valuations are generally frozen for tax purposes at pre-development levels for the various tax authorities. Taxes levied on new developments are diverted and used to cover new infrastructures and improvements within a designated revenue allocation area. Once the improvements are paid for in full, the TIF can be withdrawn and the taxable valuation returned to the general tax authorities.
Chubbuck was among the first communities in the state to test the economic development tool when it founded its TIF about 30 years ago. Once more than two-thirds of Chubbuck were included in the revenue distribution area, where the funds generated by the TIF are allowed to be spent. That percentage has shrunk significantly in recent years, Hillam said.
Hillam noted that a new state law has limited taxpayers’ ability to get the entire taxable valuation back once a TIF retires, making it harder to calculate how much additional revenue will go to the city that previously went to CDA went.
Hillam believes the TIF district has achieved its goals of providing the community with a better tax base than it would otherwise have had.
“It has served the community very, very well,” added Mayor Kevin England. “The allocation of it that has been used in the city is something we need to work on to replace it.”