Scouting the situation at Tuesday (May 19th) evening’s Danville City Council meeting were two very key people from Danville District 118; Interim Business Director Todd Pence, and Superintendent John Hart. During the last 118 Board meeting; a strong feeling was expressed, led by board member Christopher Easton, against the city creating a new Tax Increment Financing district.
In an approved “TIF” district, property taxes from any increase in property value while the district is active do not go to taxing bodies such as school districts. Instead, they are invested back into the district for reinvestment and growth purposes. To Danville District 118, currently trying to get back on track financially, this is not good news.
On Tuesday, the city officially decided to look into the possibility of expanding the current Western Gateway TIF district into a larger and tentatively named South Gilbert TIF district. Superintendent John Hart stated that he had not yet spoken to Mayor Williams and Community Development Administrator Cronk, but that he certainly planned to.
AUDIO: You know, we’re really looking at every dime. And TIF districts, they’re a good thing for the city, but they come with some costs to municipals that count on tax dollars. And (we’re) just really trying to get the information, and take a look at what the city’s looking at.
Mayor Rickey Williams, Jr’s point of view is that without the investment of TIF district funds, there’s a good chance the property tax revenue would not increase anyway. So, in that case, the school district should look at the benefits further down the road.
AUDIO: A lot of times we don’t get any kind of new improvement without the TIFs. So what I would tell them is, if they want to have more money in the long run, then they should support the TIF.
But 118 Interim Finance Director Todd Pence says existing TIFs have already cost District 118 money. So if a new one is passed, it would be nice for the city to offer the school district a percentage of what they would have taken in tax revenue wise from property value increases; such as perhaps 20%.
AUDIO: This last year we lost $1.2 million to the city, in diverting the taxes away from the school district to the city, to the TIF district. If it’s extended, that number’s going to keep going up. I believe that the city should work out some kind of an agreement with the district, to give us back a certain percentage of that money.
Danville Community Development Administrator Logan Cronk said passing the resolution to look into the possible new, larger TIF district means that talks with taxing bodies will now begin.
