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Taxing units reps view presentation on county's two TIF allocation areas


The Sullivan County Redevelopment Commission hosted a presentation on the impact of tax increment financing to county taxing districts during its meeting on Thursday.

Jason Semler and Greg Balsano, both of Baker Tilly Municipal Advisors, gave an overview of the county’s two TIF allocation areas — Stewart Street and CR 300N.

The two presenters outlined the budget for both districts, past projects and future projects funded and the impact on the allocation areas by capturing the tax increment.

Several taxing districts were represented at this presentation, including the Sullivan City Council, Sullivan city and county redevelopment commissions, Hamilton Township and county commissioners. 

The Stewart Street Allocation Area was created on April 23, 2003, then expanded on Dec. 4, 2003, with both set to expire 30 years later on those dates in 2036. Their estimated annual TIF generated is $60,880, payable in 2019.

Projects funded included:

• Financed certain building improvements for Raybestos Powertrain LLC

• Drainage improvements

• Road improvements for Depot, Duane, Leach and Duane streets — the latter a designated truck route from SR 54 to Chaney Street.

As for its budget, with its estimated expenses of $35,000 subtracted from the estimated TIF generated of $60,880, shows $25,880 remaining.

“… which is a coverage of about 174%, meaning that your revenues cover your expenses about 1.74 times each year,” Balsano explained.

Projected out three years, that $25,880 in generated funds each year will leave an estimated TIF balance of $306,075 by 2021.

“These are just estimates,” Balsano stressed.

Future projects funded with TIF revenues include:

• Road improvements, including road construction to connect Sullivan County Park and Lake to downtown life

• Lighting and drainage improvements.

The 300 North Allocation Area was created on Aug. 3, 2006, will expire Aug. 3, 2036 and has an estimated annual TIF generated of $134,450, payable in 2019.

Projects funded include:

• Expand Shelburn water to TIF area

• Road reconstruction on Northwood Drive to create easier access

The estimated annual expenses of $85,000 reduced from the estimated TIF generated of $134,450, shows $49,450 remaining — a coverage of 158%.

Projected out three years, this area’s estimated TIF balance would be $551,495 in 2021.

Future projects funded with TIF revenues include:

• Sewer, water and electrical improvements

• Economic development incentives

• Road improvements

“They did a very professional presentation and I think it helped explain to the taxing units just what it’s used for and what it can be used for," SCRC Director Deann Talley said. 

“And how the taxpayers haven’t lost any assessed valuation in the area because the basis was set originally so the taxes stayed going where they were.”

Talley noted these TIF improvements have been able to enhance the areas and “has been well worth it.” 

Semler said recent legislation now requires a meeting of this type once a year, with Talley saying this was the first one for Sullivan County.

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