The Englewood Neighborhood TIF May 4 2013 William

The Englewood Neighborhood TIF May 4, 2013 William Drew

What are TIFs? 2

What are TIFs? • Created by municipality (state statute) • Designed to subsidize some business project in “blighted” or under-served area • “But for” concept – The project WOULD NOT happen except for receiving public subsidy • Boundaries cross political and community boundaries • Captures “incremental” property taxes ABOVE base when district was created • Lasts 23 years 3

What are TIFs? Under state law, areas proposed for TIF designation must possess numerous blighting factors to be eligible: • • • Age Obsolescence Code violations Excessive vacancies Overcrowding of facilities 4

Better Government Association 5

How Do TIFs Work? When the TIF is created, the city tallies up all the property taxes generated by district in that year (called the "base" amount). After that, all property tax increases above the base (the "increment") are channeled to the TIF district. The property taxes collected from properties inside the district BEFORE the district was created that go to units of government stays FLAT for the life of the TIF (23 years). 6

Where are TIFs? • All over Chicago and Cook County = 443 TIFs in 2011 • 163 in city of Chicago • Additional 280 in suburban Cook County 7

Where are TIFs? TIF 101 8

Where are TIFs? Source: Cook County Clerk 9

How Much Revenue Do TIFs Collect? Source: Cook County Clerk 10

How Much Revenue Do TIFs Collect? 2011 TOTAL TIF REVENUE FOR COOK COUNTY City of Chicago TIFs diverted $454 MILLION Suburban Cook County TIFs diverted $275 MILLION TOTAL FOR 2011 = $729 MILLION 11

How Much Revenue Do TIFs Collect? TIFs extracted $454 million in 2011. That # is 53% of the TOTAL amount of property taxes that went to the city for its operations! TIF 101 12

How Much Revenue Do TIFs Collect? 13

How Much Revenue Do TIFs Collect? Ouch! $5 BILLION WHEN YOU ADD IN 2012 #S! $4. 5 BILLION DIVERTED SINCE 1986! TIF 101 14

Click here to open the 163 PDF annual reports. One by one. H e Th r o F unt o f n I TIF 15

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THE CITY HAD $1. 7 BILLION IN UNSPENT TIF FUNDS AT THE END OF 2011! 18

Impact of TIFs? The Local Pictur e 19

Is YOUR community a TIF winner or loser? 20

LET’S LOOK AT HOW TIFs WORK ON A WARD-BY-WARD BASIS. CODERS, RESEARCHERS, DESIGNERS, INVESTIGATORS, ORGANIZERS. ALL VOLUNTEERS RIGHT NOW. 21

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The Englewood Neighborhood TIF 23

The Englewood Neighborhood TIF • Created in 2001 • Will expire Dec 31, 2025 • 2011 increment revenue was $5, 040, 935 • Total property taxes in this TIF at end of 2011 = $24, 047, 684 • Total increment revenue from 2001 to 2011 = $43, 922, 735 24

The way it’s supposed to work 25

• We are told that TIFs have NO impact on our property taxes. • This bill is from a property inside the Englewood TIF. • It shows “ 0. 00” impact on this person’s bill. Nothing. What is the actual percentage of this property tax bill taken by the Englewood TIF? (a) 13%, (b) 24%, (c) 54%, or (d) 68% ?

Answer = 68%! According to Cook County Clerk David Orr’s 2012 report on TIFs.

The way it really works in Englewood Should be… 28

TIF FUNDS INTO ENGLEWOOD

Our graphic summarizes all this data for you in one place – PLUS mapping out the schools that are scheduled to be closed. 30

Do these areas look blighted to you? 31

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Doe this project require public dollars in order to go forward? 33

RECENT TIF CONTROVERSY 34

48. 3% for public schools 51. 7% for non-public schools Amazing Fact #14 35

How can Chicago be broke with $1. 7 billion in our property taxes sitting in TIF accounts at the start of 2012? 36

ACTION STEPS! WE NEED YOUR HELP! 1. Donate to help us expand this program! 2. Pass the hat to help pay for the color posters. 3. Sign online petition – Put TIFs on property tax bills. If they can collect it, they can report it! http: //tinyurl. com/TIF-Petition. 4. Follow us @tifreport on Twitter. 5. Investigate TIFs. It’s fun! ->tom@civiclab. us IT’S EASY TO HELP - JUST GO TO http: //tinyurl. com/Support-CL 37