| BACKGROUND |
With some upcoming Tax Increment Finance (TIF) District closures, the Community Development and Finance departments thought it would be a good time to review the TIF Closure Policy.
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| ANALYSIS |
The TIF Closure Review Process/Policy was created to document the process of a TIF closure as well as to indicate what the City portion of the TIF funds should be utilized for. The City currently has a couple of underperforming TIF's which have negative cash balances. The changes to the TIF Closure Policy will allow the City to create a reserve account with funds from positive performing TIF districts upon their closing. This reserve account could then be utilized at the closing of an under-performing TIF district.
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| FISCAL IMPACT |
An anticipated financial benefit from the approval of the proposed Tax Increment Finance (TIF) Closure Policy is that underperforming TIF Districts will have the opportunity to have their deficits reduced or eliminated upon TIF District closure. Any TIFs with negative balances at closure would require financial assistance, presumably through the General Fund, to eliminate a deficit. Utilizing this option of allowing TIF Districts to become a donor district will enable the city to avoid having a TIF District close with a negative balance.
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| RECOMMENDATION |
The Long Range Finance Committee and Staff recommends that Council adopt the Tax Increment Finance (TIF) Closure Policy. We strongly believe that passage of this policy is in the best interest of the citizens of the City of Oshkosh as we move into the future.
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