York Town News
Public hearing set to explore impact of proposed TIF District for York Beach
By Larry Favinger
YORK BEACH - Members of the public will have a chance to have their say on the possible creation of a Tax Incremental Financing (TIF) District during a hearing scheduled for the Aug. 28 Board of Selectmen meeting.Town Manager Rob Yandow sketched the details of the operation of such a district at this week's selectmen's meeting, held on Monday, Aug. 14.
The TIF is, basically, a way to procure funding for capital improvements in a specified area without relying on the general tax base, he said.
The lifespan of these districts is limited to 30 years, with bonding for improvements therein limited to 20 years.
Yandow said the proposal, as it stands, covers about 101 acres and 90 buildings, with 36 of those considered commercial.
Single-family homes in the area would not be included in the TIF, he said.
About 9.6 acres of the York Wild Kingdom's approximately 82 acres would be included.
A TIF takes the added tax revenue from improvements in structures within the district and keeps it in a special fund to be used for other capital improvements in the district.
Yandow said the general tax revenue from the area would remain the same, with accommodations made for the general increase in valuation each year, thus not penalizing the general tax base.
Yandow said the town would take a "pay as you go" approach to the district, not seeking bonding for three or four years as smaller projects would be completed.
Then, he said, "We'd know what to expect" in the way of future revenue.
The example he used was for a parcel valued at $500,000 this year. With the tax rate at $8.14 per $1,000 of assessed value, that property generates about $4,070 per year in taxes.
If there was a 10 percent increase in valuation in town the following year, the property's value would increase to $550,000 and the taxes would increase to $4,477, provided the town's tax rate remained the same.
If the property owner made improvements to the tune of $200,000 - raising the value to $750,000 - that would produce $6,105 in taxes, $4,477 of which would go to the general taxation. The remaining $1,628 would go into the TIF fund.
The point of contention, Selectmen Vice Chairman Dwight Bardwell said, is where the general tax valuation would be set for the following year - at $550,000, representing the increase based on townwide valuation, or at $750,000, including the renovations and improvements to the example property.
That will be discussed at the public hearing and is the point of controversy in the proposal.
Those experienced with establishing TIFs will attend the public hearing, Yandow said.
No other selectman commented on the proposal at this point.
