York Town News
From the Manager's Desk
From the manager's desk
By Town Manager Rob Yandow
Rob Yandow
The idea was first discussed by the York Beach Renaissance Committee, a group associated with the Chamber of Commerce and which represents business interests in the York Beach area. The concept of a TIF was developed as a means to finance what was regarded as a necessary "facelift" in York Beach as well as a mechanism to finance various infrastructure improvements at the same time.
Basically, a Tax Incremental Financing District would generate revenue through taxes which would be levied based on improvements, or investment, in properties located within the TIF district. The TIF is designed so that all tax money currently being collected for the town's general fund would continue to be collected for the general fund. In addition, all annual increases based on market conditions and inflation would continue to be collected in the general fund. Any increases in the TIF district, over and above the general town-wide increases, would be collected in the TIF.
Since the preliminary discussions took place, various scenarios have been explored and various financial plans have been developed.
The original area to be included in the TIF was revised to incorporate not only the business district in York Beach, but also to include open land which might ultimately be utilized to assist in improving the lack of parking in the York Beach area.
On Aug. 28, the Board of Selectmen held a public hearing on the TIF proposal. During the public hearing, concerns were expressed about the size of the TIF district and that there were a number of residential properties included within the geographical boundaries. As a result of those concerns, the boundaries were adjusted and most of the residential properties were eliminated.
The most recent version of the TIF district encompasses 38.76 acres and total property values of $43,980,000.
On Sept. 11, 2006, the Board of Selectmen will be asked to approve the revised district along with the financial plan and development plan for the work to be done in the district.
The work will consist of design standards and traffic studies, sidewalk and road improvements, installation of new streetlights and the relocation of utility poles. The work will be accomplished through a "pay-as-you-go" strategy for the first few years, which means that work will not be started until the money is in hand.
Once a dependable revenue stream is established, the issuance of a general obligation bond will be explored to finance significant infrastructure improvements. All of this will be done with tax money generated within the TIF district and not from the general taxes that are assessed throughout the town.
All of those involved in this project are aware and understand that the general taxpayer should not have to pay for any improvements made in the TIF district. If approved by the Board of Selectmen, the TIF district will be placed on the November Warrant for voter approval.
Although we are suggesting a 20-year life cycle for the district, the boundaries, work plan and financial plan can be amended by the voters as often as is necessary.
If you have any questions about the TIF district please feel free to call me at 363-1000, extension 221.
