Cumberland Council approves 20-year extension of successful TIF 1 funding

Cumberland Town Council has taken a significant step towards enhancing local infrastructure and community services by approving a 20-year extension of Tax Increment Financing (TIF) District 1 during their meeting on May 27, 2025. This extension, which is expected to generate approximately $15 million over the two decades, will allocate 75% of the captured revenue—around $9.8 million—towards affordable housing and transit-related projects.

The TIF extension, originally established in 1997, allows the town to capture increased property tax revenues from new developments within the district. This financial strategy is designed to support community goals, particularly in addressing housing shortages and improving transit options. The council discussed the flexibility of adjusting the percentage of revenue allocated to these areas based on annual needs, ensuring that the town can respond effectively to changing circumstances.

In addition to the TIF extension, the council also accepted a $75,000 grant from the Community Resilience Partnership. This funding will support various projects, including the installation of solar panels at the West Cumberland Fire Station and energy efficiency upgrades at the local library. The grant is part of a broader effort to enhance sustainability and resilience within the community, with no matching funds required from the town.

Council members expressed strong support for both initiatives, highlighting the long-term financial benefits and the potential for improved community services. The TIF extension is anticipated to save the town nearly $5.9 million in education costs and provide additional revenue sharing benefits, further easing the tax burden on residents.

As the council prepares for a public hearing on June 2 to discuss the TIF extension in detail, they are committed to ensuring that the community is well-informed and engaged in the decision-making process. The upcoming workshop will provide an opportunity for further discussion and clarification on how these financial tools can best serve the needs of Cumberland residents.