Town economic development staff and the finance director presented a five-year forecast for Addison’s economic development fund and three revenue options at the July 22 work session: (1) raise the fund’s dedicated ad valorem rate slightly (from roughly 2.37¢ to 2.50¢ per $100 valuation), (2) transfer 25% of any annual end-of-year excess general-fund revenue into the economic development fund, or (3) adopt a combination of both measures.
Wayne Emerson, the town’s director of economic development, explained the fund’s origin and purpose. “The economic development fund was created in 2011,” he said, “to attract new commercial enterprises and to support and retain existing businesses.” The fund currently draws roughly $1.6 million a year from the dedicated tax rate and supports staff, marketing, incentives and business programs.
Finance director Steven Littmann laid out projections for each option. A small tax-rate reallocation would increase recurring revenue by about $80,000 per year and improve five-year projections modestly; a 25% transfer of year-end excess revenues could add a larger but inherently nonrecurring boost. Combined, the options would materially increase available incentive dollars but would introduce variability and require policy guidance about when transfers occur.
Why it matters: Councilmembers said they want the town to use limited resources to retain office tenants and support redevelopment as the region competes for corporate users. Several members urged a clearer policy to make transfers predictable, preserve general-fund capacity for public safety and balance short-term grants with recurring obligations.
Decisions and direction: Council members signaled support for a hybrid approach (option 3) that mixes a modest recurring increase with periodic transfers from year-end surplus, while asking staff to craft a formal policy that sets thresholds, reporting requirements and guardrails for how and when transfers occur. Staff will incorporate council direction into the proposed fiscal year 2026 budget and bring back a draft policy and budget language for formal action.