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Council approves $51,405 TIF transfer and moves to consider dissolving First Street TIF
Summary
Council approved a budget transfer of $51,405 from the Century Woods TIF to the First Street TIF to zero out a negative balance and voted to consider an ordinance terminating the First Street TIF redevelopment area; the transfer was recorded as a budget adjustment and the dissolution was taken up as a first reading.
The Rock Island City Council on Monday approved a budget adjustment moving $51,405 from the Century Woods tax increment financing (TIF) district to the First Street TIF, and voted to consider an ordinance terminating the First Street TIF redevelopment area.
City staff said the First Street TIF has a negative balance of about $51,000 and must reach zero before the district can be closed; the adjacent Century Woods TIF holds sufficient funds to cover the shortfall. Miles (city staff) told council the transfer equals roughly 3.4% of the Century Woods TIF balance and leaves the Century Woods district with a healthy remaining balance.
“Communities are able to port or transfer TIF funds between one another when they are contiguous,” Miles said while explaining the adjustment and the rationale for closing a TIF that has underperformed.
Council approved the $51,405 budget adjustment on a roll call vote with alderpersons Pulis, Healy, Evans, Hertz, Barnes, Swanson and Parker recorded as voting “aye.” Later in the meeting the council moved to consider an ordinance dissolving the special tax allocation fund and terminating the First Street TIF redevelopment project area; that motion passed on roll call, which initiates the ordinance process (first reading).
The staff explanation noted the Century Woods TIF contained roughly $1,500,000 on its balance sheet at the time of the transfer; the First Street TIF had underperformed and needs to be closed once its balance is zeroed.
The council’s action directs staff to execute the transfer and proceed with the statutory steps to dissolve the First Street TIF; no additional programmatic changes or new projects were adopted as part of the vote.
The roll-call approvals recorded the council’s unanimous support for both the budget adjustment and the motion to consider dissolution; staff will carry out technical steps required by the Illinois TIF Act to formally terminate the First Street TIF if subsequent ordinance readings and notices are completed.
