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Finance committee approves closeout of TID 7; staff says final collections will largely restore taxing jurisdictions' full values
Summary
The Finance Committee voted Sept. 8 to adopt a resolution terminating Tax Incremental District 7, which was created in 1999. Staff said the district has largely met its objectives but will be about $250,000 short at final closeout, an amount the general fund will cover.
The Finance Committee voted Sept. 8 to close out Tax Incremental District (TID) 7, which was created in 1999 and has reached the end of its term.
City staff told the committee TID 7 has generally performed as expected by spurring development, public infrastructure and jobs in the industrial area north of Washington Street between River and Ralphs. When the district closes the full assessed value of properties within the former TID will return to the regular tax rolls and be available to the city, county and school district instead of being captured by the TID.
Staff said there will be one final round of collections but that closeout will leave the city about $250,000 short of repaying prior general-fund advances associated with the district—s financing. The city expects that shortfall will be covered without requiring an immediate budget cut; staff explained that it represents past cash-flow payments rather than a new debt-service obligation against the current budget.
Committee members asked for clarifications about the district boundary and the mechanics of distributing increment value back to taxing jurisdictions; staff reiterated the geographic description (north of Washington, between River and Ralphs) and explained that other taxing jurisdictions will begin to see the full property values on their rolls after closeout. The committee voted to approve the required resolution to terminate the district as required by state law.
