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Council adopts ordinance dissolving TIF 4 after debate over lost school revenues
Summary
The Marseilles City Council voted to adopt Ordinance 19-07 to dissolve the city’s TIF 4 redevelopment area for a former Illinois Valley Cellular site after council debate about whether city ownership will reduce school district tax revenue.
The Marseilles City Council on March 2 adopted Ordinance 19-07 to dissolve the special tax allocation fund and terminate the city’s TIF 4 redevelopment project area, a district created in 2000 to retain Illinois Valley Cellular’s operations.
Council members and staff said the TIF had been used to improve and preserve a building that otherwise would have sat vacant; staff explained the district exhausted its incremental funds and that the city later acquired the property. The ordinance was moved and seconded and carried on roll call.
Why it matters: The central point of debate was the tax impact on local school districts. One council member told the council the property previously generated “about $34,000 a year” for an elementary district and “about $17,000” for the high school, and said removing the property from the tax rolls could harm school revenues. City staff disputed those figures, stating the school share was closer to $1,100 a year for the elementary district and about $800 for the high school. Council members said they would review historical tax bills to reconcile the difference.
Details of the discussion: Staff summarized the original purpose of TIF 4 — to incentivize Illinois Valley Cellular to keep jobs in town — and said the company later closed and the TIF’s increment funded building improvements and economic development. A council member said the city’s subsequent purchase of the building removed it from the tax rolls, reducing immediate tax revenue for the school districts; the same speaker acknowledged support for economic development but questioned whether the city maximized long-term tax benefits for schools.
Outcome and next steps: The ordinance to dissolve TIF 4 was adopted by the council. Council members said they would check the tax records to determine the exact historic increment amounts and continue to monitor related fiscal impacts; no additional implementation actions or transfers of property were announced at the meeting.
Attribution note: Quotes and figures come from council discussion and staff remarks during the meeting.
