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Baker Tilly: St John TIFF funds healthy but expirations mean planners should build surplus
Summary
Consultants from Baker Tilly told the Redevelopment Commission the town's tax-increment financing (TIFF) areas are growing and generated about $1.1 million in TIFF in 2025 with a projected increase for 2026, but portions of EDA1 begin expiring in 2028 and could tighten near-term coverage for 2018 bonds, so staff should plan to build surplus.
Baker Tilly presented a comprehensive TIFF management report to the St John Redevelopment Commission on Feb. 24, saying the town’s TIFF areas are generally healthy but that staggered expirations of EDA1 components require planning to ensure debt coverage in the near term.
Andy Mouser, a Baker Tilly presenter, said the report covers the town’s TIFF/EDA areas dating to 1997 and is designed to meet an annual public-meeting requirement while serving as a long-term planning tool. He told the commission that EDA1 currently captures about $60 million of assessed value (producing roughly $986,000 in TIFF in 2025) and that assessed value rose to about $74 million in 2026 (projected TIFF near $1,167,000), reflecting recent growth and reconfiguration of allocation areas.
Mouser noted that while most TIFF obligations are developer-backed, the 2018 bonds are town-backed and that EDA1 contains components that begin to expire in 2028, with the most recent 2014 component maturing in 2044. That timing creates a near-term window (2028–2030) when available TIFF must cover bond payments, including 2018 debt service. He recommended building surplus over the next three to four years to ensure coverage.
Baker Tilly highlighted pages 39 and 40 of the report as key: page 39 aggregates TIFF available after pledged debt and shows a conservative long-run surplus of roughly $10.9 million net of debt commitments over a 25-year horizon; page 40 presents an upside scenario that assumes expected EDA3 buildout and estimates about $29.8 million net over 25 years for eligible uses such as capital projects, public safety and quality-of-life improvements.
Commission members pressed for specifics. One asked whether EDA1 will produce enough to cover the 2018 bond payments; Mouser said expirations and timing explain the near-term tightness and reiterated that further assessed-value growth and inclusion of other allocation areas (Family Express, developer allocations) bring totals closer to coverage. He added that the town has about $580,000 in annual payments on the 2018 bonds and that, even under conservative projections, TIFF should provide funds for future projects if the commission plans for the expirations.
The commission approved two routine items later in the meeting on voice votes: minutes from the Jan. 28, 2026 meeting (motion passed 5–0) and an accounts-payable voucher dated Feb. 24, 2026 totaling $286,700 to cover payroll, supplies, services and equipment (motion passed 5–0). Commissioners discussed the voucher in the context of the 2018 bond payment before the vote.
The Baker Tilly presentation and supporting bound report were left as reference material for staff and the public; staff reminded members that the Gateway site and upcoming reporting deadlines (March 1 for 2025 data and April 15 for the TIFF management report) provide additional transparency and timelines for follow-up.
