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Advisers explain TIF basics and June 15 pass‑through deadline at Auburn RDC meeting
Summary
Baker Tilly presented an annual overview of tax increment financing (TIF) to the Auburn Redevelopment Commission, explaining base assessed value, captured value, how TIF revenues are generated, and the option to pass through assessed value to overlapping taxing units before the June 15 deadline.
Baker Tilly Municipal Advisors delivered the redevelopment commission’s annual presentation on tax increment financing policies and timing, advising Auburn officials on how TIF captures increases in assessed value and when the commission can choose to pass through excess value to overlapping taxing units.
Greg Balsano of Baker Tilly told the commission that a TIF establishes a base assessed value for the allocation area and that “increases in assessed value … is what generates your TIF dollars.” He explained that the captured assessed value multiplied by applicable tax rates produces the revenue the redevelopment commission can use for designated projects, and that when a TIF area expires the increased value flows back to overlapping taxing units.
Balsano reviewed the neutralization process designed to remove general market trending from the base and stressed the commission’s annual decision point: before June 15 each year the commission must determine whether to pass through some or all captured assessed value if the funds are not needed for projects. On a question about school funding, Balsano said school expenses are “largely funded through enrollment” and described how state funding formulas differ from local TIF revenue flows.
The presentation covered the commission’s Northwest economic development area and distinctions between economic development area boundaries and tax allocation areas. Commissioners were invited to ask questions and were told the meeting is the annual forum for overlapping taxing units to receive the TIF update and ask clarifying questions ahead of the June 15 pass‑through decision.
No formal vote was taken on policy changes during this presentation; the discussion served to inform commissioners and overlapping taxing units about timing and mechanics of potential pass‑through decisions.
