Taxing bodies in the new TIF 4 District now have 45 days to accept a proposal from the City of Salem to return residential property tax growth to them. Part of the deal would also require the taxing bodies to write a letter of support to extend the downtown TIF for 12 years.
Economic Development Director Leah Dellicarpini says the revised proposal was delivered to the taxing bodies last Friday after months of disagreement.
“Any property in TIF that had the tax code for an improved residential property will be surplused to all of the taxing bodies yearly,” Dellicarpini said. “We drew up an agreement that surpluses that incremental growth. It allows for 108 percent of growth. There was no negotiation on that with them. It will be in place for the lifetime of the TIF. It does list all the taxing bodies in one agreement, stating that all of the taxing bodies have to adopt the agreement in order for it to be valid.”
Dellicarpini says the agreement does give the taxing bodies options, but will prevent the TIF District from being blamed for property tax increases.
“They do have the option to basically, on a year-to-year basis, opt to raise their levies or receive the increment, but they cannot double dip. The reason why it’s worded that way is, again, we are trying to lead the horse to water on, if you’re included in the growth of the properties, you should not need to increase your levies. If you do need to increase your levies, then you do not need the surplus properties. So, they get to make that choice on a year-to-year basis.”
Councilman Gerald Molenhour wanted the issue tabled for two weeks to give taxing bodies some time to look at the agreement. The rest of the council voted to move ahead, noting a similar agreement had been on the table since this summer.
The Salem City Council agreed to a $9,998 increase in the cost of the electric project at City Hall by TOPS Electric because the electric cabinets would not fit in their original location and had to be moved.
The council also agreed to increase USDI’s contract on the gas line replacement project because an additional 142 man-hours were required to locate the taps. USDI asked for half of the added cost, or $9,940. Councilman Craig Morton voted no, noting this was a bid contract.
Councilman Frank Addison said he had talked to several people regarding an honor to veterans to replace the National Guard Yellow Ribbon Display that was recently removed from city hall windows after falling into disrepair He will bring back their ideas for discussion at a future meeting.
City Clerk Tabitha Meador was congratulated on completing the work to become a certified city clerk. Now she just needs to wait for her third anniversary as city clerk to apply for the certification.
Finance Director Keli Barrow was recognized for becoming the President of the Downstate Illinois Financial Officer’s Association.
The council went into closed session to discuss possible acquisition of property, but took no action.
