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Warsaw's city coffers received a small but unexpected windfall from the Central Redevelopment Area, according to city planner Jeff Noffsinger.
The city's June increment from the redevelopment area, or Tax Increment Financed district, was $79,457.72
"The increment came in about $5,500 higher than we expected," Noffsinger said at Tuesday's Warsaw Redevelopment Commission meeting. "We're not sure why, so our December increment could be less."
Noffsinger added that with the latest receipt, the redevelopment fund balance stands at $134,000. After the August bond principle and interest payment of $28,835, the remaining balance will be $105,787.
Noffsinger also suggested the commission consider lowering the percent of the tax increment from the central redevelopment area for 2000.
"We could go as low as 60 percent of the increment in 2000," he said.
The city established the TIF district in 1991. It is bounded by Canal Street on the north, Center Street on the south, the east side of Detroit Street on the east and the alley between Buffalo and High streets on the west.
Some development spawned by the TIF district includes the Zimmer administrative headquarters, the Warsaw Library renovation and the CVS drugstore, Noffsinger said.
Tax increment financing is an instrument local governments use to encourage commercial and industrial development. The concept behind the process is to have new business development pay for the streets, sewers and water service improvements that are required for locating in a particular area.
In establishing a TIF district, the local taxing body freezes property values within the district. Bonds are then issued to make the infrastructure improvements needed to encourage and promote the development, which in turn leads to higher property tax revenues. The increase in revenue is captured and used to repay the bonds and the interest on them.
In other business, the commission approved its 2000 budget proposal.
The commission is recommending a general redevelopment fund budget of $16,100 and a bond and interest fund balance of $139,950.
"We've raised the legal fees under the professional services contracts from $3,000 to $15,000 in anticipation of more work in regards to the northern redevelopment area in 2000," Noffsinger said.
