May 4, 2013William Drew

The EnglewoodNeighborhood TIF

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What are TIFs?

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What are TIFs?

• Created by municipality (state statute)• Designed to subsidize some business project in

“blighted” or under-served area• “But for” concept – The project WOULD NOT happen

except for receiving public subsidy• Boundaries cross political and community boundaries• Captures “incremental” property taxes ABOVE base

when district was created• Lasts 23 years

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What are TIFs?

Under state law, areas proposed for TIF designation must possess numerous blighting factors to be eligible:

• Age• Obsolescence• Code violations• Excessive vacancies• Overcrowding of facilities

5Better Government Association

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How Do TIFs Work?When the TIF is created, the city tallies up all the

property taxes generated by district in that year

(called the "base" amount). After that, all property tax increases above the base (the

"increment") are channeled to the TIF

district.

The property taxes collected from

properties inside the district BEFORE the district was created that go to units of government stays

FLAT for the life of the TIF (23 years).

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Where are TIFs?

• All over Chicago and Cook County = 443 TIFs in 2011

• 163 in city of Chicago• Additional 280 in

suburban Cook County

TIF 101 8

Where are TIFs?

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Where are TIFs?

Source: Cook County Clerk

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How Much Revenue Do TIFs Collect?

Source: Cook County Clerk

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2011 TOTAL TIF REVENUE FOR COOK COUNTY

City of Chicago

TIFs diverted $454 MILLIONSuburban Cook County

TIFs diverted $275 MILLION

TOTAL FOR 2011 = $729 MILLION

How Much Revenue Do TIFs Collect?

TIF 101 12

How Much Revenue Do TIFs Collect?

TIFs extracted $454 million in 2011.That # is 53% of the TOTAL amount of property taxes that went to the city for its operations!

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How Much Revenue Do TIFs Collect?

TIF 101 14

How Much Revenue Do TIFs Collect?

Ouch!

$4.5 BILLION DIVERTED SINCE 1986!

$5 BILLION WHENYOU ADD IN 2012 #S!

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Click here to open the 163 PDF

annual reports. One by one.

The Hunt For TIF Info

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THE CITY HAD $1.7 BILLION IN

UNSPENT TIF FUNDS AT THE END OF 2011!

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Impact of TIFs?

The Local Picture

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Is YOUR communit

y a TIF winner or

loser?

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LET’S LOOK AT HOW TIFs WORK ON A WARD-BY-WARD BASIS.

CODERS, RESEARCHERS, DESIGNERS, INVESTIGATORS, ORGANIZERS.

ALL VOLUNTEERS RIGHT NOW.

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The Englewood Neighborhood TIF

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The Englewood Neighborhood TIF

• Created in 2001• Will expire Dec 31, 2025• 2011 increment revenue

was $5,040,935• Total property taxes in

this TIF at end of 2011 = $24,047,684

• Total increment revenue from 2001 to 2011 = $43,922,735

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The way it’s supposed to work

• We are told that TIFs have NO impact on our property taxes. • This bill is from a property inside the Englewood TIF.• It shows “0.00” impact on this person’s bill. Nothing.

What is the actual percentage of this property tax bill taken by the Englewood TIF?

(a) 13%, (b) 24%, (c) 54%, or (d) 68% ?

Answer = 68%!

According to Cook County Clerk David Orr’s 2012 report on TIFs.

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The way it really works in Englewood

Should be…

TIF FUNDS INTO ENGLEWOOD

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Our graphic summarizes all this data for you in

one place – PLUS

mapping out the

schools that are

scheduled to be

closed.

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Do these areas look blighted to you?

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Doe this project requirepublic dollars in order

to go forward?

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RECENT TIF CONTROVERSY

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48.3% for public schools

51.7% for non-public schools

Amazing Fact #14

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How can Chicago be broke with $1.7 billion in our property

taxes sitting in TIF accounts at the start of 2012?

ACTION STEPS!WE NEED YOUR HELP!

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1. Donate to help us expand this program!2. Pass the hat to help pay for the color posters.3. Sign online petition – Put TIFs on property tax

bills. If they can collect it, they can report it! http://tinyurl.com/TIF-Petition.4. Follow us @tifreport on Twitter.5. Investigate TIFs. It’s fun! ->tom@civiclab.us

IT’S EASY TO HELP - JUST GO TO

http://tinyurl.com/Support-CL