Town Manager says Select Board will need to work quickly to complete TIF review and submit amendments to the state before deadline.
A Tax Increment Financiang District (TIF) review workshop will be held by the Select Board prior to its next regular business meeting, September 20.
TIFs offer municipalities a way to help fund needed capital improvement and infrastructure projects through revitalization programs or economic development plans.
Proponents list added sidewalks, a new fire station, and investment in the town’s park system as potential advantages of a TIF district for North Yarmouth. Plus, the tangential benefit of reducing overall valuation used by the state to calculate school subsidy helps reduce annual school budget cost to the town.
Critics believe advantages for North Yarmouth of its TIF district are limited due to how it was implemented. The high percentage of the TIF zone being used for residential development makes meeting the commercial or industrial growth stipulations challenging.
At 6 pm on September 20, the Board will begin the process to amend North Yarmouth’s TIF. The district was created in 2019 but has not undergone an audit to evaluate its performance.
Current TIF revenue totals indicate some sort of revision is needed. The approved application projected a total revenue of $2.2M over the 30-year term. Yet, three years into the program TIF revenues are on track to exceed estimates by tens of millions of dollars.
Town Manager, Diane Barnes, emphasized during the September 6 Select Board meeting an expedited process will be needed to complete a TIF document amendment in time to be able to take effect for the next tax commitment. Barnes indicated a public hearing must take place in January to be able to submit the amendment to the state in February, with the goal of receiving approval by April 1.
The short timeframe to accomplish an amendment, coupled with the complexity of the issues and projects needed to be considered, prompted a number of questions by NYFV. How will the Select Board complete a thorough review within such a short timeframe? Is there enough time to adequately consider all pertinent elements and still meet the target deadline?
NYFV contacted the Select Board and Barnes with a list of questions regarding TIFs, the amendment process, and potential impact for North Yarmouth. Chairperson Brian Sites responded he and Barnes would provide further information as their schedules permit.
Following are some of the questions emailed to the Select Board by NYFV but have not had reply to. If residents have other questions or concerns, they should email the Select Board, so they may be addressed or included in the TIF amendment process.
How frequently can a TIF be amended?
What is the current TIF account balance? What is the cumulative revenue to date?
What are the two state statute changes, related to TIF, Barnes referred to during September 6 meeting? What benefit do they offer North Yarmouth?
What changes are considered technical revisions?
Would these constitute an amendment, and require state approval? Or are they only related to administration of the TIF?
What parts of a TIF can be amended? (Only percentage capture and boundaries? Can developed areas be removed? Can the approved project list be revised? What about type of TIF, particularly if you are editing out acreage with new residential developments? Is there any other type of TIF that would be appropriate for North Yarmouth?)
If there are multiple changes to the original document, will residents vote on the amended TIF as a single document? Or will each amendment be voted in separate warrants?
Has North Yarmouth completed a revised revenue projection based on actual development and mil rate increase? What about projections to revenues incorporating anticipated market increase and mil rate changes? (Exhibit E-1 of the TIF application assumes static projections.)
Will the Select Board be providing a revenue comparison of original estimates to actuals, as well as projections for all proposed amendment scenarios?
If amending percentage of valuation captured and/or boundaries, what is the timeframe for realization of revenue impact on North Yarmouth? (immediately, 1-year, 2-years,...)
What is the anticipated impact to state school subsidy for North Yarmouth, if multiple residential development zones are no longer “sheltered” in a TIF?
Considering recent Select Board member statements prioritizing input from “experts”, how will the Select Board ensure the will of North Yarmouth residents is guiding the process?
Who is currently advising the Select Board and/or the town regarding the TIF?
Will North Yarmouth be forming a TIF review ad hoc committee (following workshop)? How will members be selected? What names are on the preliminary list? How were they selected? Who else has been identified as potential experts to advise this process? Will anyone other than select board members, town manager and attorney be participating in the TIF workshop?
Does North Yarmouth currently or has it recently, contracted for a consultant regarding TIF and development?
Is the town considering hiring an advisor or consultant?
Previous conversations about TIF were alluded to during September 6 meeting. Was the TIF workshop already planned? Who was involved in these discussions? What elements have been discussed and decided?
For FY22, what are the totals expended for each of the project categories approved at town meeting? If North Yarmouth did not use the funds within the approved FY, does the authorization expire? For the public safety building RFP, all discussion regarding initiating the bid as well as awarding the contract placed the project in TIF Schedule A category 1. The Select Board authorization was related to $20,000 approved for category 1 at FY22 Town Meeting. According to a letter from North Yarmouth's attorney, the safety study should be classified as professional services. Did the Select Board re-categorize the cost as professional service? If so, when was this authorized? What is the remaining balance for this category? ($92,000 was approved at FY22 Town Meeting.)
If a portion of a TIF is amended out of the district and captured revenues associated with the acreage have not been spent, what happens to those funds? Will the amount be transferred to the general fund? Or does it remain in the TIF fund balance, with future revenue generated by the acreage going into the general fund?