Revenue will be returned to local taxing districts
By Dave Fidlin
Correspondent
After months of discussion, Union Grove officials have moved forward with a plan to close out a specially created district that has been used to take advantage of tax-incremental financing. Based on projections, it could bring an additional $120,000 into the municipal budget.
The Village Board on April 13 adopted a resolution to terminate tax-incremental district, or TID, No. 3 because revenues within it have outpaced expenses. Based on the parameters in place within state statute, such a tipping point generally signals a TID has reached the end of its useful life.
Village Administrator Mike Hawes said the village was required to terminate the TID by April 15 to begin the next steps in the process this year, which include distributing proceeds to different taxing districts.
Before the funds are dolled out, however, Hawes said an auditor will comb through all of the financial data — another required provision under state statute.
During a preliminary discussion in January of TID No. 3’s anticipated sunset, consultant Phil Cosson said he anticipates $437,000 being disbursed to all taxing entities. The village, he said, could receive between $80,000 and $120,000, according to unofficial figures.
TID No. 3, one of multiple areas carved out within the village to take advantage of tax-incremental financing, has gone through a few modifications in the past two decades and has expanded in size.
This TID, which was initially created in 2000, encompasses all or portions of such roadways as Commerce Drive, Durand Avenue, Industrial Park Road and York Street, among others.
During deliberations at the recent board meeting, Trustee Christopher Gallagher asked if TID No. 3 should stay open since other development projects are coming down the pike in the immediate area.
But based on the way they are conceptually structured, Hawes said prolonging TID No. 3’s closure would not reap any additional financial benefits to the village or any other taxing bodies.
“It wouldn’t make sense to keep the TID open any longer than it is right now,” Hawes said.
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