TAX INCREMENT FINANCE (“TIF”)
Financial
Solutions Group, Inc. specializes in Tax Increment Financing (TIF). In a time
when voters and their representatives are looking for ways to achieve the most
service for the least cost, this alternative might be a must. Our services can
effectively tie a dedicated revenue stream to a development project.
A
TIF District may be comprised of one parcel of property of several parcels of
property. The assessed value of the District when the TIF is established
becomes the “base assessed value” for the District. As the assessed value of
the District increases due to improvements and development, the increase amount
(or “Increment”) is “captured” by the TIF District. Any tax-revenue on that
increment flows into the TIF District.
This
can be a very powerful development tool. It enables the community to complete
certain infrastructure improvements to spur development. Then, once the
development occurs, the taxes from the development pay for those earlier improvements.
This
timing usually requires financing through the issuance of
bonds.
State
law requires a Tax Impact Study when forming a TIF district. We can provide not
only the estimated tax impact but also the economic benefits to the area as a
result of the district. We can also assist the entity in public presentation of
the document or to explain TIF in general to concerned citizens or groups.
The
“TIF Annual Report” details for the municipality where the district has been,
where it is now and where the district will go. This has served as a very good
planning tool for the municipal unit. We can assist in the development of
future plans now by projecting the revenue stream in the future.
This
report can also assist the unit by reviewing the fund balances and setting
forth the minimum fund requirements required by the bond ordinance.
This
type of financing has worked very well for most entities. FSG Corp. can assist
you in the Development of your financing plan all the way to issuing your bonds
for the project. In this service we will determine the best way to sale your
bond, either by private negotiations with an investment banker or bank, or
through public sale.
This
service includes the development of the “Study of Revenues Available for Debt
Service” and the Official Statement needed to market the bonds.
Return to FSG Issuers.
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