TIFs revised, district to receive additional income

The  Milford school district and Union Township have agreed to revise four TIF (Tax Increment Financing) agreements that will result in the district receiving approximately $250,000 additional for the next 6 years, then approximately $1.1 million additional beginning in 2018.

This is part of an ongoing process to review all contracts/agreements, and revise (when possible) any that are no longer of benefit or that have opportunities for increased efficiencies.  The extra income will help offset the millage required if/when the district asks the community for a levy.

The TIFs were on Terrace Ridge and Polo Fields, plus areas called Sedacca M and 450, which are not yet developed.  Money in TIFs is collected as school taxes from residents, but instead of going to the schools, it is kept by the Township and used for further development, infrastructure, and community improvement projects.

In 2003, the district entered these 30-year TIFs in exchange for land to build a new elementary school (in the Terrace Ridge area), plus a new building to serve as board offices.

However, as population growth has slowed significantly, we will no longer need a seventh elementary school, and thus that land is no longer needed.  In addition, we have outfitted Milford South as board offices, which more than meets our needs.

As a result, the TIFs no longer had the value the board perceived in 2003, and the district approached Union Township about changing the terms of the agreements.  The district returned the land to Union Township, and agreed to forego their building us a new office.  In exchange, we will receive the income as outlined above.  In addition, once the 450 and Sedacca areas are developed, the district will receive 100% of the taxes, as well as 100% of the value of any future levies.

This was a long, cumbersome process that began in the Finance Committee about six months ago, following research by Interim Treasurer Debbie Caudle and Treasurer Consultant Randy Seymour.  Negotiations were completed by former board member Gary Knepp and Union Township Trustee Bob McGee.

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