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The school districts jointly hired a neutral 3rd party, Dr. Michael Peddles, a professor in the Department of Governmental Studies at NIU to evaluate the eligibility report and redevelopment plan of the eastern TIF. Additionally, he testified at the public hearing on Feb. 28th before the City Council. Dr. Peddles vita and qualifications are contained in the link below. =__ SUMMARY OF THE REPORT __= Dr. Peddles findings on the Eastern TIF are that the redevelopment plan is "seriously flawed if not fatally flawed". His preliminary opinion is that there are material deficiencies in the Eastern TIF eligibility study, its analysis, and its conclusions. Most significantly, it is my opinion that: 1) the TIF eligibility study fails to provide evidence that the redevelopment area meets the “but for” test that is statutorily required in order to qualify an area as a TIF; 2) evidence exists that the proposed redevelopment project area does not meet the “but for” test and, in my professional opinion, the area as a whole can develop or redevelop with private investment in the absence of TIF in a reasonable future time frame. These are fatal flaws and, by themselves, are sufficient to make a finding that the redevelopment project area does not qualify as a TIF district thus not meeting the requirements of the law for eligibility. Link to a complete copy of the prelimary report.

[[file:Preliminary Opinion 110212.doc]]
=__ AFFECT ON THE TAXPAYERS-Tax rates will go up __=

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Due to the fact that a TIF prevents new property from going on the tax roles, the result is that as each taxing body raises their tax extension (either the CPI or 5% whichever is lower) the tax rate is higher due to the additional property not being taxed. ======

For example: For the FY 2010 tax year, a district has $400 million dollars in EAV, and will have a tax extension of $9 million which will result in a tax rate of $1.70. For the FY 2011 tax year, the districts EAV is $410 million with an additional $10 million in new property, so to generate a tax extension of $9 million plus an increase of the CPI (2%) the tax rate would decline to $1.67. If, however, the $10 million in new property were in a TIF and NOT calculated into the total EAV to generate the same dollars ($9 million plus the CPI of 2%) the new tax rate would be $1.73 thus raising the tax rate to all tax payers in the district. This same scenario would happen with each taxing body (library, park district, fire district and township) thus increaseing the tax rate signficantly.

=Tax Increment Financing Districts (TIFs)= This Wiki page was created to provide citizens of Marengo with much needed information about the two TIF districts proposed by the City of Marengo. The city hired Ehlers and Associates to conduct two TIF studies and eligibility reports at a cost of $50,000 on the eastern corridor and downtown. The Eastern Corridor TIF is being driven by a hotel developer who has verbally indicated he will not build a 30-40 room hotel in Marengo unless there is a TIF. The Downtown TIF is in response to the concerns of the downtown business owners about there being an Eastern TIF and it taking businesses away from it as well as the need to revitalize downtown.

=__What is a TIF?__=


 * TIFs cap the property tax revenues for schools and all taxing bodies on property in the TIF area for 23 years despite any natural increase in its value due to property values or development.
 * The properties in the TIF are still taxed but the money in excess of the 2011 property taxes goes to the city for the next 23 years to develop the area or to assist developers with financing their project.

=__Did You Know__=


 * The school districts oppose these TIFs because we believe the intersections of 176/23 and 20/23 in the downtown TIF and the entire eastern TIF would develop over the next 23 years even if there was NOT a TIF.
 * The two TIFs would result in MCHS losing an estimated $2,500,000 and District #165 losing an estimated $3,000,000 in property tax revenues over the next 23 years. The city would take approximately $6,000,000 in property taxes from the taxing bodies for development.
 * Due to the additional need for services from the developments in the TIFs the additional cost of these services would be passed on to other taxpayers in Marengo.
 * The TIF redevelopment plans do not meet the legal requirements set forth in the Act according to the Joint Review Boards (a watchdog group established by statute which includes other local taxing bodies such as schools, fire and township).
 * The school districts have been trying to negotiate an agreement with the city to reduce the length of the TIFs from 23 to 10 years and the size of the proposed eastside TIF while still addressing the needs of the city.
 * The city, including the mayor and city councilman, with exception of one councilman has failed to respond to recent school efforts to achieve a negotiated agreement.

=__How will the TIFs affect the school districts?__=
 * District #154 and District #165 stand to lose over $5,000,000 in new property tax revenues over the next 23 years.
 * For more information on the impact of the TIF on Marengo High School District #154 view this Power Point

=__What can you do?__=
 * Help us protect the quality of education for the next 23 years by voicing your concerns.
 * Attend the **//public hearing on the proposed TIFs at City Hall on February 28th at 6 p.m//**.
 * Tell the City to ask the voters via referendum whether they support the proposed TIFs, possibly through the issuance of bonds to finance the redevelopment plans, rather than using revenue which otherwise would go to the schools.
 * Contact the mayor or your city councilman to express your thoughts about the proposed TIFs.