City OKs TIF Best Practices document

The Vandalia City Council last week approved a Best Practices document to be used as a guideline for future TIF applications in the city’s TIF No. 1 District.
Included in that document is the formation of a TIF advisory committee, which would review requests for TIF assistance and then make recommendations to the city council.
The city initially had an advisory committee, but it was disbanded because of conflicts and complaints from committee members about the city council not following the group’s recommendations.
The city is the third taxing entity to approve the document, the others are Kaskaskia College and the Fayette County Mosquito Abatement District.
Those who have signed letters of support include Fayette County, Fayette County Hospital District, Evans Public Library District and Vandalia Township.
The document reads:
Whereas, the Taxing Bodies representative of the City of Vandalia Tax Increment Financing #1 District agree that a set of criteria should be followed for the purposes of formal support for the
12-year TIF extension; and
Whereas, said operational principles will be reviewed for effectiveness at the annual TIF Joint
Review Board Meeting; and
Whereas, the operational principles are guidance for the city council to review upon approval of each TIF request granted during the 12-year TIF extension. Said operational principles are as follows:
1. A TIF Advisory Committee will be made up of a member(s) of the taxing bodies, who shall not live within a TIF or be receiving TIF incentives, to review the TIF requests with one city alderman serving on the advisory committee prior to the city council’s approval of a TIF grant.
This committee serves as guidance only but is imperative to build trust that TIF is benefiting Vandalia and its taxpayers.
2. The “but for” provision is applied appropriately to each individual TIF request.
3. Each project has merit to enhance the overall economy by spurring growth through job creation or an increase in equalized assessed evaluation.
4. Projects submitted by taxing bodies requesting financial assistance must be used for such purposes as permitted by the TIF Act.
5. The city shall use its best efforts never to commit more than 25 percent of the total project cost through a TIF grant unless the project brings many jobs or a service or amenity not otherwise available in the city.
6. If there are not viable projects to meet one hundred percent of the revenue collected through the TIF #1 District according to said principles, the remaining revenue will be returned to Fayette County who will distribute to the taxing bodies annually.