We have a lot of important votes to cast in the upcoming election. I hope everyone exercises their right to vote. One of the items Sugar City residents will vote on is regarding the creation of a Sugar City Urban Renewal Agency (SCURA). After considering the pros and cons of an urban renewal agency, the city council approved sending the issue to the public for a vote. I’m generally in favor of Tax Increment Financing (TIF) districts, which is a standard economic development tool used by urban renewal agencies. I’m not an accountant or expert on these matters, but let me see if I can explain my understanding of a TIF district and why I would encourage you to vote yes on the issue in November. ( The State of Idaho Code refers to TIF districts as “Revenue Allocation Areas,” but I’ll use “TIF districts.”) The intent of a TIF district is to use the property taxes from a specified area to improve that area through residential, commercial, or public development projects, which, in ...
Impact Fees Part 2 The topic of impact fees often cycles around during city budget time, understandably. I guess this is part two of my thoughts on impact fees. ( This link takes you to part one if you want to read it. ) I’m no expert on the history of and legalities surrounding impact fees. I’m becoming more knowledgeable about the practical arguments surrounding the justification and use of such fees. When I think about topics like this, I often try to think of a number of questions that relate to the topic in the context of Sugar City. For example, here’re are some I initially thought of regarding impact fees: · Would charging impact fees actually allow a city to reduce their tax rate or decrease utility rates? What other factors have to be considered? · Why do so many cities that charge impact fees also have higher utility rates than Sugar City? What other factors have to be considered? ...