In my last post, I explored how Tax Increment Financing (TIF) dollars for FY2016 were budgeted versus actual spending. This time I hope to explain the discrepancies, at least partially.
TIF districts have their own budgets in their own funds that are separate from the city’s general operating fund called the General Fund. DeKalb currently has two active TIF districts/funds, TIF 1 (AKA Central Area TIF) and TIF 2.
To summarize the situation: For FY2016, $1 million was budgeted for street construction/reconstruction in TIF 1. However, in the budget narrative for the half-year budget called FY2016.5, staff reported that they “[f]unded street improvements in the amount of $600,000” in FY2016, and in the annual TIF report to the state for that fiscal year, it was revealed that less than $75,000 was actually spent for street improvements out of that fund. Read the rest of this entry