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South Bend <br />Regular Me <br />elopment Con-mission <br />- August 23, 1985 <br />6. NEW BUSINESS (Cont.) <br />a. Contiinuea... <br />Mr. Treptow explained how the increment ccmes <br />about and how it is calculated. He used a <br />graph to help in his explanation. To cause an <br />increase in valuation within a certain tax <br />increment district, a city will do some things <br />to -ause developers to spend money to allow <br />dev lopment to occur in a designated area. <br />Thi3 development would not have occurred <br />w-itiout some city assistance. To the extent <br />tha assessed valuation begins to increase due <br />to that activity, the increased valuation is <br />t rarily captured, and normal taxes from <br />that increase are diverted to pay the public <br />costs involved. When those costs are paid, <br />tha valuation is pulled back into the entire <br />co unity. The City of South Bend assessed <br />valuation within the tax increment district is <br />about $12.8 million. This is called a frozen <br />base. When the Redevelopment Commission <br />started its activities, they created a TIF <br />district and froze valuation at approximately <br />$1218 million. This is the valuation that was <br />in place that the County, the City, TRANSPO <br />and the schools were, and still will be, <br />sharing from the taxing of that property. If <br />you multiply the assessed valuation times the <br />tax rate you will get the tax revenue. The <br />schools, TRANSPO, the City and the County get <br />the taxes from this valuation. <br />There is an increase from the activities which <br />the Redevelopment Commission has already <br />oonrienced that has generated approximately <br />$2. 3 million of additional assessed valuation. <br />This portion is eligible to finance <br />activities, for example to make payments on <br />bonds or pay for other development activities. <br />This additional amount of assessed valuation <br />has been added within the last few years. A <br />port-ion of this assessed valuation has been <br />abated. Over time, after the abatement is <br />reduced over a period of ten years, this <br />property will also be available for paying <br />principal and interest on bonds. When the <br />principal and interest on the bonds is totally <br />paid then this distinction is lost and the <br />entire development within the TIF district <br />goes to the schools, TRANSPO, the City and <br />