Rein in cities’ use of tax increment financing

Tax increment financing, if used properly, is a tool to improve infrastructure to help communities grow. However, in Johnson County, TIF has been carried to the extreme in some instances. A study by Peter Fisher, professor emeritus in the University of Iowa Department of Urban and Regional Planning, indicates the annual cost of all property tax TIFs in Johnson County are:

Average home in Clear Creek Amana School District - $373 more

Average home in Iowa City District - $140

1,000-acre farm with home in Clear Creek District - $2,489

1,000-acre farm with home in Iowa City District - $1,038

A good portion of this increase goes to Coralville to build the Iowa River Landing Area. This money comes from property taxed outside of Coralville. Clear Creek Amana School District has been hard hit as a major portion of the Coral Ridge Mall is within that district. With a growing school population, we are trying to do more with less. State aid to schools has to make up the difference. This means every person and business in Iowa is paying more state tax to supplement our schools.

TIF needs reform now! Some suggestions:

It should not be used by cities to develop, competing against private developers, it should run no longer than 10 years and affected TIF areas that lie outside of city limits should have a seat at the table in the process.

Robert L. Sentman

Tiffin