May 4, 2013 William Drew

2 What are TIFs?

3 Created by municipality (state statute) Designed to subsidize some business project in “blighted” or under-served area “But for” concept – The project WOULD NOT happen except for receiving public subsidy Boundaries cross political and community boundaries Captures “incremental” property taxes ABOVE base when district was created Lasts 23 years

4 What are TIFs? Under state law, areas proposed for TIF designation must possess numerous blighting factors to be eligible: Age Obsolescence Code violations Excessive vacancies Overcrowding of facilities

5 Better Government Association

6 How Do TIFs Work? When the TIF is created, the city tallies up all the property taxes generated by district in that year (called the "base" amount). After that, all property tax increases above the base (the "increment") are channeled to the TIF district. The property taxes collected from properties inside the district BEFORE the district was created that go to units of government stays FLAT for the life of the TIF (23 years).

7 Where are TIFs? All over Chicago and Cook County = 443 TIFs in in city of Chicago Additional 280 in suburban Cook County

TIF 1018 Where are TIFs?

9 Source: Cook County Clerk

10 How Much Revenue Do TIFs Collect? Source: Cook County Clerk

TOTAL TIF REVENUE FOR COOK COUNTY City of Chicago TIFs diverted $454 MILLION Suburban Cook County TIFs diverted $275 MILLION TOTAL FOR 2011 = $729 MILLION How Much Revenue Do TIFs Collect?

TIF How Much Revenue Do TIFs Collect? TIFs extracted $454 million in That # is 53% of the TOTAL amount of property taxes that went to the city for its operations!

13 How Much Revenue Do TIFs Collect?

TIF How Much Revenue Do TIFs Collect? Ouch! $4.5 BILLION DIVERTED SINCE 1986!

15 Click here to open the 163 PDF annual reports. One by one.

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18 THE CITY HAD $1.7 BILLION IN UNSPENT TIF FUNDS AT THE END OF 2011!

19 Impact of TIFs?

20 Is YOUR community a TIF winner or loser?

21 LET’S LOOK AT HOW TIFs WORK ON A WARD-BY-WARD BASIS. CODERS, RESEARCHERS, DESIGNERS, INVESTIGATORS, ORGANIZERS. ALL VOLUNTEERS RIGHT NOW.

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23 The Englewood Neighborhood TIF

24 The Englewood Neighborhood TIF Created in 2001 Will expire Dec 31, increment revenue was $5,040,935 Total property taxes in this TIF at end of 2011 = $24,047,684 Total increment revenue from 2001 to 2011 = $43,922,735

25 The way it’s supposed to work

We are told that TIFs have NO impact on our property taxes. This bill is from a property inside the Englewood TIF. It shows “0.00” impact on this person’s bill. Nothing.

According to Cook County Clerk David Orr’s 2012 report on TIFs.

28 The way it really works in Englewood Should be…

TIF FUNDS INTO ENGLEWOOD

30 Our graphic summarizes all this data for you in one place – PLUS mapping out the schools that are scheduled to be closed.

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34 RECENT TIF CONTROVERSY

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ACTION STEPS! WE NEED YOUR HELP! 37 IT’S EASY TO HELP - JUST GO TO