Tax Increment Financing is a term we often hear when it comes to local government business, but what exactly does it mean and what’s the purpose?

Perry City Administrator Butch Niebuhr says the legislature makes it mandatory for Cities to share information on these funds.

“In the last couple of years the legislature has put together reporting mechanisms that cities and counties have to do to report to the county auditor, which in turn goes to the state.  (This is so that) anybody can go online or look and see how those TIF dollars are being spent.  The increment is the difference between an area, whether it’s blighted or not used, and as it grew now that new tax which the city can capture to bring utilities to the site, to get streets to the site, or whatever to make that development happen” says Niebuhr.

He says TIF districts continue to be beneficial for Perry.

“TIF is a great too.  Especially for Perry and what we’ve done with it with the business park, in the downtown area and on the bypass with Highway 141.  Perry’s used it in the way it’s intended to be used, it’s really worked out well for us.  Some communities have taken it to a different level and that’s what the legislature gets kind of worried about because some communities TIF their whole communities.  Perry hasn’t done that, we actually target areas and that’s what it’s intended for.”

This week, the Perry City Council certified their Tax Increment Financing Debt to the County Auditor’s office.  Perry is requesting $525,462 in fiscal year 2016.