Tax Increment Financing exists to allow public improvements to be made that increase the value of adjacent properties, with the cost of those improvements paid for by the ordinary property taxes on the increased value of that property. Unfortunately, the Concord City Council has perverted the system by permanently diverting property tax money from schools and other desirable activities. Instead of lowering taxes or being revenue neutral, the TIF district actually raises property taxes.
Theoretically services necessary from the additional development should be paid for from the TIF district rather than other taxpayers, and the city does that with obvious city services such as $21,210 annually to maintain the new Exit 17 roundabout. However additional school expenses must be paid by other taxpayers. The DES building project will result in $215,000 to $275,000 per year to the TIF district, but the 64 apartments may result in a couple dozen new students, which cost the school district maybe $284,000 in extra expense hence increased school taxes – a deal only TIF lovers will like.
Even worse, the city no longer ends TIF districts when the original bonds are paid off, but extends them since taxpayers and even some city councilors believe this is free money rather than a hidden tax increase. The downtown TIF district was created to support the Sears Block redevelopment, long completed and now redeveloped again as the Hotel Concord, but still diverts roughly $515,000 annually from Concord schools. The money is used instead to support dubious projects that would never be funded from regular property taxes, such as million-dollar giveaways to wealthy developers and subsidizing downtown parking, although about half of users are from out of town.
RSA 162K:9 requires the city to notify a school district of proposed TIF projects. We need a school charter amendment that the school board not respond to the notice until the school district completes a financial impact analysis and a school district public hearing is held. If I am elected to the school charter commission, I will do my best to see that such an amendment is brought before voters.
(Roy Schweiker lives in Concord.)