Lisbon’s use of tax increment financing (TIF) funds was discussed by Maggie Burger of Speer Financial, in an annual review.
Burger noted that much of the general obligation bonds the city has were locked down under low interest rates. The city has debts amounting to $4.39 million on a few different projects.
The city generates revenue on debt for a few funds, notably the sewer and water funds, which go to serve improvement projects that the city has completed in 2004, 2009 and 2018. Those funds, because they pay for debt for sewer and water improvements with designated rate hikes to those funds and are paid over a course of numerous years, do not count for the city’s debt capacity.
The city also has TIF rebates for Budget Blinds in year three of the agreement. That rebate has built Budget Blinds building and development of an area in the TIF district that brings in more money. That rebate is paid until it reaches $350,000 in distribution.
The city really has $3.73 million in debt capacity to borrow for projects.
“That’s not me saying you need to borrow that much, but you as a council need to know what that amount is,” Burger said.
If the city continues paying on their debts with no new borrowing, they will be out of debt by 2035 and have no TIF rebates by 2031.
Burger noted that the city has seen a growth of industrial, business and residential values in the district.
Whatever dollars in TIF the city does not levy rolls back to the county and schools budgets as growth for those entities in the district.
“By only using TIF for what you need, you’re helping other groups benefit,” Burger said. “The city is in great shape with a healthy debt capacity and you’re not using all your TIF revenues. You’re using that debt fund the way it is supposed to be used.”