City consultant urges amendments to multiple TIFs; highlights funds for downtown, public safety and affordable housing

Consultant Greg Laroo presented a comprehensive review of Auburn's tax increment financing districts at the July 20 workshop and urged targeted amendments to several older TIF plans to broaden authorized uses. "Tax increment financing districts are an excellent mechanism for municipalities," Laroo told the council, framing TIFs as a tool to finance infrastructure and economic development while warning against blanket 100% captures that erode the general tax base.

Laroo walked the council through examples and mechanics — original assessed value (OAV), capture percentages, and credit-enhancement agreements (CAs) — and used an industrial-park example to demonstrate how captured growth can service debt over time. He said some TIFs currently running deficits (for example at the Auburn Industrial Park) have short-term cash stresses but are expected to become whole when debt service ends. Laroo identified the downtown TIF as one of the largest funds (noting roughly $3.6 million in one fund and about $1.3 million in annual receipts in another example) and suggested those dollars could be reallocated for prioritized capital projects such as public-safety facility debt service or infrastructure projects if the council pursues amendments.

He also highlighted several affordable-housing TIFs carrying CAs and recommended directing accumulated balances toward education impacts tied to new housing — noting two TIF funds with about $68,000 currently identified and recommending doubling up to about $60,000 per TIF over several years to support a middle-school project. He told the council that management will bring a draft amendment package back in the coming weeks and recommended creating an electronic library of finalized TIF documents to improve oversight and continuity.

The council thanked Laroo and asked follow-up questions about statewide TIF trends; staff agreed to circulate the presentation and return with a recommended amendment plan within roughly 4'to'6 weeks.