Finance director: city values up 10.7% in 2026; TIDs account for much of growth

Finance director Emily presented updated Department of Revenue values and the proposed 2027 tax-increment-district budget, telling the authority the city saw 10.7% growth in total value in 2026 and that roughly $24.7 million—about 31% of the growth—occurred inside TIDs.

"10.7% growth in total value for the city," Emily told the board, and she explained that part of TID growth reflects a 2024 correction in TID 10 and 11 where estimated values were previously overcounted. She reported the city’s TID share is 15.71%, above the state guideline of 12%, and said there is no immediate penalty but the excess limits future TID actions.

Emily walked the board through the proposed 2027 budgets for individual TIDs, noting developer grants and loan assumptions and that some beginning balances are negative; she said the city is using general-fund advances to balance accounts until increment returns begin. She identified a planned TID borrowing this fall that she included in 2027 projections.

Council members asked about timing for debt repayment and when TID 3 expires; Emily said TID 3 will close in 2029 with the last increment year in 2030, and that increment-sharing from TID 3 is expected to help other districts recover over the next few years.

The discussion clarified that some of the apparent shortfalls are normal for young TIDs that have incurred project costs but not yet generated full increment; staff recommended continuing monitoring and the board accepted the budget materials for further review.