TIF Information
__________________________________________________________

TIF Information and Updates

TIF (Tax Increment Financing) districts continue to be the prime economic development tool used by area municipalities.  TIFs were designed to be established in truly blighted areas that would not have developed if not for the creation of the TIF.  Unfortunately, they have been used excessively in our area and have the potential to devastate the taxing bodies located within the designated TIF area. 

Dimmick has been affected by TIFs since 1994 and continues to deal with their impact as more are created.  There are currently seven TIFs located within Dimmick Grade School District lines, 3 from the City of Peru and 4 from the City of LaSalle.  Cumulative revenue losses for Dimmick School, as of November 2010 have reached nearly $450,000.00.  Most recently on taxes received in 2010, TIFs accounted for $9.6 million of the $12.4 million in exemptions.  This equates to 78% of all exemptions. 

While TIFs are not a new tax, they can lead to increased taxes for property owners. As TIFs are created, the taxable EAV is frozen for 23 years.  When additional revenue is needed, taxing bodies can’t tax the new EAV, and must turn to their tax payers while the city continues to collect the new revenue generated in the TIF for 23 years.  This means property tax owners are paying a higher percentage of the costs to operate the school or other government entity. 

At this time, Dimmick is attempting to negotiate with leaders from both LaSalle on the Industrial Park TIF and Peru on TIF III to reach a fair and appropriate agreement that will protect our school and enable us to continue to provide a high quality education for all students both now and well into the future.  Given the enormous impact the TIFs have had and potentially will have on our district’s finances as they freeze taxable EAV for 23 years, it is essential that we take all necessary steps and remain committed to protecting our financial future.

The district will be posting updated information regarding this issue on our webpage at www.dimmick175.com.  Please check out the webpage for updates.  If you have any questions regarding the impacting of TIFs on Dimmick Grade School, contact Mr. Ryan Linnig, Superintendent.