We need to return any surplus TIF funds to the property tax base so that residents will see lower tax rates and overlapping taxing bodies such as CPS can draw from a larger base to fund their spending.
The City can also negotiate agreements with CPS and other taxing bodies that return some TIF revenue to them in the form of Intergovernmental Agreements. Because non- home rule entities are subject to the state Property Tax Extension Limitation Law (PTELL, commonly known as “tax caps”), which limits their annual property tax extension increase to the lesser of 5% or the increase in the Consumer Price Index, simply a larger base may not allow them to increase the size of their budgets (because they will need to also lower their tax rate to abide by PTELL).
Intergovernmental agreements may allow the City to channel funds to these districts while not being subject to tax caps.
Under my TIF moratorium and surplus declaration, we would immediately reap financial benefits, some of which should go to CPS. This would also stop the depletion of tax revenues intended for schools and other essential services.