Presentation Transcript

1. Washington jobs investment coalitionSUPPORTING Tax Increment FinancingAuthority

   December, 2010
2. The Challenge Washington economy remains mired in recession Communities across the state need private-sector investment Some projects not feasible without public-sector investment – e.g., where aging infrastructure substantially affects project costs 48 states provide mechanisms for local communities to secure future tax revenues to pay for public improvements… But Not Washington … Yet
3. The Solution: Tax Increment Financing Grant local jurisdictions authority to use tax increment financing tool Establish a framework for effective public-private investment projects Create quality jobs Revitalize communities Attract new economic opportunities Put Washington on equal footing with the rest of the country
4. Tax Increment Financing At-a-Glance
5. Benefits Community Benefits: Increased tax revenues Positive economic spill-over Help guide development Development Benefits: Reduced project costs Offsets for extraordinary costs/upgrades
6. TIF Challenges Additional municipal involvement Extended project schedule Possible sales disclosure requirements Additional design review requirements Compliance monitoring by local government Potential impact on funding for special purpose districts (schools, fire, etc.)
7. WA Jobs Investment Act Legislation structured to respond to unique characteristics of Washington property tax system Grants authority to cities, counties (unincorporated areas) and port districts (within UGA) to form TIF districts Local government works with willing property owners within TIF district who agree to voluntarily tax of up to 1% of incremental assessed value This special tax collection is used to repay bonds issued to fund up-front infrastructure investments to help spur development TIF district exists only until bonds are paid off (30 year max.) State property tax for schools and all other special purpose districts, like fire districts, are kept whole
8. Checks and Balances Project Must Meet Local Qualifications (UGA, land use plans, other requirements) Economic Analysis Conducted to Ensure Property Values Increases Sufficient to Repay Bonds Public Notice Given and Hearing(s) Held Local Government Has Final Approval to Move Forward Bond Issue Must Be Viewed As Viable by Market
9. Revenue Flow
10. Legislative Update SB 5705 (Kilmer) and HB 1881 (Springer) introduced Hearings held in Senate Economic Development, Trade and Innovation; Senate Ways and Means; House Ways and Means As bills move through process, coalition engaged in continued dialogue among members and other stakeholders to develop compromise language
11. Advocacy Moving Forward Washington Jobs Investment Coalition formed to demonstrate broad public and private support Website and materials created: www.WAjobsinvestment.com Coordinated lobbying strategy among coalition members Media engagement strategy to provide editorial support
12. Anticipated Benefits Provide a tool for local governments to address economic development needs in their communities Improve Washington’s ability to compete effectively with 48 other states for new economic opportunities Create family-wage job opportunities Spur additional private-sector investment across the state
13. How You Can Help Sign on as official members of the Washington Jobs Investment Coalition (form on website) Support The Washington Jobs Investment Act, new tax increment financing legislation Contact legislators as part of coordinated advocacy strategy