TIF Impact On CCA

  • Valuations, TIF and the Impact on School Finances, by Superintendent Tim Kuehl

    Tuesday, August 29, 2017

    In light of the conversations around taxes and valuation spurred by the proposed bond here is some information of interest to CCA patrons. One area that CCA is a leader in the State is in the percentage of our valuation enrolled in TIF programs. My intent is not to argue for or against TIF, but to inform patrons regarding the impact it has on school revenues.

    TIF removes valuations from the calculation of General Fund tax rate. The district is allocated revenue from the State based on a per pupil amount. The tax rate for the General Fund portion of the district budget is calculated on the valuation of $687,285,523.  Without TIF in our district the General Fund tax rate would be calculated on $1,108,765,102. In effect the TIF causes everyone else to pay a higher rate in order for the district to collect its General Fund dollars.

    An important factor to know in relation to the bond is that TIF valuations are NOT exempt from the Debt Service Levy, which is used to pay off bond issues. So, the Debt Service rate of $4.036, as of FY17, is applied to the total valuation in the district.

    CCA's valuations for FY 17, the 2016-2017 school year, are listed in the chart below. Under "Levy Authority" you can see the valuations for the historic Amana and Clear Creek district, followed by the combined totals for CCA.

     CCA Valuation by Historical District and Overall
    Residential valuations make up the largest portion of valuations in the CCA district at 42.05%, followed by Commercial valuations at 41.79%. 
    Percentage of Overall Valuation Represented by each Category
    CCA lives with one of the highest TIF percentages in the State, with 38.01% of our total valuation being in TIF. Note that 72.81% of Commercial valuation and 73.58% of Industrial valuation are currently in TIF. If the TIF valuations were calculated into the CCA General Fund levy rate patrons would see a drop of approximately $1.95 in the rate.  
    Percentage of each Category in TIF
    There is a considerable amount of Commercial and Residential development planned in the CCA district over the coming years. The growth in valuation will allow the district to control our overall tax rate and generate the bonding capacity needed to meet the instructional needs of our growing student population. Local municipalities have to make challenging decisions regarding how to utilize TIF in those developing areas. If you have further questions about CCA valuations and the impact of TIF on the district tax rate and budget, please contact Tim Kuehl, Superintendent: timkuehl@ccaschools.org, 319-818-4510.