When a TIF district is established, the most recent total equalized assessed valuation (EAV) for the district is determined. This is known as the "base EAV". As the TIF district is developed, its total EAV will grow. That portion attributable to the increase in EAV, known as the "tax increment", is placed in a special fund and is spent for redevelopment purposes as outlined in the TIF Redevelopment Plan.

The success of a TIF district is dependent upon increasing the EAV over the base through redevelopment. Establishing a TIF district does not decrease tax revenues collected by any taxing district; nor does TIF impose special assessments or raise the overall tax rate in the district. Taxes collected on the base EAV continue to be distributed to the municipalities, schools, libraries, and other authorities in the same manner. Only taxes generated above the base EAV are available for TIF use.

LOCAL OBJECTIVES
The City of Washington currently manages two (2) TIF districts that were established in 1986 and are scheduled to expire in 2009. TIF District #1 is generally located at Mount Vernon and Washington Road (commonly referred to as the "Washington Road TIF"). TIF District #2 is generally located around the downtown square (commonly referred to as the "Downtown Square TIF"). Each district has slightly different objectives as specified in the Redevelopment Plans and summarized as follows:

Downtown Square TIF

• Preservation and conservation of privately owned properties.

• Maintenance of an economically viable and vibrant downtown.

Washington Road TIF

• Foster the development of vacant commercial property.

• Maintenance of an economically viable commercial district.

Before	After

TYPES OF ASSISTANCE
TIF assistance is often in the form of a grant or subsidy, typically paid in multiple reimbursements up to 20 percent of the TIF eligible costs. Assistance may also be given in the form of a loan, interest write-down or reimbursement, or tax sharing.

GENERAL POLICY
The City has established the following general TIF funding policy. This policy attempts to facilitate the fair and consistent evaluation of private TIF requests.

The eligible expenses listed above can directly influence the property’s assessed valuation, which creates TIF funding for other projects. The ineligible expenses listed above are considered general property upkeep or business components that typically do not affect the assessed valuation.

OTHER GUIDELINES
In conjunction with State legislation requirements and local objectives, the following guidelines also apply. These guidelines must be met for a project to be considered for funding.

• Submit a completed application with all necessary attachments and documentation to the Planning and Development Department.

• Your request will be discussed at a subsequent Finance Committee meeting, which meets the second Monday of every month at 4:00 pm at City Hall. Your attendance is encouraged, and more than one meeting may be needed.

• The Finance Committee will review the proposal and its conformance to the above guidelines and Redevelopment Plan. The Committee will then recommend by vote a specific level of assistance.

• The City’s legal staff will prepare a draft redevelopment agreement for your review and approval. Additional information may be necessary for the agreement.

• Once the agreement is finalized, legal staff will prepare an ordinance for adoption, which requires two readings by the City Council for approval. The City Council meets the first and third Monday of every month. Attendance is encouraged.