Park District & TIF

Here are facts obtained recently from the DeKalb Park District about its agreements with the City of DeKalb:

  • Once upon a time, the Park District would submit requests to the City for reimbursements of Tax Increment Financing (TIF)-eligible expenses incurred on a project-by-project basis. The projects had to occur within TIF districts and there was no guarantee of reimbursement.

  • In 2003, an intergovernmental agreement (IGA) was signed by the City and DPD that allowed for up to $150,000 in annual reimbursements out of the TIF fund for capital projects in the parks system. Once again, the expenses had to occur within TIF district boundaries, but at least DPD could budget for them with confidence.

  • In 2008, the Central Business TIF, which was set to expire at the end of 2009, was amended and extended. DPD and other taxing bodies signed on with the understanding that the City of DeKalb will only require 50% of the increment for its plans at the city’s center and would declare the other 50% a surplus to be refunded to the other taxing bodies. The City estimates DPD’s annual share of the surplus will be about $150,000, same as under the IGA (but presumably can be used outside the TIFs).

  • If the Central TIF had not existed at all in 2008, DPD would have received $281,500 in property taxes from that area of the City in calendar year 2009.