The Piedmont City Council will take another look at the idea of creating a tax increment finance district to improve infrastructure in what one city councilmember said could be considered blighted areas of the city.
The council is scheduled to meet at 6:30 p.m. Monday, Nov. 25. The meeting is at Piedmont City Hall in the council chambers, 314 Edmond Road NW.
Council member Byron Schlomach, who represents Ward 5, has proposed a TIF district for Piedmont, and has listed objectives for a TIF. A TIF district could provide exemptions from taxation in certain areas and provide for “apportionment of an increment of local taxes and fees,” according to information in the council’s agenda packet provided by Scholmach. A TIF district is defined as a designated area within a municipality where public funding is used to stimulate a private investment and redevelopment, the agenda packet information reads.
The council did not discuss or take action on whether to improve such a district at their Monday, Oct. 28 regular council meeting.
The TIF was tabled that day. The meeting ran late, and the council members ran out of time. By law a city council meeting has to end by 10 p.m. And the Monday, Oct. 28 meeting time was instead used to give public presentations about the water woes in Piedmont, and the plan next month to raise the water rate $22 a month.
Piedmont voters have overwhelmingly turned down general obligation bonds, and city council members have discussed more utility rate increases that could be ahead.
Voters statewide went to the polls Tuesday, Nov. 5, and heavily defeated that proposal in State Question 833 that would have created public infrastructure districts, or PINs, similar to TIFs. A PIN could increase property taxes for those in the declared district if approved.
Piedmont voters in August defeated general obligation bonds that would have raised property taxes, a city councilman has another idea to fund such infrastructure improvements.
Piedmont could be considered “blighted,” said Piedmont City Councilman Byron Schlomach, who represents Ward 5 said at the city council’s September meeting. And that would make it possible to create a tax increment finance district, or a TIF, to carry on with such projects like the ones turned down in the GO bond vote last month for streets and sidewalks and lighting. Such amenities would attract business and add incentive to move to Piedmont, Schlomach said.
“The purpose is to provide funding for blighted areas basically to create economic development by spending mainly on infrastructure,” Schlomach explained to the city council. Monday, Sept. 23.
“It does not result in a tax increase,” Schlomach said. He said the entire city could be included in a TIF.
“I think it would be an excellent tool to use,” Schlomach said. He said a committee would be formed with a representative from Piedmont Schools and Canadian County.
A TIF would be funded with tax money from Canadian County and the Piedmont School District, if created. The idea is to attract business to Piedmont and spur economic development.
New businesses would still pay their share of property tax, but school district and county would collect less. In return, more tax revenue would be generated by attracting business.
At a Piedmont City Council meeting Monday night, Sept. 22, Councilman Schlomach approved studying the creation of a TIF. It would cover the downtown area but could be declared for all of Piedmont. Schlomach said he thinks all of Piedmont could be considered a blighted area that needs improvements.
Read The Piedmont-Surrey Gazette and follow piedmontnewsonline.com to find out what happened at the Nov. 25 city council meeting and for updates to local news and sports.
