Tax Increment Financing
One of the key tools available to a municipality that enacts a Community Redevelopment program is utilizing Tax Increment Financing (TIFs) to fund various improvements such as removing overhead utilities, improving streets with sidewalks, landscaping, and decorative street lights. A TIF can fund any enhancement that adds value to the ambiance and charm of a Downtown that appeals to both residents and visitors.
Although a somewhat cumbersome term, the TIF program really means using the property tax value increases occurring in a Downtown district above a base year. In Dunedin’s case, that base year is 1988. In other words, the Community Redevelopment District, as a result of planned improvements, sees increases in property values which translates to property tax revenue which funds the administrative aspects of running the Community Redevelopment Agency, along with enhancements to the Downtown district.
It is important to mention that Pinellas County is a major partner with Dunedin in improving the Downtown area. The TIF program represents one of the best government programs as revenue is only rewarded from strategic measures to revitalize a Downtown. It is important to note that property tax revenue collected by the School Board and any special district is not affected under the Tax Increment Financing process.