Annual TIF Presentation Provides Update on Jasper’s Financial Investments

A claim was approved for Hafer for services related to the new outdoor pool. Hafer’s primary duty was the design of the pool, which has been completed, and the Commission heard that there is no reason at this point to think that it would go over budget. An additional claim was approved for the Bank of Oklahoma for the first payment for the bond for the pool project, which will have payments twice a year. 

The meeting’s primary focus centered on a presentation of Information to Overlapping Taxing Units. The informational session, that all overlapping taxing units are invited to, satisfies part of an annual requirement. Matt Eckerle of Baker Tilly explained the basic function of TIF, tax increment finance districts, which he said is a mechanism available to governments to capture incremental assessed value generated by new development. Essentially, Eckerle said that growth and assessed value puts downward pressure on property tax values. The state dictates the maximum amount of property taxes that can be generated each year, but new property tax revenues in TIF developments are captured and reinvested. At a basic level, the TIF allows local governments to make a joint investment in an area’s development or redevelopment. Then, short term gains are reinvested with the idea that the investment creates a stronger overall financial picture for the local government in the long run. 

Baker Tilly’s Annual TIF Presentation gave high level detail of TIF investments, as well as a broad overview of Jasper’s current bond-funded projects including the new pool complex, the University Heights housing project, and the Riverwalk. For the pool project, the purpose of the bond was to finance the design and construction of the outdoor pool project. 8.5 million dollars in bonds was issued, and the first interest payment was just introduced. The first few payments interest only, but the principal will start to go down in the following payments. The final maturity date of the bonds is Feb 1 st , 2037. The option of redemption, when they could be paid off early, is Feb 1 st , 2033. 

The Central TIF allocation was established in 2014 with the purpose of encouraging growth in the downtown and Riverwalk areas, as well as the industrial sector. The revenue is currently being reinvested to finance the new outdoor pool complex.