Schools among beneficiaries of $2.75 million surplus in two Palatine TIF districts
Palatine village council members Monday night agreed to send a $2.75 million surplus from two tax increment financing districts to schools and other governmental agencies while also keeping some for the town.
Like other towns, Palatine has had TIF districts designed to spur development. In a TIF, property taxes paid to local governments -- such as schools and park districts -- are frozen at existing levels, and taxes beyond that are diverted to a fund controlled by the village for economic development purposes, such as infrastructure upgrades.
However, a town can declare a surplus at any time over the life of a TIF district, which typically lasts 23 years. The village council agreed Monday that the $2.75 million is a surplus and not needed for intended development uses in the two TIF districts.
Palatine Township Elementary District 15, Palatine-Schaumburg High School District 211 and the village top the list for the extra TIF cash. Another beneficiary, the Palatine Park District, can especially use the money because it's losing user fees with its facilities closed due to the COVID-19 pandemic, Village Manager Reid Ottesen said.
District 15 will receive $966,280, with $780,680 going to District 211. The village will get $333,050, the park district $175,600, Cook County $134,800, Harper College $113,480, Palatine Public Library District $73,500, Palatine Township $38,430 and assorted other agencies $134,110.
"For the village, it's losing revenues right now from sales tax and the food and beverage tax," Ottesen said. "It's really nice money to help supplement that and keep things afloat and deliver good services."
Palatine will distribute a $2.25 million surplus from a Rand Road corridor TIF established in 2013, which goes roughly from a Walmart near Dundee Road north to Arlington Toyota by Hicks Road. It also runs east from Rand along Dundee to a Delta Sonic Car Wash.
The other $500,000 will be from a Rand-Dundee TIF enacted in 1997 for the Home Depot development near the intersection. Village officials say the money will be forwarded to Cook County for distribution to the taxing bodies within 60 days.
Ottesen said Palatine's TIF surplus distributions to local governments means fewer dollars will need to be sought through property tax levies. The village's allocation will go toward will additional contributions for public safety pensions.
"We understand that when we do a TIF district that everybody's giving a little bit, hopefully for the public good, the common good, getting more businesses in town, more residential in some cases, services that people are looking for, and helping the existing businesses," he said.