The State Legislature amended the the tax increment financing law in 2021 to provide flexibility to cities to utilize unobligated tax increment balances in existing districts in order to promote construction and job creation in their communities.  The law allows cities to provide assistance for private development that creates or retain jobs, without counting against the pooling limitations of the districts.

If the spending plan is approved the EDA has until December 31, 2022 to transfer the funds to another designated City/EDA fund and the dollars must be spent by December 31, 2025.

In order to preserve the ability to use this tool, the City and EDA are required to develop a spending plan that identifies the tax increment districts that will fund defined projects, hold a public hearing, adopt a plan and submit to the State Auditor.