Fieldcrest Board of Education President Joe Knapp appeared before the Minonk City Council Monday night
asking the council to pass on to the school district additional tax revenues in the city's TIF district that would result from an increased tax rate.
Voters will be deciding on a tax referendum that would increase the tax rate by .90 on April 1. If the referendum passes,
the school wants the city to give the additional revenue from the TIF district to the school.
Currently, the city has an intergovernmental agreement with the school district on TIF No. 1 and II beginning January 18, 2001.
For each TIF, a base increment has been set at $50,000 for the first year and adjusted for inflation in each year following
to the conclusion of the TIF. The City, throughout the term of the TIF, will retain up to a $50,000 cap adjusted for
inflation and then divide the remaining revenues with 75% going to the City and 25% declared as surplus to all taxing
districts.
Knapp said that the City of Wenona has already signed this agreement for the additional levy. However, Wenona's
entire city is included in the TIF district and has not signed a prior agreement with the school district. This meant
that all of the money in the Wenona TIF district stayed with the city and none has gone to the school district. Alderman
Ron Redenius asked Knapp if that meant that the rest of the school district communities have subsidized Wenona's tax support of
the school district? Knapp replied that is basically true but added, that he is keeping a positive attitude toward the situation
and will continue to work with Wenona in order to ensure that each community contributes its fair share. He said the school
has continually made an effort to have Wenona contribute some of its TIF funds to the school district.
Alderman Bill Koos asked Knapp if it made any difference if the city signs the agreement before or after the
election. Knapp replied that he preferred that the council would agree to sign the agreement before the election
because it may convince voters to vote for the tax referendum since more of the tax increase will be going to the
education fund rather than staying in the TIF district.
Alderman Bill Koos made a motion that the council wait until it gets a legal determination from the TIF
district legal representative on what impact the signing of this agreement would have in the long-term.
The council unaminously approved the motion to table the agreement until the next council meeting.
