TIF ALTERNATIVE PROTECTS FUTURE FUNDING FOR SCHOOL DISTRICTS

Concerned that a tax increment finance district -- otherwise known as a TIF -- would put Cape Girardeau and Jackson public school revenue at risk, the Interstate 55 Corridor TIF Commission has wisely backed away from a plan to form such a district.

Instead, Cape Girardeau County, Cape Girardeau city and Jackson officials have come up with what they believe is a better plan to finance infrastructure improvements in commercial areas along Interstate 55.

The initial proposal was innovative in itself. TIF districts commonly use property taxes to provide infrastructure improvements. But the proposed TIF district -- from Nash Road to Cape West Business Park at I-55 and Route K to the Interstate 55-Highway 61 intersection between Cape Girardeau and Jackson -- would have involved the use of sales-tax revenue. The TIF commission wanted to provide treated water to Nash Road businesses, extend more water lines to the west side of Interstate 55 in the Cape West Business Park area and redesign the I-55-Highway 61 junction to make it safer.

The plan seemed workable. But officials later learned that if sales-tax revenue fell short, property-tax revenue that would go to the school districts would have to be used. The school districts, whose superintendents are members of the TIF commission, objected. The commission agreed the risk wasn't worth it.

The new plan, which could be in place within a couple of months, is a simple but workable one. The county and the cities would agree to set aside sales-tax revenue from future businesses that locate in the improved areas to pay for the improvements. Since school districts get no sales-tax revenue, their money wouldn't be jeopardized.

Instead of issuing revenue bonds, certificates of participation would be sold, and they would be paid off with an annual appropriation from the participating governments. Certificates of participation yield lower interest than revenue bonds, making them less expensive.

If the project comes about as expected, it will be an example of three local governments and two school districts working together to find a means of finding a way to provide for commercial growth that will boost the local economy and generate tax dollars.