TIF commission updating projected tax revenue
COLUMBIA - Hotel rooms at the Tiger and Broadway Hotels are keeping the City of Columbia's Tax Increment Financing (TIF) Commission alive despite a halt on all other work.
Lynn Cannon, the assistant Finance Director for the City of Columbia, found multiple errors in TIF projections and has since corrected them for accuracy.
"The projected numbers that were in the cost benefit analysis were not correct because they were using the wrong tax rate and the assumptions utilized were not necessarily leading to the calculations being done correctly. To put the numbers into perspective to compare them to actual data, I did the correction so we can compare," Cannon said.
Columbia's TIF Commission discussed the corrected projected taxes which should have been captured by the TIF projects. Based on original cost benefit analysis, the Tiger Hotel should have accumulated $71,871.44 in taxes through September. However, it has only captured $71,702.19 though Sept. 30 of this year.
John Clark is one of the city appointed commissioners for the TIF board. He said the adjustments are a result of day-to-day work.
"There had been some developments in the last year where as a result, they looked back and discovered that they had been applying a certain number wrong, and they went back and corrected that. That just happened in the routine course of business," Clark said.
Columbia's TIF is currently unable to create new projects until Jan. 1, 2020 after a Boone County circuit judge ruled against the city on Dec. 16, 2015.
The ruling stated, "The Court finds that the City of Columbia failed to comply with the reporting requirements imposed in RSMo §99.865.1 and RSMo §99.865.2 a total of between 23-25 times since 2009, with its last violation occurring in calendar year 2014."
Since that ruling the City of Columbia has appealed the decision and is now awaiting a court date.
Cannon said she was is not allowed to comment on current legal preceding but said the TIFs bring revenue to the city.
"They are bringing additional tax revenue into the Columbia area. If those projects were not created, the additional tax revenue would not come to the city. They also help increase the property tax value," Cannon said.