Two publicly funded agencies have expressed concern about a new tax-increment-financing district created by Powell City Council Dec. 7.

Two publicly funded agencies have expressed concern about a new tax-increment-financing district created by Powell City Council Dec. 7.

The new 30-year TIF will affect all commercial properties not in the older downtown TIF district, city development director Dave Betz has said.

TIFs redirect property taxes to fund capital improvements in their respective districts, city officials have said. The redirected revenues come from the property-value increase after the TIF is created. The value increase results from appreciation of or improvements to the property.

The Delaware County Board of Developmental Disabilities (DCBDD) is one of several area agencies relying on property taxes.

Such agencies lose no revenue they receive from newly created TIF districts. They do lose any increase in revenue that they might otherwise receive, said DCBDD superintendent Bob Morgan.

"The whole problem with TIFs is they say, 'You're not losing anything,' but we have property that for the next 30 years, no matter how the economy grows, we're not going to gain anything," Morgan said. "I challenge any municipality to work today with the budget and resources you had in 1980."

Preservation Parks executive director Rita Au said, "As of 2008, when Genoa Township, Westerville, Shawnee Hills, Powell, Delaware County and the city of Delaware had TIFs in place, the estimated loss to Preservation Parks per year from the TIF diversion of tax revenue was approximately $370,000.

"During a period of 10 years - the length of our levy - that means a diversion of $3,700,000. And, depending on when those TIFs were instituted, most at 30 years, there is a potential loss of up to $11-million to the park district.

Au said, "This is happening without any say from the voters who do not realize that the taxes they have approved for park and other social services are being diverted to other purposes."

Powell spokesman Jeff Robinson said, "We haven't had the opportunity to hear from these organizations with regard to the TIF districts. ... But we're always happy to sit down with them at any time to get their feedback and talk about any concerns."

Powell's new TIF district includes 56 commercial properties with a total appraised value of about $60-million, city planner Eric Fischer said. Taxable property value is about a third of the appraised value.

Schools do continue to receive any increases in revenue from TIF districts.

Schools receive "payments in lieu of taxes ... based on the value of the improvements or appreciation," said John Kohlstrand, spokesperson for the Ohio Department of Taxation.

City attorney Gene Hollins has said that TIFs are one of the tools governments can use to fund capital improvements.

The city's new TIF was approved on an emergency basis, which puts it into immediate effect.

Council unanimously approved the ordinance. Council member Richard Cline was absent from the meeting.