Powell's tax incentive review council on Aug. 29 recommended continuing the city's downtown tax increment financing agreement (TIF).

Powell's tax incentive review council on Aug. 29 recommended continuing the city's downtown tax increment financing agreement (TIF).

The review council's recommendation will be presented to city council, which will make the final decision.

The procedure occurs annually and is designed to ensure TIF funds are being used as required by law, city attorney Gene Hollins said, as well as to review any new agreements regarding the district.

"It's a good information-sharing session to make sure we're implementing our TIF correctly," Hollins said.

In TIF districts, certain property tax revenue is used for infrastructure costs.

For 2011, the TIF brought in about $200,812 to the city. The money must be spent on capital improvements that are in or directly benefit the TIF area. One percent of the funds collected goes toward "housing renovation," and 99 percent is for public improvements, said city finance director Debra Miller.

The downtown TIF fund has a current balance of $503,528, documents from the meeting show.

The city's development committee is discussing infrastructure improvements to fund with the TIF money. The committee will make recommendations for city council to consider.

The assessed value, used for taxation purposes, of the property is about $9.8 million. The assessed value is 35 percent of a property's market value.

The downtown TIF was approved in 2005. It includes almost 300 acres and will last 30 years. Fifty-eight percent of the property is residential and 42 percent is commercial property. It is estimated to bring in $8.8 million during its lifetime.

Powell planner Eric Fischer said the city this year will complete documents for its recently approved TIF on all commercial property in the city that is not in the downtown TIF.

The commercial property TIF was approved in December 2010.

That year will be its base year, said Shari Baker of the Delaware County auditor's office. Revenue generated from increases in property value beyond the base value will be routed to that TIF's fund, beginning with 2011's property values, she said.

The review council includes representatives of the city, the Delaware County commissioners, the Delaware County auditor, Olentangy Local Schools, the Delaware Area Career Center and Liberty Township.