ATTENTION HOLLIS RESIDENTS: PUBLIC NOTICE REGARDING SPECIAL TOWN MEETING AND PUBLIC HEARING FOR TIF AMENDMENT
ATTENTION HOLLIS RESIDENTS
SPECIAL TOWN MEETING
Tax Increment Financing (TIF)
Development Program Amendment
On February 1, 2017, the Town of Hollis will hold a Public Hearing for a Special Town Hall meeting scheduled for February 14, 2017, for the residents of Hollis to vote on a 5-year increase to the existing 25-year TIF Program with the Department of Economic and Community Development (DECD).
If approved by the Town, this Amendment could provide Hollis with up to an additional $6 Million in TIF Revenue over the remaining life of the TIF District, and keep our Retained Captured Assessed Value (RCAV) at 85% for an additional 5 years.
The RCAV is omitted or “sheltered” from the Town’s State Valuation which is used to calculate the Town’s share of school and county taxes and state revenues. Keeping our RCAV at 85% will result in delaying the increase to school and county taxes and keep the increased amount of the Town’s State Revenue Sharing and the increased amount of State Aid to Education Subsidy to MSAD 6.
This Amendment will not increase the length of or change the Town’s agreement with Poland Spring. The current allocations of the captured TIF Revenue retained by the Town and those returned to Poland Spring will remain as currently scheduled:
The percentages of captured TIF revenue scheduled to be returned to Poland Spring will continue to decline and it will end, as scheduled, in the 25th year;
The percentages of captured TIF revenue to be retained by the Town will continue to increase as scheduled;
The Town will retain 100% of the captured TIF revenue in the final 5 years of the amendment.
Projections show that, compared to the original TIF District, amending the TIF District could provide the following benefits to the Town:
An additional almost $6 million in TIF revenue over the extended term of the TIF District;
Savings to the Town of approximately an additional $300,000 from the County Budget;
An additional $150,000 in State Revenue Sharing;
The tax shift will provide MSAD 6 Schools with roughly an additional $4.5 Million in State Aid to Education and reduce the Town’s share of the School Budget by $800,000.
Extending the TIF is time sensitive.
If the Town wishes to extend the TIF, this is the most prudent year to do so.
The Town is currently at the peak of the financial benefits of the TIF. The RCAV, our “sheltered” value, is at its highest amount while the Town’s portion of the TIF revenues are increasing.
Under the current plan, this is the last year the RCAV will be at 85%.After this year the RCAV will begin to decline by 10% each year. The increase to the Town’s portion of the School Budget will be offset by the portion of the taxes no longer being allocated to the TIF. However, since the School Budget is based on a 3-year average of the State Valuation, extending/locking the RCAV for 5 years after it begins to decline will increase the Town’s portion of the School Budget by an amount larger than the tax revenues generated by the 10% over that time period.
In order to extend the TIF this year, this Amendment must be approved by the voters and submitted to the Department of Economic and Community Development by March 1, 2017.
The TIF Amendment can be reviewed at the Hollis Town Hall or on our Town’s website, www.hollismaine.org.
Questions regarding the TIF Amendment can be e-mailed to the Select Board at firstname.lastname@example.org. Answers to submitted e-mails will be read at the televised Select Board meeting scheduled on Jan. 18th and at the Public Hearing on Wednesday, Feb. 1st, 2017 at 7:00PM.
Hollis residents are encouraged to attend the Public Hearing to be held on Wednesday, February 1, 2017, at 7:00PM and the Special Town Meeting, secret ballot voting, on Tuesday, February 14, 2017 from 7:00AM-8:00PM. Both events will take place at the Hollis Fire Department, 405 Plains Road.
PLEASE NOTE: The Town Hall will close early at 6:30PM on Wednesday, Feb. 1st, 2017.
REMEMBER: IT IS YOUR TOWN AND YOUR REVENUE. PLEASE COME OUT AND VOTE.
Town of Hollis