Jefferson County’s North Tax Increment Finance Industrial District is operating at a deficit and unable to afford expenses and bond payments that exceed revenue, and leaders are unsure of the district’s path forward.
According to interviews and statements from public officials, and account balances and budget documents presented at public meetings, the district has a cash account balance of about negative $7,000. District revenues of about $65,000 annually are not enough to cover $73,000 in bond payments each year, plus thousands in operating and administrative costs. County leaders are unsure how exactly they could make the district financially viable, and are exploring options including restructuring the bond, bundling the current bond with a new bond for road improvements, or banking on rising taxable values in the district to increase its revenues.
After the district’s anchor tenant pulled out around 2014, officials said, tax revenue generated by the other businesses that have moved into the district has fallen short of covering the district’s expenses, particularly payment of the bond used to establish the district.
