Copyright Joliet, IL Patch
An alderman voted for a line of credit, but indicated later it wasn't a good idea. ELMHURST, IL – An Elmhurst alderman indicated Monday he dislikes the idea of seeking a line of credit for the city's special tax districts, which are designed to spur development. Alderman Michael Bram voted along with everyone else for seeking $3.8 million in a line of credit for Elmhurst's three active tax increment financing districts, known as TIFs. The issue was part of a fast-tracked bundle of city business that is voted on together. Later in the meeting, Bram said he did not pull the issue from the bundle because he did not want to delay the process. "If we don't have the dollars in the TIF funds to do the projects warranted, we shouldn't be using a line of credit to do so," he said. According to the city's website, the active tax districts are in downtown, along North York Street and the area of Church Road and Lake Street. "Redeveloped areas make the City more vibrant and more desirable to visit, live, work and do business," Mayor Scott Levin says in a letter about TIFs on the website. Under state law, a tax district's assessed value is frozen for 23 years. Any property tax income generated from the district's increasing value is to be used in the district itself, rather than taxing bodies such as schools. State law allows a tax district's money to be used for such things as utilities, stormwater improvements, parking lots and building renovations. But the money cannot be spent on the construction of privately owned buildings. Schools and other government bodies are often concerned about what they see as the loss of future tax money from such districts.
