ver stand on their own because there is no assurance that revenues will increase enough to pay off the bonds once the company hits the tax role. You’re starting with zero and banking on the development’s property tax valuation going up (DeSue 1999).” Since they have no real stability why are there increasing numbers every year?Even though the number of TIF districts grew last year the number of developmental agreements declined. One reason is overkill. “The city has gotten to the point where it views TIFs as the solution to the world. They’re not,” says Toni Hartrich, professor of public administration at Roosevelt University (Hinz 1999). Another reason given is “bureaucratic overload. . .the city tries to do too much with too little, and focuses on creating new TIFs rather than nurturing old ones (Hinz 1999).” An example would be the tripling of TIF districts over the last five years in Chicago. One thing to keep in mind is that TIFs are merely a catalyst.TIFs are better at influencing growth not creating it. A “TIF is not the factor in and of itself that will make an area hot (Hinz 1999).” Some people believe that creating small business loan programs would be more beneficial. Many ideas are available on how to improve tax increment financing, the question is which one is the best. ConclusionChang e is eminent in the improving of this financial tool. As more districts are being created all over the country better economic policies will develop. Cities may think about getting smaller programs underway to try and help the city all over instead of focusing on large investments. Simplifying TIFs, making them “interchangeable models that can be applied to many districts will save time (Hinz 1999).” But there are the more risky ventures out there that “throw caution to the wind” and bank on huge returns. City officials are changing their...
