Aldermen worried about its legality and effect on the city’s future reject Calumet City Mayor Thaddeus Jones’s proposal to lower property taxes for residents using $2 million from TIF monies.
Calumet City Mayor’s $2 Million TIF Fund Proposal Faces Scrutiny Over Legal and Economic Concerns
The Chicago Tribune claims that Calumet City Mayor Thaddeus Jones has suggested helping citizens battling excessive property taxes with $2 million from TIF money. On August 15, 2024, he made public this proposal during a City Council meeting.
Using 80% of the TIF money from the city, the intention is to cut property taxes for citizens. Some alderman, however, are concerned that this scheme may run afoul of the law and compromise the long-term economic development of the city.
Aldermen have expressed worries regarding the specifics of the fund use and beneficiary identification. Some, such as 2nd Ward Alderman Monet Wilson, worry that the proposal could simply assist a small number of people and overlook more general problems. Some concerns expressed now with TIF money could restrict future economic growth.
Mayor Jones Delays TIF Fund Vote, Seeks State Law Changes and New Funding Sources for Property Tax Relief
To address these concerns, Jones has agreed to postpone the vote on the plan and plans to push for changes in state law. He wants to allow cities to use TIF funds for emergencies without declaring a surplus and is looking for other ways to raise money, such as creating a fund from video game terminal revenues to support residents.