Eric Lowell, finance consultant at the Municipal Research Services Center, briefed the Senate committee on tax‑increment financing (TIF) on Sept. 16. He described TIF as a tool cities, counties and port districts can use to fund public improvements by capturing property‑tax growth in a defined increment area.

Lowell said jurisdictions must designate an increment area, prepare a project analysis describing anticipated development, projected revenues and improvement costs, notify other affected taxing districts and submit the analysis to the state treasurer. He said the law requires public briefings and an ordinance or resolution establishing the increment area.

Lowell listed public improvements eligible for TIF including streets, water and sewer systems, sidewalks, park‑and‑ride and broadband, as well as eligible uses such as purchasing or retrofitting long‑term affordable housing and childcare for low‑income, homeless or foster‑care youth. He warned jurisdictions that TIF is not appropriate without a credible project: “If there’s no investment and no development, then the jurisdiction is not going to receive the additional revenue to pay for those improvements,” he said.

Lowell told senators 25 project analyses had been submitted to the state treasurer as of August and urged local governments to prepare realistic revenue forecasts and secure developer commitments before adopting increment areas.

Committee members asked about early revenue performance; Lowell said the assessor data is nascent and he had not yet analyzed long‑term outcomes but offered to follow up with further information to the committee.