“Fiscal year 2020 represents the best set of taxable values I’ve seen in my career as mayor, and this is 13 budgets,” he explained. “They’re good all over in terms of new construction and newly taxable value and also they’re strong in the (Urban Renewal Districts).”
Engen met with the Missoula Redevelopment Agency’s board and staff during a special meeting Monday to discuss the city’s request to pull the remittance from the districts and use it for the city’s general fund. In Missoula’s six Urban Renewal Districts, the property taxes from new construction are used as Tax Increment Financing (TIF) funds for public infrastructure projects that the Redevelopment Agency says will encourage private investment, thereby increasing the tax base.
Because the city is requesting $725,000, state law dictates that other taxing jurisdictions, the local school districts and the County of Missoula also get equal cuts. That means a total of $2.4 million will be pulled from the districts this year.
“This will provide additional property tax relief, which I believe fits squarely in the list of long-term goals for our TIF program,” Engen wrote in memo to the board.