China TIF committee hears request from Thurston Park, broadband

by Mary Grow

China Tax Increment Financing (TIF) Committee members reviewed two applications for 2022-23 TIF funding at their Jan. 27 meeting.

Jeanette Smith, chairman of the Thurston Park Committee, explained why her group is asking for $34,600. Jamie Pitney, a member of the China Broadband Committee (CBC) as well as the TIF Committee, explained the CBC request for $40,000 from two different packets of TIF money.

Committee members made no recommendation on either request. They plan to consider them together with requests received in December 2021, probably at the meeting they scheduled for 6 p.m. Wednesday, Feb. 9.

They also need a question answered: if money allotted for the current (2021-22) fiscal year is not spent by June 30, 2022, does it carry forward for the same purpose, or does it revert back to the body of the TIF fund?

Smith explained that money for a concrete pad for a storage building in Thurston Park was not allocated until November, when it was too late to start work. She doubts the park will be accessible in time to do the project by June 30 this year. If the 2021-22 allocation carries forward, the Thurston Park Committee’s 2022-23 request can be lowered.

Town Manager and TIF treasurer Rebecca Hapgood said she will find out where unspent funds go.

TIF Committee members had questions and comments for Smith, including a recommendation that her committee consider a prefabricated building instead of having a local contractor build one.

Pitney told the rest of the TIF Committee that $10,000 of the CBC request is for another year of service from consultants Mission Broadband. The $30,000 is for expanded broadband service that is part of the voter-approved TIF document. Committee members have no current proposal or project, but remain optimistic.

Last year’s delay in disbursing TIF funds was because China officials were waiting for state approval of the TIF amendments voters adopted in June 2021. The document is on the town website, china.govoffice.com, under the Tax Increment Financing Committee, titled “Second Amended TIF Program.”

TIF money, from taxes paid by Central Maine Power Company on its transmission line through China, does not count as general fund revenue. If it did, county and state officials would consider China richer, and would increase the county tax and reduce state aid to schools.

Pitney reminded fellow committee members that failure to spend TIF money eventually sends it into the general fund. TIF is a tax shelter, Pitney said; if funds are not used as intended, “the shelter has a leak in the roof.”