The purpose of the City’s proposed East Chelan Area tax increment area (the “TIA”) is to fund a portion of the cost of further developing its water utility infrastructure. The primary public improvement is the construction of the East Chelan Reservoir and Booster Pump Station; other elements of the project include four water main extensions from the reservoir to the surrounding neighborhoods. These improvements will allow the City to meet the demands of private development and provide redundancy during water emergency shortages. As described by the City’s project analysis, the costs for the public improvements are estimated at $27,059,100; of this, up to $16,000,000 is planned to be supported by TIF revenues. To finance the public infrastructure improvements, the City intends to issue Limited Tax General Obligation (“LTGO”) bonds, which will be backed by the full faith and credit of the City. The City expects to issue two series of bonds, one in 2024 for $9 million, and another in 2028 for $7 million.
For additional Information on Tax Increment Financing (TIF) please see the links below.