PAXTON — The Paxton-Buckley-Loda school board has approved an agreement that guarantees the school district will receive at least $6.5 million in tax revenue generated from Paxton's newly implemented tax increment financing district.
The funds will be used by PBL toward capital-improvement projects. The city council last week also signed off on the agreement.
"I'm just happy we worked together and got an agreement we can both live with and move forward," PBL Superintendent Cliff McClure said.
Besides the money committed for capital projects, the agreement allows for other funds generated by development in the TIF district to be provided to PBL. All of that money will be distributed out of a special fund under the city's control.
The long-discussed agreement between PBL and the city was requested to protect the school district from any financial harm the TIF district might cause, specifically the hundreds of new homes proposed in the TIF district. The residential growth would mean more services would have to be provided by the school district — along with possibly having to expand or even build new schools. And because the growth would occur in a TIF district, the school district would not receive any extra property tax revenue from the redeveloped property over the next 23 years.