Connecticut’s cities and towns need better, more flexible financing tools to compete successfully for new businesses and jobs. In a world where federal financial assistance is disappearing, and state funds are difficult to raise, municipalities must seek alternative solutions giving them local control over funding sources.
The primary revenue stream for Connecticut’s cities and towns has been property taxes and local improvements typically are financed using General Obligation Bonds. However, there is another option. Nationally, one of the most flexible and popular locally controlled economic development financing tools is called TIF, or Tax Increment Financing.
