How is LCDC funded?
Beginning in the 1960s federal funds were the initial source of money for urban renewal projects in Idaho. As these funds were phased out in the 1970s, an alternative financing method was needed. In 1985, the Idaho state legislature adopted the Local Economic Development Act which authorized the use of tax increment financing. In simplest terms, under tax increment financing (or revenue allocation in Idaho), the taxes generated by increasing property values in an urban renewal District are used to pay for public improvements and other revitalization activities in that District. At the time an urban renewal District is formed, the county assessor establishes the current value for each property in that District. This value is referred to as the “base” value. Over time, as both public and private dollars are invested and development occurs in the District, property values tend to rise. The increase in value over the base is called the “incremental” value, or increment. The taxes generated
