Quote:DeKALB - The first effort to fund the downtown revitalization plan was approved unanimously by the city council Tuesday night.

The central tax increment finance district of DeKalb, set to expire in 2009, can be extended for another 12 years, provided the nine taxing bodies that receive money from the district agree. Half of the money garnered during the extension would be declared a surplus, which allows money to be used more freely by the groups that receive TIF funds.

According to Assistant City Manager Rudy Espiritu, the city has talked with all but two of the taxing bodies that receive funds - the DeKalb Sanitary District and Kishwaukee College. City staff will be meeting with the college and sanitary district in June.

“This is an integral part in proceeding with the downtown,” 2nd Ward Alderman Kris Povlsen said.

The extension includes a change that would allow entities that receive TIF money, such as the school and park districts, to use half the funds in any way they see fit. TIF funds also would be used to pay for part of the many proposed renovations to the downtown area and Lincoln Highway.

“This in particular is generally what cities can use to bring about redevelopment programs,” Mayor Frank Van Buer said. “Unless you're fortunate enough to have three casinos near the town, you rely on TIF districts.”

The other groups that get TIF money from DeKalb are the forest preserve district, DeKalb Township, the township road and bridge district, the library district and DeKalb County.

According to City Attorney Norma Guess, when a TIF district is established, the amount of tax money collected at the time of creation is fixed as a monetary floor. As taxes rise over the years, the difference between the floor and the current tax amount - the increment - is what can be paid out to the taxing bodies.

“Right now the taxing bodies are restricted by law to use the money for capital projects,” Guess said. “The law allows the surplus to be unencumbered - essentially, the taxing districts can use it for whatever purpose they choose. It doesn't have to be limited to capital projects.”

According to Espiritu, capital projects can include window replacement, as was done by the DeKalb Public Library, but do not include operational costs such as hiring new employees. Under the extension, entities receiving TIF funds would be allowed to use the money as they see fit.

Each taxing body has a specific intergovernmental agreement with the city that designates how much money is received from the TIF district. According to Espiritu, the bodies should be able to collect more money with this new arrangement.

Also Tuesday, the city council considered a measure to create a free wireless Internet network in the downtown. According to Paul Rasmussen, economic development director, a series of antennas in key places such as the city hall would send signals to nodes hung on streetlights that would then send Internet service to individual buildings throughout downtown.

Kim Williams, information technology director for the city, said the network would be usable by city employees and Northern Illinois University students, who will have a password to access the network. Residents and out-of-town visitors could use it by agreeing to not use the service for anything illegal.

The effort would be done in conjunction with Northern Illinois University, which would share in the initial cost, according to Wally Czerniak, associate vice president for information technology at NIU. The total cost for setting up the system would be about $100,000, of which a quarter will be paid by NIU, and the system would cost about $25,000 a year to maintain.

Povlsen asked Williams and Czerniak whether the system would still be current several years down the line, given the costs.

“There will always be new technology,” Czerniak said. “But it will take at least two years for a new standard in wireless to be ratified and used. There's no benefit to be on the leading edge of this technology right now.”

The measure will be considered again by the city council at a later time.