LIVERMORE FALLS — The town manager is looking into what would be needed to capture some of the tax money from the Central Maine Power substation upgrade.
The company did not ask for a tax-increment financing program nor would it benefit from this type of program, Town Manager Kristal Flagg said.
CMP is in the process of upgrading its substation on Moose Hill Road.
This would be a TIF on one project.
The value of the upgrade when it is complete is about $17 million, she said.
The idea would be to have some of the taxes from the increased valuation go to lower the tax rate. The tax-dollars that would be captured would not increase the town’s valuation and negatively affect the town’s revenue from the state’s revenue sharing or the revenue it gets for the school district, RSU 73, she said.
“This would be a municipal TIF and would shelter us from getting less revenue,” Flagg said.
If nothing is done, the valuation will go up and the town would see a decrease in revenue, she said.
The tax-increment financing program would not count as part of the town’s valuation.
The sheltered money could be designated for infrastructure such as the Sewer Treatment Plant, sewer lines, sidewalks, storm drains or other designated areas. She plans to get more information on what the town could do with the money.
There are so many needs in the town’s infrastructure, she said, that it will never have the funds to fix them all.
“It would definitely ease the burden on taxpayers,” she said.
Any TIF would have to go before voters and be approved by the state, she said.
Flagg told selectmen Feb. 4 that she has talked to a representative of the Maine Department of Economic and Community Development.
“They would come in and talk to us,” she said.
The Town of Monmouth is putting together a 20-year TIF on a specific project, she said.
The town could have as many TIFs as it wants on individual projects, which would include a natural-gas pipeline if it ever comes through town.
The plan would be to do the tax-incentive program in 2014.
The town would be able to capture the sheltered tax dollars back to April 1, 2012, Flagg said.
Steps to create a TIF would include the town hiring a consultant who specializes in developing this type program.
The state would give the town three names of firms that specialize in TIFs or the town could find one on their own, Flagg said.
The consultant would be paid through TIF proceeds. Selectmen and Flagg would interview the consultants to see which one they want to hire.