How does the TIFA pay for its activities?

The TIFA uses a tool called tax increment financing to generate revenues to pay for public improvements. Tax increment financing is used by several different kinds of municipal authorities, including Downtown Development Authorities (DDAs), Local Development Finance Authorities (LDFAs), and Brownfield Redevelopment Authorities (BRAs). The TIFA can pay for projects each year as it collects revenues to pay for the projects, or it can issue bonds and use the tax increment revenues to pay back the principal and interest on the bonds.

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1. What is the TIFA?
2. What does the TIFA Do?
3. How does the TIFA pay for its activities?
4. What is tax increment financing?
5. Can the TIFA levy taxes on property?
6. Do property owners in the TIFA pay more in taxes than property owners outside the TIFA?
7. Is the TIFA totally independent from the City?
8. Do other communities use TIFAs? What types of projects have been paid for by TIFAs?