A TIF is public financing as a subsidy for redevelopment or other improvements.
It uses future gains in taxes to subsidize current improvements projected to create gains above routine yearly tax increases.
If the costs of basic services increase with TIF, the result is a revenue shortfall that has to be paid for from sources other than tax revenues of the TIF District.
California “invented” TIF’s but the TIF method has been discontinued because of lawsuits and California will be paying off old TIF debt for many years ($10 Billion in TIF revenue, $28 Billion in long-term debt, over $674 Billion of EAV).
With a TIF, public services very likely increase. If TIF revenue isn’t enough, other areas will be affected by TIF (schools, public safety, etc.).
Albuquerque, NM has the second largest TIF in U.S.: $500 Million Mesa del Sol built on green field that generated little tax revenue. Any increase in tax revenue would be diverted into the TIF fund. Thus governmental bodies don’t get funding necessary for operations from h TIF developed area.