The Aiken County Council is considering a Tax Increment Finance ("TIF") proposal for two residential development projects between Aiken and Graniteville. The county would issue bonds to pay for 40 percent of the infrastructure in these developments.

The developer's schedule of the taxes generated from these developments indicates that, over a 25-year period, $64 million - or nearly 30 percent of the tax dollars - would pay the principal and interest on the bonds. Will the remaining 70 percent pay for the police, fire, and other services to these new neighborhoods? Can the school board manage without its share of the $64 million - amounting to $44 million of school tax dollars diverted from our schools and pupils to build the infrastructure within a private development?

In 1996, the North Augusta City Council approved a TIF-financed Riverfront Redevelopment Project. The Aiken County school board brought a lawsuit because the plan would diminish school tax revenues and give new residents a free ride. The suit was settled, with school taxes essentially exempted from the TIF.

The developer requesting the TIF is concurrently negotiating with the school board about "an alternative school construction funding plan" for school capital construction and improvements. Under this plan, a third-party corporation would raise funds and manage construction of schools. The corporation would not be subject to state laws - which, without a voter referendum, limit the amount that can be spent on school capital development to 8 percent of assessed property value in the county.

On Oct. 18, the Aiken County Council will hold a public hearing and second reading on the TIF. I urge residents to ask school and county representatives to oppose these dubious schemes, which provide unprecedented and unwarranted benefits to the developer while increasing taxes.

Dick Smith, Aiken, S.C.

(Editor's note: The writer represents District 4 on the Aiken City Council.)