PAYG Notes and Interfund Loans are TIF Bonds

The TIF Act requires that a TIF plan include the amount of bonds to be issued. Interfund loans and pay-as-you-go (PAYG) notes are defined in the TIF Act as bonds. Sometimes plans submitted to our office have indicated that no bonds are to be issued, but also state that an interfund loan or PAYG note will be used. Both types of financing must be included in the amount of estimated bonds in the TIF plan and on reports submitted to our office.

For more information, see these Statements of Position: Bond Financing of Project Costs, Interfund Loans, and Pay-As-You-Go Obligations.

Last referenced October 15, 2021 in the State Auditor's E-Update.