The Escambia Children’s Trust (ECT) Board held a special meeting on June 25 to address a contentious issue that has been brewing for months: the county’s demand for Tax Increment Financing (TIF) revenues totaling over $1.18 million for tax years 2021, 2022, and 2024.
- After much debate, the board decided to work with Escambia County, provided the funds support youth programs.
Background
The controversy stems from Escambia County’s retroactive request for TIF contributions that the Children’s Trust had not been billed for during the original tax years. While the Trust paid its 2023 TIF obligation when properly invoiced, the county later came back seeking payments for 2021 and 2022, years when no timely request had been made.
- Not in fairness, the County did not realize the funds could have stayed with CRAs until early 2024.
Adding fuel to the Trust Board’s fire was how the county spent the 2023 TIF payment. According to Trust Chair Dr. Rex Northup, those funds went toward “two cameras, paving of streets, sidewalks, and streetlights” – expenditures that board members felt stretched the definition of children’s services that voters had in mind when they approved the Children’s Trust.
The Board’s Dilemma
The board faced two choices:
- Challenge the county’s demand legally, arguing the money wasn’t owed, or
- Negotiate an interlocal agreement that would provide exemptions while ensuring future TIF payments go directly to youth programming.
Trust Attorney Meredith Bush explained legal precedent suggested that counties using these designated funds for purposes other than children’s services could be “an unconstitutional ask.”
Heated Board Discussion
The debate revealed deep divisions among board members. Trust member Tori Woods voiced strong opposition to paying the retroactive amounts, arguing:
“We had a working agreement with the city and the county… most of the current board that are making this decision, they were not part of that discussion. And so we are going back and paying for funds when we were working alongside the city and the county to provide programming.”
Woods was particularly concerned about the vague language in the agreement, stating: “I guess my concern or question is it has safe and structural environments directly benefiting youth of Escambia County and because we vary on what that is, that’s a concern for me because they spent the money on sidewalks and cameras and that was not what my understanding of what that money was supposed to go for.”
- She also expressed frustration about the precedent being set: “I’m also okay only paying this year, I don’t know where the rest of the board stands but if I’m not sold on paying 21 and 22… we are setting a precedence, especially with the city asking for 21 and 22 already. And I feel like if we set a precedent to pay that, then we are also setting a precedent to not have a dog in that fight with the city as well.”
Woods pushed back on the accountability measures, asking pointed questions about enforcement: “What would our action be if we were to hand over these funds and they aren’t used the way that they are written in here?… if we hand this over and they go and buy something that does not align with this, is there a legal action that we have?”
When told there was no clawback provision, she pressed further: “So can we add something in there… if you can’t get in trouble by not doing this, then what is the point of having the document?”
Woods also expressed concern about what she saw as double payment for services: “I still feel like we have already paid for these services in the past two years… to me that feels like we’re double dipping by paying them twice.”
Her skepticism about the county’s good faith was evident when she said: “We did the first time when they bought cameras… what the law by the state says that that’s what they were supposed to use it for, and they didn’t abide by that. So that’s why in good faith it’s hard for me to believe that they’re going to do what they say they are going to do in good faith.”
- However, Trust member Stephanie White advocated for moving forward with the agreement despite reservations about paying back taxes: “I want to get this behind us and move forward. It’s all for the best. They’re going to use it for children.”
Key Agreement Terms
The proposed interlocal agreement includes several critical provisions:
Financial Obligations:
- $327,974 for Tax Year 2021
- $362,710 for Tax Year 2022
- $495,157.18 for Tax Year 2024
- Total: $1,185,841.18 due by August 1, 2025
- Additional payment for 2025 due by January 1, 2026
County Commitments:
- Grant retroactive exemptions for 2021, 2022, and 2024
- Grant future exemption for 2025
- Use all payments exclusively for “County Youth Programs.”
- Provide quarterly reports on fund expenditures
- Collaborate with the Trust to ensure mission alignment
Safeguards and Accountability
Board members successfully negotiated important changes to strengthen accountability:
- Language Clarification: Changed “services” to “programs” to be more specific about intended use
- Refined Scope: After debate, maintained “safe and structured environments” language but removed infrastructure-related spending options
- Reporting Requirements: The County must provide quarterly expenditure reports until funds are exhausted
However, the board declined to add a “clawback” provision that would require the county to return misused funds, with Attorney Bush noting that once transferred, the funds become county funds subject to their discretion within the agreement’s parameters.
The Vote
Despite passionate debate, the motion to approve the interlocal agreement passed, though not unanimously. The board authorized Executive Director Lindsey Cannon to enter into the agreement with Escambia County, contingent on the agreed-upon modifications.
Looking Forward
The agreement runs through September 30, 2026, with a provision for evaluation and potential renewal. For Tax Year 2026 and beyond, the Trust retains discretion over seeking exemptions.
- Trust Chair Dr. Northup emphasized that this agreement represents a fundamental shift from simply writing checks to the county: “Rather than simply writing them a check and saying do as you will, we will be basically proposing writing them a check, but… we are defining how those funds will be expended.”
This agreement will probably be presented to the Escambia County Commission on July 10. The Trust has signaled it will separately address similar demands from the City of Pensacola for TIF payments.
The debate highlighted ongoing tensions between the Trust’s mission to serve children and external pressures from local governments seeking some control over the programming. As board member Woods noted, the fundamental question remains whether these payments represent double-dipping – paying twice for services the Trust was already providing through its other programming grants.
The resolution underscores the complex balancing act facing the Children’s Trust as it navigates relationships with local government partners while staying true to its voter-mandated mission of improving outcomes for Escambia County’s children.