Examining the impact of performance measurement and risk assessment in Tax Increment Financing (TIF) districts in the Dallas-Fort Worth Metroplex

Cities increasingly utilize Tax Increment Finance (TIF) districts to further their economic development goals. Even within guidelines established by Texas authorizing legislation, Texas cities vary considerably in their approach TIF proposals. Of particular interest is the degree of risk assessment and performance measurement that take place. This paper seeks to determine the influence that these enhanced management practices bring to bear on actual TIF performance. Results from cities in the five central counties of the Dallas-Ft. Worth Metropolitan Area reveal a strong influence by performance measurement on program performance relative to expected property valuation assessment and tax revenue prediction.