SHELBYVILLE - A proposed tax increment financing district and a business development district could bring extra income to the city of Shelbyville, and members of the city council discussed what they should do with the money Monday night during a special study session.

The council invited Department of Commerce and Economic Opportunity consultant Tom Becker to help them sort out priorities for anticipated tax increment financing and business district funds. The council will hold hearings later this summer on the proposed districts.

The council has accepted plans that would create a TIF district involving more than 250 business, retail and industrial sites throughout Shelbyville.

The council has also accepted plans for a business development district that encompasses the same areas, excluding school property. Businesses in that district would benefit from a citywide, 1 percent sales tax increase. That increase would not affect grocery purchases, health care items and purchases that are titled by the state.

"You have to look at your income and look at our expenses," Becker said. "We generally recommend health and safety projects first, then things that benefit business."

The council discussed improving parking lots, including creating a new one on the site of the former Moose Lodge, and removing barriers on another parking lot near the Shelby County Courthouse to better accommodate vehicles towing boats and campers.

Becker said any improvements should first consider Shelbyville residents, then appeal to new businesses or tourists visiting Lake Shelbyville.

"First make it better for the residents," he said. "If they see what you're trying to do they'll be more likely to support your other plans."

Council member Noel Bolinger said improvements like the new swimming pool, General Dacey Bike Trail, new baseball and soccer fields benefit Shelbyville citizens.

"And on top of that, a good percent of people, maybe half at the pool don't live here so we are drawing people from outside the area," he said.

Council member Jeff Johnson said he was concerned that the council should know where the money is coming from before committing to further projects.

"I think that's just something that we have to do," Johnson said.

Sharon Mosley can be reached at sharonhrnews@yahoo.com.