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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Joel Hanson, City Administrator <br /> Sharon Provos, Finance Director <br /> <br />DATE: August 4, 2016 <br /> <br />RE: Ehlers’ Proposal for Update TIF District Status Report <br />Back in 2012, the City had Ehlers review our outstanding Tax Increment Financing (TIF) districts to <br />ensure we could maximize the use of TIF proceeds as districts neared the end of their life or generated <br />more than planned increments. It has been a useful report as we contemplated various actions over the <br />last few years (additional land acquisitions and early district termination such as District 2-2). <br />With TIF District 2-1 nearing the end of its life (end of 2017) and given it is a pre-1990 district, 100% <br />of the remaining balances can be used on TIF eligible expenditures. At the end of 2015, that district <br />had a cash balance of $558,449 and a fund balance of $865,883 with over $300,000 of that amount <br />related to the value of land held for resale. This district provides an opportunity to accomplish some <br />special projects (housing rehab, more street work, or other land acquisitions) or we can return the <br />proceeds to other taxing jurisdictions. Therefore, having complete information seems critical to the <br />upcoming policy discussion on this matter. <br />We also have a number of interfund loans covering a multitude of projects (Pine Tree Pond and others) <br />where the monetary source comes from a multiple of funds. The report contemplated by this proposal <br />would update the status of each of those loans and provide projected payoffs. This would be a helpful <br />report for our Finance Director to provide background information as to how each loan came to be and <br />how it associated with each respective TIF District. <br />Finally, we issue TIF notes related to Developer TIF Guarantee payments or advances (Sherman <br />Associates & St. Jude Medical). Having this info updated in one source document would also be <br />valuable. <br />The proposal fee can be prorated to the existing TIF districts as an administrative expense. Staff <br />believes this is a good investment of our TIF resources and recommends the Council approve the <br />Ehlers’ proposal for updating the TIF Management Plan as presented.