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0 <br />2 <br />w <br />2 <br />To: Joel Hanson <br />From: Rusty Fifield/Shelly Eldridge <br />Subject: TIF 1 -1 and 1 -2 <br />Date: November 14, 2000 <br />EHLERS <br />& ASSOCIATES INC <br />This memo describes the steps for closing out and decertifying Tax Increment Financing District <br />No. 1 -1 and Tax Increment Financing District No. 1 -2. These findings and recommendations are <br />based on a review of plan documents and financial records. The recommendations reflect current <br />statutory requirements and policies of the State Auditor's Office (OSA). For reference, a map of <br />the TIF District and Development District boundaries is attached. <br />District 1 -1 <br />District 1 -1 was established by the City on July 22, 1987. Under applicable State Law, the City <br />could collect tax increment revenues from this district for the lesser of ten years for initial <br />approval or eight years of tax increments. With the first increment collection in July 1990, the <br />District 1 -1 expired on July 22, 1997. <br />Monies remaining in the fund for District 1 -1 can only be spent on activities and within budget <br />limitations of the Tax Increment Financing Plan in effect on July 22, 1997. Any unused tax <br />increment revenue must be returned to the County for distribution to relevant taxing jurisdictions. <br />At the end of 1999, the City reported a fund balance of $145,390. We recommend the following <br />uses of these monies: <br />Transfer out non - increment revenues. The fund contains $6,143 in interest income and <br />$35,364 in land sale proceeds. Under the statutory limitations governing this 1987 <br />district, these monies may be used for purposes other than those stated in the TIF Plan. <br />This $41,507 could be transferred to another fund, such as General Capital Improvements <br />(400) or Rice/Little Canada Road Development (440). <br />2. Reimburse land acquisition. The TIF Plan contains $295,029 in additional budget <br />authority for land acquisition. Under the 1996 Plan Modifications, authorizes the City to <br />acquire any parcel located within Development District No. I. The entire City falls <br />within the boundaries of the Development District. The City has acquire property to <br />encourage redevelopment in the Rice Street/Little Canada Road area. Parcels include <br />Guerin, Budget Power, and homes adjacent to Round Lake. Monies were transferred into <br />TIF 3 -2 on a temporary basis to facilitate this acquisition. We recommend transferring the <br />$103,883 into the fund for TIF 3 -2 and then restoring monies to Fund #440 for the <br />L E A D E R S I N P U B L I C F I N A N C E <br />t <br />3060 Centre Pointe Drive <br />Roseville, MN 55113 -1105 <br />Page 48 <br />651.6973506 fax 651.697.8555 <br />rusty@ehlers- inc.com <br />