08-24-1988 Council Agenda - Laserfiche WebLink

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Resolution Board of leamsery. Coun 4 Commissioners Presented By Commissioner Schaber Attention: Date September 13, 1982 No. 82 -734 Page Two - continued making negotiated recoupment either a total or partial requirement for every tax increment project. Starting with the premise that the municipality should eventually recoup all or part of its subsidy, with the timing and amount of recoupment determined by a project's profitability, a more selective use of tax increment financing would occur. The recoupment plan could include alternatives such as repayment to the city very quickly or only when and if the project is sold; municipally retained ownership of the land and recouping expenses through lease arrangements; or the developer allowing the municipality to be partial owners of the development. Municipalities are encouraged to develop tax increment plans as part of their capital improvement planning and budgeting processes to insure that their goals are accomplished in a systematic way. Since a municipality's capacity to carry bonded debt is limited, so is its ability to use tax increment financing. As part of its debt management process, the munici- pality should decide what portion of its bonded debt it wishes to allocate to tax increment bonds. That portion should then be tentatively allocated to various activities deemed appropriate recipients of tax increment resources. Resulting development projects could then be considered on how they relate to the previously identified needs of the municipality. P ROBERT J. ORTH, Chai man c. ZeZz- rt,;,r ra,.,.h _ rr,n »t„ v,,,,, d