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l <br />Objectives <br />Based on these issues, along with the analysis of the impact of <br />tax increment financing activity in Ramsey County, the following <br />objectives are put forward as a way of addressing the need to <br />make tax increment financing more responsive to the County's <br />concerns. The objectives are: <br />1. To increase County involvement in the tax increment financing <br />process. <br />Currently, county boards and school districts roles in the <br />process are limited to review and comment on the creation of <br />TIF districts in their jurisdictions. Cities or local <br />authorities initiate and control TIF districts. However, <br />these districts are funded by counties, cities and school <br />districts, and impact the tax bases of all these taxing <br />authorities. Increased county and school board involvement <br />in the process would provide all jurisdictions with a more <br />active role in the decision - making process. <br />2. To manage the growth in the use of tax increment financing. <br />There has been rapid growth in the number of TIF districts <br />and the amount of tax increment dollars generated in Ramsey <br />County. Testimony before the Senate Tax Subcommittee on <br />Economic Development emphasized that certain criteria and <br />conditions of eligibility are vague or subjective. For <br />example, the "but for" test is subject to a variety of <br />interpretations and the blight criteria used to establish <br />redevelopment districts is subjective. Clarification of <br />these, and other, criteria and conditions of eligibility used <br />to create TIF districts would retain tax increment financing <br />as a tool while managing its use and limiting its growth. <br />3. To limit the impact of tax increment financing on the <br />County's tax base. <br />Tax increment financing districts are capturing larger <br />proportions of the County's tax base each year. This <br />phenomenon is closely related to the rapid growth in the <br />level of TIF activity. This issue was also raised during <br />testimony before the Senate Tax Subcommittee and several ways <br />of addressing this issue were suggested. One method is to <br />place a cap on the amount of tax base captured by TIF <br />districts. The existing practice of pooling tax increment <br />financing districts also impacts the County's tax base <br />because the excess tax increments are used for other <br />activities than paying off debt and decertifying the original <br />district and bringing it back on the tax rolls. Placing a <br />cap on the amount of tax base captured and restricting <br />pooling will help limit the impact of tax increment financing <br />on the County's tax base. <br />Page 92 <br />