01-24-1990 Council Agenda - Laserfiche WebLink

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Strategies The following strategies were developed to address the above objectives. Table B illustrates what strategies address each objective. The strategies include: 1. Establish a Ramsey County Tax Increment Authority. This would allow the County to create its own TIF districts. In so doing, the County would be able to play a major role in the creation, management and cost implications of tax increment financing. Although this strategy could help Ramsey County become involved in economic development, it would not address the County's objectives of managing the growth of TIF or limiting its impact on the tax base. In addition, because Ramsey County is almost fully incorporated, this strategy could be difficult to implement. 2. Establish a joint powers review board to serve as the TIF authority with county, school district and city representatives. This would provide for county and school district representation in the TIF decision - making process. 3. Provide counties and school districts with the power to veto the creation of TIF districts. This action would give counties and school districts direct input into the creation of TIF districts. 4. Place a cap on the percent of the tax base captured by TIF using a formula applied to each municipality including factors such as each municipality's population and tax base. This will limit TIF activity and provide control over the escalating growth. 5. Place a cap on the percent of the tax base captured by TIF. The cap would be set at a fixed percentage like Wisconsin's five percent cap. Communities already over the fixed cap would have to either limit new TIF activity and /or decertify existing TIF districts. 6. Decrease the maximum allowable time a TIF district may exist in order to allow an earlier return to the tax rolls. 7. Develop specific limits on pooling and the use of excess tax increments, including clarifying the legislative intent of returning excess tax increments to counties and school districts. This action would limit the impact of TIF on the tax bases of counties and permit both counties and school districts to benefit from TIF as soon as possible. 8. Eliminate the use of pooling altogether and require that excess tax increments, up to the amount required to retire debt, be placed into a debt service /escrow account to be used only for retiring the district's debt. This will have the same implications as #7. Page 93