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Item No. 7 <br /> Staff Report No. <br /> Meeting Date: 6/7/99 <br /> Type of Business: WK <br /> WK: Work Session;PH:Public Hearing; <br /> CA:Consent Agenda;EDAB:EDA Business <br /> City of Mounds View Staff Report <br /> To: Mayor and City Council Members <br /> From: Rick Jopke, Community Development Director <br /> Item Title/Subject: Discussion of Tax Increment Financing in Mounds View <br /> Date of Report: June 2, 1999 <br /> Background: <br /> An item is scheduled on the June 7, 1999 work session agenda to continue the discussion of tax <br /> increment financing in Mounds View. At previous work sessions staff has provided a general <br /> overview of the tax increment districts in Mounds View. At the June 7th work session staff <br /> would like to review options with the City Council to determine how the City should proceed <br /> with tax increment financing in the future. <br /> Discussion: <br /> To facilitate the discussion staff has identified three general options for City Council <br /> consideration. These include the following: <br /> 1. Continue the current practice. The City Council each year during the budget process <br /> would allocate all available tax increment funds (TIF)to general project areas. <br /> Currently funds are allocated to debt service,pay-as-you-go TIF obligations, <br /> administration costs, and discretionary projects. Discretionary projects have included <br /> housing programs such as the housing replacement program, the business loan <br /> program, Highway 10 redevelopment, and the Community Center project. Through this <br /> budget process a current year budget and a long term financial plan are adopted. The <br /> City Council/EDA review specific projects as they are presented and must approve <br /> resolutions and development assistance agreements as necessary separate from the <br /> budget process. The City Council/EDA/EDC may want to review and amend the City's <br /> current TIF policy, if necessary,to ensure that tax increment financing is used to meet <br /> current City goals. <br /> 2. Use current practice but set ceiling on the amount of funds which go into the TIF pool <br /> for use on discretionary projects. Any tax increments received above the ceiling <br /> amount would be returned to the County. Current projections indicate that there will be <br /> varying amounts of discretionary funds available through the year 2015 when the <br /> districts expire. The amounts vary from $235,000 to $920,000. The City <br /> Council/EDA could annually, during the budget process, determine what projects <br /> should be funded from the TIF pool in the upcoming year and allocate the necessary <br />