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City of Mounds View Staff Report <br /> June 2, 1999 <br /> Page 2 <br /> amount of funds. Any amount of TIF funds actually received over and above the <br /> allocated amount of funds would then be returned to Ramsey County for distribution to <br /> the county, school district and the city instead of going into the TIF pool. Based on the <br /> above projections, if the City Council/EDA allocated$235,000 to discretionary <br /> projects, the range of funds returned to the County would be $0 to$685,000 depending <br /> on what year it was. The City Council/EDA could also approve pay-as-you-go TIF <br /> assistance to assist specific projects within existing TIF districts. <br /> 3. Return all tax increments not necessary for debt service,pay-as-you-go obligations and <br /> administrative costs to the County. Under this scenario, the City Council/EDA <br /> determines that tax increment financing is no longer appropriate for funding new <br /> projects in Mounds View. Existing obligations and associated administrative costs <br /> would be paid off and existing tax increment districts would be decertified when <br /> financially feasible. Existing discretionary projects such as the housing replacement <br /> program, business loan program, and Highway 10 improvements would be eliminated <br /> or funded from other funding sources. Any amount of TIF funds actually received over <br /> and above that which is necessary to meet existing obligations and associated <br /> administrative costs would be returned to Ramsey County for distribution to the <br /> county, school district, and the city.No new pay-as-you-go assistance would be <br /> approved. <br /> Attached for your information is a summary of the changes which the legislature made to the tax <br /> increment financing law and to the tax class rates. The reduction in tax class rates will reduce <br /> taxes collected and tax increments received. <br /> Requested Action: <br /> Discuss general options regarding how tax increment financing should be used in Mounds View <br /> in the future. <br /> 11? I <br /> Rick Jopke, Com unity Development Director <br /> N:\DATA\USERS\RICKJO\SHARE\6199TIF.RPT <br />