Agenda Packets - 1998/12/07 - Laserfiche WebLink

Home Browse Search

B City of Mounds View Staff Report To: Chuck Whiting, City Clerk Administrator From: Bruce A. Kessel, Finance Director Item Title/Subject: Requested information on TIF Date of Report: November 20, 1998 1. TIF revenues associated with the Holiday gas station. For the year 1999, TIF revenues on the Holiday station property will be minimal since the date the project was completed was after the date used for determining pay 1999 property taxes. For the year 2000, the estimated captured tax increment is $20,444. If this property was not in the TIF district, 19% or$3,884.36 of the captured increment would be associated with the City of Mounds View's property tax levy. The method used to set property taxes is that cities set their levy and then a rate is calculated. Therefore, if this property was decertified, the amount raised by the City's property tax would not change,however, individual property tax owners would see a slight decrease in their property taxes. The average homeowner would see a$0.69 decrease in property taxes in 2000 if the Holiday store property was decertified. (NOTE: since this property is subject to fiscal disparities, the actual amount would decrease slightly.) 2. Projected increment from senior housing program Once the project is completed and on the property tax rolls, the estimated captured increment would be $62,600 and the City's share would be$11,900 or$2.11 per average residential property. 3. Decertifying individual properties At the end of 1998, the City will have approximately$6,765,000 in outstanding bonds. The bonds annual principal payments will be approximately$1,000,000 in 1999 and 2000 and increase to $1,350,000 in 2003 before they decrease to approximately $500,000 in 2004 and 2005. From a financial standpoint, it would be prudent to undertake a detailed analysis of the TIF districts prior to decertifying some or all of the parcels within the districts. Some items to be considered are: • Retire all or substantially all our outstanding debt; • Develop a plan that identifies detailed uses and projects available increment; • Develop a plan that identifies areas that could be decertified rather than a piece meal approach. It should be reiterated that for every $1 of TIF that is turned back to the County. only $0.19 is used to reduce the City's property tax rate.