04-21-1997 WS - Laserfiche WebLink

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Item No. 2. Staff Report No. 97- 2b54 WS Meeting Date: Type of Business: WK: Work Session;PH:Public Hearing; CA: Consent Agenda;CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and members of the City Council From: Bruce A. Kessel, Finance Director Item Title/Subject: TIF projections Date of Report: April 18, 1997 The City has three TIF Districts which are pooled. Generally speaking, this means that monies generated in one district can be used for expenditures in another district. Attached is a TIF Summary of Available Cash which summarizes the supporting schedules. For 1996 and 1997, there is outstanding debt on refunded(refinanced)bonds with offsetting cash that is being held in an escrow account with a trust department. For purposes of this projection, it was assumed that the market value,property classification, and tax capacity rates would be frozen at the amounts used for calculating the taxes payable in 1997. Pay as you go obligations were calculated using 1997 property tax information; under these types of obligations, any adjustments in property taxes paid will adjust the amounts owed under these • obligations. The schedules reflect the existing outstanding bonded debt for the TIF Districts. In addition, we factored in$120,000 of administrative costs per year (the 1997 EDA budget) plus the EDA proposed outlays on the attached schedule for 1997 through 2004, plus $3.3 million for renovation of the Bel Rae ballroom. As can be seen on the attached schedule, there would be approximately $1.7 million of available increment at the end of 1997 and by the year 2006, the available increment would increase to approximately $3.7 million. In the years 2007 through 2015, the projection does not factor in any proposed outlays other than $120,000 in administrative costs and any existing pay as you go obligations and bonded debt. Based upon these assumptions, by the year 2015, the Districts would have an available increment of approximately $26.4 million. As we proceed in long term planning for the TIF funds, we will need to identify reasonable and realistic estimates for future outlays, and periodically adjust TIF budgets as needed. Projections can then be updated and the Council will have to determine how to best use any increment that is in excess of projected needs. This could be decertifying districts or returning some of the increment back to the County for redistribution to the three largest taxing authorities: the County, School District and City. •