11-14-2005 - Laserfiche WebLink

Home Browse Search

Mounds View EDA November 14, 2005 Regular Meeting Page 3 million during the life of the Districts including pay-as-you -go and SYSCO. How the EDA chooses to spend it is up to them. These funds would pay approximately $11 million in bonds. She explained they looked at issuing them in a two-year period to provide capacity in the bonding if there are other debt needs. She recommended that the City stay under $10 million in bonding. President Marty asked if they will end up with $15 million. Ms. Eldridge stated that is correct if the District goes the full duration. President Marty asked if, after payments, it would equal $11 million. Ms. Eldridge stated that would be true if the EDA bonded; $11 million in capital and $5 million in interest for bonding. President Marty stated the Council has talked about doing road projects City-wide and asked if some of the TIF could be applied to road reconstruction. Ms. Eldridge stated they contacted the City’s TIF legal counsel who indicated that is an eligible TIF use because these districts were established in the mid-1980s. Since that time, TIF regulations have become much more restrictive. Vice President Stigney asked if that is true for any streets. Ms. Eldridge stated that is true of any streets within the larger redevelopment, which is coterminus with the City’s boundaries. Vice President Stigney asked about redoing the Districts to capitalize on fiscal disparities. Ms. Eldridge explained that now the districts are under A Election, which captures increment outside the boundaries and raises the tax rate. The City has the opportunity to change it to B Election, which reduces the tax increment for the life of the District by the fiscal disparities portion. That would give a cumulative value of $9 million and the City would be able to bond about $5.7 million. On the flip side, if that had been done by the end of this year, the City’s tax capacity rate for truth in taxation was 43.74 and would have been down to 40.748, all other things being equal. Vice President Stigney asked what it would cost to do that. Ms. Eldridge stated if it would only require a resolution, the cost would be minimal. However, she will have to check to determine if a public hearing process is needed. She explained that each District would have to be looked at individually. Commissioner Flaherty asked if it makes sense to do that at this time. Commissioner Thomas stated it may make sense to do that with District #1 but District #3 expires in two to three years. Vice President Stigney asked Ms. Eldridge to provide the Election information on District #1 to City Administrator Ulrich.