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Mounds View EDA May 22, 2006 Regular Meeting Page 4 130 Director Ericson stated with an annual reduction of $16 for a median property owner, it would 131 result in a 10 percent reduction across the board and the City would give up $1.2 million of 132 increment. He stated he would like to get a sense whether the EDA supports maintaining TIF at 133 the present projection or taking action to possibly decrease it. 134 135 Commissioner Flaherty stated his preference is to maximize the value of the district, noting three 136 districts are in play that pre-date the 1992 TIF laws so the EDA has a lot of latitude with those 137 three districts when compared to District 5 for Medtronic. He noted with the first three districts, 138 the increment can be used City-wide. The EDA has identified $37 million in priority projects so 139 all increment will be needed. He stated he thinks that would be the most prudent route. 140 141 Vice President Stigney stated it is time to owe something to the residents to close out SYSCO 142 District #3, which would reduce TIF captured by $2.1 million and result in a net effect to reduce 143 taxes to each homeowner by $32 annually. He stated that is the least the EDA can do 144 considering the residents have shouldered the TIF districts all these years. He stated the EDA 145 needs to nail down the expenditures and stated the County Road 10 project needs to be reviewed 146 with a “fine toothed comb.” He stated Scenario 2 to decertify SYSCO is sensible and would 147 benefit taxpayers. 148 149 Commissioner Gunn asked what are the alternatives to pay for the County Road 10 project if the 150 EDA decertifies the Districts and lessens the amount of increment available. She noted that the 151 City would have to go for bonding and asked who bears the burden to pay for those bonds, noting 152 it is the citizens. She asked where does the balance comes in. 153 154 Commissioner Thomas stated the balance is that it is all the same funds and comes from the same 155 pocket, the taxpayer. She stated her support of the suggestion by Vice President Stigney for 156 Option 3 because she would be satisfied with decertifying to reduce some of it. She pointed out 157 that the EDA was always prepared for and understanding that a project the size of County Road 158 10 would require the City going out for a bond. She stated the shifting of tax dollars to “hide” 159 things does not change anything and by decertifying some of the Districts, the EDA can improve 160 the tax picture. She stated she understands the desire to maximize the increment but you also 161 have to understand that results in taking from something, such as from the school district. She 162 stated the EDA needs to keep in mind the overall tax picture, including the County and School 163 District taxes. She noted that Election B will help with the overall tax picture and she supports 164 putting the projects back onto the tax rolls. 165 166 Commissioner Flaherty stated Commissioner Gunn raised a good point about where is the 167 balancing act. He stated he would hate to put $32 in resident’s left pocket while taking $50 out 168 of their right pocket. He noted that if additional dollars are needed for a project, it will come 169 from the tax payers. Commissioner Flaherty stated he supports keeping the three early Districts 170 because the increment can be used City-wide. 171