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Mounds View EDA May 22, 2006 Regular Meeting Page 5 172 President Marty stated Ehlers & Associates are the City’s TIF advisors and indicated the EDA 173 could get over $10 million immediately to start working on some of the projects right away. He 174 stated if the Districts went for 20-25 years he would look at it differently. The first District 175 expires in 2013, the next in 2014, and the last District in 2015. President Marty stated in the next 176 nine years the City can capture $14.3 million to be used in the City. 177 178 President Marty stated with Scenario 2 to decertify District #3, it will give back $32 annually to 179 taxpayers and give up $2.1 million of increment. With Election B it would change the fiscal 180 disparities and provide a reduction of $55 annually to taxpayers and the EDA would lose $6.3 181 million. He stated all in Mounds View realize the condition of the streets and infrastructure and 182 this increment can be used for the streets, which is a $50 million project. He referenced a portion 183 of the staff report, noting County Road 10 and the sound wall are not mentioned and he thinks 184 that will cost about $9 million. 185 186 President Marty stated it was mentioned by Commissioner Gunn that if the EDA decertifies, 187 $14.3 million is not enough to pay for many projects. If it is decertified, it means those projects, 188 dreams and plans will have to be taxed, bonded for, or they will not happen. He stated he would 189 like to maximize the increment and see how far the $14.3 million can be stretched. 190 191 President Marty stated until the Districts are decertified, the City gets all the TIF captured but if 192 the Districts are decertified then the funds go into the tax pool and the City of Mounds View 193 would only get about 33%. Out of this, the City would be saving the citizens $32 per year and 194 for that amount the City has to give up $2.1 million. President Marty stated he would like to use 195 as much of the increment on County Road 10 and road improvements to provide a direct benefit 196 instead of decertifying and then having to bond or tax for those projects. He stated his support 197 for Option 1. 198 199 Commissioner Thomas stated that is true to an extent but District 3 is done with its obligation in 200 three years and the EDA has to look beyond the City at the whole tax picture, including the 201 impact to Ramsey County who may have to increase taxes. She noted that the County and 202 School District will be raising the resident’s taxes so that $32 does mean something. 203 204 Vice President Stigney stated he agrees with Commissioner Thomas that whether paid directly or 205 decertified the funds come from residents. He noted the County and School District also tax for 206 the funds they need. He supported holding off on fiscal disparities until it is known how Option 207 2 will work out, which provides residents a tax deduction of $32 annually. He stated that with 208 bonding and the “balancing act” this only effects by $2.1 million and leaves $12.2 million for the 209 City to use. Before bonding, he stated he would suggest the expenditures be reviewed to see how 210 they line up. He noted there is a levy reduction fund so the City should be able to leave the taxes 211 with a zero increase. He stated again that residents should receive some benefit after handling 212 the burden of the tax increment districts for all these years. He stated the EDA does not need to 213