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Mounds View EDA November 14, 2005 Regular Meeting Page 3 during the life of the Districts including pay-as-you-go and SYSCO. How the EDA chooses to 86 spend it is up to them. These funds would pay approximately $11 million in bonds. She 87 explained they looked at issuing them in a two-year period to provide capacity in the bonding if 88 there are other debt needs. She recommended that the City stay under $10 million in bonding a 89 year. 90 91 President Marty asked if they will end up with $15 million. Ms. Aldrich stated that is correct if 92 the District goes the full duration. 93 94 President Marty asked if, after payments, it would equal $11 million. Ms. Aldrich stated that 95 would be true if the EDA bonded; $11 million in capital and $5 million in interest for bonding. 96 97 President Marty stated the Council has talked about doing road projects City-wide and asked if 98 some of the TIF could be applied to road reconstruction. Ms. Aldrich stated they contacted the 99 City’s TIF legal counsel who indicated that is an eligible TIF use because these districts were 100 established in the mid-1980s. Since that time, TIF regulations have become much more 101 restrictive. 102 103 Vice President Stigney asked if that is true for any streets. Ms. Aldrich stated that is true of any 104 streets within the larger redevelopment, which is terminus with the City’s boundaries. 105 106 Vice President Stigney asked about redoing the Districts to capitalize on fiscal disparities. Ms. 107 Aldrich explained that now the districts are under A Election, which captures increment outside 108 the boundaries and raises the tax rate. The City has the opportunity to change it to B Election, 109 which reduces the tax increment for the life of the District by the fiscal disparities portion. That 110 would give a cumulative value of $9 million and the City would be able to bond about $5.7 111 million. On the flip side, if that had been done by the end of this year, the City’s tax capacity rate 112 for truth in taxation was 43.74 and would have been down to 40.748, all other things being equal. 113 114 Vice President Stigney asked what it would cost to do that. Ms. Aldrich stated if it would only 115 require a resolution, the cost would be minimal. However, she will have to check to determine if 116 a public hearing process is needed. She explained that each District would have to be looked at 117 individual. 118 119 Commissioner Flaherty asked if it makes sense to do that at this time. 120 121 Commissioner Thomas stated it may make sense to do that with District #1 but District #3 122 expires in two to three years. 123 124 Vice President Stigney asked Ms. Aldrich to provide the Election information on District #1 to 125 City Administrator Ulrich. 126 127