03-26-1998 - Laserfiche WebLink

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City of Mounds View Staff Report • To: Honorable Mayor and Members of the City Council From: Bruce A. Kessel, Finance Director Item Title/Subject: Status of TIF Cash Reserves Date of Report: March 5, 1998 Attached is a summary of the TIF District's projected cash balances with supporting schedules for the three TIF district. It should be noted that the largest TIF outlays (Community Center, Housing programs, Business Loans, Highway 10 Redevelopment, and administrative costs) for 1997 through 2015 have been charged to District 1 for purposes of these projections (See Attachment B-2). Budgets were prepared and approved for these items through the year 2006. Because of the changes in the property tax system and a larger than originally projected community center, the attached projections were lowered for the outlays for the other items through the year 2006. Outlays were also extended through the year 2015 to provide a more realistic picture for the overall TIF plan. This results in a projected deficit balance in the years 2002 through part of 2006. It should be noted that District 1 shows a deficit while District 2 & 3 have surpluses (Attachment A). Since the Districts are pooled, we will be allocating expenditures to all three districts as they are incurred, but for planning purposes, it was easier to show the expenditures in one district. It should also be noted that for planning purposes, I reduced the tax capacity values by $230,000 • in 1999 and in 2000 in anticipation of changes in the state's formula for commercial, industrial and apartment properties. This is the amount that our tax capacity values decreased in 1998. Presently, we do not know what the changes will be in the property tax system in future years. We will monitor legislative changes in order to estimate the impact on our TIF districts. • •