Agenda Packets - 1990/02/20 - Laserfiche WebLink

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�A�� r ae�ociation oF. metropolitan," municipalities February 6, 1990 TO: Member Cities L L E T I N FROM: Vern Peterson, Executive Director Roger Peterson, Director of Legislative Affairs RE: LEGISLATIVE PREVIEW/SESSION CONVENES FEBRUARY 12TH. TAX INCREMENT FINANCING (TIF) UNDER ATTACK: Contrary to earlier expectations, it appears that strong efforts will be made to further restrict the use of TIF and this could be one of the major 'hot' legislative items this session. The AMM policy position is that TIF ought not to be further restricted this session for a variety of good reasons including the following: A. It is working well and it is about the only economic development tool still available to cities. B. TIF is a tool to implement policy. The Legislature should examine the state economic development policy and then determine how TIF should be used to implement that policy. C. Many restrictive TIF amendments (see chart attached) were adopted in 1988 and 1989 and there is some evidence that the restrictions are starting to resolve the concerns raised by the Legislature. A Senate Research Report dated 7/26/89 demonstrated that the rate of growth of tax increment value has slowed significantly. D. As a result of studies underway, more information will be available for the 1991 session. For example: -More comprehensive TIF data will be available from the Department of Revenue beginning in 1991. -The Legislative auditor will be conducting comprehensive review of local economic development powers, policies, and tools in preparation for the 1991 session. -The Legislative Commission on Fiscal Policy has TIF as part of its work program. The members should be encouraged to work on TIF in preparation for the 1991 session. -1- - :i101 $12)) 227..fC68