CC PACKET 06041996 - Laserfiche WebLink

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10 Offt—U11VE SIIIVIIVIARY to the five-year spending restriction that is in the law for post-1990 districts. Most • tax increments collected from a post-1990 district must be spent on activities for which bonds have been issued or binding legal commitments have been made within five years after the district's approval. To prevent cities from continuing to approve amendments for increased spending,this option could be combined with the option that prohibits future amendments to increase TIF spending for general public improvements. Finally,the Legislature could require that future tax increment-;from all are-Lg90 districts be used to pay outstanding bonds or contractual obligations entere into by some date in the near future. This could be similar to limitations already ap- proved by the Legislature for pre-1979 districts. In 1988,the Legislature required that all tax increments collected from pre-1979 districts after April 1,2001 be used to retire bonds that were issued before April 1, 1990. By law,cities must decertify pre-1979 districts as soon as those bonds are retired. The Legislature could re- quire that all tax increments received after April 1,2001 (or some other date)from tax increment districts created between 1979 and 1990 be used to retire bonds is- sued by April 1, 1996(or some other date). This option is more restrictive than the prior option because it could limit the ability of some cities to complete initial projects identified in approved TIF plans. For instance, it is possible that weak market conditions or failures on the part of a developer have prevented some cities from issuing bonds for projects in the original TIF plan. r . rider g 1 ,the RevNue Department' c with nforceme t of the com quire or g districts,bu ' is not c n y enforemg pro- io ause ted e D artme en a Legis TIF rcem t onsib. . . ' to Audi ' ffrce in 1 e o t of a co e re ui nts mained with the Reve nt We co that: • e gis a should i r whether the De r to to, ' ice sh d be nsible for en f rcing e sing 'strict inc requiremen . e Legis could twin the rc sponsibilities with the Re enue De- e ' d p vide ding f r function or it could transfer the on e S udi 's c d nso . other TIF enfo ent sponsi- b s. ve ,they Audit s Office d mo i r complian with theinto e q eats as nd its other TIF audit and compliance spon- sibilitie and ref r any violati ns to Revenue Department for enforcem nt. Th Legis ay wto cl rts intentio related to the use of TIF r gov- e ent-1 uil ' s. a Act limi 4h use of TIF r buildings g emme t-o ed d p ' y to co du gove a business. e ie have ed in me is t sup rt de elop ent pro'ects hich 1 e to go a ent ag nci s. th one d, evelo rs do of al ays kn o it to will be, they of re lease go mment en 'es. othe d,it' to a that o ce space for government agencies would of • develop in the ence f TIF.