6B, Public Hearing Proposed TIF District Resolution 2010-081, -082 & -083

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auditor. If a renewal and renovation district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria ofM.S., Section 4G9.174, Subd. IOa, must be documented in writing and retained. The rec{uiremer�ts ofM,S., Section 469.175, Subd. 4b, do not apply if (1 } the only modificatio� is elimination of parcel(s) from the District and (2}{A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net t� capacity of those parcel(s) in the District's original net tax capacity or {B) the City agrees that, notwithstanding M. S., Section 469.177, Subd. 1, the original net tax capacity will be reduced hy no more than the current net tax capacity ot� the parcel(s} eliminated frflm the District. The City must notify the Caunty Audi�or af any modificatton to the District. Modifications to the District in the form af a budget modif cation or an expansion of the boundaries will be recorded in the TIF Plar►, Subsection 2-18. Adrninistrati�e Expenses In accordance with M. S., Section 469.174, Subd. I4, adrziinistrative expenses means all expenditures of the City, other than: 1. Atnounts paid for the purchase af land; 2. Amounts paid to contractors or others providing materials and services, incl�ding architectural and engineering ser�ices, directly connected with the physical development of the real property in the District; 3. Relacation benefits paid to or services provided for persans residing or businesses located in ihe District; or 4. Amounts used to pay principal or interest o�, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Azir►ounts used to pay other �inancial ob�igations to the extent those obligations were used to finance costs described in clauses {1 } to (3). For districts for which certification was requested after July 31, 2001, no #ax increment may be used to pay au#horized and doc�mented ad�ninistrative expenses far District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the to�al tax incremenis, as defined in M.S., Section 469.174, Subd. 25, clause (1}, from the District, whiche�er is less. Fursuant to M.S., Section 4b9.176, Subd. 4h, taa� increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percen#age limi�s ofM.S., Section 469.176, �`ubd. 3. The county may require payment ofthose expenses by Febnaary 15 ofthe year foiIowing the year the expenses were incurred. Pursuant to M.S., Section 469. I77, Subd. 11, the County Treasurer shall deduct an arr�ount {currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in. the state general ftind to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing infarmation and the cost of cxamining and anditi�g au#horities' use of tax increment fnancing. This amount may be adjusted annually by the Commissioner af Aevenue. Subsection 2-19. Limifatipn af Increment The tax increrr�ent pledg�d to the payment qFbonds and interest thereon rr�ay be discharged and the District may be ter�ninated if sufficient funds have been irrevocably deposited in the debt service fund ar other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. City of Arden Wills Tax Incre�nent Financing Plan for TIF District No. 4 2-10