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CONSENT ITEM — 7E 'It EN HILLS MEMORANDUM DATE: November 28, 2022 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: Resolution 2022-052 Decertifying TIF Renewal and Renovation District 1-4, Presbyterian Homes Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motion(s) to approve, table or deny the following: • Resolution 2022-052 Decertifying Tax Increment Financing Renewal and Renovation District No. 1-4, Presbyterian Homes. • Retain available cash for Pooling for Renewal and Renovation All items need a simple majority for action unless otherwise noted. Background TIF District 1-4 (Pres Homes) is a renewal and renovation district that was created in 2010. On August 1, 2022, the last payment was made on the TIF Note to Presbyterian Homes, therefore the City is required to decertify the TIF district per statute (no outstanding obligations of the District). The District is being decertified seven (7) years in advance of its legal term due to the aforementioned. The City has three (3) options available to them for the anticipated cash balance as previously discussed by the City Council at its November 21st work session. At that work session, Council directed Staff to proceed with Option #2. Option #2 allows the City to use approximately $393,000 for acquisition of blighted property or to make public infrastructure improvements that are needed to spur or in conjunction with redevelopment activities. The City could also develop a program where residential properties could utilize these funds as long as the met the criteria established in TIF law. Budget Impact The tax base for the City will be increased by the net capacity captured by the TIF District for taxes payable in 2023. This amounted to $367,689 for 2022. Page 1 of 2