2013-01-02 CC Packet - Laserfiche WebLink

Home Browse Search

TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 1 -7 of the development agreement. The City may also reimburse itself for costs associated with the establishment of the TIF District, including the TIF Plan and the development agreement. 3.04.6 County Road Costs The proposed development will not substantially increase the use of county roads and necessitate the need to use tax increments to pay for county road improvements. 3.04.7 Bonded Indebtedness The City anticipates it may loan or advance money from its general fund or any other fund it has legal authority to use to finance qualifying TIF expenditures, such as costs of administering the TIF District. An interfund loan or advance is defined in the TIF Act as a bond or a qualifying obligation. Before money is transferred, advanced, or spent, the loan or advance shall be authorized by resolution of the City. For the loan or advance to be repaid with TIF revenues, an interfund loan agreement must be in place before any loans or advances are made. The terms and conditions for repayment of the loan must be in writing and include, at minimum, (i) the principal amount of the loan or advance, (ii) the interest rate to be charged, and (iii) its maximum term. The maximum rate of interest that can be charged is limited to the annual rate charged by the State Courts or by the Department of Revenue, whichever is greater. 3.04.8 Duration of TIF District The TIF Act allows tax increments to be collected from the TIF District for a period not to exceed eight (8) years from the date of receipt of the first tax increment. The City reserves the right to collect tax increments for this period to undertake eligible activities in the TIF District and the Development District. Under the current schedule for development, the first tax increment will be collected in 2015 (construction completed in 2013) creating the authority to collect tax increments through 2023. The City expects to request decertification of the TIF District after reimbursement of all eligible public costs and administrative expense but no later than after the final receipt of taxes payable in 2023. 3.04.9 Estimated Impact on Other Taxing Jurisdictions Exhibit III and IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The City anticipates minimal impact of the proposed development on city- provided services. A slight increase in water and sewer usage is expected. It is anticipated that there may be a slight but manageable increase in police and fire protection duties due to the development. 3.04.10 Prior Planned Improvements There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. The City will include this statement with the request for certification to the County Auditor. If building permits had been issued during this time period, then the County Auditor would increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. ADOPTED ( - 1 - 112) 8