2013-01-02 CC Packet - Laserfiche WebLink

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TAX INCREMENT FINANCING (ECONOMIC DEVELOPMENT) DISTRICT NO. 1 -7 street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. SECTION 4.04 POOLING /5 -YEAR RULE At least 80% of the tax increments (net of administrative expenses) from this TIF District (the "In- District Percentage ") must be expended on activities within the TIF District, including payment on any bonds for which the proceeds were used to finance activities within the TIF District. Up to 20% of the tax increments from this TIF District may be used to finance activities outside the TIF District but within the Development District. Tax increments are considered to have been "spent" within the TIF District if such amounts are: • actually paid to a third party for activities performed within the TIF District within five years after certification of the district; • used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five -year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. • used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or • used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district. Beginning with the sixth year after certification of the TIF District, if the tax increments actually received by the City representing the In- District Percentage exceed the amounts considered "spent" within the TIF District, the excess must be used or set aside to pay or defease bonds (as described above) or to make payments under contracts (as described above). The TIF District must be decertified when the City has received tax increments representing the In- District Percentage in an amount sufficient to fully pay its in- district obligations (i.e., defease any bonds and /or fulfill all contractual obligations). It is anticipated that all tax increments collected in the TIF District will spent or obligated within this time period. Unless the TIF Plan is modified within this five -year period and additional expenditures are authorized, tax increments will only be used to pay for authorized redevelopment costs and administrative expenses. SECTION 4.05 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS The City will comply with the annual reporting requirements of State Law pursuant to the guidelines of the Office of the State Auditor. Under current law, the City must prepare and submit a report on the TIF district on or before August 1 of each year. The City must also annually publish in a newspaper of general circulation in the City an annual statement for each tax increment financing district. The reporting and disclosure requirements outlined in this section begin with the year the ADOPTED ( - 1 - 112) 10