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Summa f Tax Increment Vu=no*n Bill March 27, 1989 1 3 age 5 PRESlENT'IAA' The increments generated by a district frequently exceed the original pro "ections, of increment revenues and the Ispending commitments that were envisioned at the time the district, was, created. These moneys can be spent acu*vitles VAlthin the strict at, any time and (2) if the district was certified after August 1, 1982 on new activities, M' the project area at any time. It may hem ary, however, to, modify the tax increment irmancM",g, plan if the types, of activity M*volve Aemplated or the expenditure %Nill occur outside, of the original hound es of the project, are (for pest -1982 districts). The geographic area of pre-1982 districts can no longer be enlarged, so " ,aements from those,, districts must be explended Within the district (project area for pre-1979 projects). 'Through the use of large project areas, and broad TIF plans, cities = spend surplus increments on acti%ities geographicl distant from and functionally unrelated, to the developments that generated the increments. This A I be done through one large project area (a master pr Ject), overlapping project areas Or Other configurations. This use I increment. collected in one area M* another area is Commonly referred to as increment "pooling and can be, done to refmance pre"*o issued ssued, bon& (for which, currently pledged increments are insufficient to pay) or, to Finance new activities. .0 a ! Iii r. I III I 01 4 .. M a .. a Second, the b,iU limits expenditure, of mcrements. for act*Mfies M the district to activities vi , ties for which binding ]c calm, mitments, have been made Withi, lour years afterapproval of district. Any additional revenues (other tha a 01 the 1,5 'percent Which may district) must be used to play off these obligations and de- certify the district.