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II. 1/Vhat are the advantages and disadvantages issuing debt to be repaid <br />from TI vs. using a levy? <br />A. Advantages/Positives <br />1. Certainty of funds <br />2. Low interest rates <br />3. Avoid levy in early years (2004 - ?) <br />4. Encourage program development because of availability of <br />funds <br />B. Disadvantages/Negatives <br />1. Limitation on amount; levy raises substantially more <br />revenues. <br />2. Unnecessary interest cost; 2+ years before available <br />revenues <br />3. Extend TIF District decertification date thus causing higher <br />levy in future years for all taxing jurisdictions. <br />4. Programs should be initiated on a cash flow basis <br />5. A levy offers broader options for program development; TI <br />revenues have numerous restrictions and require annual <br />reporting to OSA. <br />II. Compromise Proposal <br />A. DoI.A&B <br />B. Do levy for 2004 and 2005 <br />C. Determine if TI revenues available in 2006 should reduce levy <br />amounts or if the limitation or use of TI revenues will prevent or <br />inhibit HRA programs. <br />G:\WPDATA\R\ROSEVILLE\09\COR\WELSCH BENNET JRC 02.DOC <br />UV i cto ri a\C om m Dev\H RA\TI F#12-H RA(J RC 07180 3 ). d oc <br />Page 2 <br />