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Truth-in-Taxation Hearing and Regular City Council Meeting Monday, December 03, 2007 Page 10 Finance Director Chris Miller provided additional information, as previously re- quested by Councilmembers, and prior to the upcoming December 17, 2007 pub- lic hearing on possible extension of Tax Increment Financing (TIF) District #1. Mr. Miller's written report included Bond Counsel advised on uses of increments received from the District in 2008 and 2009 and specific prohibitions, based on current TIF laws and more restrictive uses allowable. Councilmember Roe noted that, as a policy issue, the City could be less restric- tive, or follow more restrictive rules. Discussion included uses anywhere within the City versus immediately adjacent to the District. Councilmember Ihlan sought the following additional information: 1) Clarification on whether we need to extend the length of the TIF District, or if not decertified, with it running until 2009, whether any action was needed. Mr. Miller clarified that the original TIF Plan was filed in 1982, with the District scheduled to terminate December 31, 2007, two years before it could have decertified. Mr. Miller noted that, if the City were to do noth- ing, there would be some procedural things to decertify, and action would be required if the Council desired to extend the District. Mr. Miller clari- fied that, in accordance with State law, when adopting a TIF Plana decer- tification date was stipulated, even though it could have run through 2009, the City, as it consistently did in the early years of TIF, seta decertifica- tion date before the required statutory decertification date. 2) If the City did nothing, how much money would come back in tax revenue to the General Fund. Mr. Miller estimated that aone-time $700,000 - $1 million would be re- turned upon decertification, since the District had performed better than originally anticipated. Mr. Miller noted that the monies were still gov- erned under the original Plan. 3) The additional tax money that is getting captured is tax money back in our tax base. Mr. Miller responded affirmatively, other than the one-time revenues of $700,000 - $1 million. Councilmember Ihlan noted that until the properties were back on line, they were not producing tax monies for the School District or County.