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this pool each year. Arden Hills and Maplewood also are net contributors to the pool. The intent of the law is to provide a more equitable distribution of tax base among metro cities. With respect to redevelopment and the creation of TIF districts, the City must elect whether the fiscal disparities 'contribution' is to be made within the TIF district from new tax value, or outside the district with citywide tax value. The City has traditionally paid the fiscal disparities within the district itself. Transferring this regional tax pool obligation outside the TIF district would provide more money for the project, but it would increase property taxes for all other properties in the City. The impact would vary depending on the size of the project. In effect, the policy decision becomes a 2-choice option. 1) Paying the fiscal disparities from inside the TIF district, generates fewer dollars for redevelopment, but does not create additional property tax burden for existing taxpayers. 2) Paying fiscal disparities from outside the TIF district, generates more dollars for redevelopment, but adds property tax burden to existing taxpayers. Policy #5: Use of Tax Increment Financing Although the City has issued G.O. TIF Bonds in the past, since 1994 the City has limited its use of TIF to 10-year pay-as-you-go agreements. With pay-as-you-go, the City agrees to turn over portions of the new captured increment to the developer up to a certain amount. Under this arrangement, it is the developer that bears the rislc that the captured increment may fall short of projections — not the City. By contrast if the City issues TIF G.O. Bonds, the rislc of tax increment shortfalls shifts to the City. With regard to Twin Lalces, some development scenarios call for the capture and use of tax increment revenues in excess of $50 million. By contrast, since 1982 when Roseville first began using TIF, it has captured a cumulative total of $86 million. The potential size and magnitude of facilitating redevelopment in Twin Lalces is on a much larger scale than the City has previously seen. While the potential use of TIF in Twin Lalces is relatively large, so are the benefits that are derived. The Council is advised to consider whether it's prepared to use TIF to this extent. It's worth noting that the use of TIF is highly scrutinized by State regulatory agencies, the State Legislature, and the general public, and should be used only after careful consideration. With regard to the potential use of TIF, the City should reflect upon the current TIF policies and generally accepted 'best practices'. The City's current TIF policies were adopted in the mid `1990's and may not necessarily reflect the current redevelopment realities being faced by the City. A copy of the City's current TIF Policy is included in Attachment B. Given the broad applicability of the City's TIF policies, the Council should review a[I of the TIF policies in a comprehensive manner. Policy #6: Funding for Twin Lakes Parkway An earlier Twin Lalces proforma calls for the construction of Twin Lalces Parlcway at a cost of $8-12 million including right-of-way acquisition, environmental cleanup, landscaping, and related costs. Funding this parlcway outside of the project area would require some form of borrowing, with an identifiable funding source to repay the debt. The City could assess the benefiting properties as allowed under the City's Assessment Policy. The City's MSA and �: �