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REQUEST FOR COUNCIL ACTION Department Ap roval: � �� ! > Manager Reviewed Date: 11/26/O1 Item No.: r'� Agenda Section R�Y^v:t� ��.,^,v R w^vmm�n��^v,^,� Description: Understanding On Taa Increment District Decertification as per Department of Revenue Request Background On November 29, 2000, the City Council approved decertification of certain tax increment districts and parcels. Under the Minnesota State Statues, any decertifications must be approved by the Minnesota Department of Revenue. The approval process is to assure the State of Minnesota that any decertifications implemented by local governments wiil not require tne State to make up debt shortfalls. Since the (:ity has now defeased the remaining outstanding tax increment ciebt, there is no reason ror a shortfall in covering the debt service payments. However, since the State has established the procedure outlined in the attached letter, the City is required to provide a resolut�n to the Department of Revenue assuring that any future grant applications to cover tax increment shortfalls, would reflect an adjustment showing the "missed opportunity" of pooling tax increments from decertified districts. Financial Implications Approval of this resolution, will have no effect on the City's financial position since, the outstanding �,._. : _. a,.�� ..,, t,.,... a,.r ..,.,.a L[lli 1I1V1G1IlGlll UGVI lld5 UGG(1 UG1Gil5GU. Staff Recommendations Staff is recommending that the City Council approve the attached resolution. Council Action Motion to approve the attached resolution providing for any future tax increment debt coverage shortfall application to the State of Minnesota, would reflect an adjustment for the "missed opportunity" of pooling tax increments from decertified districts and parcels.