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<br />To: <br />From: <br />CC: <br /> <br />Kurt Ulrich, City Administrator <br />Sean M.Sullivan, Economic Development Coordinator <br />Diana Lund, Finance Officer; Amber Miller, Community Development Director <br /> <br />IJ <br /> <br />City of .~ <br />RAMSEY <br /> <br />Memo <br /> <br />Date: February 23,2009 <br /> <br />RE: Potential Decertification of TIF District Nos. 1,2,4, and 10. <br /> <br />TIF Districts 1,2,4 and 10 are proposed to be decertified from 2011-2014. In light of the <br />current budget forecast it would be prudent to evaluate the status of these dis~icts and see if they <br />could be decertified early. Generally speaking, TIF districts allow the city to capture the tax <br />dollars normally levied by the Anoka County and the School District in addition to the Ramsey <br />portion to fund eligible expenses within each TIF and Development District. Districts that have <br />completed budgeted activities need to be decertified or have their budgets amended to reflect <br />additional expenditures. <br /> <br />Financed activities within TIf Districts 1 and 4 could be fully paid by the end of2009. <br />Decertifying these districts in 2009 would result in approximately$474,312 in general fund tax <br />revenue for 2010. Development and redevelopment activities in theses districts that were <br />identified in the TIF Pl~ are complete and Staff has not identified additional projects. At this <br />point it would be necessary to decertify the districts or amend the budgets for future. <br />expenditures. Fund balances for decertified districts will be sent back to Anoka County for <br />redistribution. Staff recommends decertifying TIF District Nos. 1 and 4. <br /> <br />TIF Districts Nos. 10 and 2 are set to be deceliified in 2012 and 2013. Each district has <br />significant outstanding obligations that make decertifying the districts fiscally impossible for <br />2009. TIF District 2 is an active redevelopment district that has outstanding bonds, ongoing <br />redevelopment activities, and street projects. This district could potentially be decertified a year <br />early and it should be revisited in 2012. TIP District No. 10 has financial obligations that run for <br />the full duration of the district (2013). <br /> <br />Attached are the Cash Flows for each of the aforementioned TIF Districts. In addition to the <br />Cash Flows, a calculation showing the approximation of what the 2010 general levy impact is for <br />the two districts proposed to be decertified. Staff recommends decertifying TIF Districts Nos. 1 <br />and 4 due to the completion of the budgeted TIF eligible activities and to help solve for the 2010 <br />budget deficit. <br /> <br />.f;#.- <br />