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Memo <br />To: Kurt Ulrich — City Administrator <br />From: Stacie Kvilvang <br />Date: December 13, 2010 <br />Subject: Interfund Loan For TIF District 14 — Administrative Costs <br />The City may utilize up to ten (10) percent of the tax increment generated in TIF District 14 to pay <br />for administrative costs associated with establishing and administering the District over its term. <br />Administrative costs can include staff time along with legal, fiscal and planning consultant time. The <br />City has and will continue to expend funds for various administrative costs in TIF District 14. These <br />funds will be advanced to the District from TIF District 2 as needed. The reason for the advancement <br />to this District is that the first increments (cash) generated in the District will not occur until 2013. <br />State Statute requires that the City approve a resolution authorizing an internal (interfund) loan to the <br />respective TIF District and set the terms for reimbursement of the administrative costs to be repaid with <br />tax increments from the respective TIF District. Based upon this, the City will reimburse itself for the <br />above referenced costs in the principal amount not to exceed $500,000, together with interest at the <br />rate of 4% per annum, which is the statutory maximum for 2010. Payments will be made with <br />available tax increment on February 1 and August 1 of each year (beginning in 2013). <br />Please contact me at 651- 697 -8506 with any questions. <br />EHLERS <br />0 LEADERS IN PUBLIC FINANCE <br />3060 Centre Pointe Drive <br />Roseville, MN 55113 -1105 <br />Phone: 651 - 697 -8506 <br />Fax: 651 - 697 -8555 <br />skvilvang @ehlers- inc.com <br />