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Councilmember Riley asked why special legislation would be unnecessary if the base value. is <br />reset. <br />Ms. Kvilvang stated that can be fixed through other means. <br />Councilmember Riley requested clarification regarding funding that was to be returned to the <br />City, which was approved when the TIF district was established. <br />Finance Director Lund stated that was the original TIF plan that was approved by the City <br />Council at the time. <br />Councilmember Riley asked why the City needs to figure out ways to repay money that has <br />already been spent. <br />Finance Director Lund stated the repayment figure is inclusive of all costs, and there is no <br />funding mechanism for roads construction. She added a large amount of funding has come out <br />of existing TIF districts, which could be used for roads construction, and the City would have it <br />in pocket and be able to pay it out of existing funds. <br />Mayor Strommen stated the intention was for the City to get reimbursed with the proceeds of <br />future land sales, and that can be changed, but the intent was to replenish those funds and <br />maintain their integrity. <br />City Administrator Ulrich asked whether the City has any outstanding utility loans. <br />Finance Director Lund confirmed this, and added there was also money withdrawn from the <br />Parks Trust Fund, which is included in the analysis. She added TIF funds cannot be used to <br />repay anything related to parks. <br />City Administrator Ulrich stated that funding would need to be repaid, as it was collected for use <br />on utilities. <br />Finance Director Lund stated the discussion would revolve around replenishing TIF funding so <br />the City can focus on future development. <br />Councilmember Backous thanked City staff and Ms. Kvilvang for their presentation, and for the <br />good news that has been provided. He added he feels much better than he did after their last <br />presentation. He noted the analysis assumes that TIF could be paid inside the District, and <br />requested clarification regarding fiscal disparities, as well as the ramifications of payments both <br />inside and outside the District. <br />Ms. Kvilvang stated there is more tax increment generated if it is paid outside the District, but <br />taxpayers would pick up the difference. She added fiscal disparity is not captured if it is paid <br />inside the District, so there is no impact on taxpayers. She noted the City is currently paying <br />outside the District. <br />City Council Work Session / January 21, 2014 <br />Page 3 of 11 <br />