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September 11,2012 Page 3 of 6 5 Ayes,0 Nays-Motion Carried Public Hearing Public Hearing None. Council Business Council Business 1. Call for Public 1. Call for Public Hearing on Proposed Modification to the Development Program Hearing on Proposed for Development District No. 1; the Proposed Adoption of a Modification to Tax Mfii the Developmentodicaton Program Increment Financing District No. 8. Report No. 12-221. for Development District No. 1;the City of Manager Lotter stated information was sent totheCouncil ounc regardingthis matter. He noted Proposed Adoption g Directora Modification to Tax Femelius would be providing the Council with a brief report this evening. Increment Financing Director of Community Development Femelius stated as part of the annual Tax Increment Financing District No.8.Report program analysis,the City's public finance advisor(Ehlers)alerted the City about an opportunity to adjust the No.12 221' budgets for certain TIF districts in order to maximize the amount of increment that can be pooled for New Brighton Exchange. He noted TIF District 8 was established in 1995 and is set to expire at the end of this year. He commented the proposed budget amendment to TIF District 8(Rush lake Business Park)would generate more tax increment than the current TIF Budget reflects. The reason for this is the development of the Hilton Homewood Suites at the corner of Old Highway 8 and Highway 96. It is estimated the district will generate approximately$363,000 of excess TIF. All of this increment could be made available for pooling in NBE. If the budget was not amended,this excess would be returned to the County and the City would receive about 1/3 of it back. Director of Community Development Femelius then discussed the proposed changes for TIF District 19. He noted this district was certified in 1992 and expires on December 31,2019 and all underlying obligations have been paid. For this reason,the district should be decertified. Staff recommended the Council establish a public hearing date for November 13,2012 and direct staff to prepare a resolution for consideration at a future meeting to decertify TIF District 19. Councilmember Samuelson asked if there was anything Mark Ruff from Ehlers&Associates would like to add to this report. Mark Rule Ehlers commented the surplus could not be used for City operations,but instead for tax increment eligible costs. The funds could be used to assist with the New Brighton Exchange project,which would minimize future liabilities. Councilmember Burg was pleased that a positive cash flow of increment would be assisting with future expenses for the New Brighton Exchange. She commented the next budget cycle would also have an increased tax base by decertifying'1'11�District 19. City Manager Lotter indicated amending the budget would limit the increment dollars to be used only for TIF expenses. If the Council chose to not amend the budget these funds would be redistributed with the City receiving approximately$100,000 that could be used at the Council's discretion. He commented there would be several other III-Districts decertifying in the next few years. Councilmember Samuelson requested further clarification on how the TIF funds could be used. Mr.Ruff provided further clarification. Motion by Councilmember Jacobsen,seconded by Councilmember Samuelson to establish November 13,2012 as the date to conduct a public hearing to consider proposed modifications to Development District No.1;Tax Increment Financing District No.8;and direct staff to prepare a resolution for consideration at a future meeting to decertify TIF District 19. 5 Ayes,0 Nays-Motion Carried 2.Consideration of 2. Consideration of Resolution Adopting the Proposed Tax Levy for Taxes Payable in 2013 Resolution adopting the Proand Settingthe Council MeetingDate for the 2013 Budget Discussion with Public Comment Taosed xes Levy for �$ Taxes Payable in 2013 and and the Determination of the Final 2013 Tax Levies Meeting. Report No. 12-222. Setting the Council Meeting Date for the 2013