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The City is about average today versus similar cities in the use of TIF. Also shown are comparable cities' tax rates and bond ratings. <br /> Although this is a small sample of municipalities, the amount of TIF used by a City does not seem to correlate directly with a City's <br /> tax rate or bond rating. In conversations with rating agencies, we do know that market value growth is an important factor in <br /> maintaining New Brighton's AA bond rating. Redevelopment plays an important factor in market value growth. Following is a table <br /> which demonstrates the historical market value growth of the City of New Brighton. <br /> Taxable Percent Change <br /> Tax Payable Year Market Value From Prior Year <br /> Proposed 2012 S 1,737,100,500 -9.10% <br /> 2011 1,910,547,900 -4.70% <br /> 2010 2,005,697,200 -4.10% <br /> 2009 2,091,744,100 -1.10% <br /> 2008 2,115,568,700 4.40% <br /> 2007 2,026,064,4.00 7.30% <br /> 2006 1,888,235,800 9.00% <br /> 2005 1,732,531,300 <br /> Administrative Expenses <br /> Minnesota TIF law defines certain costs to administer and maintain the district as allowable costs that can be paid for from tax <br /> increment revenues.These generally include City staff time, legal expenses, financial advisory expenses and publication and reporting <br /> expenses. This allows a City to defray documented staff time that is most likely a General fund expense, such as Finance staff, <br /> Community Development staff, Assessing staff and Administration such as the City Manager. Time spent can be paid for from TIF <br /> revenues rather than general property tax or other revenues.The table on the next page shows the estimated amount of increment <br /> remaining in the City's TIF districts for payable 2011 after district obligations have been paid and after estimated administrative costs. <br /> Administrative Issues <br /> The City made great strides in 2010 to ensure the majority of the TIF districts are within the 10% Administrative Costs limit. Only a <br /> few districts are still exceeding the 10% Administrative cap. However there is time remaining in the life of the district to work <br /> towards the 10% limitation prior to expiration. Those districts are: <br /> • TIF#31: NWQ Regular TIF <br /> • TIF#32: NWQ Regular TIF <br /> Management Review&Analysis-Tax Increment Financing Districts February 2012 <br /> New Brighton, Minnesota Page 12 <br />