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Community Assets & <br /> Development Department <br /> <br /> MEMORANDUM <br /> <br /> <br />DATE: May 29, 2015 <br /> <br />TO: Economic Development Commission <br /> <br />FROM: Janice Gundlach, Asst. Director of Community Assets & <br />Development/Planning Director <br /> <br />SUBJECT: June 3, 2015 EDC Discussion – TIF Management Plan Update <br /> <br />Scheduled for discussion on June 3rd is the latest update to the City’s Tax Increment <br />Financing (TIF) Management Plan. Ehlers, the City’s public finance consultant, will be <br />available to help lead this discussion and assist with questions or concerns. <br /> <br />TIF Management Plan <br />The TIF Management Plan provides detailed financial analysis of all of the City’s tax <br />increment districts. This document is updated periodically to provide real-time <br />accounting of all revenues and expenses within each TIF district, helps identify needed or <br />expected budget modifications, and assists with annual reporting to the Office of the State <br />Auditor. Attached to this memo is the Executive Summary of that plan and the financial <br />dashboard for New Brighton Exchange, the city’s most-active TIF districts (#’s 31 & 32). <br />The last update to the TIF Management Plan was in 2012, with the dashboard being <br />updated more frequently, most recently in April of 2014. These items will be discussed <br />in greater detail at the meeting. <br /> <br />Page 6 provides a summary of each TIF district, including current obligations and <br />expected 2015 TIF revenue. Pages 7 and 8 provide summaries of non-pooled obligations <br />(mainly interfund loans) and pooled obligations (bonded debt). Page 8 summarizes <br />where bond proceeds are spent. Nearly all of the City’s bond proceeds were spent in <br />New Brighton Exchange (districts #31 and #32) with the exception of approximately $2 <br />million which was spent in other districts. When reviewing this document, or making <br />comparisons to past plans, it’s important to recognize that TIF revenues are very fluid <br />and depend greatly on market values and tax rates, which can change yearly. More <br />broadly, TIF revenues can change dramatically due to changes in property tax law. As <br />such, there are many factors that explain the fluctuating financial projections in each TIF <br />Management Plan update. Also, a conservative approach is taken in the sense that no <br />land sale proceeds or market value inflation is assumed. <br />