2016.11.22 CC Packet - Laserfiche WebLink

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November 9, 2016 Page 3 of 5 Motion by Councilmember Jacobsen, seconded by Councilmember Bauman to approve the Consent Agenda as presented. 5 Ayes, 0 Nays - Motion Carried Public Hearing None. Council Business 1. Accept Updated Tax Increment Financing Management Plan and New Brighton Exchange Financial Dashboard. Motion by Councilmember Bauman, seconded by Councilmember Jacobsen to accept the updated Tax Increment Financing Management Plan and New Brighton Exchange Financial Dashboard. City Manager Lotter indicated Jason Aarsvold and Jeanne Vogt with Ehlers would be presenting this item to the Council. Jason Aarsvold, Ehlers, explained the purpose of the TIF Management Plan is to review the financial state of the City’s active TIF districts and to determine if there are any actions that need to be taken for the overall financial health of the district(s). The Plan provides detailed financial information that is needed to complete annual TIF reporting to the State Auditor and to assist in various budgeting exercises. The Plan also provides real-time accounting of all revenues and expenses for each district. Based on the Recommendations noted on page 14, there are no immediate actions that need to be taken with regard to the overall financial health of New Brighton’s TIF program. Two TIF districts are recommended to be more closely monitored (districts #26, Brighton Corporate Business Park III & #33, Marv’s Transmission). Future budget modifications may need to be made to ensure the City can collect all revenues needed to pay expenses. Mr. Aarsvold reported Ehler’s was also asked to update the New Brighton Exchange Financial Dashboard, which is a financial tool staff, the EDC, and Council use to understand the financial impact of the New Brighton Exchange, development block by development block. He reported Jeanne Vogt would be discussing this item with the Council. Jeanne Vogt, Ehlers, explained this dashboard reflects realized development and/or projected development, year built or projected to be built, finished market values (based on Pay 2017 taxes), and total estimated TIF. The bottom line of the dashboard reflects a variety of spreadsheets regarding TIF collection, bond payments, and projected repayments to the City’s Municipal Development Fund (Fund 460 or 560 under the new financial software). Ms. Vogt stated this dashboard was originally developed to understand the minimum development necessary to generate enough tax increment to pay back the bonds (also referred to as the “break even” or “minimum development” scenario). Over the last couple of years, it has become apparent New Brighton Exchange has realized enough development to generate adequate tax increment to pay back external debt. This allows staff, the Commission, and Council to focus on repayment of the internal Municipal Development Fund loan. The greater capacity to repay principal and interest of the internal loan (currently valued at approximately $12 million) the more financially able the City will be to undertake future redevelopment projects. The updated dashboard reflects a cash balance in the Municipal Redevelopment Fund at the end of year 2035 (the year the TIF districts expire) of $11,720,799. This is an increase of $2,446,939 since the last dashboard update in May of 2015. This increase is due to rising Public Hearing Council Business 1. Accept Updated Tax Increment Financing Management Plan and New Brighton Exchange Financial Dashboard.