2016.10.05 EDC Combined - Laserfiche WebLink

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Community Assets & Development Department MEMORANDUM DATE: September 29, 2016 TO: Economic Development Commission FROM: Janice Gundlach, Asst. Director of Community Assets & Development/Planning Director SUBJECT: Tax Increment Financing (TIF) Management Plan Update Ehler’s, the City’s public finance consultant, recently completed an update to the City’s TIF Management Plan. The last update occurred in 2015 and was discussed by the Commission on May 29, 2015. 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 also 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. Attached to this memo is the Executive Summary of the updated plan. Staff highlights the following: • Page 6 provides a summary of each active TIF district, including current obligations and expected 2016 TIF revenue. • Pages 7 and 8 summarize where bond proceeds have been spent. • Page 9 provides a table illustrating the current market value increase realized in each district. • Page 10 illustrates projected captured TIF Tax Capacity in each active district, districts decertifying in the next three years, and a comparison of New Brighton’s tax base captured in TIF compared to other communities. • Page 12 provides a table illustrating how much additional annual tax capacity is returned to the tax rolls by a district decertifying. • Page 13 discusses the assumptions made with regard financial analysis. • Page 14 provides recommendations based on the financial analysis completed. Based on the Recommendations noted on page 14, there are no immediate actions that need to be taken with regarding to the overall financial health of New Brighton’s TIF program. Two TIF districts are recommended to be more closely monitored (districts #26 & #33). Future budget modifications may need to be made. This information is for review and discussion purposes only. Ehler’s staff will provide a brief review of the information and the Commission is encouraged to discuss the plan and provide feedback (if any). Attachment Executive Summary – TIF Management Plan