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Page 2 — March 6, 2007 New Brighton Council Minutes Ayes - 0 Nays, Motion Carried ublic Hearin None Council Business 1. Consideration of Authorization of Interfund Loans Associated with Tax Increment Districts. Report No. 07 -046. Finance Director Dan Maiers introduced the item, interfund loans associated with TIF District #30 (Beisswengers and Brighton Village,) TIF Districts #31 and #32 (the two districts in the Northwest Quadrant,) and hazardous substance sub - district 3 1 A 32A and 33 (Marv's Transmission site.) It was explained this item is due to a recent recommendation by the auditors, where it was noted that loans were not authorized for three of the districts. It has been confirmed with the City's Bond Attorney and TIF consultant that all requirements have been satisfied for all districts with the exception of TIF district #30. It was reported that the Council is required to authorize any interfund loans. Mr. Maiers suggested approving interfund loans for additional TIF districts, as a proactive measure. Councilmember Doffing reported she brought this item to the council's attention as a result f a $10,000,000 transaction that did not go through the council for approval. The question fas raised as to whether TIF districts can be decertified. Mr. Maiers stated that question ould best be answered with our TIF consultant. Mr. Maiers offered a lengthy explanation of the TIF and the TIF non - district funds. Councilmember Doffing questioned Item No. 2.03 in the resolution; questioning weather that relates to all TIF districts up to TIF district #33. Mr. Maiers explained this item allows the City flexibility to pay these loans back with other increment if desired. Councilmember Doffing questioned the other Councilmembers as to what the original intent was of those earlier TIF districts. Mayor Larson responded that the City has used TIF to pay off bonds, using the positive in some districts to offset some of the negatives in other districts. Councilmember Hoffman stated that the approach the Mayor described has worked well for the City. Councilmember Hoffman stated it may be beneficial to leave some TIF districts open, in order to assist in other districts. Councilmember Doffing directed a question as to how many cities pool this many districts. Mr. Lotter replied that he is not aware of how other cities operate; however pooling is a tool that can be used for redevelopment purposes. Councilmember Doffing stated her discontent with the number of TIF districts, and some of those districts not associated with the Northwest Quadrant are now contributing to the Northwest Quadrant. Councilmember Hoffman replied that that was the original intent, that the mature districts would assist where needed. Councilmember Burg stated that more important then the number of districts a city has is the percentage of land with TIF districts. Councilmember Doffing stated that she feels I T IF districts should decertify as soon as possible, in order to alleviate the tax requirement assed onto the residents. Councilmember Hoffman pointed out there is still a issue if we bandon pooling, then the City would need to obtain funds from other sources, which could esult in a tax increase. Councilmember Doffing requested changing the resolution section 2.03 to reflect limiting to fewer then "any other" TIF districts. 1. Consideration of Authorization of Interfund Loans Associated with 'Tax Increment Districts. Report No. o7 -046.