Once again, I appreciate Carol's answering of our questions online.
However, I am a little confused. Can Carol or someone tell me how our tax
capacity can almost double from $360 million to $770 million in nine years?
And my second question is how much of that decertified TIF money will be
needed to pay off the NRP debt service and continue to fund NRP? And if
there isn't enough, will we need more?
Russ Peterson
Standish
Ward 9
R U S S E L L P E T E R S O N D E S I G N
"You can only fly if you stretch your wings."
Russell W. Peterson, RA, CID
Founder
3857 23rd Avenue South
Minneapolis, MN 55407
612-724-2331
[EMAIL PROTECTED]
-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED]]On Behalf Of Carol Becker
Sent: Tuesday, December 05, 2000 8:53 PM
To: Multiple recipients of list
Subject: TIF Funding due to decertification/Response to Ms. Del Calzo
Let's see if I can give an answer to the question Ms. Del Calzo asked about
how much money will be coming in when those TIF districts are decertified.
For people who don't speak property tax lingo, tax capacity is what we often
refer to as the "tax base." This is a figure which is calculated using
the estimated market value of property in the City adjusted for the type of
property. Tax increment financing is when we take a portion of the tax base
(the tax capacity) and segregate it so the revenues from those properties go
into a special pool rather than the general tax base that we use to pay for
schools, the county, and basic city services.
For 2001, the city has $360 million in tax capacity. Of this, $55 million is
in TIF districts, or about 15%. By 2010, it is projected that the tax base
(tax capacity) will grow to $770 million. Currently approved projects will
increase the amount in TIF districts to $71 million by 2004 (9% of tax
capacity) and remain level, assuming no other TI projects are added.
In the year 2009, TIF disticts start decertifying, which means that they
will no longer put their money into their special pool but instead put their
money into the general pool used to pay for schools, county services and
city basic services. In 2009, the amount of tax capacity in tax increment
districts will be decline from $71 million to $55 million in 2009 and $37
million in 2010. Assuming no districts are added, more and more districts
will decertify until the full $71 million is returned to the general tax
base.
So what does all this gibberish mean in taxes? In 2010, about half of of
this TI will decertify. So between 2008 and 2010, taxes could be reduced
for the general pool about 4.5% or money for services could increase by
4.5%. As additional districts decertify, additional money would become
available (assuming no more TIF projects are added) until the full $71
million is returned to the general tax pool, adding 9% overall to the tax
base.
I hope this answered the question.
Carol Becker
Longfellow
----- Original Message -----
From: <[EMAIL PROTECTED]>
To: Multiple recipients of list <[EMAIL PROTECTED]>
Sent: Monday, December 04, 2000 6:36 PM
Subject: Library Funding in the out years
> I would like to thank Bob Gustafson for his insights on the financial
matters
> related to the Library Board. In his last post he talked about a
shortfall
> in the years 2008 and 2009 that the City has said they will help address.
>
> All at once it dawned on me that the policy makers are already gearing up
to
> spend all the money that will be released when the TIF districts are paid
off
> in that time frame. That is, of course, if someone doesn't get the
bright
> idea to extend the life of those districts. Could someone out there, are
you
> listening Carol Becker, tell us how much will be coming in when those
> districts are decertified?
>
> Jan Del Calzo
> Lynnhurst
>
