2.0. HRSR 03-10-1998 - Laserfiche WebLink

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Tax Increment Financing District No. 1-22 will serve as the foundation for using tax increment financing to implement the Plan. The TIF District encompasses much of the Downtown planning area. 4110 Within the authority granted by State Law, the TIF Plan for District No. 1-22 controls the use tax increment financing. The key portions of the TIF Plan include: • Administration The District is under the control of the Monticello Housing and Redevelopment Authority (HRA). The HRA makes decisions on the use of tax increment revenues received from the District. Any general obligation bonds issued pursuant to the TIF Plan must be approved by the City Council. • Duration TIF District No. 1-22 is a redevelopment district. Under current State Law and the TIF Plan, the HRA may collect tax increment from the District for a maximum of 25 years from the date of the first receipt of tax increment. Assuming that the first increment is received in 1999,the District would terminate no later than 2023. • Financing Parameters The budget in the TIF Plan is designed to provide broad capacity to implement the Downtown Plan. The TIF Plan authorizes public expen- ditures of up to $39,950,000 and bonded indebtedness of up to • $39,000,000. The costs of all activities considered for tax increment financing and the amount of debt cannot exceed these amounts without amendments to the TIF Plan in accordance with State Law. The budget in the TIF Plan should be refined as actual applications of tax increment financing are undertaken. Modifying the TIF Plan budget to reflect actual use will assist in complying with statutory reporting requirements. • Local Contribution In creating this TIF District, the HRA elected to make a qualifying local contribution to avoid the loss of state aid (LGA/HACA). For this District, the local contribution is equal to 5% of the tax increment rev- enue. The maximum local contribution for all districts in the City in any year is limited to two percent of the City's net tax capacity, after which point the City or HRA must make an additional contribution equal to the lesser of(a) 0.25 percent of the City's net tax capacity or(b) 3 percent of tax increment revenues for that year. In implementing the Downtown Plan, expenditures should be earmarked for the local contribution. The amount of the local contribution must be made out of unrestricted money of the City or HRA, such as the general fund, a property tax levy, or a federal or state grand-in-aid which may be • spent for general government purposes. The local contribution may not A New Bridge RevRaltring Monticello's Downtown and Rlverfront - Page 4:13