4.6. SR 20-18-1996 - Laserfiche WebLink

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Mayor and City Council Pat Klaers TIF District 2 & 3 TIF Districts 2 & 3 have been decertified. We will be holding a public hearing to amend the budget after the dollars have been spent. The primary purpose for amending the budgets in these two districts is to satisfy an administrative detail regarding the city's TIF reporting requirements to the state auditor. As you are aware, the finance department undertakes a fairly complex task of filing reports to the state auditor prior to July 1st of each year on all of the city's tax increment districts. In order to provide an accurate report on TIF Districts 2 & 3, regarding the expenditures from such districts, it is necessary to amend these budgets to reflect the dollars spent from these districts (even after the fact) on surface water management issues. Although it appears as though the order of these events is not logical, City Attorney, Peter Beck, has indicated it is necessary in order to avoid raising questions about TIF District 2 & 3, and possibly other districts unrelated to this issue, when the city submits its annual disclosure statements on July 1st, 1997. IV. CONCLUSION In conclusion, cities have become a bit nervous over the past year regarding the details of their tax increment district reporting requirements. The state has hired three full-time auditors to examine, review, and research if necessary, the details of numerous city's tax increment financing districts. If simple questions are raised or red flags appear in our reports, it may lead to an audit of all our districts. Therefore, we are taking extraordinary measures to assure that we are abiding by the new reporting requirements. If you have any questions, please feel free to contact either me or Lori Johnson. RECOMMENDATION Staff recommends the Council call for a public hearing to be held on Monday, December 16, 1996, to amend the budgets for TIF District No's 2 & 3. City Attorney, Peter Beck, recommended that these budget