12-18-85 Development Comm MinutesDECEMBER 18, 1985 CITY DEVELOPMENT/FINANCE 4:00 PM
Mayor McDowell, Councilmen Saverud, Ruiz, Palmer, Manning, Schindler, C.D.D.
Gallagher, Clerk/Treasurer Halver, Tom Torgerson, Ed Kennedy.
Councilman Saverud called the meeting to order and introduced Tom Torgerson
who gave a report on his findings concerning the Tax Increment Fund Review.
Tax Increment Bond Review
Tom reported, when they had done the #ity Audit, they found an apparent
problem with the distribution percentage for 1981 and the calculation for the
increment for 1982. The asssesor reported this was from the "12% roll back"
on personal property. He also found the decrease from 1981 to 1982 was
partially due to the tax rate on centrally assessed utilities being changed.
We could request the assessor adjust the base year to reflect these errors
and increase the revenue in the district about $80,000 per year from now on.
Torgerson also suggested we could ask for an adjustment for the removal of
business inventory taxes in 1982.
The records regarding the establishment of the base year could not be located
at the city or the Assessorts office.
He reported interest from sus cash investments is not being shared with
the Tax Increment Fund.
The concensus of the councilmen present was there was no need to do any
further study, or modification of the base year, because we are receiving
enough revenue now to fund the projects we need.
00 Councilman Saverud recommended we attempt to get the proper base year data so
we will have it for future reference.
Christmas Decorations
Councilman Ruiz reported on a letter from the Chamber of Commerce requesting
reinbursement for Christmas Decorations purchased. We did not rebudget any
money in Revenue Sharing for this. The previous year they had a $5,000.00
budget and only spent about $1,200.00. This year they spent $2,300.00. He
recommended we pay it out of Tax Increment. Don Halver will check and make
sure it can be paid out of Tax Increment.
T.I.F. Bond Proceeds
Clerk Halver requested advise and direction on investing the bond money. He
wanted to know how long to invest it and what type of investment to make.
Councilman Palmer said we can buy U. S. Treasury securities directly. We can
establish an account with "Calvert" and have it Federally Insured.
Councilman Saverud requested Halver give the Council a shopping list of what
we can invest in and what the restrictions are.
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LJ