Finance Advisory Committee – October 17, 2017 TIF Phase Out Finance Advisory Committee – October 17, 2017

Agenda Revenues, Expenses, & Available Funds Interfund Transfers Proposed New TIF District

Revenues & Expenses

TIF Expenditure Assumptions: FY18-22 Total Estimated Contractual Services $765,000: Architectural, Engineering, Legal, Marketing, etc. Estimated Committed Expenses $2,450,000: Cornerstone and Plaza DeKalb Phase 2 $4,771,400: Debt Service (2010A Bond) $17,227,626 - $18,875,723: Surplus Distribution Estimated Discretionary Expenses $500,000: 5th Street Streetscape $700,000: Barb City Manor and Egyptian Theatre $3,500,000: Total annual road maintenance $3,619,278: General Fund transfers Total Estimated Expenses $33,486,307 - $35,134,403

Annual Fund Balance Projections Total Remaining: $11,959,556 Need to update charts with new numbers Total Remaining: $13,831,768

Interfund Transfers

Interfund Transfers $15,479,205: Total General Fund Transfers Central Area (1988 – 2016): $14,305,315 TIF 2 (2009 – 2016): $1,173,890 $791,775: Current annual transfer to General Fund Central Area: $678,576 TIF 2: $113,199 $580,419.90: Projected Surplus Distribution returned to City in FY2017 $1,377,774: Total FY2018 General Fund revenue from TIF

Value of TIF

Proposed Reduction Fiscal Year 2019   Eliminate the TIF 2 Transfer ($113,198) Reduction in CATD Transfer ($119,622) Fiscal Year 2019 Total ($232,820) Fiscal Year 2020 Fiscal Year 2020 Total Fiscal Year 2021 Fiscal Year 2021 Total Fiscal Year 2022 ($119,623) Fiscal Year 2022 Total Total Reduction Over Multi-Year Plan Life ($591,687) Fiscal Year 2019 proposed reduction can be offset by use of a portion of the 1% increase in Sales Tax. During Fiscal Year 2018, staff will work on possible solutions for the remaining phase out years.

Central Business District TIF

Option C: Create new Downtown TIF Expands the potential to accomplish more projects & rehab viable historic structures Would still need to prioritize projects and develop framework Recommended to act NOW on creating a new TIF Take advantage of current low EAV’s to set base Anticipated increase in EAV in downtown Take advantage of increment from recent projects Potential changes to State legislation for new TIF districts

Current Estimate for TIF Contributions Categorical differences in leveraging private investment mean a range of total investment 27.5% of Private Projects = $58m 50% of Civic Projects = $25m 100% of Public Projects = $12.5m

Current Assessed Values in Downtown

Option C: Potential New TIF