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

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

3. Revenues & Expenses

5. 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

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

7. Interfund Transfers

8. 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

9. Value of TIF

10. 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.

11. Central Business District TIF

12. 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

13. 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

14. Current Assessed Values in Downtown

15. Option C: Potential New TIF