200 N. Broadway Suite 1000 St. Louis, MO 63102 (314) 231-7318

PGAVPLANNERS

Presented by:Mike WeberDirector

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Discussion TopicsDiscussion Topics

Property Tax vs. Sales Tax TIFsProperty Tax vs. Sales Tax TIFs

Planning for Closeout of TIFPlanning for Closeout of TIF

Distribution of Surplus RevenueDistribution of Surplus Revenue

Questions / Unresolved IssuesQuestions / Unresolved Issues

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Property Tax vs. Sales Tax TIFsProperty Tax vs. Sales Tax TIFs

113 Property Tax TIFs Set to Expire in 2009

(20) 1986 & prior year TIFs extended

23rd Levy Year/Collected in 24th Year

Sales Tax TIFs: 63 already phased out 50 Authorized to be Extended to 2013 Municipal property tax increment required (2010 –

2013)

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Planning Closeout of TIFPlanning Closeout of TIF Develop ProjectionsDevelop Projections

Annual tax increment revenues Plus other sources of revenue Less annual obligations Equals balance to fund other projects that meet

the goals and objectives of the TIF plan

Prepare Annual Spending PlanPrepare Annual Spending Plan Needs within TIF area Needs of adjoining TIFs? Amend TIF plan, if necessary

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TIF Plan FY2007 - FY2014 5.00%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 TotalAvailable New Revenues 6,279,007 6,381,645 6,768,023 7,179,677 7,618,393 3,438,044 3,706,897 1,004,708 42,376,394

ProjectAnnual Debt Service (1997-B) 478,550 404,425 412,775 0 0 0 0 0 1,295,750Annual Debt Service (2003-A) 399,400 475,463 464,588 462,475 94,472 86,744 79,031 76,359 2,138,532Freed - G.O.Debt Service 228,730 229,203 228,394 226,363 223,900 221,000 222,800 219,300 1,799,690Freed - Rev Bond D/ S 605,025 729,838 782,763 816,888 842,925 341,113 361,388 0 4,479,940Subtotal - D/S 1,711,705 1,838,929 1,888,520 1,505,726 1,161,297 648,857 663,219 295,659 9,713,912School District Asst. 1,315,270 1,381,033 1,450,085 1,522,589 0 0 0 0 5,668,977Joyce Pontiac 150,000 150,000 150,000 0 0 0 0 0 450,000OTD Program 482,000 482,000 482,000 482,000 0 0 0 0 1,928,000Subtotal - Committed 1,947,270 2,013,033 2,082,085 2,004,589 0 0 0 0 8,046,977Street Maintenance 494,200 400,000 200,000 0 0 0 0 0 1,094,200Sidewalks/ Alleys/ Lighting 325,000 325,000 225,000 0 0 0 0 0 875,000Bridge Repairs 0 60,000 0 0 0 0 0 0 60,000Storm Sewer Imps 234,100 270,000 0 0 0 0 0 0 504,100Airport Imps 0 165,000 165,000 0 0 0 0 0 330,000Central City Imps 830,000 60,000 250,000 0 0 0 0 0 1,140,000Public Buildings 205,000 130,000 130,000 130,000 130,000 0 0 0 725,000Administration/ Misc. 400,000 300,000 200,000 100,000 0 0 0 0 1,000,000Subtotal - Other 2,488,300 1,710,000 1,170,000 230,000 130,000 0 0 0 5,728,300

Grand Total 6,147,275$ 5,561,962$ 5,140,605$ 3,740,315$ 1,291,297$ 648,857$ 663,219$ 295,659$ 23,489,189$

Balance Remaining 131,732 819,683 1,627,418 3,439,362 6,327,096 2,789,187 3,043,678 709,049 18,887,205

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Other ConsiderationsOther Considerations

Combination Property Tax and Sales Tax Combination Property Tax and Sales Tax TIFs:TIFs: Avoid having unspent balances at the end of 2009.

Start with a clean slate 2010. Municipal contribution of prop. tax required (2010 -

2013) Notify taxing districts of pending property tax TIF

termination (by Nov. 1 of closeout year)

Property Tax TIFs:Property Tax TIFs: Avoid having unspent balance Notify taxing districts of TIF termination 2009 tax increment, payable 2010 can be used to pay

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Distribution of SurplusDistribution of Surplus

Annual Surplus DeclarationAnnual Surplus Declaration See Sec. 5/11-74.4-7

End of TIF Surplus DeclarationEnd of TIF Surplus Declaration See Sec. 5/11-74.4-8 State Sales Tax & Muni. Sales Tax Get

Reimbursement PriorityPGAV

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End of TIF Surplus - ExampleEnd of TIF Surplus - Example

Cumulative Deposits:Cumulative Deposits:

State Sales Tax $380,000Municipal Sales Tax 180,000Total Property Tax 1,500,000

TOTAL DEPOSITS $2,060,000

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End of TIF Surplus - ExampleEnd of TIF Surplus - Example

Total Total ONLYONLY State & State &Municipal Sales TaxMunicipal Sales Tax $560,000

Proportion StateProportion State($380,000/$560,000) = 67.9%

Proportion MunicipalProportion Municipal($180,000/$560,000) = 32.1%

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End of TIF Surplus - ExampleEnd of TIF Surplus - Example

Surplus Funds at Termination:Surplus Funds at Termination: $600,000

State Proportion (67.9% = $407,143)State Proportion (67.9% = $407,143)

Refund to State ($380,000)

Muni. Proportion (32.1% = $192,857)Muni. Proportion (32.1% = $192,857)

Refund to Municipality ($180,000)

Surplus Remaining ($40,000)Surplus Remaining ($40,000)

Refund to County Treasurer ($40,000)

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Deposits to TIF Fund:Deposits to TIF Fund:State Sales Tax Deposits $380,000Muni. Sales Tax Deposits 180,000Property Tax Deposits 1,500,000

Surplus at CloseoutSurplus at Closeout $600,000$600,000

Distribution of Surplus:Distribution of Surplus:Refund to State $380,000Refund to Municipality $180,000Property Tax Refund (pro-rata to taxing bodies) $40,000

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Bradley (Rte. 50 & I-57)Bradley (Rte. 50 & I-57) Refunded to State: $732,348

Niles (Touhy)Niles (Touhy) Refunded to State: $1,024,849

Bloomington (Veterans)Bloomington (Veterans) Refunded to State: $386,598

Total Refunded to StateTotal Refunded to State (Annual & Terminations) >$8.6 Million

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Property Tax/Sales Tax TIFsProperty Tax/Sales Tax TIFs – What if there is a fund balance at closeout of property tax TIF, but the sales tax TIF runs to 2013? Is it surplus? Can the balance be applied to project costs

in the sales tax TIF area?

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Does the county and municipality have the same understanding of the TIF termination (e.g., 23rd year levy collected in 24th year)?

Revenue received after TIF Termination (e.g., Loan repayments or building demolition liens)?

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Real Estate purchased with TIF funds?

If sold prior to TIF termination – deposit into TIF fund (Sec. 11-74.4-10)

After TIF termination – “shall continue to be held by the municipality after the [TIF] has been terminated” (Sec. 11-74.4-8)

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Tell Your Story! Project Successes Private Investment Leveraged Windfall Tax Revenues to All Taxing Bodies What are Taxing Body’s Plans for Windfall?

Provide to Media Provide at Final JRB Meeting Provide to ITIA for Compilation

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