11 Loans to TIF DistrictsC OF
690 City Center Drive
PO Box 147
Chanhassen, Minnesota 55317
Phone
952.93ZI900
General Fax
952.937.5739
Engineering Department Fax
952.937.9152
Buibh'ng Departmo~ Fax
952.934.2524
Web Site
www. ci. chanhassen, mn. us
MEMORANDUM
TO:
FROM:
Mayor
City Council
Bruce M. DeJong, Finance Director
DATE: June 21, 2001
SUBJECT: Ratify Inter-fund Loans to TiF Districts
This item is on the City Council agenda in case the Minnesota Legislature passes
a TIF technical corrections bill that includes some specific statutory language.
The language clarifies that inter-fund loans to TIF districts are permitted and
affirms all inter-fund loans that exist prior to July 1, 2001. Since we have deficits
in several of our TIF districts, it is prudent for the City Council to make those
official actions rather than staff internal accounting actions.
Because of the complicated composition of our TIF districts, I am as_king HLB
Tautges, Redpath for help in determining the exact amount of the inter-fund loan
necessary for each district. Their recommendation is that the City Council
approve inter-fund loans that are capped at a maximum amount with a specified
interest rate for each district.
I recommend that the City Council approve inter-fund loans for TIF Districts in an
amount not to exceed the following totals:
Downtown TID 1
McGlynn TID 2-1
Natl Weather Svc TID 2-2
North Bay TID $
Eden Trace TID 7
$10,000,000
$3,00O,000
$1,000,000
$1,000,000
$1,000,000
These loans will be from the General Fund, Utility Funds or other funds with
surplus cash and will pay interest at the average rate earned for invested city funds
each year.
I will present more detailed information regarding total current deficit levels at the
meeting on Monday evening.