What do you think?

No, you're gonna field that.

Ladies and gentlemen, may I have your attention, please?

Welcome to the September twenty-first, two thousand and two Metropolitan Development Commission public meeting.

As we begin, Mr.

Levin, can you come to the podium please?

Counselor, would you lead us in the Pledge of Allegiance?

All rise.

I pledge allegiance to the flag of the United States of America.

And to the Republic for which it stands.

Under God.

Thank you, Councillor.

You've had uh provided to you previously the minutes of September seventh, two thousand twenty-two.

Are there any additions or deletions to those minutes?

Hearing none, I'll accept the emotion to approve.

So move.

Thank you.

I have a second, Commissioner Robinson.

Second.

Thank you.

All those in favor signify by saying aye.

Aye.

Aye.

Commissioner Ash, I will show you as recused since you were not at that meeting.

Moving forward.

Rusty, would you come forward and put into the record our state requirement on TIFF information, please?

Yes, Mr.

President, thank you.

Um as alluded to we are required uh by state statute to present uh the uh TIFF information annually to the Metropolitan Development Commission, and it is laid out in this um statute you can see here uh on the screen and thirty-six seven twenty-five eight.

This uh I won't read this in full, but this lays out uh what we would be pres what we will be presenting here um before you and again, my name is Rusty Carr and I serve as Deputy Director for the Department of Metropolitan Development.

Next slide, Lucas.

So we wanted to start with a very high level of uh tax increment financing theory, uh, which is that TIFF is a tool to help overcome redevelopment obstacles that cannot really be overcome through normal operations or the the private market.

And so the TIFF is the use of new property taxes generated by a development to help pay for the cost of overcoming said obstacle.

Traditionally this comes in the form of various things, but but a good example is environmental remediation in a lot of ways.

Again, this is all laid out in state code under NA Code 36715.1, but essentially the staff of uh DMD in consultation with the community drafts a redevelopment plan and a boundary for a TIFF area.

We would then bring that plan in a resolution to the Metropolitan Development Commission.

If that resolution were so approved, it would move to the city county council.

Uh and if it was approved at the city council level, it would then come back to the MDC for a final confirmatory resolution.

And we like to include this slide as a really nice visual indicator of how a TIFF district works.

Um the uh the axis on your left, the Y axis there is the appraisal value and the time here on the on the X, and this really shows the relationship between uh the growth in a TIFF over time and where that funding goes.

So the gray area you see is the base property tax value that goes to the taxing units.

When a development is proposed and goes up and has assessed value, you can see in the yellow area that is the TIF uh value that is captured in a separate fund that is used to pay the cost of redevelopment.

Uh and then when a TIFF is um terminated at the end of 25 years, you can see that all of the value of the TIFF goes back to the base units, including schools, uh libraries, and even the city itself.

Overall, uh in long term, and this really continues the work that DMD and Mayor Hogsett have done over the past um several years, and that is really looking at the TIFFs to further our public infrastructure, um, work on environmental uh issues relative to major site development, uh, relative, you know, again, again, catalytic redevelopment, major project site uh development, getting uh sites ready and primed for redevelopment, uh, as well as workforce development and certainly a housing strategy, which we are going um you know very firm on given our external conditions and working to include affordable housing uh as we see new housing across the city.

And then I will turn it over to Lucas Anderson to run through the TIFF budgets.

Good afternoon, Commissioners.

Lucas Anderson with OFM.

As annually required under statute, two items that I'll be speaking to are the annual TIF budgets and impact to local taxing units.

I will be speaking specifically to fiscal year 2021 activities, as this is the most recently completed fiscal year that has been submitted to the Department of Local Government Finance or DLGF.

I will first be speaking to the TIFF budgets.

We have put together a handout as in previous years, which copies are available at the front table.

The handouts provide more detailed information for each individual TIFF that saw financial activities in 2021.

There were 29 TIFs in total that saw some type of financial transaction, which we include information on revenues and expenses.

Expenses being broken out between debt service spending, inclusive of principal and interest payments made on outstanding debt obligations and non-debt service spending, which relates to one-time activities.

In total, the TIFF saw revenues of roughly 130.7 million and expenses of roughly 152.6 million for a net position change of 21.8 million.

I do want to make note that all of these expenditures, whether it be the approval of debt issuances and subsequent debt service payments or one-time transaction activities, require approval from this body.

No expenditures are made without that approval.

To give a better idea of the type of expenditures that occurred in 2021, the first slide that you are seeing now breaks out the expenses by category.

The first leading category is debt service or principal and interest payments on existing bonds at 50.73%, followed by infrastructure at 23.39 and interlocal contributions following at 16.49%.

And speaking to the impact of TIFFs on local taxing units, we take two hypothetical approaches that are illustrated on this next slide.