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HomeMy WebLinkAboutTIF Exhibit for Annual Financial Report 12/31/90 VOTO, TAUTGES, REDPATH & CO., LTD. \W�'jjr*%*4W CERTIFIED PUBLIC ACCOUNTANTS / Birch Lake Professional Building • 1310 E. Hwy. 96 • White Bear Lake, MN 55110 • Fax (612) 426 -5004 \ • Phone(612)426 -3263 ROBERI I VOrO, CPA ROBERT C, TAUTGES, CPA �/� JAMES S. REDPAI H, CPA September 18 , 19% D KENNETH GEORGE, CPA DAVID J MOL, CPA Judy Holst Deputy Clerk/Finance Director City of Oak Park Heights 14168 North 57th Street Stillwater, MN 55082 Dear Judy: Enclosed is a schedule of information required by the Office of the State Auditor for your St. Croix Mall Tax Increment District. We will include this schedule as an exhibit in your Annual Financial Report for the year ended December 31, 1990, thereby fulfilling the reporting requirements of the Office of the State Auditor. If you have any questions or need additional information, please advise. Sincerely, VOTO, TAUTGES, REDPATH & CO., LTD. David J. Mol, CPA DJM/1aw Enclosure MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MUNICIPAL FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 12 SCHEDULE OF SOURCES AND USES OF FUNDS FOR ST. CROIX MALL TAX INCREMENT DISTRICT December 31, 1989 Accounted Original for in Current Amount Bud Prior Years Year Remainine Sources of funds: Tax increments received $960,000 $0 $0 $960,000 Uses of funds: Developer assistance 960.000 0 0 960.000 Funds remaining (deficit) $0 $0 $0 $0 The City is the administering authority for the St. Croix Mall Tax Increment District. The district was established August 7, 1989 pursuant to MS 469.174 and is scheduled to terminate on December 31, 1998. The original and current tax capacity values are $ 180,683. There have been no bonds issued as of December 31, 1989. °1TOR STATE OF MINNESOTA c :Z OFFICE OF THE STATE AUDITOR ��. SUITE 400 �x 525 PARK STREET SAINT PAUL 55103 ARNE H. CARLSON STATE AUDITOR 296 -2551 September 10, 1990 TO: Administrators, City Clerks and City Finance Directors SUBJ: Tax Increment District Reporting for Taxes Payable in 1989 Earlier this year, we notified you that under Minnesota Statutes Section 469.175, Subd. 6, all administering authorities of tax increment districts are required to submit annually to the State Auditor a financial report in compliance with the format prescribed by this office. The report was required to be submitted to this office on or before July 1. Your city's audited financial statements should have included this reporting format. However, upon reviewing the audited financial statements, we found that the TIF report was not included or that the information was incomplete. Enclosed is a copy of the format that was prescribed. Please report the data to us as soon as possible. If you have any questions or comments, please contact me. Sincerely, Edmund L. Fuller, Director Governmental Information Division Enclosure AN EQUAL OPPORTUNITY EMPLOYER S TATE OF MINNESOTA V OFFICE OF THE STATE AUDITOR _ :' SUITE 400 ... 525 PARK STREET � SAINT PAUL 55103 ARNE H. CARLSON STATE AUDITOR 296-2551 January 17, 1990 TO: Administrators and Finance Officers in Local Governments with Tax Increment Districts RE: Revised Tax Increment District Reporting Format and Instructions For Taxes Payable Year 1989 Attached is the revised tax increment district reporting format and instructions. Please note that gross tax capacity percentages are used for taxes payable in 1989. Both gross and net tax capacity percentages are used for taxes payable in 1990 and beyond. Pursuant to Minnesota Statutes Section 469.175, Subd. 6, all administering authorities of tax increment districts (including cities, counties, rural development financing authorities, port authorities and housing and redevelopment authorities) are required to submit annually to the State Auditor, on or before July 1, a financial report in compliance with this - format. This requirement was effective August 1, 1985 and in subsequent years. The enclosed format replaces the "annual disclosure report" formerly filed with the Commissioner of Trade and Economic Development. If you have any questions, please contact this office at (612) 297 -3683. Sincerely, E H. CARLSON State Auditor AN EQUAL OPPORTUNITY EMPLOYER OFFICE OF THE STATE AUDITOR INSTRUCTIONS FOR TAX INCREMENT FINANCING REPORTING Pursuant to Minnesota Statutes Section 469.175, Subd. 6 NOTES TO THE FINANCIAL STATEMENTS ExamDle #X. Lone -Term Debt - Other The (name of local government) is the administering authority for the following tax increment finance districts: (REPEAT THE FOLLOWING NOTE FOR EACH DISTRICT) Name of district including any identifying number Type of district - redevelopment, housing, or economic developm�nt� the authorizing law, name and year established and duration of the district. Original Gross Tax Capacity *: $XXXXXXXXXX Current Gross Tax Capacity: XXXXXXXXXX Captured Gross Tax Capacity: Retained by Authority $XXXXXXXXXX Shared with other taxing districts XXXXXXXXXX Total bonds issued and type $XXXXXXXXXX Total loans incurred XXXXXXXXXX Amounts redeemed (include principal payments only) (XXXXXXXXXX) Outstanding bonds and loans at 12 /31 /XX $XXXXXXXXXX Gross Tax Capacity in 1988 Statutes, pursuant to Minn. Laws 1988, Ch. 719, Art. 5, Sec. 84. * For districts with a base year of 1987 or earlier, the original gross tax capacity replaces the original assessed value that was previously certified. —1— (Pursuant to Minnesota Statutes Section 469.175, Subd. 6, this schedule should be included in the Supplemental Information section of the audited annual financial report.) MINNESOTA LOCAL GOVERNMENT SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS FOR (NAME AND NUMBER), A TAX INCREMENT FINANCING DISTRICT DECEMBER 31, 19XX Accounted Original *Amended for in Current Amount Budget Budget Prior Years Year Remaining Sources of Funds: Bond proceeds $ $ $ $ $ Tax increments received Interest on invested funds Real estate sales (Note 1) Other Describe (Note 2) Other (Des Total Sources of Funds $ $ $ $ $ Uses of Funds: Land Acquisition $ $ $ $ $ Building acquisition Site improvements or preparation costs Installation of public utilities and improvements Other public improvements Bond payments Principal Interest Loan payments Principal Interest Administrative costs Other (Describe) Total Uses of Funds $ $ $ $ $ District Balance (or Deficiency) $ $ $ $ $ Transfers to other districts Transfers from other districts - Transfers to /from other funds Funds Remaining (or Deficient) $ $ $ $ $ *See instructions page 5 NOTES Note (1) List district properties sold to developers, the total cost to the authority or fair market value, if contributed, and the price paid by the developer. Note (2) List tax exempt obligations, other than tax increment bonds, issued on behalf of private entities for facilities located in the districts. —2— OFFICE OF THE STATE AUDITOR INSTRUCTIONS FOR TAX INCREMENT FINANCING REPORTING Pursuant to Minnesota Statutes Section 469.175, Subd. 6 Under Minn. Stat. Sec. 469.175, Subd. 6 (copy enclosed), the following reporting format for tax increment districts is required and takes the place of the annual disclosure report formerly filed with the Commissioner of Trade and Economic Development. The report has two sections: (1) a Note to the Financial Statements; and (2) a Schedule of Sources and Uses of Public Funds. Both sections of the report should be included in the administering authority's annual financial report and sent to the Office of the State Auditor, 525 Park Street, St. Paul, MN 55103. Copies of both sections of the report should also be provided to the county and school district boards and to the governing body of the municipality, if the authority is not the municipality.. The reports are due annually to the State Auditor on or before July 1. Inclusion in the administering authority's annual financial report filed with the State Auditor satisfies this requirement. The reporting is to be on the same basis of accounting as the annual financial report. Instructions for Note to the Financial Statements General Instructions A note to the financial statements should be included for each tax increment district for each city, county or other local government with outstanding tax increment debt. If financial data on the administering authority are included in the financial statement of another entity (for example, an HRA included in a city financial statement), the note should appear in both statements. If the district has no long -term debt, all information in the note (except the bonded debt data) is required to be reported in the Schedule of Sources and Uses of Public Funds. The Note uses the following terms: Administerine Authoritv - The local government or agency responsible for administering the district [the authority which adopted the Tax Increment Financing Plan (Minn. Stat. Sec. 469.175, Subd. 1) - will ordinarily be the administering authority.] The administering authority will be a city, county, rural development financing authority, port authority, or housing and redevelopment authority. Type of District - By law, each district must qualify as a redevelopment, housing, or economic development district. The following definitions paraphrase statutory language. For exact legal language, see Minn. Stat. Sec. 469.174, Subds. 9 - 13. —3— Redevelopment Districts are areas of extensively deteriorated or under- utilized property. Housing Districts include properties intended for low or moderate - income housing as defined by federal, state, or municipal legislation. Economic Develovment Districts are areas not meeting the requirements of redevelopment or housing districts, but which, if included in a tax increment district, will discourage loss of economic activity, increase employment, or enhance the local tax base. Year Established - The year the tax increment plan is approved by the local governing authority. Duration of District - The duration as contained in the original tax increment financing plan (Minn. Stat. Sec. 469.176, Subd. 1) or any modified plan. For the Year 1989: Orizinal Gross Tax Cavacity - The tax capacity of the district when the district was created; as certified by the county auditor. For districts with a base year of 1987 or earlier, the original gross tax capacity replaces the original assessed value that was previously certified. Current Gross Tax Capacity - 1988 tax capacity for taxes payable in 1989, as certified by the county auditor. Captured Gross Tax Capacity - The difference between current gross tax capacity and original gross tax capacity; captured gross tax capacity is certified each year by the county auditor. Retained by. the Authoritv - The portion of captured gross tax capacity designated by the authority to generate tax revenue for payment of debt service and other eligible expenditures. Shared with Other Taxing Districts - The portion of captured gross tax capacity not retained by the authority, but shared with other taxing jurisdictions. —4— INSTRUCTIONS FOR SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS General Instructions The Schedule of Sources and Uses of Public Funds for tax increment financing districts should be prepared for each tax increment district in the city, county or other local government in Minnesota. The schedule is to be included in the Supplemental Information of the audited annual financial report of the administering authority effective for calendar year 1985. If the tax increment district has no long -term bonded debt and therefore will not be covered in the Note, all the information from the Note except that on bonded debt must be disclosed in the Schedule. The schedule is designed to show the original tax increment district budget in the first column. jf there is an amended budget, it is shown in the second column. (If there is no amended budget, delete this column.) The other columns show funds accounted for in prior years; the current year funds and the amount remaining. (The amount remaining is the difference between the most current budget, and the sum of funds accounted for in prior years and in the current year.) 1. Sources of Funds Bond Droceeds. Net proceeds of tax increment bonds sold or issued in the accounting period. Tax increments received. Include all tax increments received on this line. Separate amounts accounted for in prior years from those received in the current year. Interest on invested funds. Include interest income received from C.D.'s, Treasury bills and other investments. If investments are pooled, show the amount credited to the district. Real estate sales. Report district properties sold to developers for each property sold. In a separate footnote below, list district's properties sold to developers and, for each property sold, the total cost to the authority and the price paid by the developer. Other. Enter all other sources of funds together with a description of each source. These will include any other sources allocated or pledged to the district (e.g., CDBG funds, UDAG funds, etc.) —5— 2. Uses of Funds Land acauisition. Enter uses of funds for land purchases, but not site improvement, preparation or relocation costs. Building acquisition. Enter uses of funds for the construction or purchase of buildings, but not relocation costs. Site imvrovements or preparation costs. Include costs of removing structures, cleanup, grading and all other site preparation costs. Installation of vublic utilities and imvrovements. Include costs of all public utilities and improvements such as sewer, water, streets, storm sewers, and sidewalks. Other vublic imvrovements. Include any other public improvements. B ond vavments Principal Interest L oan vavments Principal Interest Administrative costs. Include all administrative costs such as accounting, auditing and legal expenditures. Also include expense of management, supervision and protection, as well as allocated costs. Other. Include and describe all other expenditures not shown elsewhere. Show relocation costs separately under this category. Transfers to other districts. Show transfers to other tax increment districts within the governmental unit. Identify the receiving district. Transfers from other districts. Show transfers from other tax increment districts within the governmental unit. Identify the contributing district. Transfers to /from other funds. Show transfers from and to other city funds. Identify the funds. 3. Funds Remaining (or Deficient) Show the funds remaining or deficient in the tax increment district, at the end of the pertinent accounting period. —6— 8861 ECONOMIC DEVELOPMENT 469.175 Subd. 6. Financial reporting. (a) The state auditor shall develop a uniform system of accounting and financial reporting for tax increment financing districts. The system of accounting and financial reporting shall, as nearly as possible: (1) provide for full disclosure of the sources and uses of public funds in the district; (2) permit comparison and reconciliation with the affected local government's accounts and financial reports; (3) permit auditing of the funds expended on behalf of a district, including a single district that is part of a multidistrict project or that is funded in part or whole through the use of a development account funded with tax increments from other districts or with other public money; (4) be consistent with generally accepted accounting principles. (b) The authority must annually submit to the state auditor, on or before July 1, a financial report in compliance with paragraph (a). Copies of the report must also be provided to the county and school district boards and to the governing body of the municipality, if the authority is not the municipality. To the extent necessary to permit compliance with the requirement of financial reporting, the county and any other appropriate local government unit or private entity must provide the necessary records or information to the authority or the state auditor as provided by the system of accounting and financial reporting developed pursuant to paragraph (a). (c) The annual financial report must also include the following items: (1) the original gross, tax capacity of the district; (2) the captured gross tax capacity of the district, including the amount of any captured gross tax capacity shared with other taxing districts; (3) the outstanding principal amount of bonds issued or other loans incurred to finance project costs in the district; (4) for the reporting period and for the duration of the district, the amount budgeted under the tax increment financing plan, and the actual amount expended for, at least, the following categories: (i) acquisition of land and buildings through condemnation or purchase; (ii) site improvements or preparation costs; (iii) installation of public utilities or other public improvements; (iv) administrative costs, including the allocated cost of the authority; (5) for properties sold to developers, the total cost of the property to the authority and the price paid by the developer, (6) the amount of tax exempt obligations, other than those reported under clause (3), that were issued on behalf of private entities for facilities located in the district. (d) The reporting requirements imposed by this subdivision are in lieu of the annual disclosure required by subdivision 5.