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Item No.
RESOLUTION AUTHORIZING FUNDING FOR TAX INCREMENT FINANCE
DISTRICT NO. 20 ADMINISTRATIVE EXPENSES
Proposed Action
Staff recommends adoption of the following motion: Move to approve resolution authorizing
funding for Tax Increment Finance District No. 20 administrative expenses.
Overview
TIF District No. 20 was created in July 2015 to facilitate the expansion of Mendell Machine and
Manufacturing. The Company completed the facility expansion, but did not meet the job
creation goals that were stipulated in the contract for private development. The Company
requested termination of this contract, which resulted in decertification of TIF District No. 20.
The City Council approved the decertification of TIF District No. 20 on November 20, 2017.
Staff has reviewed the financial status of TIF District No. 20, and has confirmed that the
administrative costs incurred to date are not eligible for funding by the tax increment that was
received from the County during 2017. Staff recommends that the General Fund provide the
necessary funding of the estimated administrative costs of $6,072.35. The City will receive a
portion of the tax increment captured with Pay 2017 taxes back when it is redistributed to the
taxing districts, which will be applied to the General Fund.
Primary Issues to Consider
• Funding Sources
Supporting Information
• City Council Resolution
Financial Impact: $ Budgeted: Y☐ N☒ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Diversified Economic Development
Report Completed by: Jerilyn Erickson, Finance Director and David L. Olson, Community and
Economic Development Director
January 2, 2018
6072.35 General Fund
2017 Budget
CITY OF LAKEVILLE
RESOLUTION NO. ____
RESOLUTION AUTHORIZING FUNDING FOR TAX INCREMENT FINANCE DISTRICT
NO. 20 ADMINISTRATIVE COSTS
WHEREAS, the tax increment for TIF district No. 20 received from Dakota County in
2017 must be returned to the County for redistribution due to decertification of the district; and
WHEREAS, administrative costs have been incurred in the set up and administration of
the tax increment financing district to date, which are ineligible for funding from tax increment;
and
WHEREAS, the estimated administrative costs of TIF District No. 20 are $6,072.35 and
the General Fund is the anticipated funding source.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville,
Minnesota, staff is hereby authorized to amend the 2017 budgets and make the appropriate
transfers between funds with respect to the funding sources sufficient to close the TIF District
No. 20 fund as of December 31, 2017.
ADOPTED by the Lakeville City Council this 2nd day of January 2018
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk