Let me start out by saying I think it is fantastic that the City is looking for ways to assist the school district in addressing their deficit, especially because school districts are the primary taxing body adversely affected by TIFs.

I attended the finance committee meeting and reviewed the TIF 1 projection spreadsheets that include Exhibit A: figures without the TIF extensions, and Exhibit B: figures with the TIF extension. Both projections show that the school district receives just under $40 million in property tax allocation.

On the surface this looks like a win-win resolution; the school district receives the same funds regardless of the TIF extension, and the City, because of the TIF extension, is in the position to complete remaining projects.

However, this scenario hinges solely on the allocation of potential surplus funds.

With a TIF extension, if future city councils, because of the economy, pending city projects, or what ever reason, choose not to give a surplus to the school district, the school district ultimately looses income.

If you look at the property tax release figures for Exhibit A, (no TIF extension) versus Exhibit B, (a TIF extension), and multiply each by 66.4%, (the amount allocated to the schools) there is a $15 ½ million-dollar difference.

That $15 ½ million is sought to be made up solely by potential surplus funds allocated at the discretion of future city councils. TIF extension clearly benefits the city, and in the short run benefits the school, but what can be done to ensure that this is a win-win in the long run for the schools as well?

Also during the finance committee meeting, it was discussed that the Block 300 development and the $750,000 a year that it is going provide to the City is the reason why it is even possible to discuss the city helping the schools. However, a lawsuit was filed at the end of the year involving Block 300 raising questions impacting this discussion. Considering Block 300's financial importance to this issue, I would hope to hear some discussion on this issue as well.

Thank you