Special Board of Aldermen 12-07-2021 Page 29
open up the riverfront and make it enjoyable. A lot of people have remarked that they didn't even realize that there
was a river there. So we'd be looking to maintain it as we go forward and we built that into the model.
| believe Treasurer Fredette put this together for you. | can defer to him but essentially it goes through in detail what |
just discussed, which is a 30 year horizon. Here we have a beginning balance of $1.1 million. We have what will be
generated with TIF revenue. We have level payments of $1,000,037 and then we'll have available balance throughout
the entire TIF schedule. | will send this off to everyone if they so desire. | can | can e-mail it out. | don't know if
there's any anything that Treasurer Fredette wants to say on that but that concludes my comments that | have this
evening. Thank you Mr. Chairman.
Chairman Dowd
Treasurer Fredette did you have anything you wanted to add or
David Fredette, Treasurer/Tax Collector
| have some hard copies here if anybody wants them. Dave Fredette, City Treasurer/Tax Collector. As Director
Cummings said, we ran this through 30 years and of course, no one can predict years out but we do the best we can.
We start off with Fiscal Year 22 and what's in the balance in the TIF account. As you know, the tax revenue raised or
a portion of the tax on raising the TIF goes into this account each year. | have that growing as he said by 2.5 percent
each year. Maintenance costs - this year, it's high because they started last year. They did a lot of work but starting
‘23, it would be $260,000. It would go up each year by another 2.5 percent. So it shows the ending balance each
year what would be in that account. It would become the beginning balance the next year, the expenses that are
planned, and it shows a balance each year. So although it shows going down to around almost $270,000 at the end
of 30 years, the account would be - if everything goes according to plan - would have around $6 million in it which
could be used | guess for another bond is my guess. So we used a 2.75% interest rate and we also have the revenue
and the maintenance costs increasing each year by 2.5 percent. We did something like this similar for the paving
program. The payment perimeter is $37.5 million dollar bond over a period of years and that has revenue that pays
for that from two sources. Budgeted all that very conservative and that's turned out to be good, too, because the rates
on those sales have been lower so we've been able to do more on that project. | mean, you know, 2.75 is
conservative right now but, you know, | don't know what's going to happen in a couple of years. We plan to sell the
bonds in Fiscal Year 23 and possibly something | don't know yet. So anyways, that's the plan to pay off the bond.
Chairman Dowd
Any aldermanic questions for Director Cummings or Treasurer Fredette?
Alderman Wilshire
| just have a question if someone could explain the TIF a little bit so the public understands what the TIF is.
Tim Cummings, Economic Development Director
Yeah, happy to. Essentially what a TIF is, is tax increment finance in which you have the base level taxation which
goes to the general fund and then the increment that is above a development is captured, segregated, and set aside
for specific projects or specific priorities as outlined by the community. That is what we did with basically it's the Brady
Sullivan loss 34 project that we used as the as main genesis of where these revenues are coming from. We very
astutely knew that that project was because it was an empty mill building was going to have an increment and we
could capture that increment and then dedicated to the improvement of the riverfront for the entire city.
Chairman Dowd
Any other questions?
Alderman Kelly
Thank you and thanks for the presentation on this. It was really helpful. My question, actually, | was really
appreciative of the discussion around kind of taking a slow approach to this. At a previous meeting, | had asked about
what are we doing for contingencies as materials are going up? So | just want to make sure | understood it sounded
like $50 million what you’re asking for but you're going to only start with that $11.8 million and see where you're at
before you go. | guess (inaudible) additional projects. Is that correct?
