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? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? thief chasing. Councilmember Bowie. Councilmember Coleman care councilmember can get Councilmember Joe Council President acre here share Johnson here. All 7 are present. Thank you, So we have 2 presentations today. I on the tax increment financing TIF and then another on community development block. Grant Cdbg. And first up, I have missed, Wolf will be presenting on as well. The presentations are as well for folks who are looking and this is item number one discussion. So. >> Thank you as for making the time over to. Come across the
street here to give us his presentation. We appreciate just you take it over questions in advance. I think we were able to cover quite a few things in our previous conversation. But just to preface, there were several different topics that came up throughout the year last year as a part of the budget process. There was a TIF district that was decertified last year, which prompted questions as well. So just wanting to and more insight when it came to just learning more about the process overall and the process after to certification. And so upon review of justice presentation as well. There's actually quite a few different things in here that I think will be. information to our council members, but definitely good refreshers, especially for committee members who may have been watching are presentations that we have now had every year since home. But really, really excited to hear a presentation. Welcome school. >> good morning Chair John, make you and members of the City Council. My name is John. You will with TV. I will be presenting today on tax increment financing with annual update. Information. The summary of topics listed here is all included in my slides. But many will be very brief as they have been
included in prior presentation. For example, what is TIF tip is authorized by state law and enable ch to capture the increase taxes to finance development that otherwise would not occur. Here is an illustration from the State Department of revenue that I like to use as a classic example of Taft. It demonstrates that when properties have declining values due to lightning factors and disinvestment, the tech scene jurisdictions will benefit from a stabilized taxable value, creating a steady revenue stream And then they'll realize again when the TIF district expires increase in the overall tax base. How does work at a high level when a TIF district is certified by the county. They set the original market value tax capacity that will be fixed for the tech scene. Jurisdictions. And then they calculate the increase tax. tax capacity each year ad remit the portion of taxes from the increased value to that. If authorities. All properties within the TIF district pay their tax bill like any other property and the distribution of the taxes is what is handled differently. The taxes from the value in place prior to the creation of the TIF district. We'll continue to be sent to the taxing jurisdictions. The local tax
capacity based taxes from the increased value will be sent to that if authorities in the case a tree or the Port Authority. All property taxes generated from other tax levies would be sent to the applicable taxing jurisdictions and the full value of the development, which includes market value based taxes for the school district and state Levy taxes for commercial properties. This slide includes illustrations from the office of the state aditor reflecting the full payment of taxes by properties and the purpose of capturing the increase taxes to pay the eligible costs tat enabled the development to occur. And this slide shows a graphical depiction of the distribution of an annual tax base payment. And this is an actual this is actually the proposed, tough district graphic. And this reflects a housing only There isn't any commercial. Taxes and it reflects a pledge of 65% of the collected tax increments to cover the eligible costs, enabling the development to occur. And this is approximately 53%. You can see a little over half of the pie of the total tax payment, which is the lighter blue slice and then the remaining 35% of the collected tax increments are for admin and pulling for affordable housing. And this equates to
an additional 28% of the tax payment. And that is 8% in the orange slice for admin and 20% in the gray slice slice for affordable housing. This leaves 19% of the tax payment that is remitted to taxing jurisdictions. That's the darker blue slice. And then I for the reef last reflecting the fire the large distribution of market value face taxes to the school district in the greenback. Which in this case reflects an amount 16 times greater than without the creation of the TIF district. And this, Wolf, I have a question from council president maker, thanks for Johnson. First of all, as well. Thank you so much. These I feel like every time we see presentation like this, the slides get even more clear and helpful. So thank you. And I know that one of our discussion points today is going to be the decisions we make about that gray part of the pie chart pulling and certain things that go beyond just helping the project happen. And the look, they can use a little bit more about. I think the green and red and blue parts of the bar chart. How in particular is the school district affected not affected when a at TIFF district is created? What what do they still get and what do they not still get? Maybe us with face. That question.
thank Chair Johnson confirmed that president maker. >> So this school district is unique in that they they get determine what tax capacity based Levy will support for school operations and then the state of Minnesota provides us the difference. What what is shown here in the green is the market value face. So that's their referendum taxes. S that is outside of the state funding that. So that's when they do a referendum for a capital project for operating. Support referendum. So this this example illustrates that the school district. Otherwise doesn't get that revenue stream for the referendum based. And that's because market value taxes are not captured in districts. I see. So just say that another way, if a property's value increases by $100,000 because of the development. The school district's Levy takes into account that new $100,000. The total market value, even if it's some of it is going to tip district. And gets that amount into their love, your friend. And then the only part where they don't receive the full value is. In their normal property tax allocation that would come from the cafe. >> Right to Johnson. comes, president maker. It's based on what te tax base. So the tax capacity base is what the school distric can maximize
their levee and then state will then you cover their operating for the, you know, per pupil or so that that's all they're protected. And in tough, unlike, you know, the county and or the Okay. Thank you. Police continue as well. Okay. So the next 2 slides just described the 2 types of TIF districts used by the tray or redevelopment district and hosing TIF district. >> Both which are allowed to capture tax increments for a total of 26 years. I will just highlight the main difference in the 2 when creating a new tip Redevelopment, Tipp District for redevelopment district, the proposed boundaries of the TIF district are required to exhibit qualifying conditions, including substandard buildings and the redevelopment to occur in the district is not what's prescribed in state law. Although the eligible use of tax increment is. And for a housing TIF district, the resulting project when development is completed is what is prescribed in state law. Namely income restricted rental or ownership housing prescribe percent affordable to us at household income. Both types of TIF districts allow tax increments to be spent outside of the TIF district boundaries for qualifying affordable housing projects. State law allows tax
increments to be expended on activities geographically outside the TIF, district boundaries commonly known as pulling. Redevelopment. If district has a limit of up to 35% for pulling, which includes admin costs and housing TIF districts are similarly limited, although expenditures for qualifying housing projects are considered within a TIF district boundary even when they're outside of the limit. PD staff track and monitor pool tax increment for affordable housing from existing tiff districts. >> As shown on the following slide and housing projects for free housing projects, affordable requirements. Mere hosing District. So on this slide. I'm showing what's been generated. From the tip districts that capture tax increments. And these are retained in the TIF district. So even though the term pulling is used, the balance is stay with that TIF district. Unlike sme other, the temporary rules the state has allowed. But for pulling the tax increment stand that if distric and tell their available for a project. We do often times pool bcause one district alone cannot support that hole. >> The total cost needed to fill a gap in a project. So what this shows is we currently have 14 million
dollars. With 11 million generated from redevelopment. If districts and 3 million generated from housing t districts and these balances have accumulated over multiple years. An allocation of full tax increments to a project must be authorized by the tree board. Examples of prior approvals are shown on the following slide. Ad so this is 6 and a half million shown here for 5 different projects with 3 of the projects. Also, including housing TIF districts, namely 5.20, pain and peep heels to projects at Highland Ridge. As previously stated. >> Let's hope we also have another question I do want to get too far away from poll to ask counts. President, thanks to Johnson just again to put another way will make sure I understand it. So when we're considering creating a tough district where some sand and doing pulling what were essentially saying to the developer is when you create this additional tax value that we didn't have before. You will pay that full amount in taxes, some of that will use to pay off the debt from the project. He did and some proportion of it will use for building affordable housing in the strip district on the project area, redevelopment districts, miles, the city. Do so essentially we're using the carrot of tax increment
financing to the developer to. Again, this pool of dollars to be used for affordable housing that we otherwise wouldn't have make stating that right. And then I also is there a limit on what percentage of I guess you said that the percentage that can be pulled as the 35% and redevelopment of district and 10% for housing. chair genson culture. President maker. >> So for redevelopment to district the maximum pooling is 35% and at least 10% of that would have to be for affordable. can use all of it for affordable. Once we cover our admin costs. And generally, our admin admin is limited to up to 10% as well. But it's rare that we hit that limit. So we can use, yu up to the 35% for pulling for affordable housing. affordable housing. Any percent can be allocated to other affordable housing projects that arts. >> The projects that the TIPP District was created for. Commissioner are sorry, count theater change jobs. yes, Chairs. Career. I have a question around. The 35% is that like we can pull up to? 35% are 35% of what is pool and king go towards the development. To Councilmember, we so it's of what the tax increment we collect 35% of what we collect. >> We can then spend on admin and pulling for affordable
housing. The other 65% of what we collect has to be used for the project in the TIF district. So it has reimburse a developer for their costs or gas to actually, you pay pay for costs of the project in district. as a follow-up for when you say pay for costs, 65% is that. >> like the developers be, is that the actual capital that goes into building the the project and if you can distinguish between like the 65% 35% want to make sure hearing you correctly. >> Chair Johnson has memorably so the 65%. Has to go to the eligible costs for that TIF in the case of a redevelopment, hip district. It could go to acquisition. It could go to demolition. I could go to a site work. The developer, incurs those costs and then reimburse them over time from that 65%. Oay. has previously detailed tiff is a state authorized financing tool and there are specific requirements that must be followed. This is a hgh level list of requirements. I'm not planning to walk through it. But just so, you know, there are statutory requirements as a success. EST. Finance bill Now I'm going to talk about existing tiff districts. For pay 2026. There are 57 tip districts that are generating tax increment. There's 47 administered by the and 10 by the Port Authority. The
anticipated collections total. 32.7 million with 28.5 million for the HRA districts which is 87%. Of the 47 nature. A TIF districts generating in current. 26 are hosing tif districts and of those. 26 24 of those are rental housing. As shown in the past, we continuously track what percent of our tax base is captured in districts. This slide shows a 5 year history reflects our current capture rate of 6.0 8%. We do have some new TIF districts. They're 7 new districts that have been established. And will being in collections this year or later, 6 were authorized by the tree board. And 3 of those are at the Heights. And one was authorized by the Port Authority for the Fairview, Saint Joseph, a tree is also proposing to establish a redevelopment district for the Gualtieri Plaza site downtown. And that item will be introduce this afternoon at the Tree board meetings. These next 4 slides include the specific outcomes for the a tree tipped districts that are generating increment this year are planned for future years. I will not walk through each side. However, I do want to just highlight the total summary. 7400 new housing units. Nearly 2 million square feet of commercial uses over 300 hotel rooms and 4,000 parking stalls all within the
TIF district boundaries without if as a tool these outcomes and the resulting increase in the tax base would not have occurred. The table here includes the on added collections for pay 2025. There were 46, a tree tif districts and 12, 40 districts generating income in in in. 25 and the overall collections were 90% of the expected revenue. The reduction in the actual collections to what was expected or due to ptitions for the values and some of those are settled. A multi-year petitions that are settled. Reducing the percent collected. This slide. Just details the number and type of debt obligations for the tree for page. 25 most of our debt obligations include pay, go notes. These allegations do not have scheduled payments and the tree pledges tax increment as they are received. There isn't any risk to the city or a tray if the collections fall short of projections. This will continue. Just appreciating that we are moving through >> actually go back to the previous slide on the collections and then can you just share a little bit more about so total expected total actuals as a point in time as overall for the project says it's like, you know, the collection rates when I'm looking at the collection rates, what does that
actually? What is 86% actually mean? just kind of go through each county to find what this graph is actually Johnson. Yes. >> So this is just what? Was received from the pay. 25 Tech settlement. So we receive pay your taxes in May. And we received those in July the 2nd half Peyton October, we receive into pieces we receive payment in early December and then the county sent what's called a final cleanup payment of anything that they collected by the end of the calendar years. we received that in January. So this just reflects what we received in those 3 settlements last year. So in July, December, in January of this year compared to what the county told us, we should expect to receive from our tip districts. And similarly for the Port Authority the reason that you would see 86% versus 94% is the petitions. So when a TIF district settles a petition. The county will issue a refund and then they'll take that refund out of our collections in that year. So what I'm not showing you here and I can follow up and show you. But I can tell you what current taxes that we received. What ws delinquent taxes that we received and what was refunds that work, you reduced our collections. But that's why it's kind of variable. But it does just
reflect those 3 settlements up to a tree received and the port. And as a quick follow-up, just for like 20. >> 23, 2024 collections like as that percentage pretty on par with where they have been. >> starkly to Johnson. >> I can provide that detail. But I think last year quite a few petition settled for apartments. so I think that was it this year was probably a lower collection rate. Honor, housing for sure and are hosting districts. Okay. Thank you. Councilmember chaired Johnson. Thank you so much. I just have a question particularly around this lie. You can you define what is the tax petitions and what does know being settled or pending means. To Johnson, Councilmember Bowie. So A property owner has the right to petition the value that the county S S s right. So they assess they send that out in the tax statement in March, they'll send the most current assessed value for the following pay year. Every property owner has the opportunity to petition that value. That process is not I can take quite a few years. there's onus on both the county and the property owner to. Detail why they think their property is overvalued. And so when a petition settles, that means a refund
has been issued it's a pending petition. That means the county holds fact tax increments because they think they send or refund before our next collection. So the county doesn't want to be. Doesn't want to send the And if authorities that the taxes, if they think they're going to have to issue a refund. So the whole back pending amount and then in the next collection, they'll settle that. So we'll there. Give us the money back or they'll keep that because they did issue the refund. Does tat help president a Kurd? >> Just say that just a quick follow-up. Is that process handled through the county years? The city a cake. The county. Thank you. Yes, they have entire council president, thanks, Madam Cair, I'm just noticing. And by the back to the slide and noticing the difference in the amount captured from redevelopment districts versus housing, tough district. Even though we have fewer redevelopment and housing, tough districts. >> And wondering if that is because redevelopment districts just end being more valuable because they're typically taking a blighted property and creating some things from you. to commercial property. And so change in the taxable value is just greater versus affordable housing development where the end the
final product may not have as great of a change of tax capacity. And I'm asking this in part because I know we talk a lot about affordable housing districts, redevelopment of districts. I think tend to be more problematic for us as a body just because they're often not affordable. There market rate there commercial. They're taking something that taking plate improving it, which is the public benefit and creating affordable housing. But what I heard you say earlier about pulling for affordable housing from these projects and then the much higher number dollars coming in from redevelopment of districts. I guess I'm wondering. Is it the case redevelopment of districts actually have a greater impact on our ability to build affordable housing? Because of the huge amount of value they create. Even though the project itself is not affordable housing. And I know that wasn't. Along with asking question. Johnson comes president maker. >> I would agree with your statement. I think main driver the large redevelopment. Collections is we have some very large tough districts and those so Minnesota event district in downtown. And that's, you know, 20% of our total capture. And then we have the riverfront renaissance and we have the
Emerald Gardens odot university and and thinking on at the border, Minneapolis and people. So those large, those are large redevelopment districts that have contributed. >> To pulling for affordable housing. and >> then otherwise, most. Most housing projects are are hosing Tipp district, as you mentioned, are single single and scale. They're never gonna create what a large redevelopment site would create such riverfront renaissance or Emerald Gardens, which had, you multiple blocks and Ford site. For example, Ford site would be our next on par with Minnesota events for by the time it's fully built out. It'll be capturing, you know, that 20%. So that's probably, you know, I mean, but they feel development TIF districts. Do have more ability to. Pulling for affordable housing. And they can be anywhere in the city. think that to benefits are. All right. Moving So now finished with the topic of decertification. So first, I want to cover what is statutorily required. Al TIF districts have a statutory link. For collections, which is 26 total years for housing and redevelopment districts. State law, however, limits the spending within the TIF
district that could result in early decertification of the district. The driver is the law that limits polling. For redevelopment TIF district. The maximum pulling us. 35% of the tax increments. However, pulling not only applies to expenditures outside the TIF district. Boundaries, but pulling is also defined as an expenditure within the TIF district. That is after a certain date and the state is 5 years from the certification date. This therefore restricts the use of collective Texan comments. And when a determination has been made that no additional spending is allowed, that tiff district must be decertified. In summary for redevelopment district. If the qualifying expenditures not deemed limited by pooling AK in district expenditures are completed and they fall below the 65% of the actual collections. The district must decertified. So in the case of Westminster, the Dstrict, the Port Authority decertified. So they're pulling with 75% because they did not elect to do the additional 10% for affordable housing. So they had collected enough increments to cover what were qualifying in district expenditures and therefore, they could no longer continue to collect. And we close the culpable to district a few years ago for that reason as
that we could no longer keep it open because we did not have enough in district expenditures. Council, president maker. I'm sorry. I don't understand that. So, yeah, just have it It seems very important. Just wondering if you could say it one more time and partially. >> I almost wnt to almost want to ask here just for. To basically even rephrase that question. And just what is being answered. So I think we're being walked through the statutory requirements, which I think makes sense and if you could just share a little bit more of like an example, maybe something in hypotheticals and adding in amounts. And just so we can understand the percentage pieces. I think that would be really, really helpful for folks like myself who are visual learners as well. I want to follow what your ship, which are sharing. Could you give an example could you share just like put numbers on to it and the why? He would potentially decertify early are not be allowed to pull anymore. >> Chair Johnson present maker calls members. >> I will try. >> So it's kind of I think I've covered this before. Those more or less a math exercise, right? So if we've collected $100. >> We would have to spend
$100. We would have to spend $65 of that that we've collected in the district for qualifying project costs. And so that if we only had $63 that qualified, we would have $2 over what we could keep. And if that $63 was not going to grow in the future because already paid for all of the costs. We already know fully reimbursed like the Westminster that port fully paid all the obligations. That's $63 was not going to grow. And they already have $2 a day. Couldn't spend. So that's when they do certify it no longer collect going forward. Yes, come present. Thank you. I understand that. I think the 5 year olds, Reagan confused. Yeah, it's to Johnson comes to present maker. It that was something that the state law had amended originally. And there's kind of these precept pre pre 82 pooling or whatever. So there was districts where they didn't limit. The pooling to actually expenditures in your tip district. It was just everything outside of it. So you could you could create a new expenditure in year. 23 of your tough district. If you tax increment. So what the state law, how the state law was amended is they said we're gonna also limit the length of expenditures. And so that's where they created this 5 year rule. And then in times where there's been, you know,
recession or delays in developments, they extended that to 10 years. We did that recently for the 45th district. extended our five-year rule to 10 years because of the delay in building the housing at Ford site. So we allowed ourselves more time to have those in district. Costs that are not limited. By pulling. Put another way, maybe this five-year rule made it even more difficult to reach our $65 that we had to spend previously. We could sort of come up with another project that could use tose $2. But now we can't after 5 years that the district was started. And so when we reached, can spend 65 anymore. We have to And that's hard easy or to reach. Yeah. And so just to be clear to like in this example and also from understanding the 65, like in this case, it would be $65 that are given. And is that a That been annual peace overall. There be 65 overall. >> It's your total collected. So you don't. Johnson. If you if you're still incurring in district costs like you're paying back to act. You can exceed that 65%. Or be lower than it. But once once you've incurred the last pass or you think you're going to like you can project forward and say, well, I think we're going to have more than what we can spend then you would start
setting aside those tax dollars to pay off your in district costs. But it it and people a through the life of the district. >> It's not it's not an annual measurement. Okay. Thank you. And councilmember we Mister Denton eyes have another question. Just just trying to get the picture clear >> using the example that you gave. But I also want ask in a different type of version. So my understanding when a developer is building a project, those like the costs. Could be pretty stationary. But until you start actually developing, there's some flexibility. With those numbers. >> But what we whenever we certify is like that selling. So if you're saying like $100, but we can only reimbursed up to 65. So are you saying if they if developer does not incur up to that ceiling that 65 and that's what we decertify. So does that mean if a development actually cost less, then you know that the commission and the charity Commission is more incentivized to be certified that or if a project takes longer, I'm just trying to understand what are the factors. I goes into those decisions Johnson cuts memorably. And that's a good question. So most most of the talk about if we have all these costs and
we we don't have enough are probably more for like phase developments like the Ford site. So I'll give an example. Which the pie chart that I show here, which is, you know, what's proposed for the Plaza right? So the developer will have to demonstrate that they had the eligible costs projects done and that will set te principal amount that will reimburse over time with the 65% that we collect. Plus interest. So what could happen in that case is the collections could come in greater than we expected. And we wuld we would still give 65%. But we may pay that obligation off. 15 years. And so and that would be an instance where we've paid it off. That's our only in district cost. And now we have to cose the district because we maximize the pooling. We kept 35%. We gave them only 65%. So it it's. If if the development does costs less and we end up reducing the amount of the principal amount of a note that could be afactor as well. But we would still be sending them 65% to pay that note back. so I think I think the good the best way to look at it is is is generally collections come You know, so we set up an obligation to. Pay off over the life of the TIF district with our projections and the collections come in faster or
greater. You know, that obligation pays off early and that's when we would have a situation where we have to close the district currently. >> Right. And I see a question for council president maker as well. And then I have just a quick clarifying question as well. Thank Thanks everyone for your patience with all of these questions. Really appreciate as well. explanation. So 35% the max that we can pool for affordable housing. What if we had decided for this particular project, we're only going to pull 10%. And the 90% is going to the eligible project costs. How would this apply in that case? Would it be that? Like the 90% has to be the amount that we pay to the project. For the life of the project in the that something close or collections were coming in higher, could we go back down to 65%? And use the extra for more polling than we expected to John Circle to present an acre. >> So our development agreements in our tips notes. Call out the pledge so we can't change it once we've issued that no sewing for pledging 90% because we expect to only, you know, keep the 10%. And that note pays off early. And the reason it pays off early is because we've collected more comments are quicker. We maybe would not have occurred as
much interest. So 2 things could happen. We might have room in our to fight it that we could still collect Texan comments. And then to pulling at the and so once the developers notice paid off. But it will depend on what the tiff planned budget. What condition it's and at the time that happens. And so an example of that is the Sheppard Avenue rental housing, tough district where that no paid off early. And I and >> we brought forward an amendment that was approved by a tree board and city Council to increase the budget. And in the tip plan and allow us to continue to capture tax increment and use those exclusively for additional affordable housing anywhere in the city because that TIF district performed better. Then what was expected? Even though we had pledge 90%. >> actually took my 2nd half of questions. I like, OK, I don't have a follow-up. We continue. OK, I think I've covered the statutory reasons. So now. I'm going to cover if not statutorily required. Should they trade elect to close the district currently first, I want to just state that tree only keeps the district open to pool for affordable housing. So if the TIF district has met its development objectives and
covered all obligations, it can be closed early. Even if pulling opportunities exist. Alternatively, a district may be kept open to pull tax increments for qualifying housing projects. And those that housing Tipp district all just say has to remain income restricted for us to continue to collect tax increments. South Shepherd just mentioned and this was shown on a few slides back within available balance of 1.8 to 8 million to be expended on qualifying affordable housing projects and is expected to generate 500,000 per year going forward and has a final collection year of 2031. But for the Tree Board and City Council's decision to amend that tip district and keep it open. We would not have those dollars existing today. The 1.8 to 8 million or the ongoing half a million dollars each year and it went 2031. Being the statutory. Final question here. And we only keep the district open to pull for affordable. And decertification the tax capacity captured in the TIF district becomes available. For the taxing jurisdictions. And I have a graphic from the state auditor that like to show you. >> so >> this shows the impact on the city tax rate with tiff and without Steph and without if is the district is
decertified. The tax rate would decline all things equal. On the other hand, the release tax capacity could result in an increase to the levee. And then while maintaining the same tax rate. So Basically have to. To to set someone 2 options. If you want to reduce taxes. Yu don't raise the levee and you. Allow the tax rate to fall because you have a greater tax capacity, all things equal just looking at it. If district, when it expires or increase the levy to capture that increased tax capacity from the decertifying to district. So for pay 2026. te tree has 47 to districts and of those. 47, we have 5 that have obligations that were fully paid by the end of last year. So we have to housing districts, aforementioned Shepard Davern. And then we also have Highland Point posing tugh district also has paid off its early and has enough budget. So it hasn't had to come forward to be amended. we are continuing to collect and retain those dollars for pulling for affordable housing. And on the slide earlier, I think I think I showed about 500,000 from now on. I would have to go back so and so so there is a balance shown that would only generate about 2 to 70 a year. And then we have 3 subdistricts within the redevelopment. Riverfront
Renaissance Redevelopment, Tipp District, which TIF district includes 2 additional subdistricts that have existing debt obligations that are landing in the U.S. Bank. The final collection year for the riverfront Renaissance is coming up here in 2028. However, we do have 5. >> Districts are subdistricts that I'm expecting to pay their obligations in full this year in 2026. Allowing early do certification and this is the Emerald Park redevelopment tiff with 3 subdistricts. Phalen village uncommitted Subdistrict and and the painter and a cadre development TIF district downtown here. As previously mentioned, we may collect and spend tax increments from housing and redevelopment. If districts, if legally permissible after debt is retired for the 5 districts that I just mentioned future 8 reaction will be needed to authorize or lead to certification. This is required because we have maximized our polling from those 3 districts are some districts. so now I'm in a show the District Center Decertifying fi their statutory terms and those 3 that I just mentioned, we will be proposing a tree board action too, to certify those early. And then this table shows the anticipated capture tax capacity projections when
certifications and accounting for new TIF coming online. You'll see here the overall captured tax capacity rate. Remains below 6.2%. And this goes through 2034. Taxpayer. Lastly, I will provide very high level impact for pay 27 with the districts that decertify as of 12. 31 26 either by their statutory term or early as as mentioned. When a tip district is closed to capture tax capacity is returned to the tax base and could result in a reduction in the city tax rate as was shown in that graphic. If the Levy is not increased. A rough estimate is that this would be a 9, $9.11, per year in city taxes for a median value home. I'm from those that are statutorily expiring. So those that are required to close because they've met their term. And then a reduction of $18.27 per year when including that early, the certification of 3 districts listed the $18.27 represents one point to 6% reduction of the annual tax payment to the city. And this is a median value home and it's based on page. 26 information. It's just very high level of what that would mean. But we don't have any information yet for pay 20 I just wanted to give that example that that's what we're talking about in terms of. In tax. And so on. Wolf, can you just simply share the couple sites?
Simple tax. So we have a couple of different districts out almost I think the year. For leading certification. We look at the project projected released tax capacity like what a lot of this translates to. And then also just what would happen, what happens to the financing afterwards? What happens >> The total amounts to ship now downward upward. But what exactly? Do the last few slides mean and simple language. >> To Johnson, so >> the. When a TIF district is decertified, that means that those properties in the TIF district well, no longer taxes increase, taxes will no longer be sent to the transit authority. Tey will be part of the overall tax base so we will no longer collect tax increment from district we still have money that we've retained. We still have reporting requirements. We still have to spend all of those dollars. We have to have collected. In accordance with the adapted to plan and the requirements. So it doesn't change the spending side, but we will no longer collect additional tax incumbents. Right. So regards to that in short, it's also making sure that we understand it doesn't change the overall like tax value itself is just basically rolling back onto
normal text. We just are collecting as the city the well to a that, yes, correct. Okay. >> council president. >> Thanks, Madam Chair and to questions from a presentation as well. Once the district can decertify early, obviously when it has to decertify, you're coming to us right? But when it can but doesn't have to decertify early. Do you come to us to ask whether or not we want to decertify really like and to give us kind of the pros and cons of that decision. In other words, this is how much we would continue to pull for affordable housing if you kept it open. This is how much would go back to the tax base if you didn't. To. Johnson Council, president maker, I have not so example. That is the Highland Point housing to district that paid its obligation off early. We've been just continuing to quote, we know the project is affordable, its income restricted to the tax credits. So we've continued to collect those dollars and we're reflecting those is available for. And further in affordable housing in our community still are PT Resource team. Keeps track of that. And that's what they identify for up project. That's looking for money. And then that project that request would come to the tree board. But I have not came to the
tree board to say do you want to close us or keep it open? So just to my colleagues, that might be something we want consider is a policy change. If I think one of reasons we had this briefing was because we've gotten questions from folks in the community about tough district staying open and closing. >> So we may want to have that decision point as a matter of policy. I'm just I'm just bringing it up. And my other question as well as how how do we decide on any given district when we're establishing it how much to pool for affordable housing to be always just to the 35%. Because that gives us the most flexibility or is that a decision point? Jensen comes to president maker. >> so are a jury application does put forward to guidelines and it mentions that. Criteria is to pull 25% for affordable housing. As likable. And we've used that as a public couple to mean if the project. Isn't producing its own affordable, that it would be applicable to pool. And then we start at the maximum. And then we can ratchet down from that. the project isn't going to happen, right? So so it's kind of a how much do we need to give? So the project still happens. And that comes to us when we approved the TIF districts that percentage of polling is
part of that. And you explain why number was somewhere. yes, correct. Can you also share a little bit more about application process? So what happens? We have an application. We have these pieces. But on the back in as well when it comes through to what exactly does that look like on the back end? But at the steps to get it to the final. Peace for it comes to the board. >> Chad Johnson, so if it's housing project, it'll start with the housing director Joe's that are he will discuss the project. We don't fixate on tiff. When a project comes forward. evaluate the poject itself. >> And then we, you know, determine. What is the best course to have it happen? So. it. Our application does. Include a request for tiff, but we don't Solis say that. That's the only thing we're going to look So. For projects that there's other funding sources out there. If it does have affordable components, we would be looking for it to go to other funders as If market reef project, we might be looking for it to a 5 for pass through grants or other sources as well. But one of the terminations that has to be made if it's a redevelopment Tipp district, is that the site even qualifies. As I mentioned,
redevelopment, if district can only qualify based on its current conditions. So if it doesn't meet that requirement, then we're kinda and a conversation. The developer has to pay for that. Class of that And if faith we won't do that until we receive an application. So they would have to submit the application to question that we established a tip district and then we would work to get this. The report. From LHP that says it can qualify, then we wuld engage our municipal advisor to talk about the project to make sure that they actually need subsidy for the project to happen, meeting the but for test and that's under the assumption that we really don't have other tools are in our tool box for 4, not affordable housing and tip is one of those tools. So s that's kind of where the tip is. The. More the focus. >> see a couple questions that popped up. Councilmember Coleman start here and then I go to Councilmember, thanks to 6, which is nation is really helpful going bck to the tax cuts to capture didn't have slide. I'm just curious about these five-year Think that they at. super helpful. See these. It feels like they don't match. public narrative has around or use it to te city. so I guess. Case for any thought to have on the side or any it like color commentary.
You want to add. But specifically, I guess I'm wondering about. Well, it started I had come back even further to the tax. But the one about the last 5 years or the next 5 years. But they're Stephanie overlap between the 2. And I guess I'm curious if you could just kind of coming on if that's been a result of the projects that have available to the city, if you think that's result of intentional decision making by HRA board or others with NPD to go down and and then. A separate question come to a more suspect based and it's a 10% of the city's tax base that can be captured by 10 is that not a legal requirement. that a city policy touch on that a little bit? Richard Johnson come to member Cullman. The 10% is not any state law. And that is something that came out of the finance office many, many years ago in talking with the credit rating agencies in order for the city to maintain its AAA credit rating. The rating agency looks at what is their capacity to levy taxes. And so if it's captured into if they can't levy taxes on that, because they're looking at, you know, job credit rating, right? So they are pledging the full faith in credit and taxing powers of the city. So if they more than 10% captured into, if that might be a reason to not. Give
the triple A rating. So that's where the 10% comes from. It has something that has been measured every and it's used when where when we receive requests, it used to project going forward and the I think this slide here you 2 things, the Great Recession, you kow, in in the late 2000 and the declining values and I think not until maybe 20 19 did we actually recover to where we had been? And so obviously with declining values that puts a lot of pressure on that percentage. So the percentage has been shrinking all things equal every year since then since values recovered because now values again and you can see here that the city's tax rate or tax base >> has been growing until between 2 and 25 and then the TIF percent change has been growing, but not as much or actually declined in the reason the decline you'll see is because a TIF district was decertified. You know, that's going to be a reason why you'll see decline there. So from 24 to 25 that. there's probably Williams Hill with the port and the this with the HRA are reasons why and then also just declining values >> I think. You know, where our tip districts are largely I would say more rental and commercial, then ownership housing. >> And whereas the city's tax base is more ownership,
housing. >> So that might be where if you see a reduction in one, it doesn't mirror the I've tried to kind of look and see, you know, the makeup of it. But it it's a it's hit or But so, yes, the narrative has been that were that were. Including Marte half. Then then what we should. But if we compare to the 10%, we are not clearly. All right. I'm gonna to cuts for bullying and I'll have spring ask the last question only because I want to get us to the second part of the presentation as well. Yeah, yeah, you. I'm going to the last question and so will do those 2 and then will and this part. if you have follow-ups, I think this will cause willing to talk about any I do appreciate being able to have this kind of come back to this body. I think one piece that wasn't necessarily touched on in the presentation that would be helpful, especially when we're thinking about the respective TIF areas. So important decertified win. Housing is to certified redevelopment tiff to Honda's them there. If there's any returns leftover well, to that to be allocated are utilized to whom has the authority to do that and like what is the process when there is a balance left that can be utilized, that this was a topic for discussion last year because the port district, had
ruled over and they I think amounts left that the question was whether or not that can be brought onto the end, the budget cycle to be used for council purposes. And it was like, actually we're gonna roll this back into the general of 2 relieve the cyberattack deficit we were left in as a city. But it didn't rquire council approval. And so just kind of sharing a little bit more about like what that process looks like on the back. And for each one could be sent. Probably is a follow-up because I think it be helpful. And Portman to the conversation, especially surrounding the budget. >> Johnson now just to advocate. I will send that. But I'll just add real quick, as you saw from the actual collections flied for page. 25. We did not collect. What we expected, right? And that was because of the refunds. So sure when a tip district is decertified. So if it was decertified for 25 was its last collection year. The county can issue a refund for those. 25 taxes for up to 3 years So that causes us. resulting holding onto dollars until, you know, they're not going to captured back. So Cook Mobile was was decertified 2024. we still have one more year where we could and we got a negative collection in 25 because
refunds were issued. We could still get a negative collection. And so until are sure that we're not going to be sitting there with Attorney General Fund having to bail out a tip district because we close didn't return the dollars. that's you know why there isn't an immediate here you go. I you could ask the Port Authority what kind of did to make sure with Westminster they were comfortable returning what they did because I know they did that analysis because they, too, have been ht negative collections due to refund But I can follow up with them. OK, thank And I appreciate clarity as well. that is helpful just to visualize and to take in. And I think for the poor, it's like, yes, that horrific ation. And then also when a refund is when they return, the funding back to the city. Ultimately, what is the process of the pack? And for that? So commissioner. But I sorry, Councilmember Bowie and them over. Thank you, Chair Johnson thank you so much. I miss school for just like your your wealth of knowledge and >> the patients, as for, you know, asking you to kind of reiterate yourself, Henry, you know, dive deeper into this topic. I just want I definitely want to follow up and I'll make sure I can send some e-mails are some
questions, particularly around the follow-up. And I know we're going to have more of these conversations in the future in terms of no how the taxes are collected and like what's captured and I know especially my word is a couple tough districts that span brought forth in terms certain blighted areas. On that note, I mean, you talked about. And just like some past examples. I was really curious to learn more about, you know, was the rationale with the city going in a direction where we source out a 3rd party to be able to determine blight and ask this question just because I swear, you know, just going over all the different reasons and scenarios of land districts if it's like it's driven by as - developer, right? The developer has an area. They want to build a project. They have the capital. They are in the language familiar with. This is a financing tool and they have that relationship or make that requests to the city. But for certain areas that, you know, maybe that is very light it like, for example, the serious side are the Kmart site are, you know, have the city has recognize mass blight where developers have not looked that, you know, investing in that area. Where do you see terms of like the city on its really taking leadership in terms of trying to create a TIF district are
is that solely on that developer requesting that trick? Johnson comparatively. >> I think at times the city has taken on. Determining blight and I can say we did that with the Ford site. We did that because Ford was going to start demolishing buildings. And unless we made the determination of lighting conditions without a developer at we would have lost that tool in our tool box to help with redeveloping the site. So has happened, but not not very often. I mean, I think it's for for something large an impactful and the Sears site is probably along those lines as well. And so, yes, the city could you don't take that on. We could engage. We always engage a 3rd party because they're the experts in the field, but we could engage that without a developer. And then we make those determinations and findings. Thank Council. Vice president. >> Mr. Johnson really appreciate the presentation today. Even if this is like my 7th refresher on tip, always 13 getting clarification. Ping is so I encourage you to continue doing this for the council. I just have I want to go back to something tat the council president said earlier, which is around this policy for the polling for me. I do want to share with folks
that I'm interested in in making sure that when there is a district that can be up first, the suffocation that 2 get info about it, even if in the end we don't decided to just to certify it and instead do the pulley instead, i just be helpful to understand And I remember when InSight's PA came some time last year and said, hey, the council should consider decertifying these, you know, the sample of I didn't realize that that that we could have done that. And so it was new information from me that I I believe really important for the council understand in terms well, for transparency and for to be able to decide one of the tradeoffs that you would want to in a sit in decision like that, knowing that this isn't this is an opportunity for us to to reduce the amount that we could be putting on >> Property owners when it comes to the levee. at the same time, if you decide to the points more money for affordable housing and so I seems like maybe this might be like and how operating now. It's an unwritten practice or policy that peace following, which I'm very supportive of. I don't think in my 7 years here. >> But it wasn't something that the council voted on. However, it would be helpful to understand. Is this something that we do need to
have a written policy for if we were to decide to operate differently from from here on out. So if you can clarify that, be really helpful overall, again, I wanted to name him very supportive of the polling. I think we're I would say a very difficult time with it the tax burden that we after hearing from residents and just figuring out how do we close our budget and so I would love to get all the information. To vice president. I think that's something can discuss with PD leadership. just share that, you know, the hosing team has. You know, full on applications for projects within the city and desires from developers. That's about, you know, 24 projects long requesting, you know, tens of millions of dollars from us. And they're all chasing the same dollars. But we can talk internally what kind of information to put together for that? I miss. I mean, I'm not to interrupt you and the response, however, I do see direct MMahon and the audience and I do want to have a chance ship and PD leadership. >> Some actually going to ask director and would also just be able to cme home. I think this is a important question for this topic for. I think it's a practice piece that council vice president asking. And so we're just wandering
around, you know, whether or not this is I think the seems like it's a piece of whether it has to be a resolution or doesn't have to be something the injury or city council would take formal action on something that would just be worked on in partnership. Chair House members. Thank you. >> I think something we worked on in partnership state laws, pretty prescriptive and some are talking about policies and sort of rules and guidelines to follow state law beings. Prescriptive is it is what is really the benchmark right to make sure that we're following and working under within that we do have practices standard practices that we've done over the years. And those are things that always a discussion, right, continuing with you all their things that also impact other departments. When we talk about, you know, the 10% and things like that. So it really is is a larger conversation and sometimes cite specific. And so those those general practices and guidelines that we have internally guide our work and again, state statute, Israeli that the policy framework, if you well to ensure that we're working under. >> And so district is looking to decertify. And there is maybe why if we have an opportunity to be certified tax tip district. Especially
if it's maybe award of that council member. Is there an ability for the council members to be notified about that, even if it the ultimate decision is to open. Council members? Yeah, absolutely right. To have the continued conversation about what districts are in each ward and throughout, you know, throughout the course of the term, actually, right, like where i it in process? I think it's a conversation before certifying a district as well because that's what really, you know, establishes the spending plan. So it's a conversation in the ward if there were to be new TIF district established. That's part of the conversation. Policymaker as well as during the course of the term kind of status and where it is along along overall years of the term. >> I did This is going to be the last question. I so I'm going to hold us to that just because I do want to be able to have come up and talk about Cdbg director man. But I appreciate that clarification. I think it's just opportunities. You know, I didn't want to talk about leadership with the city, for him be able to just ask, I think when we have opportunities to not have to prescribe things to the form of resolution or 2, a policy direct policy change because
we can operate with that practice in mind. I think that's always a great opportunity to capitalize on. So thank you. Council present brazen question in the queue for coming up and being put on the spot direct McMahon. Thank you. ? Welcome up. Best at this time to talk about the community development block Grant. Good morning Chair Genson Council My name Rick and the grants administrator for work Federal state Regional grants. But here to talk about our federal grant Cdbg. So our NPD for federal grants is comprised of our CFO director and a cold rain myself. As the grant administrator plants, complaints, professor just could begin. And then we have 3 specialists that work with our partners and our city departments Austria's on and And are on. Our team manages not only cbg, but there's tenement grants through HUD that include our Home partnership program under Emergency Solutions, Grant as well. >> All of our funds Allocated through the consolidated plan. Until plan is a 5 year plan. Our most recent one just started in 2025. cyclist June one through May 31st. We approve our
annual action plan around April every year. So you would have recently saw 26 plan come through April. In our consolidated plan a 5 year plan. We identify our goals. Most rcently were development of new housing, housing, rehabilitation, economic Some public services, public improvements intermediation of substandard properties are the ones that are in our 25 29 points. And this will all 5 plans under that. Any election plan for 25 29. working with We always have to meet national objectives. That is in the regulations most frequently and required. We have to spend less than 70% of our funds on a low to moderate income activities and that can be achieved through area benefit to moderate income housing, limited clientele, which means. Select population that is at or below 80% area. Median income and then we can create jobs what moderate income individuals as well. The remaining 30% can be spent on blade activities. And You can be done in an area or spot basis. We do not have a certified area in Saint Paul. So all of our some planned activities are on the spot. You can also spend these $10 urgent We have not had that type need. W need don't see Hurricane you know, natural disasters that that it can't happen. Just s. Our head formula Grants. Have been. Not
keeping up with inflation and actually declining a little this graphic. 2 shows our the kit location at 6.7 million. Just a little over our home declined at 13 this year. And our emergence solution hold pretty steady at just over half a million. So what we can expect for 2027 this administration been a little hard to project. Us. The president's budget came in with a significant. Decrease the civilian and it actually proposed zeroing out any funding for cdbg and home. However, may 21st House Transportation, Housing and Urban development related agencies, Appropriations subcommittee voted to advance their spending bill which provided level funding for cdbg. So they started in the budget. However, it did come with a 60% cut to our home program and a 6% cut to esg. One thing that was positive out of the was that they are proposing that. >> A regulation called Baba by American built America Built America, but their cat would be exempt. 2 cdbg and projects for 27 and prior years, this particular regulations causing a little bit of delay and increasing costs for some for projects that we've been finding that these grant. So that would be a welcome change. And then the Senate has not proposed yet and they don't have a date when I So
we're still waiting for what their bills like. >> a question from council. President maker thinks her and just to clarify tpe and this this the Trump administration proposed $0 in funding for cvg home innings. $0 at all or 0 increase. Is your dollars at all? Basically cutting eliminating cdbg home and the attention Housing Urban Development Committee is recommending that spending remain level last year. First, cdbg for >> If we look back at what happened 2026 funding. president's budget out. Both the Senate housing had put in some form of funding. Cdbg is. Typically very wide bipartisan support. you know, widely used in all of our states. All of our areas and there's been a couple of home. Husing, affordable housing bills that have been posed lot of policy work that's been done in the last year. Nothing that's been. Approved and put in place yet. there's white support behind. These tech or, you know, the activities that these bills are these fun support. prior to the new had had a proposed rule that was about ready to be put into effect. However, all the rules are suspended. This proposed rule would change our timeliness. Which is something that I know you folks had. Some interest around dinner time when it's
in our spending we're hoping that at some point this rule get released in put in effect. But right now it's tough still pending. To just, you know, what is timeliness basically 60 days prior to the end of our program here program starts June one, which means by April first, we have to have no more than one and a half times hour. Annual grants. Our most recent annual grant on hand and that grant amount plus program income in our line of credit. So that's system HUD that tracks your dollars. we need to be below that one and a half. Kind mount in order be considered timely. And if we are not timely, that's when you hear the word spend So what causes us to not be timely sometimes so it's increased or unused funding. Increased funding would be when we get program income sometimes will have large projects that have been financed in previous years. payoff to refinance or fairly because sometimes tey're selling. So that would increase a large chunk of dollars coming back. We have returned funds from programs or projects that aren't used. Some projects don't actually go so won't use the funds reserved they won't spend as much money as they thought they didn't the programs and the that way. When we have that, we'll introduce a motorcycle projects and those
funding requests other come through the PGA application for funds or sometimes we'll get the funding request through other departments. So funding is mostly allocated through the city's biannual cip process. >> Roughly 6.7 million since in Cdbg. See it allocates about 4 million dollars of that each year. And we we budget so can safely say budget. 4 million a year. The remaining funds we are allowed to spend 20% on admin and then 15% public service. So the >> Is in plan one of the 2 year. So they do it for 2 year process. >> We have a question from council president maker, thanks Did you say that we have that? There's a 15% is the max that we can spend on on Capitol. Right track services. He said progress. What's that mean? I guess I'm wondering. Is the amount that we're sending through CA B. Amount that we have to send through Cip. Could we could choose to use more of cdbg on on Capitol and allocated ourselves. The temple. >> Children's incomes, Prison We required to spend no more than 15% of public services and no more than 20% on at that. remaining rquired to go through. See it. But it is required to have some kind of allocation process. So cip
process has been what was established. Many years ago. But it isn't the only process available. To be used. It's just what we have used. Thank you. If you repeat those percentages for me, no more than 20% of the grant amount administration. And the more than 15% public service. OK, thank So this little bar chart just shows what allocation looks lke. >> We have been. Getting less dollars than we used to in the past. And when you consider. >> Inflation and decrease in funding, obviously there's way more need than we have funds available to to address. >> Currently the 9 capital funds that we're using in are. Kept the city Youth employment sites commonly known as right So are Parks Department runs that program $540,000.26. is going to fund that. And then 100,000 goes through public health, them to But that blackness program. So those are currently the only to public service, that we The 26 and then we roughly one thing for us. For program administration that's mainly spent by PD the city attorney's office and then PD also spends what we project delivery. project delivery contract projects. And that's been another $430 that are spent. The branch. All right. Have a follow-up question for counsel for comment. Thanks, chair. Just a
question on this help. How did those spending totals compared to that 15, 20%? Respected. Larry, hitting that threshold or we do have some room to wiggle. Councilmember Coleman, we are well below or 15%. >> As a follow up as well. believe that district councils counted under this historically and just wondering where if we. Had alternative where that 300,000, within this model for this year? >> And district councils where previously considered in our public service budget for 345,000. In 2026. Those funds through the consolidated plan process that you approved in April were allocated to some additional all identify them on a slide later here. But it was it went to 2 projects that did not make the funding requests through Cip. One was the North and neighborhood organizations business program and also increased the amount that went to a neighbor works because Cip only allocated 85,000 and we were able to it. Restore some of their funding. >> council, president maker, thanks for Johnson 5 and a woman's question, doesn't I think it's 900,000 would be the 15% of the 6 Million. And we are below that in terms of the program, expenses or services. How would the decision what will be the mechanism to decide that we
didn't want only one 85% of the dollars to go through the cip process versus being allocated by the council. So >> we would need to make a decision basically prior to the two-year process for C which I know is going to be coming up this next year. Cause this last one allocated. 26 27 are recommended. 26 27 so if want to be a change, that would be. The time to make that change for the 4 million that's already been allocated for any additional funds that would be available. So like the 3 45,000 that we know is there for has not been allocated for 27 we would. It's up for discussion. I mean, we don't have a process allocate that we knew we had the extra money. So that's why I came through the annual action plan the way it this time. So it was proposed and available for you through their action plan process. If there's a different process. You know, we are considering. We can definitely consider options. We do need to follow federal procurement. So there, you know, we would need to make sure that whatever process it is. Meats. Those guidance. >> I know that the public hearing me think in some of these items went the recommendations, I believe, are going to be taking place on 8th of June. I think it's when they're doing some of the
recommendations for certain projects. >> But can you share a little bit about how like? example, I have a couple of organizations that have come to me. It's with youth, complex ideas or community center ideas. And so I just when wanted to just how does some of these are broad or but a bigger programs some of them are specific projects that are may be happening in particular area. How do think it to the stage when it comes to just like? For example, iPhone, the community center publication? If there are other folks that are wanting to think about how to make sure that they're able to get through the process for CA be in to be considered. What does that look like? >> with owns the process. how they approach see That's a question we need to provide need to. >> Most of the Cip Stephen I have an idea, but I can't. Speak for it. So the process that's coming up this year isn't for Cdbg because our process occurred previously. So we'll be on the next year because we're 2 years that community process when you're sad and chiefs. The next year for 2 years at a time each week. so >> PD. We actually compete in that cip process. >> With our partners and other city departments for that
4 million dollars so occasionally depending on the project, if it's program that we we have allocated funds They could make applications too PD for the funds that we have and we don't have a community centre. Obviously program. But >> occasionally we do have returned funds. You know, like I said, those office ICO projects. When happens, we notify with us. That's when we get Requests throughout department to tell. We funded some us. North community Center recipient, you know, a few years ago because we had some projects after COVID that. didn't go. So we had some extra funds. We're able to help our. Other departments that some of projects. >> I guess is one final Looking pickles better just from the consolidated plan approving the consulate. A plan happens. But I guess for from 100 from my understanding, how do we determine where we spend those resources per goal? So like, for example, I see housing rehabilitation on the coals. I'm just not aware of the housing rehabilitation investments that we currently have internally. So I'm just wondering. What does that look like when we say those schools are approved, those plans? What? Exactly? Because we do that I think we have program
was discontinued. I think so. Just wondering. How does that match short? our 5 year plan. Has an extensive community engagement process takes about a year, the neighborhood and community. You know that communication that takes place. That's where those calls get identified. So it's, you know, we see the needs. And there's also like this will need to mail, says that gets done. I can definitely providing more information at a later time. the can tell a different process. But so those are identified there. in annual action plan, which takes place every year. It's a quick or 3 months engagement process that identifies where we're going to allocate those fnds. The funds have to match up with those goals, but they don't necessarily have to. Fund all of those goals. PG and R project that we ask for from sport does some housing rehabilitation. So there in the multifamily. We have that we did suspend our single-family. But just because we suspect suspended the activity doesn't mean that the need. And the goal to listen in the plan. Okay. >> And the annual action plan comes and starting is the annual action coming. So it usually shows up on a council agenda in April. >> The previous action. So it wouldn't that be for next So
in April, you just approved. 26, because because, again, are we run different than the regular city bdget. Our program airs June one to May 31st. Okay. Thank Ray. I appreciate that as well. A new Tik you coming in and talking about this, too. I think of folks have follow-up questions. What are we direct them to you or to Director Green or I'm happy to answer questions. yeah. Children's and whatever, whatever questions year. >> know, it's just moment. Sounds good. >> with that, just a quick thing for folks. Why haven't you? It's just still be getting e-mail from all of us about budget meeting, dates and things that will be coming on. So keep a lookout for that. Otherwise we are adjourned.