Rogers Changes 3 Tax Funding Districts, Reconfigures Its Otsego Fire Department Area | Government

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On November 9, Rogers City Council changed three Tax Increase Funding Districts (TIFs) and reconfigured its Otsego Fire Department area.

TAX INCREASE FUNDING DISTRICTS

Rogers currently has three tax-increasing residential neighborhoods: Autumn Trails, Sand Senior Housing and Wellstead.

According to wikipedia, “Tax Increase Funding (TIF) is a method of public funding used as a grant for redevelopment, infrastructure and other community improvement projects. The initial intention of a TIF program is to stimulate private investment in a disaster area that has been designated to be in need of economic revitalization. Through the use of the TIF, municipalities typically divert future increases in property tax revenue from a defined area or district to an economic development project or a public improvement project in the community. TIF grants are not taken directly from a city’s budget, but the city suffers losses from foregone tax revenues.

The city’s closing of the purchase of the Canfield property in support of the Rogers Town Center Development Project proposed by Rogers, a low to moderate income housing project, would allow this project to be considered like housing with a tax increase, said CFO Bridget Bruska.

However, TIF’s current plans for residential areas in the city do not allow the purchase of goods, according to Bruska.

“In order to use TIF funds to purchase the property, modifications to the TIF living quarters are needed,” Bruska said.

The proposed modifications include the authorization to acquire certain plots as defined in the individual plans of the TIF. These plots include downtown properties that could be acquired in the future for housing-related projects. The changes would also allow an increase in the budget for tax revenues, administrative expenses and purchases of land or buildings.

“This will allow us greater financial flexibility in the city’s TIF living quarters,” Bruska said.

The Rogers Fire Department has provided fire services to part of the town of Otsego “for many decades,” according to Rogers Town Administrator Steve Stahmer. Rogers also provides some services to Corcoran, he said.

“These cities do not operate their own fire departments, but instead contract with several other services for coverage,” Stahmer said.

For 2019, Rogers received $ 95,635 from Otsego for fire services. “Otsego represents just under 5% of the department’s (Rogers) total call volume in any given year,” Stahmer said.

Following a review of its fire department, Otsego officials were asked to reallocate its fire department area between Rogers, Albertville and Elk River, Stahmer said.

Otsego asked Rogers to cover part of its commercial industrial corridor, Stahmer said. The change would cause the Rogers contract to increase by $ 33,608 in 2022.

FIBEROPTIC NETWORK MAPPING

The board also approved a payment of $ 18,121 to TLR Consulting for the mapping of the 8.6 miles of fiber-optic telecommunications infrastructure that serves most of Rogers’ facilities and utilities.

According to the director of public works / municipal engineer Doran Côté, most of the city’s fiber optic infrastructure is currently undocumented and unmapped.

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