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Council approves early decertification of Cherrywood and Centennial TIF districts to return tax capacity
Summary
The council voted to decertify two TIF districts (Cherrywood and Centennial), which staff said will return an estimated $217,729 in net tax capacity to Forest Lake and was already reflected in preliminary levy calculations.
The Forest Lake City Council approved a resolution to decertify the Cherrywood and Centennial tax increment financing (TIF) districts after a staff presentation explaining the fiscal effect.
Ellie, finance staff, told the council that decertifying the two districts would increase the city's net tax capacity by roughly $217,729 for pay 2026 and that the change had already been reflected in recent levy planning. "When the general preliminary levy was brought in front of the council back in September, the decertification of these TIFs were already reflected," she said. She also explained TIF basics, including that decertification does not raise the levy but expands the property's tax base used to calculate rates and levies.
Council discussion centered on confirming that the decertifications had met contractual obligations and that the change would not put additional tax burden on residents; staff confirmed the districts met their obligations early. A council member moved to approve Resolution 11-10-25-01 transferring TIF funds to pay the intra‑fund loan and decertifying the districts; the motion passed by voice vote.
What happens next: Staff will complete the state-level financial cleanup steps described in the resolution and move the returned value back into the city's tax base for future levy calculations.
