7.0. SR 01-27-1997 - Laserfiche WebLink

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I. SOURCES OF REVENUE The partial source of revenue to be used to finance public costs associated with the public development projects and objectives as stated in Development District No~ 1 is tax increment generated as a result of the taxation of the land and improvements in District No. 16. Tax increment financing refers to a funding technique that utilizes increases in valuation and the property taxes attributable to new development to finance, or assist in the financing of, public development costs. Additional sources of revenue may include but are not limited to investment income and land sales proceeds. This does not preclude the City, the Authority, or the developer from using other funds, at its discretion, to pay such costs. J. ORIGINAL TAX CAPACITY Pursuant to Minnesota Statutes Section 469.174, Subdivision 7 and Section 469.177, Subdivision 1, the Original Net Tax Capacity (OTC) for the District No. 16 is based on the value placed on th~. property by the assessor in 1997 for taxes payable 1998. The tax capacity as certified is estimated to be 0 for taxes payable in 1998. The original local tax rate for the purpose of the projecting cashflow for District No. 16 will be the tax rate for taxes payable in 1996 of 1.03497. The certified original local tax rate for District No. 16 will be the tax rate for taxes payable in 1998. Each year, the Sherburne County Auditors Office will measure the amount of increase or decrease in the total tax capacity of District No. 16 to calculate the tax increment payable to the City and the Authority. In any year in which there is an increase in total tax capacity in the tax increment financing district above the annual percentage of annual increase, a tax increment will be payable. In any year in which the total tax capacity in District No. 16 declines below the original tax capacity, no additional valuation will be captured and no tax increment will be payable. The County Auditor shall certify in each year after the date the OTC was certified, the amount the OTC has increased or decreased as a result of: 2. 3. 4. 5. change in tax exempt status of property; reduction or enlargement of the geographic boundaries of the district; change due to stipulations, adjustments, negotiated or court-ordered abatements; change in the use of the property and classification; or change in state law governing class rates. K. AMOUNT OF CAPTURED TAX CAPACITY Pursuant to Minnesota Statutes, Section 469.174 Subdivision 4 and Minnesota Statutes, Section 469.1 77, Subdivision 2, the estimated Captured Net Tax Capacity (CTC) of District No. 16, upon completion of all phases of the project, will annually approximate 44,000, based on an estimated market value of $1,000,000. The City requests 100 percent of the available increase in tax capacity for repayment of debt and current expenditures. Tax Incretnent Financing District No. 16 Page II-5