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H. ESTIMATED AMOUNT OF LOAN/BONDED INDEBTEDNESS <br /> <br />The City or Authority have the ability to issue a revenue bond, general obligation bond, or other <br />type of obligation in one or more series for a maximum amount of $500,000 to finance any or all of <br />the Total Estimated Public Costs authorized to be paid under Section G of this Plan. <br /> <br />I. SOURCES OF REVENUE <br /> <br />The anticipated source of revenue to be used to finance public costs associated with the public <br />development projects and objectives as stated in Development District No. 1 is tax increment <br />generated as a result of the taxation of the land and improvements in District No. 17. Tax <br />increment financing refers to a funding technique that utilizes increases in valuation and the <br />property taxes attributable to new development to finance, or assist in the financing of, public <br />development costs. Additional sources of revenue may include, but are not limited to, investment <br />income and land sales proceeds. This does not preclude the City, the Authority, or the developer <br />from using other funds, at its discretion, to pay such costs. <br /> <br />SOURCES OF FUNDS TOTAL <br /> <br />Tax Increment <br />Interest <br />Local Contribution <br />Other Revenue Sources <br /> <br />$ 180,000 <br /> 20,000 <br /> <br />TOTAL $ 200,000 <br /> <br />J. ORIGINAL TAX CAPACITY AND TAX RATE <br /> <br />Pursuant to Minnesota Statutes Section 469.174, Subdivision 7 and Section 469.177, Subdivision 1, <br />the Original Net Tax Capacity (ONTC) for the District No. 17 is based on the value placed on the <br />property by the assessor in 1997 for taxes payable 1998. <br /> <br />Pursuant to Sections 469.177, subd. l(f), the ONTC will be increased each year by a factor which <br />represents the average percentage increase in the estimated market value of all property in District <br />No. 17 during the five year period before certification of District No. 17 (assessment years 1992 <br />through 1997). The County Auditor will increase the ONTC 13.73% each year over the life of <br />District No. 17. The two parcels listed below will be combined prior to start of construction. <br /> <br /> Average <br />1992 1997 Annual <br />EMV EMV Increase % Increase Increase <br /> <br />Parcel 1 - 38,100 <br />Parcel 2 - 20,000 <br /> <br />Total 58,100 <br /> <br />54,000 15,900 41.0% (98,000-58,100) <br />44,000 24,000 120.0% 58,100 <br /> ~ 68.67%/5 yrs. <br />98,000 39,900 : 13.73% <br /> <br />Tax Increment Financing District No. 17 Page II-5 <br /> <br /> <br />