4.5. SR 08-28-2000 - Laserfiche WebLink

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H. ESTIMATED AMOUNT OF LOAN/BONDED INDEBTEDNESS The City has the ability to issue a revenue bond, general obligation bond, or other type of obligation in one or more series for a maximum amount of $700,000 to finance any or all of the Total Estimated Public Costs authorized to be paid under Section G of this Plan. I. SOURCES OF REVENUE The anticipated 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. 21. 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 or the developer from using other funds, at its discretion, to pay such costs. SOURCES OF FUNDS TOTAL Tax Increment Interest Local Contribution Other Revenue Sources $1,230,000 123,000 TOTAL $ 1,353,000 J. ORIGINAL TAX CAPACITY AND TAX RATE Pursuant to Minnesota Statutes Section 469.174 Subdivision 7 and Section 469.177, Subdivision 1, the original Net Tax Capacity for District 21 is based on the value placed on the property by the assessor in 2000 for taxes payable 2001. The original local tax rate used for the purpose of the projecting cashflow for District No. 21 is the tax rate of 119.448% for taxes payable in 2000. The certified original local tax rate for District No. 21 will be the tax rate for taxes payable in 2001. K. AMOUNT OF CAPTURED TAX CAPACITY AND TAX RATE Pursuant to Minnesota Statutes~ Section 469.174 Subdivision 4 and Minnesota Statutes~ Section 469.177, Subdivision If and Subdivision 2, the estimated Captured Net Tax Capacity (CTC) of District No. 21, upon completion of Phase I of the project, will annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of debt and current expenditures, beginning in the tax year payable 2002. The original tax capacity and project tax capacity are estimated at current market values and class rates to be the total amount when all development is in place and uses of the property have changed. Tax Increment F'mancing District No. 21 Page II-5