5.0. HRSR 11-25-1996 - Laserfiche WebLink

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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 the 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 1997. 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: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to stipulations, adjustments, negotiated or court-ordered abatements; • 4. change in the use of the property and classification; or 5. 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 469.177, 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. 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. Estimated Project Tax Capacity 44,000 less Original Tax Capacity 0 Estimated Captured Tax Capacity 44,000 L. DURATION OF THE DISTRICT Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1, the duration of District No. 16 must be indicated within the Plan. The duration of District No. 16 will be 25 years from payment of the first tax increment expected in 1999. Thus, it is estimated that District No. 16, including any modifications of the Plan for subsequent phases or other changes, would terminate at the end of the • year 2023. The City and the Authority reserve the right to decertify District No. 16 prior to the legally required date.