5.0. EDSR 02-09-1998 - Laserfiche WebLink

Home Browse Search

Plan through loans from funds of the City or Authority or to reimburse the developer on a "pay-as- you-go" basis for eligible activities paid for by the developer. Any funds to be expended outside the boundaries of District No. 18, but within the boundaries of Development District No. 1, will be less than 20 percent of total tax increment generated by District No. 18, including administrative costs. Subject to that limitation, and the limitations as described in Section R., the tax increment from District No. 18 may be used to pay for public costs outlined in the Development Program for Development District No. 1 (subject to the limitations as described in this Plan). H. ESTIMATED AMOUNT OF LOAN/BONDED INDEBTEDNESS The City or Authority have 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$748,000 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. 18. 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. SOURCES OF FUNDS TOTAL Tax Increment $ 680,000 Interest Local Contribution 68,000 Other Revenue Sources TOTAL $ 748,000 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 (ONTC) for the District No. 18 is based on the value placed on the property by the assessor in 1997 for taxes payable 1998. Pursuant to Sections 469.177, subd. 1(f), the ONTC will be increased each year by a factor which represents the average percentage increase in the estimated market value of all property in District No. 18 during the five year period before certification of District No. 18 (assessment years 1992 through 1997). The County Auditor will increase the ONTC 10.23% each year over the life of District No. 18. • Tax Increment Financing District No.18 Page 1I-5