7.6. SR 04-16-2018 - Laserfiche WebLink

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City of Elk River, Minnesota SPRINGSTED Page 7 Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section O Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2017 and payable in 2018 is 135.773% as shown below. If the request for certification is made prior to June 30, 2018, the original local tax capacity rate will be the rate that applies for taxes payable in 2018 and the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. 2017/2018 Taxing Jurisdiction Local Tax Rate City of Elk River 46.011% Sherburne County 49.356% ISD #728 36.137% Other 4.269% Total 135.773% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that the project will begin construction in mid to late 2018 and be complete by December 31, 2019, creating a total tax capacity for TIF District No. 25 of $41,375 as of January 2, 2020. The captured tax capacity as of that date is estimated to be $40,611 and the first full year of tax increment for taxes payable in 2021 is estimated to be $55,139. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. The estimates shown in this TIF plan assume that class rates will be residential rental class rates of 1.25% of the estimated market value, and do not assume any annual increases in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City’s intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District.