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H. ESTIMATED AMOUNT OF LOAN/BONDED INDEBTEDNESS <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 <br /> of the Total Estimated Public Costs authorized to be paid under Section G of this Plan. <br /> I. SOURCES OF REVENUE <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. 20. 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 /> SOURCES OF FUNDS TOTAL <br /> Tax Increment $ 120,000 <br /> Interest <br /> Local Contribution 12,000 <br /> Other Revenue Sources <br /> TOTAL $ 132,000 <br /> • <br /> J. ORIGINAL TAX CAPACITY AND TAX RATE <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. 20 is based on the value placed on the <br /> property by the assessor in 1998 for taxes payable 1999. <br /> Pursuant to Sections 469.177, subd. 1(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. 20 during the five year period before certification of District No. 20 (assessment years 1993 <br /> through 1998). The County Auditor will increase the ONTC 8.33% each year over the life of <br /> District No. 20. <br /> Average <br /> 1993 1998 Annual <br /> EMV EMV Increase % Increase Increase <br /> $40,000 $50,000 $10,000 25% 8.33% <br /> • <br /> Tax Increment Financing District No.20 Page II-5 <br />