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• • • Estimated Impact on Other Taxing Jurisdictions Report City of Elk River, Minnesota Tax Increment Financing(Redevelopment)District No. 19 (U.S. Highway 169 and County Highway 12 Project) Without Project or TIF District With Project and TIF District 1997/98 Projected Taxable 1997/98 Retained New Hypothetical 1997/98 Taxable Hypothetical Hypothetical Tax Generated Taxing NetTaxCaptured Taxable Adjusted Local Net Tax Net Tax Decrease In by Captured Jurisdiction Ca.aci 1 Net Tax Local Tax Rate Ca@aci 1 + Local Captured Ca.aci = Ca.aci Tax Rate ' ( Tax Rate ' N.T.C. * City of Elk River 12,383,123 27.235% 12,383,123 1,260,000 13,643,123 24.720% o Sherburne County 2.515/0 311,469 58,246,430 26.255% 58,246,430 1,260,000 59,506,430 25.699% o ISD#728, Elk River 0.556/0 323,808 26,390,619 56.539% 26,390,619 1,260,000 27,650,619 53.963% o Other(2) 2.576/0 679,929 --- 1.475% --- 1,260,000 Totals 1.475% 111.504% 105.856% 5.648% • Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictions above, the result would be a lower local tax rate(see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case,the total local tax rate would decrease by 5.648%(see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. M I (1) Taxable net tax capacity=total net tax capacity-captured TIF. (2) The impact on these taxing jurisdictions is negligible since they represent only 1.32%of the total tax rate. W Prepared by: Springsted Incorporated(6/11/98)