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the Total Estimated Public Costs authorized to be paid under Section G of this Plan. III 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. 21. 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 $ 844,000 Interest Local Contribution 84,000 Other Revenue Sources TOTAL $ 928,000 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 for District 21 is based on the value placed on the property by the assessor in 1999 for taxes payable 2000. The original local tax rate for the purpose of the projecting cashflow for District No. 21 will be the tax rate for taxes payable in 2000 of 119.448. The certified original local tax rate for District No. 21 will be the tax rate for taxes payable in 2000. K. AMOUNT OF CAPTURED TAX CAPACITY AND TAX RATE Pursuant to Minnesota Statutes, Section 469.174 Subdivision 4 and Minnesota Statutes, Section 469.177, Subdivision 1f and Subdivision 2, the estimated Captured Net Tax Capacity (CTC) of District No. 21, upon completion of Phase I of the project, will annually approximate tax increment revenues as shown in the table below. The City and Authority requests 100 percent of the available increase in tax capacity for repayment of debt and current expenditures, beginning in the tax year payable 2002. 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. Original Estimated Project Tax Capacity (upon completion of project) $130,046 less: Original Tax Capacity 24,442 Estimated Captured Tax Capacity 105,604 • Estimated Annual Tax Increment (CTC x Tax Rate) $31,943 Tax Increment Financing District No.21 Page 11-5