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City of Elk River, Minnesota <br />SPRINGSTED Page 8 <br />itself for public costs incurred (see Section K). The City also anticipates retaining any remaining <br />increment to finance additional needed public improvement costs. <br /> <br />The City reserves the right to finance any or all public costs of the TIF District using pay-as-you- <br />go assistance, internal funding, general obligation or revenue debt, or any other financing <br />mechanism authorized by law. The City also reserves the right to use other sources of revenue <br />legally applicable to the Project Area to pay for such costs including, but not limited to, special <br />assessments, utility revenues, federal or state funds, and investment income. <br /> <br /> <br />Section M Estimated Amount of Bonded Indebtedness <br /> <br />The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part <br />with tax increment from the TIF District is $1,406,393. The City currently plans to finance the <br />acquisition and demolition costs through an interfund loan, but reserves the right to issue bonds <br />in any form, including without limitation any interfund loan with interest not to exceed the <br />maximum permitted under Section 469.178, subd. 7 of the TIF Act. <br /> <br /> <br />Section N Original Net Tax Capacity <br /> <br />The County Auditor shall certify the original net tax capacity of the TIF District. This value will <br />be equal to the total net tax capacity of all property in the TIF District as certified by the State <br />Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, <br />this value is based on the previous assessment year. For districts certified between July 1 and <br />December 31, inclusive, this value is based on the current assessment year. <br /> <br />The Estimated Taxable Value of all property within the TIF District as of January 2, 2017, for <br />taxes payable in 2018, is $1,352,500. Upon establishment of the district and subsequent <br />reclassification of the property, the estimated original net tax capacity of the TIF District is <br />estimated to be $20,874. This assumes the properties are reclassified from residential to <br />commercial-industrial. This value is also assumed to be the value of the properties, including <br />land and building, as of the date the substandard buildings occupied the parcel. <br /> <br />Each year the County Auditor shall certify the amount that the original net tax capacity has <br />increased or decreased as a result of: <br /> <br /> (1) changes in the tax-exempt status of property; <br /> <br /> (2) reductions or enlargements of the geographic area of the TIF District; <br /> <br /> (3) changes due to stipulation agreements or abatements; or <br /> <br /> (4) changes in property classification rates. <br /> <br /> <br />Section O Original Local Tax Rate <br /> <br />The County Auditor shall also certify the original local tax rate of the TIF District. This rate shall <br />be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for <br />the same taxes payable year as the original net tax capacity. <br /> <br />In future years, the amount of tax increment generated by the TIF District will be calculated <br />using the lesser of (a) the sum of the current local tax rates at that time or (b) the original local <br />tax rate of the TIF District.