7.1 SR 10-05-2020 - Laserfiche WebLink

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City of Elk River, Minnesota 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. It is anticipated the request for certification of the District will occur after June 30, 2020 and the local tax rates for taxes levied in 2020 and payable in 2021 will apply. The payable 2021 rates are not available at the time of drafting of the TIF Plan. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2019 and payable in 2020 of 130.571% have been used and are shown below: 2019/2020 Taxing Jurisdiction Local Tax Rate City of Elk River 46.241 % Sherburne County 47.426% ISD 728 34.371 % Other 2.533% Total 130.571 % Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that the building construction for all businesses will be completed by December 31, 2020 creating a total tax capacity for TIF District No. 26 of $26,232 as of January 2, 2021. The captured tax capacity as of that date is estimated to be $19,420 and the first full year of tax increment is estimated to be $25,357 payable in 2022. 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 commercial class rates remain at 1.50% of the estimated market value up to $150,000 and 2.0% of the estimated market value over $150,000; and assume 3% annual increase 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. Exhibit II gives a listing of the various information and exhibits contained in this TIF Plan, including Exhibit generated over the anticipated life of the TIF District. Section Q Use of Tax Increment assumptions used in preparing a number of the III which shows the projected tax increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. SPRINGSTED Page 7