7.1 EDSR 05-20-2024 - Laserfiche WebLink

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City of Elk River, Minnesota Baker Tilly Municipal Advisors, LLC Page 6 Section L Estimated Sources of Revenue Estimated Sources of Revenue Estimated Amount Tax Increment revenue $2,009,532 Interest on invested funds Total $2,009,532 The City anticipates providing financial assistance to the proposed development through upfront financing for land acquisition costs and potential pay-as-you-go financing for site improvement costs. As revenues are generated and collected from the TIF District in future years, they will be retained by the City for repayment of the upfront land costs plus any administrative or other expenses. Any remaining available funds may be provided as reimbursement to the Developer for certain identified costs as necessary within the TIF District to assist with financing the public costs incurred (see Section K). The City reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. The projected tax increment report is included as Exhibit III. Section M Estimated Amount of Bonded Indebtedness The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part with tax increment from the TIF District is $2,009,532. The City currently plans to finance the public costs through upfront financing. The City reserves the right to issue an interfund loan or issue bonds in any form, including without limitation any interfund loan with interest not to exceed the maximum permitted under Section 469.178, subd. 7 of the TIF Act. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2023, for taxes payable in 2024, is $110,095. Upon establishment of the TIF District, it is estimated that the original net tax capacity of the TIF District will be $1,651, upon classification as commercial/industrial. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; Page 22 of 64