7.1 EDSR 05-20-2024 - Laserfiche WebLink

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City of Elk River, Minnesota Baker Tilly Municipal Advisors, LLC Page 7 (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section O Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. 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 before June 30, 2024, and the local tax rates for taxes levied in 2023 and payable in 2024 will apply. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2023 and payable in 2024 of 100.344% have been used and are shown below: 2023/2024 Taxing Jurisdiction Local Tax Rate City of Elk River 37.817% Sherburne County 36.597% ISD 728 23.924% Other 2.006% Total 100.344% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that the facility construction will be completed 50% completed by December 31, 2024, creating a total tax capacity for TIF District No. 29 of $81,750 as of January 2, 2025. The captured tax capacity as of that date is estimated to be $80,099 and the first full year of tax increment is estimated to be $80,374 payable in 2026. 100% of the facility will be completed by December 31, 2025, creating a total tax capacity will be $166,725 as of January 2, 2026. The captured tax capacity as of that date is estimated to be $165,074 and the second full year of tax increment is estimated to be $165,641 in 2027. If the expansion occurs it will be completed by December 31, 2026, creating a total tax capacity will be $231,749 as of January 2, 2027. The captured tax capacity as of that date is estimated to be $230,098 and the third full year of tax increment is estimated to be $230,889 in 2028. 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/industrial class rates remain at 1.5% up to $150,000 and 2% above $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 Page 23 of 64