Airport Master Plan October 1985

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Straight 20 Year Debt Obligation Annual Debt Service - 20 year term Hypothetical Base Assessed Value of District Current Mill Rate Base Property Tax Tax Increment Required for Debt Service Value of District Required to Generate Required Tax Increment for One Year 8 Year Bond Obligation @ 8% Lifetime of TIF District Tax Increment Required to Pay Off Bond at 8% in 8 years Approximate Captured Assessed Value of Improvements Required to Generate 8 Year Payoff $700,000 71,300 $1,000,000 98.398 $98,398 71,300 $1,727,600 $700,000 8 years $121,800 $1,238,000 The practicality and feasibility of using TIF should be pursued only after consultation with the City's planning and economic development staff and commissions. It may be a viable financing strategy dependent on the City's overall ability to attract future development to the dis- trict. 10.9 Operating and Maintenance O&M Expenses As a general rule, only the largest and busiest general aviation airports can hope to be self-financing operations. Therefore, most general aviation airports will require some local public expenditures. However, in order to keep such local public expenditures as low as possible, efforts should be made to obtain the maximum amount of Federal and State assistance available, and to rent such facilities as possible on at least a break even basis to cover 0 and M expenses. No historic data for the existing airfield is available for use as a meaningful comparison since the facility improvements will vastly change operating and maintenance practices. Several conditions are placed on the acceptance of State and Federal grants which include a sponsor committment to maintaining the facilities, lighting agreements, protection of the approaches, etc. 10-15