Agenda - Planning Commission - 08/06/1996

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S. Original Tax Capacity. Pursuant to §469.177, Subd. 1 of the TIF Act, the original tax capacity of TIF District No. 6 is expected to be $24,720 which is the valuation as of January 2, 1995. Each year after certification of the original tax capacity, the Anoka County auditor will adjust the original tax capacity of the property in the District by adding to it the following amount: the original tax capacity for the proceeding year multiplied by 12.24%, which is the average percentage increase in the estimated market value of al/property in the District during the five years prior to certification of the District- Each year, the County auditor will measure the increase or decrease in the tax capacity of the District- Any year in which the total tax capacity of the District exceeds the original tax capacity, as adjusted, an increment will be payable to the City. Any year in which the tax capacity is below the original tax capacity, as adjusted, no tax capacity will be captured and no increment will be payable to the City. Besides making the adjustment described above, each year after the certification of the original tax capacity, the County auditor will increase or decrease the original tax capacity of the District as a result of: 1. change in the tax exempt status of property within the District; 2. reduction or enlargement of the geographic boundaries of the District; reduction of valuation by means of a court-ordered abatement, stipulation agreement, voluntary abatement made by the assessor or auditor, or by order of the Minnesota commissioner of revenue; or change in the classification of property within the District to a classification that has a different class rate. T. Estimate of Captured Tax Capacity and Tax Increment. Pursuant to §469.175, Subd. 1 and 469.177, Subd. 2 of the TEF Act, the estimated captured tax capacity of T/F District No. 6 will be $990,289, as of January 2, 1998, for taxes payable in 1997. .After 1997, the captured tax capacity may decline slightly each year due to annual adjustments in the original tax capacity as described in part S, above. The captured tax capacity is estimated as shown in Exhibit C. Tax Capacity on January 2, 1998 Fiscal Disparity ~Artjusted C~. 'ginal Tax Capaci._ty Captured Tax Capacity Assumed Tax Capacity Rate (1994/95) Estimated Increment $1,407,297 520,115 34,954 L$852,228 1.1620% $990,289 The City elects the method of tax increment computation set forth in §469.177, subd. 3, clause (b) of the TIFAct. This means that fiscal disF :rities contributions w/Il be made from the TIF District, and not from other property in the City. Pursuant to §469.177, Subd. 2 of the TIF Act, it is found and declared that ail of the captured tax capacity generated by the subject property with_in TIF District No. 6 is necessary to finance, or otherwise make permissible, expenditures authorized by §409.176, Subd. 4 of the TIF Act. />8 13