Agenda - Planning Commission - 08/06/1996

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U. Duration of the TIF District. In accordanc~ with §469.176, Subd. l(e) of the TI:F Act, the City may continue to receive T~ payments until nine years from the date of the receipt of the fkst increment, or until eleven years from the date of approval of the TI:F Plan, whichever is less. The City will waive any partial increment tha~ may be payable in 1997. V. Estimate of Impact on Other Taxing Jurisdictions. It is anticipated that $990,289 in increment will be captured annually within TIF District No. 6 upon the dev~!opment of the District. This increment amount is based on assessment of the development on January 2, 1998, for taxes payable in 1999. The captured tax capacity and tax increment sho~vn in this plan is based on the development of the AEC Energy Park. The original m.x capacity rate pursuant to §469.177, Subd. la of the TI2~ Act will be the rate for taxes payable i.n 1996, which is 116.58%. Of the total tax capacity rate, 16.98% is levied by the City of Ramse¥, 26.62% by Anoka County, 55.23% by Independent School District No. 11, and 1.16% by other taxing jurisdictions. Applying each taxing jurisdiction's percentage of the total tax capacity rate to the p}'ojected increment reveals the annual "loss" of tax dollars by each jurisdiction if the project had occurred without TIF. Although the City believes the actual impact on other taxing jurisdictions is zero because the development would not have occurred without public intervention, the assumed amount of tax dollars foregone by each jurisdiction is listed in Table I below. TABLE I Percent of Tax Increment Attributable to Various Taxing Jurisdictions Taxing Tax Capacity Percent of Estimated Jurisdiction Rate (TCR) . Total TCR Tax Loss City of Ramsey 19.801 16.98% $168,119.63 Anoka County 31.036 26.62% $263,635.35 Independent School Dist. No. 11 64.387 54.23% $546,935.48 Other 1.356 1.I6% $ 11,518.54 TOTAL 116.58 100.00% $990,289.00 Table II, below, shows the additional tax capacity rate needed to compensate each taxing jurisdiction for "lost" tax dollars. The increased tax capacity created within TI~ District No. 6 will eventually permi{ a tax capacity rate decrease. Nevertheless, assuming that increment generated during the TI:F District's life is lost to other taxing jurisdictions, Table 12 shows how much the tax capacity rate for property outside the T~ District would have to be increased to raise the same number of tax dollars. TABLE II Hypothetical Tax Capacity Rate Increase, by Taxing Jurisdiction Taxi,ng Jurisdiction 1994 (Payable) Estimated Estimated Tax Capacity Tax L0s~. TCR Increase City of Ramsey Anoka County Independent School Dist. No. 11 $9,054,212 $168,119.63 1.858% $167,196,496 $263,635.35 0.158% $111,976,622 $546,935.48 0.488% 14