Agenda - Planning Commission - 09/05/1995

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P. TIF Account. The tax increment received with respect to the TIF Districts within Development District No. 1 shall be segregated by the City in a special account on its official books and records. Q. Estimate of Public Costs. The City curre.,ntly plans to construct water and sewer lines, streets and storm sewers and utility infrastructure improvements to service new industrial development within TIF District No. 6. Public costs are estimated as follows: Water and Sewer Utilities and Streets Administration (maximum) $1,200,000 120.000 $1,320,000 The costs will be funded with tax increment from TIF District No. 6 on a pay-as-you-go basis. The City rescues the right to adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. The City intends to pay such costs initially and to be reimbursed from tax increments over time. R. Estimate of Bonded Indebtedness. The City does riot currently plan to issue tax increment bonds in connection with TIF District No. 6, but reserves the fight to issue such bonds in an amount not to exceed $1,320,000. That amount may include capitalized interest as determined at the time of issuing any bond or note. 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 TIF'District No. 6 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 marl{et value of all property in TIF District No. 6 during the five years prior to certification of the TIF District. Each year, the County auditor will measure the increase or decrease in the tax capacity of TIF District No. 6. Any year in which the total tax capacity of the TIF 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 TIF District No. 6 as a result of: 1. change in the tax exempt status of property within the TIF District; 2. rexluction or enlargement of the geographic boundaries of the TIF 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 Printed 8/11/95 Page 12 Draft