Agenda - Planning Commission - 09/05/1995

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change in the classification of property within the TIF 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 TIF Act, the estimated captured tax capacity of TIF District No. 6 will be $130,756, as of January 2, 1997, for taxes payable in 1998. 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, 1997 Fiscal Disparity Ad_lusted.Off anal Tax Capacity_ Captured Tax Capacity Assumed Tax Capacity Rate (1994/95) Estimated Increment. $247,592 79,801 37.035 $130,756 1.14931% $150,279 The City elects the method of tax increment computation set forth in §469.177, subd. 3, clause (b) of the TIF Act. This means that fiscal disparities contributions will be made from the TIF District, and not from other property in the City. Pursuant to §469.177, Subd. 2 of the ~ Act, it is found and declared that all of the captured tax capacity generated by the subject property within TIF District No. 6 is necessary to finance, or otherwise make permissible, expenditures authorized by §469.176, Subd. 4 of the TIF Act. U. Duration of the TIF District. In accordance with §469.176, Subd. l(e) of the TIF Act, the City may continue to receive TIF payments until nine years from the date of the receipt of the fh-'st increment, or until eleven years from the date of approval of the TIF Plan, whichever is less. The City will waive any partial increment that may be payable in 1997. V. Estimate of Impact on Other Taxing Jurisdictions. It is anticipated that $150,279 in increment will be captured annually within TIF District No. 6 upon initial development of the District. This increment amount is based on assessment of the development on January 2, 1997, for taxes payable in 1998. The captured tax capacity and tax increment shown in this plan is based on the Anoka Electric Cooperative facility only. The City anticipates further industrial development in the TIF District, which will create additional captured tax capacity. However, it is impossible at this time to estimate the amount of such increased captured value. The composite local tax ram for the affected property is estimated to be 114.931% for taxes payable in 1995. The original tax capacity rate pursuant to §469.177, Subd. la of the TIF Act will be the rate for taxes payable in 1996, which is not available at the time of preparation of this plan. The 1995 rate is used for the purposes of estimating tax increment in this plan. Of the total tax capacity rate, 17.01% is levied by the City of Ramsey, 28.51% by Anoka County, 53.42% by Independent School District No. 11, and 1.06% by other taxing jurisdictions. Applying each taxing jurisdiction's percentage of the total tax capacity rate to the projected increment reveals the annual "loss" of tax dollars by each jurisdiction if the project had occurred Printed 8/11/95 Page 13 Draft