Agenda - Council Work Session - 11/13/2012

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City of Ramsey, Minnesota assessor shall, at the request of the City, separately assess the estimated market value of the improvements. If the property becomes taxable, the County Auditor shall add to original net tax capacity, the net tax capacity of the parcel, excluding the separately assessed improvements. The City intends to request the assessor separately assess the market value of any improvements to the currently tax-exempt property. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section 0 Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original tax capacity rate of the TIF District. At the time this document was prepared, the sum of the local tax rates that apply to property in the TIF District, for taxes levied in 2010 and payable in 2011, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2009 and payable in 2010 is 99.566% as shown below. 2009/2010 Taxing Jurisdiction Local Tax Rate City of Ramsey 37.811 % Anoka County 35.189% ISD # 11 19.939% Other 6.627% Total 99.566% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that the redevelopment will be continual through the term of the TIF District. The City is projecting a total tax capacity for TIF District No. 14 of $1,736,081 as of January 2, 2011. The captured tax capacity as of that date is estimated to be $344,842, and the first year of increment is estimated to be $343,345 in payable 2012. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit IV. The estimates shown in this TIF Plan assume that residential class rates remain at 1.0% of the estimated market value under $500,000 and 1.25% of the estimated market value above $500,000, rental class rates remain at 1.25%, commercial class rates remain at 1.5% for the first $150,000 of estimated market value and 2.0% of the market SPRINGSTED Page 6