Agenda - Council Work Session - 05/13/2014

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SOURCES OF FUNDS TOTAL Tax Increment $184,022,262 Interest $1,686,667 TOTAL $185,708,929 The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $80,396,239. Such bonds may be in the form of pay - as- you -go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Section M Estimated Amount of Bonded Indebtedness The City does not anticipate issuing tax increment bonds to finance the estimated public costs of the TIF District, but reserves the right to issue such bonds in an amount not to exceed $80,372,946 ($61,825,343 +30% contingency). To date, the City has issued $7,320,000 in General Obligation Tax Increment Bonds, Series 2012B in order to assist in financing the construction of a 230 -unit rental community with approximately 3,000 sq /ft of retail. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. Section N Original Net Tax Capacity (AS MODIFIED MAY 27, 2014) The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2010, for taxes payable in 2011, is $68,067,900. Upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the original net tax capacity of the TIF District will be approximately $1,128,643. At the time this document was created a significant portion of the land within the TIF District was owned by the HRA and tax - exempt and is not included in the amounts above. Pursuant to Minnesota Statutes, Section 469.177, Subdivision 1(c) if improvements are made to tax exempt property after certification of the District and before the parcel becomes taxable, the 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; City of Ramsey Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 14 9