Agenda - Parks and Recreation Commission - 04/19/1984

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I I I I I I I I IV. As the Assessed Market Value, and therefore, Assessed Value of property within a tax increment ~et increases abo'~ ~-~ ~fr-~-~" level, the increase is called the Captured Assessed Value. By October 10th of each year, all taxing jurisdictions (county, school dist{~ict, municipality and special taxing districts) submit their budgets to the county auditor who calculates a Mill Rate to be applied to Assessed Value, which will~enerate sufficient tax dollars to fund the budgets. The County Auditor does not add the Captured Assessed Value to the Assessed Value upon which he determines Mill Rates, but he does apply the Mill Rate to the total value, including the Captured Assessed Value. Therefore, the Mill Rate for all taxing jurisdictions times the Captured Assessed Value is the tax increment. G. The tax increment is remitted to the redevelopment entity twice annually, usually in July and December. BON DIN G In order to finance the public subsidies required to induce private devel- opment wit. bin the tax increment district, bonds may be issued by the municipality, housing and redevelopment authority, port authority or county. If bonds are to be retired by the tax increment generated by the private development it is necessary to predict: 1. The time required to complete the public activities. 2. The time required for private construction. 3. The value to be assigned the private development by the assessor. 4. The statutory assessment classification 'or rate which will apply upon construction completion. 5. The mill rate. C. Types of bonds. 1. Municipal general obligation tax increment bonds a. primarily payable from estimated or anticipated tax increment. ultimately backed by full faith and credit and taxing power of the municipality. C$ issuance not subject to referendum if municipality reasonably estimates that at least 20% of the debt service on the bonds will be paid from tax increment. This is the same as with a general obligation special assessment bond.