10-27-2021 Council Packet - Laserfiche WebLink

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City of Little Canada, Minnesota Baker Tilly Municipal Advisors, LLC Page 7 Section O 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. It is anticipated the request for certification of the District will occur after June 30, 2021 and the local tax rates for taxes levied in 2021 and payable in 2022 will apply. The payable 2022 rates are not available at the time of drafting of the TIF Plan. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2020 and payable in 2021 of 111.931% have been used and are shown below: 2020/2021 Taxing Jurisdiction Local Tax Rate City of Little Canada 23.983% Ramsey County 47.760 ISD 623 31.250% Other 8.938% Total 111.931% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that the building construction will be 100% completed by December 31, 2022 creating a total tax capacity for TIF District No. 7-3 of $142,734 as of January 2, 2023. The captured tax capacity as of that date is estimated to be $87,666 and the first full year of tax increment is estimated to be $98,126 payable in 2024. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. The estimates shown in this TIF Plan assume that commercial class rates remain at 1.50% of the estimated market value up to $150,000 and 2.0% of the estimated market value over $150,000; and assume 3% annual increase in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall either (a) be determined before the application of fiscal disparity or (b) exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The method the Authority elects shall remain the same for the life of the TIF District, except that a single change may be made at any time from method (a) to method (b) above. The City elects method (b), or M.S. Section 469.177, Subdivision 3(b).