Laserfiche WebLink
City of Little Canada, MN Management Review & Analysis – Tax Increment Financing Districts 15 The amount of increment from Districts 7-1 and 7-2 available for administrative expenses should increase over time as those districts’ tax capacities increase with full build-out. Administrative costs for District 7-3 is estimated based on the TIF plan at this time. Fiscal Disparities Fiscal disparities is the commercial and industrial (C/I) tax capacity sharing program that is in effect for the seven-county metropolitan area. It was designed so that local governments could share in the collective resources of commercial and industrial properties of the region, without creating pressure to compete between local governments for those resources. Under the program, a percent of C/I tax capacity is contributed to the fiscal disparities pool, or removed from a local government’s tax base. In turn, a certain percent of residential tax capacity is returned or distributed back to a local government for computation of the local property tax rate. For the City of Little Canada, more C/I tax capacity is contributed to the pool than residential tax capacity is distributed back to the City. For tax increment purposes, the fiscal disparities contribution can be taken from inside the district (B Election) or outside the district (A Election). If tax capacity is calculated outside the district, or the A election, more tax increment is available for the project. If tax capacity is calculated inside the district, or the B election, TIF revenues are reduced by deducting the fiscal disparities contribution from the captured tax capacity, which means less tax increment is available for the project. Fiscal disparities contributions are calculated on C/I property only so there may be instances where the district includes only residential property and the fiscal disparities election does not apply. The chart below shows the fiscal disparity election for each district. Fiscal Disparity Election for Tax Increment Districts DistrictTIF 3‐3            The Lodge / Garden TerraceTIF 5‐1            St. Jude MedicalTIF 6‐1            Masterpiece HomesTIF 7‐1            Suite LivingTIF 7‐2            Bix ProduceTIF 7‐3            Owasso Warehouse       TIF AuthorityEDA City City City City CityProject Area / Development DistrictRedevelopment Project Area #1Development District 5Development District 6Development District 7Development District 7Development District 7District TypeHousingRenewal & Renovation Redevelopment RedevelopmentEconomic DevelopmentEconomic DevelopmentFiscal DisparitiesA Election B Election B Election B Election B Election B Election