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City of Little Canada, MN Management Review & Analysis – Tax Increment Financing Districts 5 We often hear the question, “Is the City using TIF too much or not enough?” One way to assess the answer to this question is to compare the percent of the City’s tax base captured in TIF Districts with that of similar cities. On the following page is a chart which shows the current and projected tax base captured in TIF districts for the City of Little Canada and similar communities. Projected Captured Tax Capacity in TIF Districts City of Little CanadaProjected Captured TIF Tax CapacityRamsey CountyFINAL2018 2019 2020 2021 2022 2023 2024 2025 2026Current DistrictsTIF 3-3 Lodge/Garden Terrace191,288 216,816 224,836 269,546 274,937 280,436 286,044 291,765 297,601TIF 5-1 St. Jude Medical250,423 242,471 219,561 237,531 242,282 247,127 252,070 257,111 0TIF 6-1 Masterpiece Homes75,355 81,208 81,115 84,556 86,247 87,972 89,732 91,526 93,357TIF 7-1 Suite Living17,005 74,771 76,266 77,792 79,348 80,935 82,553TIF 7-2 Bix Produce5,164 52,466 53,515 54,586 55,677 0 0TIF 7-3 Owasso Warehouse87,666 90,496 93,411 Total Captured * 517,066 540,495 547,681 718,870 733,247 747,912 850,537 811,833 566,921Total Tax Capacity (Gross) * 12,789,965 13,689,842 14,356,494 15,704,414 16,018,502 16,338,872 16,665,650 16,998,963 17,338,942Percentage of Tax Base in TIF 4.0% 3.9% 3.8%4.6%4.6% 4.6% 5.1% 4.8% 3.3%* - Assumes 2% annual increase in tax base and TIFCaptured TIF Tax CapacityActualProjected TIF and Municipal Bond Ratings As noted in the following table, the City is about average versus similar cities in the percent of its tax capacity captured in TIF districts. Also shown are comparable cities’ tax rates and bond ratings. Although this is a small sample of municipalities, the amount of TIF used by a city does not seem to correlate directly with a city’s tax rate or bond rating. In conversations with rating agencies, we do know that market value growth is an important factor in maintaining Little Canada’s AA+ bond rating. The types of projects that can be assisted with TIF - business attraction, redevelopment, and new affordable housing - all play an important factor in market value growth.
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