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City of Little Canada, Minnesota Baker Tilly Municipal Advisors, LLC Page 7 (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. 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. The City intends to file the TIF District for certification prior to June 30, 2025. Therefore, the Original Local Tax Rate would be the final rate that applies for taxes payable in 2025 which the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. The taxes payable 2025 rates are not available at the time of drafting of the TIF Plan; therefore projections are based on payable 2024 Rates. The final sum of the local tax rates for taxes levied in 2023 and payable in 2024 of 105.323% is shown below and is used for estimating the projected tax increment revenues. 2023/2024 Taxing Jurisdiction Local Tax Rate City of Little Canada 24.829% Ramsey County 45.455% ISD #623 25.030% Other 10.009% Total 105.323% 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, 2026, creating a total tax capacity for TIF District No. 7-4 of $89,266 as of January 2, 2027. The captured tax capacity as of that date is estimated to be $85,447 and the first full year of tax increment is estimated to be $89,995 payable in 2028. 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 residential rental low-income 4d class rates remain at 0.25% of the estimated market value; and assume 2% annual increase in market values.