07-05-2016 Council Packet* - Laserfiche WebLink

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Lino Lakes Economic Development Authority, Minnesota SPRINGSTED Page 8 The request for certification of the District is expected to occur after June 30, 2016 and prior to July 1, 2017. As a result, the local tax rates for taxes payable 2017 will be applicable. Since the rates are not available, for purposes of estimating the tax increment generated by the TIF District, the sum of all local tax rates that apply to property within the District, for taxes levied in 2015 and payable in 2016 is 127.744%. The County Auditor shall certify the applicable year’s amount as the original tax capacity rate of the TIF District. 2015/2016 Taxing Jurisdiction Local Tax Rate City of Lino Lakes 46.019% Anoka County 38.894% ISD #12 36.426% Other 6.405% Total 127.744% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The Authority anticipates that the project will begin construction in summer/fall 2016 and be 100% completed by December 31, 2017, creating a total tax capacity for TIF District No. 1-12 of $366,890 as of January 2, 2018. The captured tax capacity as of that date is estimated to be $225,291 and the first year of tax increment is estimated to be $287,796 payable in 2019. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit IV. The estimates shown in this TIF plan assume that commercial class rates remain at 1.5% of the estimated market value up to $150,000 and 2.0% of the estimated market value over $150,000, and assume 2% annual increases 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. The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section T);