Laserfiche WebLink
Assumptions <br />The assumptions developed by Management are conservative and will continue to be <br />evaluated on an annual basis. Residential development is estimated at 160 homes per <br />year while no commercial development is estimated in the Plan. The value and timing of <br />commercial/industrial is difficult to predict and thus any additional tax capacity brought <br />by non-residential properties will further bring down the projected tax rate. <br />In addition, due to the current rising interest rate environment, no interest earnings have <br />been projected in the Plan. The City holds investments to maturity, but while an <br />investment is held the value decreases as interest rates rise resulting in unrealized <br />losses on investments that overshadows investment earnings. As interest rates stabilize <br />a conservative interest earnings estimate could be built into the Plan in future years. <br />Additional high-level assumptions built in to the Financial Section are as follows: <br />• 3.00% annual tax capacity growth rate <br />o The average increase in Net Tax Capacity over the last six years has <br />been 7.00% <br /> <br />• $402,400 estimated market value of the median value residential home <br />o Value from Anoka County for Taxes Payable 2023 <br /> <br />• Tax Increment Financing (T.I.F) revenues for certified T.I.F districts as of <br />1/1/2023 include: <br />o T.I.F District 1-10 Panattoni Project <br />o T.I.F District 1-11 Legacy at Woods Edge Development <br />o T.I.F District 1-12 Clearwater Creek Business Park <br /> <br />• General Fund <br />o 5.00% annual increase in expenditures <br />o 3.00% annual increase in non-tax levy revenue <br />o Use of $150,000 reserves in 2024 for Capital Equipment Replacement <br /> Fund balance in 2027 is estimated at 65.00% of expenditures which <br />is consistent with the current Fund Balance Policy <br />o No transfers in from other funds after 2023 <br /> <br />• Special Revenue Funds <br />o Rookery Activity Center <br /> 2023 will be the first full year of operation <br /> Continuation of $325,000 tax levy for Rookery Activity Center <br /> High-level revenue and expenditure assumptions from ISG <br />Feasibility Study <br />o Other special revenue funds <br />5