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not result in a tax levy impact due to annual revenue sources available for debt service <br />repayment within each funding source. If the City wishes to move forward with this <br />project the cost estimate and funding allocation, along with if the tax levy is impacted, <br />will need to continue to be refined. <br />Plans and specifications for a Water Treatment Plant were authorized by City Council in <br />August 2022. The Plan assumes construction in 2024. Financing will need to be <br />obtained once final timelines and cost estimates are known. The debt obligation is <br />presumed to be paid back entirely from water user and trunk fees with no impact to the <br />tax levy. <br />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 />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 tax capacity over the last seven years has been <br />12.00% <br />•$410,350 estimated market value of the median value residential home <br />o Value from Anoka County for taxes payable 2024 <br />•1.00% interest earnings on ending cash balances <br />•Tax Increment Financing (T.I.F) revenues for certified T.I.F districts as of <br />9/30/2023 include: <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 />o T.I.F District 1-13 Lyngblomsten Senior Housing Project <br />•General Fund <br />o 5.00% annual increase in expenditures <br />o 3.00% annual increase in non-tax levy revenue <br />o Transfer in of $20,000 annually from the Cable TV and Communications <br />Fund (204) to support the Communications Specialist position <br />o Balanced budget with property taxes <br />o Use of $100,000 reserves in 2026 for ERP Software project funding <br />36