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• • City of Lino Lakes, Minnesota (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five Year Rule At least 80% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 20% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five -year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or (3) (4) used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification of the TIF District, at least 80% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. •: y does reserve the right to allow for tax increment pooling from the TIF District in the future. The Authority anticipates that tax increments will be spent outside of the TIF District. All tax increments remaining in the account of TIF District No. 1 -10 after February 1, 2011, and all tax increments collected thereafter must be used only to pay debt service on bonds issued to finance the interchange of Anoka County Highway 23 and Interstate 35W and bonds issued to finance public improvements serving the development known as Legacy at Woods Edge. Minnesota Statutes 469.176, Subd. 4c, and 469.1763 do not apply to expenditures made under this section.. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; relocation benefits paid to, or services provided for, persons residing or businesses located in the project; (3) SPRINGSTED Page 10 P49