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Mounds View EDA August 22, 2005 Regular Meeting Page 9 cannot be increased but can be reduced. To increase the amount the City would have to repeat 334 the entire public hearing process. 335 336 President Marty asked about the costs. Mr. Inman stated they have to be statutory qualified costs. 337 338 President Marty asked for an explanation of the charts on Page 2-9, Impact on Tax Base and 339 Impact on Tax Rates. 340 341 Mr. Inman explained it is a statutory requirement to set forward the percent of the tax or tax 342 capacity as a percentage of the whole. Right now the City’s tax capacity is $6.679 million and 343 when adding Medtronic into the tax capacity, it will be approximately 14.28% of the City’s total 344 tax capacity. The other chart is showing it in tax rate. The charts show what taxes each taxing 345 jurisdiction would get based on that tax rate. Also, there is a State education tax that is not 346 required to be included in this chart for that calculation. 347 348 President Marty referenced Page 2-10, Subsection 2-16, Definition of Tax Increment Revenues, 349 sub. 1, that indicates: “Taxes paid by the captured net tax capacity, but excluding any excess 350 taxes, as computed under M.S. Section 469.177.” He asked what those taxes would be. 351 352 Mr. Inman reviewed the rate and explained if approved, it will be a frozen tax rate. So, if 353 Mounds View and the County increases the levy rate, that increase does not go back to the 354 District. 355 356 President Marty referenced Page 2-11, Subsection 2-17, Modifications to the District, and read 357 sub. 5 and 6 that indicates: 358 “5. Increase in the estimate of the cost of the project, including administrative expenses, 359 that will be paid or financed with tax increment from the District; or 360 6. Designation of additional property to be acquired by the EDA or City, 361 Shall be approved upon the notice and after the discussion, public hearing and findings required 362 for approval of the original TIF Plan.” 363 364 President Marty noted that prior to this it states “during the first five years” and asked if it could 365 be enlarged. Mr. Inman explained the District could not be enlarged or the budget increased 366 without going through the same notice and public hearing process. 367 368 City Attorney Riggs stated the same would be true of the special legislation. 369 370 President Marty read the last paragraph indicating: “…the tax increments may be used to pay for 371 the County’s actual administrative expenses incurred in connection with the District. The county 372 may require payment of those expenses by February 15 of the year following the year the 373 expenses were incurred.” 374 375