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City of Mounds View TIF Distric t No. 3 Modification 6 | P a g e objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. G. Estimate of Costs The public costs associated with this project are outlined in Appendix "D", Project Costs. It is expected that the public costs will be financed by the City. (AS MODIFIED NOVEMBER 13, 2000) The budget history and estimate of authorized public costs associated with this project are outlined in Appendix “D”, Budget History and Estimate of Project Costs. H. Estimated Amount of Indebtedness See Appendix "D" of this Plan. I. Sources of Revenue The principle source of revenue to be used to finance public costs associated with the projects in the redevelopment project is tax increment financing. Tax increment financing refers to a funding technique that utilizes increases in tax capacity valuation and the property taxes attributed to new development to finance, or assist in the financing of public development costs. See Appendix "E" for Revenue Projections. The City may from time to time utilize other revenue sources to finance public costs. (AS MODIFIED NOVEMBER 13, 2000) The principal source of revenue to be used to finance public costs associated with the projects in the redevelopment project is tax increment financing. The City reserves the right to use other sources of revenue legally applicable to the Modification to the Municipal Development District Plan and the Modified Plan, including, but not limited to, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer, investment income, and undesignated municipal funds to pay for the estimated public costs. Appendix D includes a detailed estimate of the Sources of Revenue being authorized for the District. J. Original Tax Capacity Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1 and Section 469.177, Subdivision 1, the Original Assessed Capacity (OAC) for the City of Mounds View tax increment financing redevelopment district #3 is based on the value placed on the property by the County Assessor in 1987. This assessed value is $86,246. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total assessed value of the tax increment redevelopment district to calculate the tax increment payable to the redevelopment district fund. In any year in which there is an increase in total assessed valuation, no assessed valuation in the tax increment redevelopment district above the adjusted original assessed value, a tax increment will be payable. In any year in which the