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Page 2 <br /> . Scenario B: $750,000 taxable GO Tax Increment Bond plus $250,000 tax <br /> exempt Storm Water Utility Bond (a rate increase would need to be put in <br /> place to raise $ to pay debt service on these Utility Bonds) City may avoid <br /> LGA/HACA penalty by using this scenario. <br /> • LGAMACA penalty vs Local Contribution <br /> ■ LGAMACA penalty estimate is $485,000 (present value) or $1.87 million <br /> gross. <br /> ■ Avoid LGA/HACA penalty by making annual local contribution equal to 5% of <br /> annual increment received - approximately $290,000 (present value) or <br /> $730,000 gross. <br /> ■ If scenario B above, then determine if tax exempt portion can make up a <br /> portion of the local contribution, thereby avoiding the LGA/HACA penalty. <br /> ■ A LGA/HACA penalty cash flow will be provided for review by the council at <br /> its meeting on June 13. <br /> • Fiscal disparities from inside TIF District vs outside TIF District <br /> • Fiscal disparities rate for St. Anthony is 21.1498% <br /> • If from within the District, then there is approximately 21.1498% less <br /> increment to work with on an annual basis — increasing the number of years <br /> necessary to provide the dollars for the developer incentive and public <br /> improvements. <br /> • Council can choose to have fiscal disparities taken from within the TIF <br /> District, or spread city-wide. <br /> • Fiscal disparities is being spread city-wide in all the other applicable TIF <br /> . Districts currently active within the city. <br /> ■ An impact analysis showing the effect of spreading fiscal disparties from the <br /> proposed District will be provided for review by the council at its meeting on <br /> June 13. <br />