Public Hearing RE Elements of Financial Package for rono Woods

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In any year in which the current Net Tax Capacity value of the District declines below the ONTC,no value will be captured and no tax increment will be payable to the Authority. Subsection 2-9. Prior Planned Improvements The Authority has determined that no building permits have been issued for property within the District during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. Subsection 2-10.Original Tax Rate The amount of tax increment is calculated by multiplying the total local tax rate (excluding market value rates) by the Captured Tax Capacity value of the District. If the current total local tax rate exceeds the Original Tax Rate(OTR),the amount of tax increment produced by the tax rate above the OTR is distributed to the taxing jurisdictions as excess tax increment. The OTR for the District will be the local tax rate for taxes payable 2001, assuming the request for certification is made before June 30, 2001. The local tax rate for taxes payable 2001 is 104.005% Subsection 2-11. Estimated Tax Increment The Authority estimates that the total tax capacity value of property within the District upon completion of the proposed development will be $73,935. The amount of annual tax increment revenue is shown in the table below. Project Estimated Tax Capacity upon Completion (PTC) $73,935 Original Estimated Net Tax Capacity(ONTC) (1,570) Estimated Captured Tax Capacity (CTC) $72,365 Original Local Tax Rate (OTR) 104.0050% Pay 2001 Estimated Annual Tax Increment (CTC x Local Tax Rate) $75,263 Percent Retained by the Authority 100% The Authority requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2003 The following factors will determine the actual amount of tax increment received by the Authority: • Actual market value of property within the District as determined by the Assessor. • Statutory rates for setting tax capacity values. • Actual total local tax rate. The cash flow projections in Appendix B show the potential tax increment revenues collected by the Authority. Orono HRA Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-4