Public Hearing RE Elements of Financial Package for rono Woods

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Subsection 2-13. Sources of Revenue The estimated sources of revenue for the District are contained in the table below. SOURCES OF FUNDS TOTAL Tax Increment $2,030,000 Other City Funds $0 PROJECT REVENUES $2,030,000 Interfund Loans/Transfers $1,393,000 Bond Proceeds $0 TOTAL PROJECT AND FINANCING REVENUES $3,423,000 The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The Authority and the City reserve the right to use other sources of revenue legally applicable to the Authority, the City and the TIF Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer and investment income,to pay for the estimated public costs. In addition to the actual tax increment collected by the Authority,the TIF Act(M.S. Section 469.174,Subd. 25) places restrictions on the use of revenues derived from the following sources: • the proceeds from the sale or lease of property,tangible or intangible, purchased by the authority with tax increments; • repayments of loans or other advances made by the authority with tax increments; and • interest or other investment earnings on or from tax increments. Subsection 2-14. Bonded Indebtedness It is anticipated that the Authority will use a pay-as-you-go note to reimburse the Developer for eligible expenses and interest on the unpaid balance. The City may use an interfund loan or a transfer of funds to pay for public costs. Tax increment revenues may be used to repay an interfund loan or transfer. The City reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIF Plan. Any bonded indebtedness will be incurred by the City or the Authority without a modification to the TIF Plan pursuant to applicable statutory requirements. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. It is expected that the Authority or the City will issue not more than$9,000,000 of housing revenue bonds under M.S.Chapter 462C to provide for the costs of the Project that are not paid by tax increment or a local contribution. Subsection 2-15. Uses of Funds Currently under consideration for the District is a proposal to facilitate construction of senior housing. The Orono HRA Tax Increment Financing Plan for Tax Increment Financing District No. 1-1 2-6