6B, Public Hearing Proposed TIF District Resolution 2010-081, -082 & -083

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Project Estimated Tax Capaciiy upon Completion (PTC} Original �stimated Net Tax Capacity {ONTC) Estimated Captured Tax Capacity (CTC) Original Loeal Tax Rate EstimaFed Annual Tax Increment (CTC x Local Tax Rate) $422,40�4 $117,205 $3U5,199 1.054326 Pay 2010 $321,779 Percent Retained by the City IOQ°/a Tax capacity includes a 3% inflation factor for the duration of the District. The tax capacity, included in this chart is ihe estimated ta�c capacity of #he District in year I6. The tax capacity of the District in year one is estimated to ba $207,500. Pursuant to M.S., Section 469.177, Subd. 4, the City shail, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) rrionths im�►edia#e!y preceding approval of tl�e TIF Plan by the municipality pursuant to M.S., Section 4b9.175, Subd. 3. The County Auditar shall increase the original net t� capacity of the District by the net tax capacity of improvements for which a buiId�ng permit was issued. The City is revier�ving ti�e arca to be included in the District for parcels for which building perEnits have been issued during the 18 months iminedia�ely preceding approval of the TIF �lan by the City. Subsection 2-9. Sources of RevenuelBonds to be Issued The costs outlined in the Uses of Funds wilI be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Pian. As presentIy proposed, the projects within the District will be financed by a pay-as-you-go-note. Any refunding arnounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provisian does not obligate the City to incur debt. The City will issue bonds or incur other debt onIy upon the determination that such action is in the hest interest of the City. The total estimated tax increment revenues �or the District are expected to be approximately $3,778,012, as shown in the table on the next page: SOURCES OF k'UNDS Tax Increment Interest TOTAL TOTAL $3,578,012 100 000 $3,778,012 The Cxty may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $2,845,090. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfisnd ioans. This estimate of total boz►ded indebtedness is a cumuiative statement of authority �nder this TIF Plan as of the date oi appro�al. City of Arden HiNs Tax Increment Financing Plan far TIF District No. 4 2-4