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<br />f., <br />~. <br /> <br />5. A DESCRIPTION OF THE METHODS OF FINANCING ALL ESTIMATED <br />PROJECT COSTS AND THE EXPECTED SOURCES OF REVENUE TO FINANCE <br />OR PAY PROJECT COSTS, INCLUDING THE PERCENTAGE OF TAX <br />INCREMENT TO BE DERIVED FROM THE PROPERTY TAXES OF EACH <br />TAXING UNIT THAT LEVIES TAXES ON REAL PROPERTY IN THE ZONE <br /> <br />Description of the methods of financing <br /> <br />In accordance with 311.015 of the Tax Increment Financing Act, the City may issue tax <br />increment bonds or notes, the proceeds of which may be used to pay project costs on <br />behalf of the TIRZ. If TIRZ bonds are issued, bond proceeds shall be used to provide <br />for the project related costs outlined in this plan. It is anticipated that the Developer will <br />advance project-related costs and be reimbursed through the issuance of TIRZ tax <br />increment revenue bonds and/or be paid directly from increment revenues of the TI RZ <br />as provided for in a Development Agreement. <br /> <br />No bonds will be issued until adequate tax increment revenue has been created in the <br />TIRZ to support bond debt service. Tax increment revenue will be applied to payor <br />reimburse all debt service on the TIRZ bonds as prescribed in a Development <br />Agreement. <br /> <br />Expected Sources of Revenue to Finance or Pay Project Costs <br /> <br />Schedule A and A.1 show the projected build-out schedule of the proposed residential <br />and commercial development. <br /> <br />Table B <br />Percentage of Increment Dedicated to the Zone <br /> <br />Taxing <br />Unit <br />La Porte City @ 100%* <br />Harris County @ 100%* <br />La Porte 1.5.0. @ 100%- <br />* Current Tax Rate <br />- Projected Tax Rate <br /> <br />Current <br />Tax Rate. <br />$0.7100/$100 Valuation <br />$0.4166/$100 Valuation <br />$1.5000/$100 Valuation <br /> <br />Years <br />30 <br />30 <br />30 <br /> <br />Tax Increment Fund <br /> <br />The City will create and establish a Tax Increment Fund for the TIRZ, which may be <br />divided into sub-accounts as authorized by subsequent ordinances. The Tax <br />Increment Fund and each account shall be maintained at the depository bank of the <br />City of La Porte and shall be secured in the manner prescribed by law for funds of <br />Texas cities. The annual Tax Increment shall equal the property taxes levied by the <br />City or any other taxing unit participating in the TIRZ for that year on the captured <br /> <br />Project Plan and Reinvestment Zone Financing Plan <br /> <br />6 <br />