City of Watertown, Minnesota

Annual Disclosure of Tax Increment Districts

for the Year Ended December 31, 2011.

TIF District Name: TIF 4 TIF 5 Clinic Proj.

Current net tax capacity $46,756 $0

Original net tax capacity $867 $0

Captured net tax capacity $45,889 $0

Principal and interest payments

due during current year $0 $51,659

Tax increment received $34,868 $0

Tax increment expended $34,868 $0

Month and year of first tax

increment receipt 7/2003 7/2012

Date of required decertification 12/31/11 12/31/37

Increased property tax imposed on

other properties as a result

of fiscal disparities contribution * na na

* The fiscal disparity property tax law provides that the growth in commercial-indusrial property tax values is shared throughout the area. In a tax increment financing district, this value sharing can either result in a tax increase for other properties in the municipality or result in a decrease in tax increment financing district revenue depending on how the tax increment financing district is established.

Additional information regarding each district may be obtained from-

Luke Fischer

309 Lewis Ave. S

Watertown, MN 55388

(952) 955-2681

(Published in Carver County News Aug. 9, 2012)