1977-01-11 - Laserfiche WebLink

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December 28, 1976 TO: The Honorable Mayor and Members of the Council and Chairman and Members of the New Brighton Housing Authority. FROM: Thomas F. Lewcock, City Manager SUBJECT: Revision to Report Entitled "Impact of Imposition of a Tax Increment District" In reviewing the report dated November 10, 1976 relative to the above noted subject, we have uncovered two errors which alter the findings of that report regarding impact on the tax payer, impact of the taxing jurisdictions, and revenues to the HRA. The assumptions used in the report we believe remain relatively accurate. The error was made in projecting the impacts of the tax increment district at 5.85/o each year. While that growth rate is presumed to be correct, it cannot be used to project the annual impacts after the first year. A second error was made in not utilizing new annual total tax base in computing mill rate effects each year. Impact on the Tax Payer On page 2 of the earlier report the following impacts on a $40,000 house was reported: 1. County Tax: Infinitesimal tax increase 2. School Dist 621: $1.54 tax increase 3. City Tax: $ .90 tax increase 4. Total impact on City residents: $2.44 tax increase The above figures are based on a $316,000 increment and a $66,000,000 tax base for the City and a $183,000,000 for the School District. Because the effect on the tax payer would occur the following year the following year's tax base should be utilized. In other words, for 1977 the figures to be used are $73,000,000 City and $206,000,000 for the School District. Based on the above revised data the impact on the owner of a $40,000 home would be as follows in the first year: 1. County Tax: Infinitesimal tax increase 2. School Dist 621 Tax: $1.42 tax increase 3. City Tax: $ .85 tax increase 4. Total impact on City residents: $2.27