A-1. Pavement Management Program UpdateMEMORANDUM
CITY OF CHANHASSEN
Chanhassen is a Community for Life -Providing for Today and Planning for Tomorrow
TO: Mayor & City Council Members
FROM: Todd Gerhardt, City Manager
DATE: June 12, 2017
SUBJ: Discussion of Street, Existing Trail and Parking Lot Improvements
and Funding Options
BACKGROUND
This evening staff will be walking the city council through a three-part discussion on the
condition of streets, existing trails, and parking lots in the city and the potential funding level
needs to maintain those infrastructure assets to certain condition levels.
The first part of the discussion will be the City Engineer walking city council through the
current and projected Overall Condition Index (OCI) of the city streets, existing trails and
parking lots. During this discussion it will become apparent that funding at the current levels
will not allow the city to maintain the current OCT of each of these infrastructure needs. The
discussion will also suggest what funding would be needed to maintain OCT levels at or near
the current levels.
2. The second part of the discussion will be the City Finance Director discussing, based on the
information laid out by the engineering department earlier, a number of funding scenarios to
achieve those various OCI levels. This will include an initial discussion of potentially
implementing a Gas & Electric Franchise Fee to fund a portion or all of the streets, existing
trails and parking lot improvement needs. Staff will also present some scenarios with a
combination of funding sources to maintain the various OCI levels.
3. Lastly, Nick Anhut from Ehlers & Associates will present information on what is involved in
implementing Gas & Electric Franchise fees and the pros and cons of each. This discussion
will go over reasons to establish a franchise fee, impacts on their customer bases, and what
other local governments have implemented gas and electric franchise fees and at what levels.
At the conclusion of this meeting, staff will be looking for council direction as to which scenario
should be further discussed in the future, as well as answer any questions or provide additional
information you may need about that scenario.
L\gregs\fiunchise fee discussion 2017\tg street discussion memo 6-12-17.docx
PH 952.227.1100 • www.ci.chanhassen.mn.us • FX952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
1. City Engineer
CITY OF C HANHASSE N
Chanhassen is a Community for Life -Providing for Today and Planning for Tomorrow
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Paul Oehme, Director of Public Works/City Engineer
DATE: June 12, 2017
SUBJ: Discussion of Future Street Improvement Projects For Local Streets
DISCUSSION
Local Street Improvements
Streets are the highest valued asset the City maintains. The City currently has 89 miles of local
streets in the system. The value of the local streets is estimated at $134,000,000 or $1.51 million per
mile. This estimate does not include the collector streets such as W. 79`h street, Minnewashta
Parkway or Market Boulevard. The City has 22 miles of collector streets.
The City has budgeted for one local street improvement project to be constructed each year which
averages just over 1 mile. These projects are either a resurfacing project consisting of the pavement
replacement, mill and overlays or street reconstruction which includes public utilities being replaced
and upgraded. The current CIP future street projects are shown on the attached map.
The City surveys each street once every three years to determine a pavement condition. These
surveys consist of visually inspecting the street pavement condition. The survey information is
downloaded in a pavement management software to determine an overall pavement condition index
(OCI) for each pavement section. A score of 100 OCT represents a new street and a score of 0
represent a street that has completely deteriorated. The average OCI for the City's pavement has
currently at 72 which can be considered in a good overall state.
The streets the City has reconstructed or resurfaced over the past 10 years were mainly built in the
1970's. The City experienced a large amount of development in the 1980's and 1990's. These
streets are coming due for major street maintenance. In order to maintain an overall good pavement
condition of around 72 for the local streets, more miles of streets will need to be programmed for
improvement.
PH 952.227.1100 • www.ci.chanhassen.nnn.us • FX 952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
Todd Gerhardt
Future Street Improvements
June 12, 2017
Page 2
Staff has run several pavement condition scenario projections with different funding levels and
calculated the estimate OCI in 20 years. Each scenario includes a 3% inflation factor which is the
industry standard.
The first scenario left the current funding the same over the 20 -year period. If funding is left the
same, at $1.5 million dollars per year, the projected OCI is estimated to be 45 in 20 years.
The second scenario estimated the OCI of the local streets if the annual funding was increased to
$2.0 million dollars starting in 2022. This scenario only increased the OCI to 47. The low OCI
result for this scenario can be explained because of the amount of streets needing maintenance that
were constructed in the 1980's and 1990's. Also, inflation is decreasing the amount streets that can
be completed each year.
To have the OCI be maintained at or around 70 in 20 years, the City would need to start investing
about $3.4 million annually for street improvements after 2021. These projections assume the City
maintains the same level of investment in minor pavement maintenance such as crack sealing,
pothole patching and sealcoating.
Local Street Mileage Per Decade
100.W
W W
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84.20
80.00
70.62
70,W
60. W
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90.00
301W
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16.14
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10.00
11 1
M 0
Before 1970
19705 INN 19905
20W5
2010 to eteunt
•MHk Added OTotel Miks
Staff has run several pavement condition scenario projections with different funding levels and
calculated the estimate OCI in 20 years. Each scenario includes a 3% inflation factor which is the
industry standard.
The first scenario left the current funding the same over the 20 -year period. If funding is left the
same, at $1.5 million dollars per year, the projected OCI is estimated to be 45 in 20 years.
The second scenario estimated the OCI of the local streets if the annual funding was increased to
$2.0 million dollars starting in 2022. This scenario only increased the OCI to 47. The low OCI
result for this scenario can be explained because of the amount of streets needing maintenance that
were constructed in the 1980's and 1990's. Also, inflation is decreasing the amount streets that can
be completed each year.
To have the OCI be maintained at or around 70 in 20 years, the City would need to start investing
about $3.4 million annually for street improvements after 2021. These projections assume the City
maintains the same level of investment in minor pavement maintenance such as crack sealing,
pothole patching and sealcoating.
Todd Gerhardt
Future Street Improvements
June 12, 2017
Page 3
85
80
75
70
65
60
55
50
45
40
2000
MM
47
45
2005 2010 2015 2020 2025 2030 2035 2040
--*—$1.5 million:_ $2 million --*-. $3.4 million
Trails and Parking Lots
The City -maintained trails and parking lots are also surveyed once every 3 years just likes streets.
The current OCI for trails is 74 and for parking lots, the OCI is 80. The City has been including
parking lot and trail improvement projects with the street improvement projects to obtain better
pricing and economies of scale.
The City maintains about 80 miles of trails. Most trails were also constructed in the 1980's and
1990's and these trails are coming due for maintenance. Many trails are along collector roads,
county roads and state highways. Some of these trails will be reconstructed when the adjacent
roadway is programmed for improvement. These trail upgrades can be funded by the City's
Municipal State Aid funds. However, the trails not along collector, county, or state systems will
need to be programmed separately. It is calculated the the City should be investing $100,000 per
year in trails to maintain the current OCI.
Attachment: Current 5 -Year CIP Map
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MEMORANDUM
2. Finance Director
CITY OF CHANHASSEN
Chanhassen is a Community for Life -Providing for Today and Planning for Tomorrow
TO: Mayor & City Council Members
FROM: Greg Sticha, Finance Director
DATE: June 12, 2017
SUBJ: Discussion of Funding Options for Street, Existing Trail and Parking Lot
Improvements
Earlier this evening the Engineering department discussed various street, existing trail and
parking lot improvement needs going forward into the future. Based on those results, it is
apparent that additional funding will be needed in the near future to help fund the improvements
or a lower OCI will need to be considered. Based on the engineering report, the following
scenarios show the impact of three funding level options would have on the Revolving
Assessment Construction Fund. All of the scenarios include the assumption of maintaining the
current policy of assessing at 40% to the properties of each project area. Each scenario also
includes the assumption of a 3% increase in construction costs per year and maintaining the
current scheduled street projects in the 2017-2021 CIP.
The estimated surplus in the year-end 2016 General Fund is projected to be around $400,000. Of
that amount, $120,000 is obligated to the construction of the new park picnic shelters program,
leaving $280,000 to be potentially transferred to the revolving assessment construction fund,
similar to previous year's surpluses. All of the scenarios include the transfer of the $280,000
surplus into the revolving assessment construction fund. In scenarios 1, 2, and 3 there would still
need to be a surplus transferred to the revolving assessment construction fund in either 2017 or
2018 to cash flow all of the immediate future improvements (current deficit of approximately
$340,000 in year 2020).
SCENARIO 1: Funding at $1.5M/Year starting in 2022
This scenario assumes that starting in 2022 we spend approximately $1.5M per year in streets,
existing trails and parking lot improvements. The result of funding at this level is estimated to be
a significant decline in the OCI per the data provided by engineering. It would not need
additional funding other than what the current levy obligated in previous year's street
reconstruction analysis. It would not free up any levy dollars for any other future potential levy
needs. Under this scenario, existing trails and parking lot improvements would have to share in
PH 952.227.1100 • www.d.chanhassennn.us • FX 952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
Mayor & City Council
Funding Options
June 12, 2017
Page 2
the $1.5M funding with streets or another revenue source would need to be found for existing
trail improvements.
SCENARIO 2: Funding at $2.OM/Year starting in 2022 (Levy increase of $500,000)
This scenario assumes that starting in 2022 we spend approximately $2.OM per year in street,
existing trail and parking lot improvements. Funding at this level is estimated to result in a
similar decline in the OCI as in Scenario #1. It would require increasing the levy for streets by
$500,000 starting in 2022. It would not free up any levy dollars for any other levy needs. Under
this scenario, existing park trails and parking lot improvements would have to share in the $2.OM
funding with streets or another revenue source would need to be found for existing trails.
SCENARIO 3: Funding at $3.4M/Year starting in 2022 (Levy increase of $1.7M)
This scenario assumes that starting in 2022 we spend approximately $3.4M per year in streets,
existing trails and parking lot improvements. The result of funding at this level is estimated to
maintain an OCI near or slightly below the current and historical OCI's. This scenario would
fund $100,000 in existing trail and parking lot improvements per year. The scenario would
require increasing the levy for the revolving assessment construction fund by $1,700,000 starting
in 2022. It would not free up any levy dollars for other levy needs.
SCENARIO 4: Funding at $3.4M/Year starting in 2022 & Implementing a Percent -Based
Franchise Fee in late 2019 (Current Levy in Revolving Assessment Construction Fund
could be used for other needs as well as the Library Debt Levy in 2022).
This scenario assumes that starting in 2022 we spend approximately $3.4M per year in streets,
existing trails and parking lot improvements. The result of funding at this level is estimated to
maintain an OCI near or slightly below the current and historical OCI's. This scenario would
fund $100,000 in existing trail and parking lot improvements per year. It would eliminate the
need of continuing the current levy in the revolving assessment construction fund of $380,000
and also eliminate the need to use the Library Debt Levy coming off the books in 2022
($450,000). Both of those levies could be used for other needs in the community.
In order to achieve the funding needed at this level the city would need to implement a
percentage based franchise fee on gas and electric bills of approximately 4.4%.
SCENARIO 5: Funding at $3.4M/Year starting in 2022 & Implementing a Fixed/Flat
Franchise Fee in late 2019. The current levy of $380,000 being used for streets will be left
in place but the Library Debt Levy could be used for another need.
This scenario assumes that starting in 2022 we spend approximately $3.4M per year in streets,
existing trails and parking lot improvements. The result of funding at this level is estimated to
maintain an OCI near or slightly below the current and historical OCI's. This scenario would
Mayor & City Council
Funding Options
June 12, 2017
Page 3
fund $100,000 in existing trail and parking lot improvements per year; however, it would
eliminate the need to capture the Library Bond Levy in 2022 ($450,000/year) into the revolving
assessment construction fund.
In order to achieve the funding needed at this level, while keeping only the current levy in place
in the revolving assessment street construction fund, the city would need to implement a
flat/fixed based franchise fee on gas and electric bills of approximately $4.25 for residential gas
and electric customers (tiered slightly higher for other users).
PARK & PLAYGROUND EQUIPMENT REPLACEMENT
One additional infrastructure/asset consideration is our aging existing Park & Playground
Equipment. The majority of these assets were put in place around the same time the streets were
in the 1980s and 1990s and many of those assets are nearing the end of their useful lives. Under
scenarios 3, 4 or 5, staff would recommend using any General Fund Surplus to help fund the
replacement of these aging assets. A separate fund and schedule could be created to plan for
these upgrades or replacements.
STAFF RECOMMENDATION
Staff recommends the consideration of implementing a Gas & Electric Utility Franchise Fee for
the funding of the city's streets, existing trails & parking lots. The need for increased ftmding
results from the aging of our current street system and the ability to maintain an OCI acceptable
to our residents into the future. Staff would like to schedule additional meetings later this year to
begin the process of considering implementing a Gas & Electric Utility Franchise Fee. Nick
Anhut from Ehlers & Associates will be discussing what is all involved in creating a Gas &
Electric Utility Franchise Fee and the positives and negatives of each.
ATTACHMENTS
1. Revolving Assessment Street Reconstruction Projection with Scenario #1.
2. Revolving Assessment Street Reconstruction Projection with Scenario #2.
3. Revolving Assessment Street Reconstruction Projection with Scenario #3.
4. Revolving Assessment Street Reconstruction Projection with Scenario #4.
5. Revolving Assessment Street Reconstruction Projection with Scenario #5.
f\gregs\franchise fee discussion 2017\street funding options 6-12-17.docx
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To: Greg Sticha, City of Chanhassen
From: Nick Anhut, Ehlers
Date: June 7, 2017
Subject: Gas and Electric Franchise Tax Considerations
The City requested that Ehlers provide information on best practices and the steps involved to implement
new gas and electric franchise taxes, and additionally propose a tax structure to fund the city's street
maintenance program. This memo is intended as an overview of the procedural steps and provide insight
into the potential revenues and consumer impacts to inform development of a franchise tax structure.
Why Establish a Franchise Tax?
Cities in Minnesota charge what is commonly referred to as franchise fees to utility and cable service
providers for their franchise rights to operate within the city and utilize public right-of-way and other
public grounds for such purposes. Fees are governed within a Franchise Agreement that establishes the
terms between the City and a franchise provider. The fees are charged to the provider, but are typically
passed through directly to the customer base as a direct line item on their cable or utility bills. The line
item is typically identified as a "City Fee" on the bill.
In general, franchise tax revenue can serve as an alternative resource for the city's general fund or to
provide funding for a specific project or expansion of services. Franchise taxes have become a more
common and desirable alternative to property and sales taxes for funding street maintenance in the
absence of other funding mechanisms. There is flexibility in establishing the appropriate amount:
typically set at a fixed charge per month, or in some cases as a rate based on a percentage of the billing or
tied to consumption. The tax may also factor in different user categories (example: residential versus
commercial users) or even try to mirror the various pricing tiers (classifications) set by the utility
provider. Many cities work with the utility provider to establish a fixed charge which varies by customer
classification — whether it be residential, commercial, or industrial/high demand users.
There are several benefits to MN cities for establishing a franchise tax:
• Reliable and stable source of revenue largely insulated from state budgets.
• Revenue growth is tied to the growth in business activity and residential development.
• Potentially offsets need for property tax or special assessment increases.
• New residents immediately begin contributing to the cost of city services. There is approximately a 2 -
year lag between a new building's completion and the city realizing the property tax benefit.
• Tax-exempt properties (including government facilities, churches and other non -profits) contribute
their respective share to the revenue stream. Larger base than property taxes.
• Opportunity to balance the financial obligations between payer classes (commercial and residential).
While there are several benefits, we recognize that there are also disadvantages:
www.ehlers-inc.com
E H L E R S Minnesota phone 651-697-8500 3060 Oentre Pointe Drive
LEADERS IN PUBLIC FINANCE Offices also in Wisconsin and Illinois fax 651-697-8555 Roseville, MN 5511 3-11 22
toll free 800-552-1171
• May be perceived as a means of generating a new tax without annual notification and referendum
approval, as with other taxes.
• May be unpopular with certain property or user classes (high consumers or rental properties)
• May be strongly opposed by non -profits that do not believe their benefits equal their costs.
• Requires periodic management to adjust charges for inflationary and tax base factors.
Implementation Process
We have begun preliminary communications with the three gas and electric utility providers in the
Chanhassen area regarding the requirements of implementing a new franchise tax. Each provider
currently has a franchise agreement in place that will need to be amended upon review by legal counsel to
ensure the proper enabling language and initial tax structures are included. When the ability to charge the
franchise tax is established, the city must periodically adopt an ordinance for each service provider to
enact the tax. The ordinance will contain the governing terms of the taxes imposed, along with setting
effective and expiration dates. Future city council action may change or eliminate the tax within a new
ordinance.
While there is no statutory public hearing or notice requirement, some communities have chosen to
include these steps in the process to provide the public an opportunity to question, comment and address
concerns. As part of the process, many communities decide to dedicate the revenues to a specific purpose
or fund.
The state regulated providers (Northern States Power - Xcel and Centerpoint Energy) request that the City
send a certified copy of the council action to pass the ordinance 90 days in advance of the first fee
collection. These providers must furnish a 60 -day notice to the Minnesota Public Utilities Commission of
the intent to change any of their fees. Both Xcel and Centerpoint have model ordinances that they can
provide the City. Minnesota Valley Electric Cooperative is not state regulated and has a less stringent
process for implementing the franchise tax.
The new revenue is collected by the utility providers from their customers along with their normal billing
procedures. Service providers then remit revenues to the City. The remittance occurs on a quarterly basis
with a slight lag between actual collection and remittance. The remittance will also be limited to the
utility providers' uncollectible billing and/or customer refunds.
Based on the factors above an approved franchise tax in September of 2017 could be billed to customers
starting in January, 2018. The initial tax submission tied to January — March, 2018 collections would be
provided to the City to contribute to projects by April 30, 2018.
Utility Classifications
Each service provider has unique customer classifications to differentiate pricing for residential and
various commercial/industrial entities. Their charges include monthly fixed fees set by customer type as
well as variable charges based on energy consumption. Schools, churches, hospitals, and other similar
institutions are typically classified as commercial or industrial users. In general, franchise taxes should be
as consistent as possible so as not to place one provider at a competitive disadvantage from others.
In structuring the franchise tax, the city may choose to assess the franchise tax to limit the desired impact
to customer types within the city, to capture revenue or consumption levels, or to set a minimum fixed
rent to the utility provider.
To deliver an equitable impact of the fee, a franchise tax based on a percent of monthly billing or
consumption is preferable. However, in Minnesota most franchise fees are fixed based on utility
customer classification. Fixed charges are generally preferable for both cities and utility providers as they
are not susceptible to energy price and usage patterns. Revenues then only fluctuate by changes to the
number of customer accounts. A fixed charge could be applied across all users regardless of type.
However, most cities use a tiered approach because residential, commercial and industrial customers'
consumptions vary greatly; making it difficult to implement a flat fee with equitable impact. The initial
fixed charge is developed from reviewing estimates of the utilities' typical gross revenues and customer
base to mitigate these impacts.
Customer Classifications
Xcel - Electric
MVEC - Electric
CenterPomt - Gas
Residential
Residential
Residential
SmalIC&I—Non-Demand
Small Cotmnercial/Ind- Non -Demand
Finn
Small C&I—Demand
Small CommercialtInd- Demand
Firm
Large C&I
Large Commercial/Ind
Firm
53.7%
Small Commercial
Small Volume, Dual Fuel A (SVDF A)
$89,100.00
5.1%
Small Volume, Dual Fuel (SVDF B)
$20.15
$114,855.00
Large Volume, Dual Fuel (LVDF)
Public Street Lighting
$175.75
$588,411.00
Municipal Pumping — Non -Demand
Small Dual Fuel
$95.10
IMunicipal Pumping — Demand
1.0%
Structuring the Franchise Tax
City staff has estimated a $1,750,000 annual revenue need to fund its anticipated pavement management
program. For purposes of discussion, estimates of franchise tax revenue assuming a tiered monthly fixed
charge (Scenario A) or a 4.37% charge on revenue (Scenario B) are provided below based on preliminary
information from the City's utility providers (2016 averages). Both scenarios are designed to achieve the
city's annual pavement management program funding estimate.
Gas and Electric
Sample Revenue Analvsis Scenario (Tiered Fixed)
Total: $1,750,213.08 100%
Annual
Fixed
Charge
$51.24
$81.00
$241.80
$2,109.00
$1,141.20
Monthly
Estimated
%of
Customer Classification
Fixed
Annual
Revenue
Charge
Revenue
Residential
$4.27
$939,587.88
53.7%
Small Commercial
$6.75
$89,100.00
5.1%
Medium Commercial
$20.15
$114,855.00
6.6%
Large Commercial
$175.75
$588,411.00
33.6%
Small Dual Fuel
$95.10
$18,259.20
1.0%
Total: $1,750,213.08 100%
Annual
Fixed
Charge
$51.24
$81.00
$241.80
$2,109.00
$1,141.20
Gas and Electric
Sample Revenue Analysis Scenario B (% Based)
Total: $1,750,000.00 100%
Gas and Electric Sample Franchise Tax Impact to Bill Payers
Annual
Average
Charge
$44.77
$92.87
$277.12
$2,417.26
$1,307.57
Sample
Estimated
Annual
Customer Classification
Monthly%
Annual
%of
of
Charge
of
evenue
Revenue
Bill
Scenario A
Charge
Residential
4.37%
$820,878.43
46.9%
Small Commercial
4.37%
$102,153.97
5.8%
Medium Commercial
4.37%
$131,630.67
7.5%
Large Commercial
4.37%
$674,415.78
38.5%
Small Dual Fuel
4.37%
$20,921.15
1.2%
Total: $1,750,000.00 100%
Gas and Electric Sample Franchise Tax Impact to Bill Payers
Annual
Average
Charge
$44.77
$92.87
$277.12
$2,417.26
$1,307.57
'Based on pooled information provided by Xcel, MVEC, and Centerpoint
Alternative Funding - Property Tax Levy
City staff has estimated a $1,750,000 annual revenue need to fund its anticipated pavement management
program. The impact of a franchise tax on users will differ from that of a new $1,750,000 property tax
levy instituted to fund the annual costs of the program. For comparison with the annual charges of
Scenarios A and B above, examples of the impacts a new levy would have on a variety of properties with
differing values and tax classifications are attached to this memo. The estimates are based on the City's
Pay 2017 tax base, existing levy, and tax capacity rate.
We will be at the work session on June 12, 2017 to further discuss the city's process and address any
questions.
Sample
Bill Impact
Annual
Bill Impact
Average
Customer Classification
Average
of
Scenario A
of
Bill
Scenario A
Charge
Scenario B
ScenarioAnnual
B
(Fixed)
(4.37%)
Charge
Residential
$85.39
5.00%
$51.24
$3.73
$44.77
Small Commercial
$177.14
3.81%
$81.00
$7.74
$92.87
Medium Commercial
$528.60
3.81%
$241.80
$23.09
$277.12
Large Commercial
$4,610.93
3.81%
$2,109.00
$201.44
L $2,417.26
Small Dual Fuel
$2,494.20
3.81%
$1,141.20
$108.96 1
$1,307.57
'Based on pooled information provided by Xcel, MVEC, and Centerpoint
Alternative Funding - Property Tax Levy
City staff has estimated a $1,750,000 annual revenue need to fund its anticipated pavement management
program. The impact of a franchise tax on users will differ from that of a new $1,750,000 property tax
levy instituted to fund the annual costs of the program. For comparison with the annual charges of
Scenarios A and B above, examples of the impacts a new levy would have on a variety of properties with
differing values and tax classifications are attached to this memo. The estimates are based on the City's
Pay 2017 tax base, existing levy, and tax capacity rate.
We will be at the work session on June 12, 2017 to further discuss the city's process and address any
questions.
■� Debt Issuance Services
City of Chanhassen, Minnesota
Pavement Management Program - Estimated Tax Impact
June 7, 2017
$1.75MM Annual Levy Need
PAVEMENT MANAGEMENT PROGRAM LEVY INFORMATION
Program Amount
$1,750,005
Number of Years
1
PROPERTY TAX INFORMATION
Current 2017
Actual Net Tax Capacity - Payable 2017
41,418,833
PMP Levy Increase
1,750,000
Estimated % Levy Increase
17.71
Estimated Tax Capacity Rate:
City Tax
Payable - 2017 Without Proposed Levy
23.855
Payable - 2017 With Proposed Levy
28.080
Estimated Tax Rate Increase
4.225
TAXIMP7MMALYSIS
Estimated
Market Value
Taxable
Net Tax
Current 2017
Program
Total Proposed
Type of ProDertv
Market Value
Exclusion
Market Value
Capacity"
City Tax
Tax Increase
City Tax
$ 100,000
$ 28,240
$ 71,760
$ 718
171
30
202
150,000
23,740
126,260
1,263
301
53
355
200,000
19,240
180,760
1,808
431
76
508
250,000
14,740
235,260
2,353
561
99
661
Residential
300,000
10,240
289,760
2,898
691
122
814
Homestead
400,000
1,240
398,760
3,988
951
168
1,120
600,000
-
600,000
6,250
1,491
264
1,755
750,000
-
750,000
8,125
1,938
343
2,281
900,000
-
900,000
10,000
2,385
423
2,808
1,000,000
1,000,000
11,250
1 2,684
475
1 3,159
$ 500,000
$ -
$ 500,000
$ 5,781
1,379
244
1,623
1,000,000
-
1,000,000
12,030
2,870
508
3,378
Commercial/Industrial"
2,500,000
-
2,500,000
30,778
7,342
1,300
8,642
5,000,000
-
5,000,000
62,025
14,796
2,621
17,416
8,000,000
-
8,000,000
99,521
23,740
4,205
27,945
15,000,000
15,000,000
187,011
44,611
7,901
52,512
Apartments
$ 1,500,000
$ -
$ 1,500,000
$ 18,750
4,473
792
5,265
(4 or more units)
5,000,000
-
5,000,000
62,500
14,909
2,641
17,550
10,000.000
-
10,000,000
125.000
29,818
6,281
35,100
' The figures in the table are based on faxes for new pavement management tax levy only, and do not include tax levies for other purposes. Tax increases shown
above are gross increases, not including the impact of the state Property Tax Refund ("Circuit Breaker") program. Many owners or homestead property will qualify for
a refund, based on their income and total property taxes.
'- Commercial/Industrial Net Tax Capacity calculation adjusted for the City's Fiscal Disparities sharing factor.
EHLERS
Prepared by Ehlers 6/7/2017 LEADERS IN PUBLIC FINANCE
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