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<br /> , 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> July 12, 2004 <br /> Subject <br /> Bond Service Tax Rates - 2004-2005 General Improvement District 1-64 <br /> Recommendation <br /> It is recommended that the attached ordinance setting the tax rates for General <br /> Improvement District No. 1-64 be introduced. <br /> Background <br /> The Finance Department has computed the tax rates required for bond interest and <br /> redemption in General Improvement District 1-64, using the Assessment Roll for the <br /> District as equalized by the City Council sitting as the Board of Equalization. <br /> Assessed values compared to prior fiscal years <br /> <br /> 2001-02 2002-03 2003-04 2004-05 Incr/(Decr) <br /> <br /> Land $605,586,412 $498,390,162 $517,048,912 $523,470,912 1.24% <br /> Improvement 525.304.000 532.357.750 548.847.750 571.039.000 4.04% <br /> Total $1,130,890,412 $1,030,747,912 $1,065,896,662 $1,094,509,912 2.68% <br /> Appraised values have increased due to a general increase in residential property values. <br /> The recommended tax rates for bond service costs per $1 00 assessed valuation compared <br /> to prior years are: <br /> 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 <br /> Reclamation <br /> Bonds 0.1985 0.1458 0.1139 0.1362 0.1272 0.1241 <br /> Facility <br /> Bonds 0.1760 0.1466 0.1230 0.1359 0.1278 O. 1245 <br /> The recommended 2004-2005 tax rate for Reclamation Bonds is 2.44% lower than in the <br /> previous year. The recommended rate for the Facility Bonds is 2.58% lower. The lower <br /> rates for the current year are due to debt service being spread over a greater appraised <br /> base. Although lower, the rate will not necessarily yield a lower assessment, due to <br /> varying percentages of increase/decrease between residential and commercial property <br /> types. <br /> The impact of the rate change is illustrated by the following example where the market <br /> value of a home has increased 11.43% from the preceding year. For a four bedroom, 3 <br /> bath house with an appraised value of $700,000 in January 2003 (land value $350,000 and <br /> improvement value $350,000) and a current appraised value of $780,000 in January 2004 <br /> . ., -' <br />