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<br />7/1-/ <br /> <br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />July 11, 2005 <br /> <br />Subject <br />Bond Service Tax Rates - 2005-2006 General Improvement District 1-64 <br /> <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 /> <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 /> <br />Assessed values compared to prior fiscal years <br /> <br />2002-03 <br /> <br />2003-04 <br /> <br />2004-05 <br /> <br />2005-06 Incr/(Decr) <br /> <br />Land $498,390,162 $517,048,912 $523,470,912 $ 595,413,162 13.74% <br />Improvements 532.357,750 548,847,750 571,039.000 585,147,750 2.47% <br />Total $1,030,747,912 $1,065,896,662 $1,094,509,912 $1,180,560,912 7.86% <br /> <br />Appraised values have increased due to a general increase in residential property values. <br /> <br />The recommended tax rates for bond service costs per $1 00 assessed valuation compared <br />to prior years are: <br /> <br /> 2000-01 2001-02 <br />Reclamation <br />Bonds 0.1458 0.1139 <br />Facility <br />Bonds O. 1466 0.1230 <br /> <br />2002-03 <br /> <br />2003-04 <br /> <br />2004-05 <br /> <br />2005-06 <br /> <br />0.1362 <br /> <br />0.1272 <br /> <br />0.1241 <br /> <br />0.1077 <br /> <br />0.1359 <br /> <br />0.1278 <br /> <br />0.1245 <br /> <br />0.1139 <br /> <br />The recommended 2005-2006 tax rate for Reclamation Bonds is 13.22% lower than in the <br />previous year. The recommended rate for the Facility Bonds is 8.51 % 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 /> <br />The impact of the rate change is illustrated by the following example where the market <br />value of a home has increased 21.8% from the preceding year. For a four bedroom, 3 bath <br />house with an appraised value of $780,000 in January 2004 (land value $350,000 and <br />improvement value $430,000) and a current appraised value of $950,000 in January 2005 <br />