AgdaPkt 2002-07-15 - Laserfiche WebLink

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July 15, 2002 Subject Bond Service Tax Rates - 2002-2003 General Improvement District 1-64 Recommendation It is recommended that the attached ordinance setting the tax rates for General Improvement District No. 1-64 be adopted. Background The Finance Department has computed the tax rates required for bond interest and redemption in General Improvement Distdct 1-84, using the Assessment Roll for the District as equalized by the City Council sitting as the Board of Equalization. Assessed values compared to prior fiscal years 1999-00 2000-01 2001-02 2002-03 Incr/(Decr) Land $337,900,727 $454,239,270 $605,586,412 $498,390,162 (17.70)% Improvement 436,085,189 479,383,750 525,304,000 532,357,750 1.34% Total $773,985,916 $933,623,020 $1,130,890,412 $1,030,747,912 (8.86)% Appraised values.have decreased due to a general decline in property values. The recommended tax rates for bond service costs per $100 assessed valuation compared to prior years are: 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Reclamation Bonds 0.3211 0.2282 0.1985 0.1458 0.1139 0.1362 Facility Bonds 0.3181 0.2155 0.1760 0.1466 0.1230 0.1359 The recommended 2002-2003 tax rate for Reclamation Bonds is 19.58% higher than in the previous year. The recommended rate for the Facility Bonds is 10.49% higher. The higher rates for the current year are due to debt service being spread over a lower appraised base. Although higher, the rate will not necessarily yield a higher assessment, due to varying percentages of decrease between residential and commercial property types. The impact of the rate change is illustrated by the following example where we assume that the market value of a home has decreased 9%. For a four bedroom, 3 bath house with an appraised value of $715,000 in January 2001 (land value $405,000 and improvement