HomeMy WebLinkAbout2010-06-28 10-244 ORDERCOUNCIL ACTION
Item No. 1 Q F 4 4
Date: 6/28/2010
Item/Subject: Order, Reducing the Downtown Development District Tax Increment
Financing Captured Assessed Value Percent for FY 2011
Responsible Department: City Council
Commentary:
While the City's residential property values remain steady, the economy has had a significant
negative impact on the City's commercial property values. This translated into a nearly 25%
reduction in commercial property value for FY 2011, with little increase in new property value to
offset it. Based on the potential impact on property tax payers, the City Manager's Recommended
budget included a provision to lower the percentage of captured assessed value within the
Downtown Development District (DDD) Tax Increment Financing District. This recommendation was
based on the fact that a significant portion of the DDD increment is generated from commercial
property values. By lower the captured assessed value percentage within the District, a portion of
the value can be used in support of the overall General Fund operations, thereby mitigating the
impact to the City's taxpayers.
The attached Order would reduce the FY 2011 DDD captured assessed value percentage from 100%
to 75%.
Department Head
Manager's Comments: r6J1V*A I
,Ud / (,(*f7/ , ff0�1 OtArvvIrG�1R1 , �i �J�Ct�' M City Manager
Associated Information:�� r
Budget Approval:
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Finance Director
Legal Approval:
CYy Solicitor
Introduced for
�/ Passage
First Reading Page _ of _
Referral
44
Assigned to Councilor — Palmer June 28, 2010
CITY OF BANGOR
(TITLE.) Order, Reducing the Downtown Development District Tax Increment Financing
District Captured Assessed Value Percentage for FY 2011
By the City Council of the City of Bangor.
WHEREAS, the City is faced with the prospect of an overall reduction in assessed value; and
WHEREAS, the decrease is comprised of an estimated 25% reduction in commercial real estate
value, a 1%-5% reduction in multi -family home values, as well as the annual depreciation of
personal property, which approximates 8% per year; and
WHEREAS, the majority of the captured assessed value within the Downtown Development
District Tax Increment Financing District is comprised of commercial value; and
WHEREAS, a decrease in the percentage of Downtown Development District captured assessed
value would offset a portion of the overall reduction in commercial tax value and mitigate the
tax shift from commercial properties to residential properties;
NOW THEREFORE BE IT ORDERED, THAT for FY 2011, the Downtown Development District
captured assessed value percentage is hereby reduced from 100% to 75%.
IN CITY COUNCIL
June 28, 2010
Notion Made and Seconded for
Passage
Passed
CITY CLIRRKL�
ORDER
(TITLE,) Rf-dijcing the Downtown
npivg12 m+ent District Tax Increment
Financing District Captured Assessed
Value Percentage for FY 2011
Assigned to Connellor ��''/