Loading...
HomeMy WebLinkAbout2012-06-11 12-198 ORDER COUNCIL ACTION Item No. 12-198 Date: June 11, 2012 Item/Subject: Order, Reducing the Downtown Development District Tax Increment Financing Captured Assessed Value Percent for FY 2013 Responsible Department: City Council Commentary: If approved, this order will reduce the captured assessed value in the Downtown Development District from 100% to 75% for the fiscal year beginning July 1, 201Z. In FY 2011, the City's residential property values remained steady, but the economy had a significant negative impact on the City's commercial property values. This resulted in a reduction of approximately 25% in commercial property value for FY 2011, with little increase in new property value to offset it. In FY 2013, the City anticipates modest growth in assessed value, the growth is not sufficient to offset the loss in commercial values from the prior year. Based on the potential impact on residential property tax payers, the City Manager's recommended budget included a provision to continue the lower the percentage of captured assessed value within the Downtown Development District (DDD)Tax Increment Financing District, for the second year in a row. This recommendation was based on the fact that a significant portion of the DDD increment is generated from commercial property values. The attached Order would reduce the FY 2013 DDD captured assessed value percentage from 100% to 75%. � Department Head Manager's Comments: �� � �9n � City Manager Associated Information: Order Budget Approval: Finance Director Legal Approval: City Solicitor Introduced for � Passage First Reading Page_of_ Referral 12-198 JLTNE 11,2Q12 � �;� .;o���:�� Assigned to Councitor Longo �� -�o,� _. � ' ���% �� � � � �� , e � �T;` { . CITY OF BAI�iCOR 'y.oy•-_ 1ry � pR?�J��' �c � qTED,F .j ��¢�" � (TlTLE.) Qrder, Reducir�g the DQwntown Development District Tax Increment Financing Distriet Captured Assessed Value Percentage far FY 2013 By the City Council of the City of Bangor. WHEREAS, in FY 2011, the City realized an overall reduction in assessed value; and WHEREAS, the decrease was 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 City anticipates realizing a slight decrease in assessed value in FY2013, and WHEREAS, the anticipated modest increase in FY2013 commercial assessed value does not offset the FY 2011 reduction in commercial value and FY 2013 slight decrease in residential assessed value; 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 continuation of the Council's action in FY 2011 to decrease the percentage of Downtown Development District captured assessed value will continue to mitigate the tax shift from commercial properties to residential properties; NOW '!"HEREFQRE BE IT ORDERED, THAT far FY 2Q13, th� DowrttorEvn Devetopment Ristrict captured assessed value percentage is hereby reduced from iQ0% to T5°lo. # (TITLE,) Assigned to Councilor �I� 1�I� I ��'`� p�a'�'SEa ZTOZ `iT aunr 'II�NRO� �I� NI