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HomeMy WebLinkAbout2011-06-13 11-203 ORDERIbam No_ 11 2O"s Date: June 13, 201 Item/Subjeek Order, Reducing the Downtown Development Dlstril Increment Financing Captured Assessed Value Percent for FY 2012 Responsible Department: City Council If approved, this order will reduce me captured assessed value in the Downtown Development District from 100% to 75% for the fiscal year beginning July 1, 2011. 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 2012, the City shall [es modest growth In assessed value, the growth Is not sufficient m offset the less in commercial values from the prior year. eased on the potential Impact on residential property tax payers, the City Managers 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 now. This recommendation was based on rhe fat[ that a significant portion of the DDD increment Is generated from commercial property values. The attached Order would reduce the FY 2012 DDD captured assessed value percentage from 10G% to 75%. Department Head ;lrr1 Budget Approval: // � F,(�'Tl Director Legal Approval: CI Solicitor ✓ Passage _ First Reading Page _ of _ Referral I'i °03 c1?� AsdoncdtoCaurcllor Bronson June 13, 2011 og CITY OF BANGOR (TITLE.) Order, Reducing the Downtown Development District Tax Increment Financing District Captured Assessed Value Percentage for FY 2012 By Me Gtyfound/ of the Cityof 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 muld-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 increase In assessed value In FY2012, and WHEREAS, the anticipated modest increase In FY2012 assessed value does not offset the FY 2011 reduction in commercial 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 THEREFORE BE IT ORDERED, THAT for FY 2012, the Downtown Development District captured assessed value percentage is hereby reduced from 100% W 75%. M CIn MWIL J®e 13, 2011 Xoom Made a d Secwded foie. Passage Pa aM CI R It -291 OHD� (mLF') 6edoc]a¢ ih¢ ➢owtOvn Oevelageu[. metrict Saa Increoeni Hna6cfog DLtLfet Capteted "ses l VaL Pe:cmt for P2 2012 Ms1YneGto Caunlla IriM)Wl6�i-�M/..Q�