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Tax Levy Impacts w/ Assessments for Reconstruction & Franchise Fees for Seal Coating <br />Type of Street <br />Work <br />Annual <br />Cost <br />($) <br />Levy <br />Increase <br />(%) <br />Tax Rate <br />Increase <br />(Percentage <br />Points) <br />Tax <br />Impact <br />on <br />$250K <br />Home <br />Tax <br />Impact <br />on <br />$546K <br />Home <br />(Median) <br />Tax <br />Impact <br />on $1M <br />Home <br />Tax <br />Impact <br />on $2M <br />Home <br />Seal Coat* $0 0% 0 0 $0 $0 $0 <br />Mill & <br />Overlay <br />$324,625 6.8% 1.19 $28 $59 $134 $283 <br />Total <br />Maintenance <br />$324,625 6.8% 1.19 $28 $59 $134 $283 <br />Reconstruction $403,251 8.45% 1.48 $34 $73 $167 $352 <br />Grand Total $727,876 15.25% 2.67 $62 $132 $301 $635 <br />*Paid for with the franchise fees. <br />(1) Advantages. Provides reliable stream of funding to maintain the City’s streets. Provides <br />some level of cost vs. benefit equity. Limits increases to the general tax levy. <br />(2) Disadvantages. Raises the tax level. Introduces assessments which can be contentious. <br />Franchise fees add an additional bureaucracy to the City’s revenue streams. Uses a utility to indirectly tax <br />residents. <br />c.General Fund Only. This COA would see the City funding all street maintenance and <br />reconstruction. <br />Tax Levy Impacts using the General Fund Only for all Street Maintenance & Reconstruction <br />Type of <br />Street <br />Work <br />Annual <br />Cost <br />($) <br />Levy <br />Increase <br />(%) <br />Tax Rate <br />Increase <br />(Percentage <br />Points) <br />Tax <br />Impact <br />on <br />$250K <br />Home <br />Tax <br />Impact on <br />$546K <br />Home <br />(Median) <br />Tax <br />Impact <br />on $1M <br />Home <br />Tax <br />Impact <br />on $2M <br />Home <br />Seal Coat $253,396 5.31% .93 $22 $46 $105 $221 <br />Mill & <br />Overlay <br />$324,625 6.8% 1.19 $28 $59 $134 $283 <br />Reconstruct $729,955 15.30% 2.68 $62 $133 $302 $637 <br />Total 1,307,976 27.41% 4.81 $112 $238 $541 $1141 <br />(1) Advantages. Provides reliable stream of funding to maintain the city’s streets. <br />(2) Disadvantages. Retains cost benefit inequities for taxpayers. Increased General Tax Levy. <br />7.Summary. Each COA offers advantages and disadvantages. COAs A & B would both introduce <br />assessments which provide some equity between private and public residential street residents and reduce <br />the tax levy amount. However assessment can be controversial and is a process that would be required <br />for each road project. Franchise fees do offer an alternative source of revenue but do also introduce <br />additional bureaucracy into the City revenue process and can be controversial as they are often viewed as <br />a hidden form of taxation. <br />5 Page 7 of 49