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Tax Le Im acts w/Assessments for Reconstruction & Franchise Fees for Seal Coatin <br /> Type of Street Annua.l Levy Tax Rate Ta.x T� Ta�c Tax <br /> Work Cost Increase Increase Impact Impact Impact Impact <br /> ($) (%) (Percentage on on on$1 M on$2M <br /> Points) $250K $546K Home Home <br /> Home Home <br /> Median <br /> Seal Coat $0 0% 0 0 $0 $0 $0 <br /> Mill & $324,625 6.8% 1.19 $28 $59 $134 $283 <br /> Overla <br /> Total $324,625 6.8% 1.19 $28 $59 $134 $283 <br /> Maintenance <br /> Reconstruction $403,251 8.45% 1.48 $34 $73 $167 $352 <br /> Grand Total $727,876 15.25% 2.67 $62 $132 $301 $635 <br /> Paid for with the franchise fees. <br /> (1) Advantages. Provides reliable stream of funding to maintain the City's streets. Provides <br /> some level of cost vs. benefit equity. Limits increases to the general tax levy. <br /> (2) Disadvantages. Raises the tax level. Introduces assessments which can be contentious. <br /> Franchise fees add an additional bureaucracy to the City's revenue streams. Uses a utility to indirectly tax <br /> residents. <br /> c. General Fund Only. This COA would see the City funding all street maintenance and <br /> reconstruction. <br /> Tax Le Im acts usin the General Fund Onl for all Street Maintenance&Reconstruction <br /> Type of Annual Levy Tax Rate Taac Taac Tax Tax <br /> Street Cost Increase Increase Impact Impact on Impact Impact <br /> Work ($) (%) (Percentage on $546K on$1M on$2M <br /> Points) $250K Home Home Home <br /> Home Median <br /> Seal Coat $253,396 5.31% .93 $22 $46 $105 $221 <br /> Mill & $324,625 6.8% 1.19 $28 $59 $134 $283 <br /> Overla <br /> Reconstruct $729,955 15.30% 2.68 $62 $l33 $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 ta�cation. <br /> 5 <br />