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City of Pequot Lakes, Minnesota
<br /> May 16, 2013
<br /> Page 2
<br /> • 2013 Taxable Market Values and Net Tax Capacity for each taxing district as provided by Crow Wing
<br /> County as follows:
<br /> Taxable Market Value 2013 Net Tax Capacity
<br /> Urban Taxing
<br /> District $88,471,500 1,181,903
<br /> Rural Taxing
<br /> District $150,459,900 1,553,001
<br /> • Taxable Market Values and Net Tax Capacity are also projected to remain stable over the phase-in period
<br /> Because of future unknowns,the assumption is the 2013 levy of$1,486,432 and property values will remain the
<br /> same over the planning period. While this is unlikely to be the case,the assumption works well for this analysis to
<br /> provide a static picture of impacts on various property types. If the same dollars are levied each year,the resulting
<br /> tax rates are projected to be:
<br /> Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
<br /> 2013 2014 2015 2016 2017 2018 2019
<br /> Levy $ 1,486,432 $ 1,486,432 $ 1,486,432 $ 1,486,432 $ 1,486,432 $ 1,486,432 $ 1,486,432
<br /> Net Tax Capacity-Urban 1,181,903 1,181,903 1,181,903 1,181,903 1,181,903 1,181,903 1,181,903
<br /> Net Tax Capacity-Rural 1,553,001 1,553,001 1,553,001 1,553,001 1,553,001 1,553,001 1,553,001
<br /> Total 2,734,904 2,734,904 2,734,904 2,734,904 2,734,904 2,734,904 2,734,904
<br /> Urban Tax Rate 75.900% 71.195% 67.040% 63.343% 60.032% 57.050% 54.350%
<br /> Rural Tax Rate 37.950% 41.531% 44.693% 47.507% 50.027% 52.296% 54.350%
<br /> The annual impacts on various property owners of both the rural and urban taxing districts are shown on the following
<br /> pages. The tables detail the following:
<br /> Rural Impact
<br /> Pages 4-5—The annual tax impact to various rural taxing district properties of differing types and values, based on
<br /> the above phase-in.
<br /> Pages 6-7—The cumulative change for each rural property over the six-year period.
<br /> For example,page 4 shows a residential homestead valued at$200,000 currently(2013)pays$686 in City property
<br /> taxes(school,county,special districts are in addition to this). Under the six-year phase-in,this is projected to go to
<br /> $751 in year 1,$808 in year 2, until reaching$982 in year 6. Page 6 shows that the change on this same$200,000
<br /> residential homestead from 2013 to year 1 is$65($686 to$751)and over the six-year phase-in is$296($686 to
<br /> $982). Or in other words,a$200,000 residential homestead in the rural taxing district will be paying$296 more in
<br /> city taxes in year 6 than they are currently paying in 2013.
<br /> Public Sector Advisors
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