Laserfiche WebLink
At the higher debt service ratio, a gap of $104,000 would need to be made up by existing taxpayers, <br />including existing commercial and industrial property owners. The City's certified levy in 2007 was <br />$1,360,000. Raising this by $104,000 would amount to a 7.6y increase. <br />• For a residential property valued at $100,000, this would equate to a tax increase of $68 per <br />year. <br />• For a residential property valued at $250,000, this would equate to a tax increase of $171 per <br />year. <br />• For a residential property valued at $500,000, this would equate to a tax increase of $341 per <br />year. <br />• For a commercial property valued at $250,000, this would equate to a tax increase of $228 per <br />year. <br />• For a commercial property valued at $500,000, this would equate to a tax increase of $455 per <br />year. <br />The typical taxpayer would not benefit directly from this investment, so this tax increase would amount <br />to a subsidy for new development that would happen along the Alternate Alignment. This would be on <br />top of current obligations the City has to maintaining existing infrastructure, much of which has urgent <br />maintenance needs. <br />Without Municipal Utilities <br />The Comprehensive Plan and the City's ordinances indicate that all properties to be rezoned to <br />Commercial need to be served by municipal utilities. This has been done to: <br />• Prevent leapfrog development, where an enterprise that needs municipal utilities cannot obtain <br />them without large subsidy to "leapfrog" existing un- served development. <br />• Create a minimum investment level in the community so that investments —along with the jobs <br />they create - are long term, not transient. <br />• Reinforce existing commercial development patterns, to the benefit of existing businesses. <br />• Grow tax base along the existing infrastructure, where the City already has financial obligations <br />for maintenance, as opposed to encouraging new development that creates additional <br />maintenance obligations. <br />There does not seem to be a compelling reason to vary from this philosophy. There are literally tens of <br />thousands of feet of highway frontage along this corridor where this strategy can be employed. In this <br />scenario, there would not be anything for Pequot Lakes that would distinguish it from development in an <br />adjacent jurisdiction. <br />3 <br />