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a`i��!'I33a�:�`�� C.'t� <br />MEMORANDUM <br />T0: <br />FROM: <br />DATE: <br />SUBJECT <br />Sandy Peine, City Clerk <br />Pequot Lakes EDC and City Council <br />Patty Kettles, Vice President <br />May 16, 2013 <br />Urban and Rural Taxing Districts — Tax Rate Phase-In <br />Springstetl Incorporated <br />380 Jackson Street, Suite 300 <br />Saint Paul, MN 55101-2887 <br />Tel: 651-223-3000 <br />Fax: 651-223-3002 <br />www.springsted.com <br />The City of Pequot Lakes and the Economic Development Council of Pequot Lakes hired Springsted to analyze a <br />phase-in of the current rural tax rate to that of the urban tax rate over a multi-year periotl and project the impact of the <br />phase-in on various property types, including: <br />• Residential <br />• Lakeshore <br />• Non-lakeshore <br />• Homestead <br />• Non-homestead <br />• Commercial <br />The assumptions in completing this analysis include: <br />• As "Lakeshore" and "Non-lakeshore" are not specific property classifications, it is assumed that the impact <br />on these properties can be found in either Homestead Residential, Non-Homestead Residential, or <br />Seasonal Recreation <br />• The rural tax rate will equal that of the urban taxing district at the end of a six-year phase-in period (the <br />same phase-in period used for the commercial property in the original annexation agreement) <br />• The tax rate for the entire phase-in period is based on the 2013 levy of $1,486,432 <br />• Tax rates antl impacts shown here will increase or tlecrease based on future years' levies <br />• An equal tax rate assumes equal services are received by both taxing districts <br />Public Sector Advisors <br />