7A - TH 371 Alternate Alignment Zoning

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Revenue for Debt Service = $78,000 x 0.07 = $5,460 If the City allowed the debt ratio to climb to double its current value because of this project, the amount applied to debt service would be $10,920. Revenue for Debt Service (double City's debt service ratio) = $78,000 x 0. 14 = $10,920 At the higher debt service ratio, a gap of $104,000 would need to be made up by existing taxpayers, including existing commercial and industrial property owners. The City's certified levy in 2007 was $1,360,000. Raising this by $104,000 would amount to a 7.6% increase. • For a residential property valued at $100,000, this would equate to a tax increase of$68 per year. • For a residential property valued at$250,000, this would equate to a tax increase of$171 per year. • For a residential property valued at $500,000, this would equate to a tax increase of$341 per year. • For a commercial property valued at $250,000, this would equate to a tax increase of$228 per year. _ • For a commercial property valued at $500,000, this would equate to a tax increase of$455 per year. The typical taxpayer would not benefit directly from this investment, so this tax increase would amount to a subsidy for new development that would happen along the Alternate Alignment. This would be in addition to current obligations the City has to maintaining existing infrastructure, much of which has urgent maintenance needs. Without Municipal Utilities The Comprehensive Plan and City ordinances indicate that all properties to be rezoned to Commercial need to be served by municipal utilities. This has been done to: • Prevent leapfrog development, where an enterprise that needs municipal utilities cannot obtain them without large subsidy to "leapfrog" existing un-served development. • Create a minimum investment level in the community so that investments - along with the jobs they create - are long term, not transient.