Ordinance No. 20459 - Laserfiche WebLink

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median taxpayer would essentially pay the same amount of total taxes before or after urban renewal division of taxes. The difference is that the tax revenues are reallocated from the overlapping taxing districts to the urban renewal districts. Table 7 in Exhibit E sets out this calculation for the average taxpayer in Eugene. As can be seen, the before and after urban renewal views of this taxpayer's bill are within one penny of each other. That penny represents the effects of truncation and rounding. Impact on Tax Rates: Urban renewal nominally affects voter - approved local option levies and bonds because the affected district has less property value to levy taxes against, resulting in slightly higher tax rates. Based on the FY2009/2010 tax rates, the estimated impact of this slight tax rate increase from the Downtown Urban Renewal District is about $1.66 for the average Eugene taxpayer, which represents less than 0.05% of the total tax bill of $2,938 in FY2009/2010. Impact on Overlapping Taxing District Revenues: For the overlapping taxing jurisdictions, a share of property taxes from the "excess value" or "incremental value" is not collected by the overlapping jurisdictions during the period of an active district, which reduces revenues. The incentive for the overlapping districts to support urban renewal is higher property tax revenues in the long -run. When the district is ended, the overlapping taxing districts are able to tax the entire value within the district. Under the theory of urban renewal, this value is higher than it would have been if there had been no district in effect. The estimated amount of urban renewal taxes to be divided over the remaining term of the Plan (net of discounts, delinquents, etc.) is shown in Table 8 in Exhibit F. Only the permanent tax rates of the overlapping jurisdictions are considered in this analysis because there are no local option levies that impact the Downtown Urban Renewal District, and bonded debt tax rates will be reduced from year to year until the existing bonds are paid off. As can be seen in Table 8, in FY2009/2010, it is estimated that the City of Eugene would forego about $810,000 of revenue because of the Downtown Urban Renewal District division of tax calculation. In FY2017/2018 after tax increment financing is terminated, the City of Eugene is estimated to receive $1,090,000 of additional tax revenue per year. Lane County is estimated to forego $150,000 of revenue in the first fiscal year, and to benefit by $200,000 of additional tax revenue per year after division of tax is terminated in FY2017/2018. The combined school districts are estimated to forego $650.,000 of revenue in the first fiscal year, and to benefit by $870,000 of additional annual tax revenue after the division of tax is terminated in FY2017/2018. The net financial effect on School District 4j from the existence of the Downtown Urban Renewal District is positive after taking the impact on the local option levy into account. This is described in more detail below. The impact on schools from the division of tax calculation for urban renewal districts is largely an impact on the state's budget because schools are mainly funded on a per -pupil funding formula rather than by the level of property tax dollars generated within their boundaries. The net impact of the Downtown Urban Renewal District on local schools is a loss of about $31,000 Report on the 2010 Amendment 15