12-14-1983 Council Agenda - Laserfiche WebLink

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To the Honorable Mayor and Members of the City Council City of Little Canada Page 3 November 21, 1983 City's relatively high mill rate. The City's 1982/1983 total tax levy was $1,091,732 or 21.730 mills. Included in this total was $386,300 or 7.689 mills to finance the Water and Sanitary Sewer Trunk facilities of the City. Property located outside of the City cannot be taxed by the City. Accordingly, a tax levy charge for these facilities must be incorporated into the fees to be charged to non- resident property. The primary source of financing for the City's Sanitary Sewer Trunk System are tax levies associated with the 1966 and 1967 Sanitary Sewer Bonds. These tax levies total $2,868,100 for 29 years for an average of $98,900 per year. Using the 1982/1983 assessed valuations of the City as a base, this average tax levy equals 1.969 mills. The primary source of financing for associated with the $2,995,000 Water total $3,963,097 for 19 years for an 1982/1983 assessed valuation of the 4.152 mills. the City's Water Trunk System are tax levies System Improvement Bonds. These tax levies average of $208,584 per year. Using the City as a base, the average tax levy equals The above equivalent 1982/1983 mills were calculated as follows: Computation /Description 1. Total Scheduled Tax Levies 2. Total Years 3. Average Annual Levy 4. 1982/1983 Amount equivalent Sanitary Sewer System $3,963,097 - 19 $ 208,584 Water System $2,868,100 - 29 $ 98,900 to 1 mill - 50,2.41 - 50,2.41 5. Equivalent 1982/1983 Mills 4.152 1.969 Such tax levies certified against City property have been and will continue to be certified over the terms of the underlying bond issues. Non- resident property, however, cannot be levied a tax by the City of Little Canada. Accordingly, the computed equivalent 1982/1983 tax levy must be multiplied by the number of years corresponding to each bond issue and then discounted to a present value amount based upon those number of years and the interest rate of such bond issue. In our computations, we have used 29 years and 4.75% for the Sanitary Sewer Trunk System and 19 years and 5.75% for the Water Trunk System. These years and inter- est factors are based upon the terms of the underlying bond issues. Accordingly, these mills should be multiplied by the total tax years of the bond issue and then discounted to a present value to reflect the single payment. The equivalent one -time charge to reflect the amount which would have been paid by property located within the City of Little Canada can he reflected as a factor against the estimated fair market value /assessed value of the property. The above equiv- alent trunk tax levy fee factor for non - resident property (to be based upon the estimated assessed valuation of such property) should be as follows: 2i