Monday, June 1, 2009

Tax rate/ increment calculation for CRA budget given revised (lowered) taxable value...

From Joan Oliva today to CRA members:

CRA Board Members,

Many of you have seen the recent headlines whereby the Property Appraiser has indicated a significant loss in values in the City. The CRA is predicted to have an even higher loss. As you can see from the calculation below, our increment dropped from $411 M to $254 M – a loss of 38%. New construction taxable value was less than $10M.

CRA - Current Year Increment Value $ 254,995,256

" - 2008 Actual Increment 411,323,015

Decline in CRA Tax Increment 156,327,759

Percentage Decrease =38%

This significant decrease in value, coupled with the City’s lower millage rate due to the County Fire Rescue merger, lessens our TIF revenues by almost 50% compared to last fiscal year. In 08/09, the CRA received $4.3M from both the County and the City in TIF. This year, that number will drop to approx. $2.2M.

We anticipate the City will report a tentative millage rate to the County before the end of July. Communication between the CRA and the City will be vital as we prepare our 09/10 budget. The availability of any supplement will determine the future of many CRA projects and programs.

I look forward to working with you all.