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The August 27th City Council presentation on sidewalk funding is attached. Council discussions on the issue are scheduled to continue at the Public Works Committee on September 12th.
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Sidewalk Value Missoula values accessible, durable, and
well maintained sidewalks;
The City Council has demonstrated support for the extension of new sidewalks, and the completion of the sidewalk system.
Sidewalk Costs The assessment of a special tax against
Property Owners fronting sidewalk projects may be a large financial burden on a small number of people within the City.
Current Process The City creates street maintenance and
reconstruction projects each year; $500,000+ Assessed for curbs and sidewalks
annually; The concrete work is typically paid for by
adjoining Property Owners; Median assessments are about $3,500 per
property; Some assessments are significantly over $3,500,
including some assessments over $10,000.
Proposal Combine City funding + Property Owner
funds to pay for curb and sidewalk assessments;
Pay for City funding with a small increase
taxes to all Property Owners within the City of Missoula Road District Number 1.
Two Models as Resolutions
City Co-Pay Model
City First Share Model
City Co-Pay Model Property Owner pays the first $0 to $500; After the first $500 there is a 70/30 split. The
City pays 70 percent and the Property Owner pays 30 percent until the Property Owner assessment reaches $3,500;
Between $3,500 and $15,000 the City pays 100 percent;
Property Owner pays all costs over $15,000; Every property in the City Road District pays an
additional $8.58 tax based on $225,000 property value.
City Co-Pay Model
City First Share Model The City pays the first $0 to $500; After the first $500 the Property Owner pays
100 percent until the Property Owner assessment reaches $3,500;
Between $3,500 and $15,000 the City pays 100 percent;
Property Owner pays all costs over $15,000; Every property in the City Road District pays
an additional $6.94 tax based on $225,000 property value.
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$400Tax does not meet deductible
Deductible: $400
Total Tax: $400
Total City: $0
CITY CO-PAY MODEL EXAMPLE 1:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 400
City Co-Pay Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$3,000Tax is over deductible, but below out of pocket minimum
Deductible: $500Co-Pay: 30% of $2,500 = $750 Total Tax: $1,250
70% of $2,500 = $1,750 Total City: $1,750
CITY CO-PAY MODEL EXAMPLE 2:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 3,000
City Co-Pay Model
City Co-Pay Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$12,000Tax is over deductible, and over the out of pocket minimum
Deductible: $500 +Co-Pay - The lower of $3,000 or (30% of $11,500 = $ 3,950) Total Tax: $3,500
$12,000 - $3,500 = $8,500 Total City: $8,500
CITY CO-PAY MODEL EXAMPLE 3:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 12,000
City Co-Pay Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$17,000Tax is over deductible, and over the out of pocket minimum and over stop loss.
Deductible: $500 +Co-Pay - The lower of $3,000 or (30% of $14,500 = $ 4,350)Stop Loss - $17,000 - $15,000 Total Tax: $5,500
$17,000 - $5,500 = $11,500 Total City: $11,500
CITY CO-PAY MODEL EXAMPLE 4:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 17,000
City Co-Pay Model
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$400Tax does not meet deductible
Total Owner: $0 Total City: $400
CITY FIRST SHARE MODEL EXAMPLE 1:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 400
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$3,000Tax is over deductible, but below out of pocket minimum
$3,000 - $500 = $2,500 Total Owner: $2,500
Total City: $500
CITY FIRST SHARE MODEL EXAMPLE 2:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 3,000
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$12,000Tax is over deductible, and over the out of pocket minimum
Total Owner: $3,500
$12,000 - $3,500 = $8,500 Total City: $8,500
CITY FIRST SHARE MODEL EXAMPLE 3:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 12,000
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$17,000Tax is over deductible, and over the out of pocket minimum and over stop loss.
Owner-Pay $3,500Stop Loss - $17,000 - $15,000 Total Tax: $5,500
$17,000 - $5,500 = $11,500
Total City: $11,500
CITY FIRST SHARE MODEL EXAMPLE 4:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 17,000
City First Share Model
Summary City Co-Pay Model:
Pros: Lower cost to some Property Owner with assessments between $500 to $3,500. Most assessment will be
less than $3,500.
Cons: Property Owner pays first $500. Higher cost to City, a more complex formula.
Summary City First Share Model:
Pros: City funds first costs up to $500. Less cost to the City, and simpler
application.
Cons: Higher cost to some Property Owners that are between $500 to $3,500 assessment.
Rebate Proposal Provide assessment rebates for current
Property Owners with curb and sidewalk assessments with funds from Missoula Road District Number 1.
Rebates Scenarios 1: Total Assessments – If we were to apply
the current proposals to total amount that was assessed on all open projects.
2: Billed Amount – If we were to apply the current formulas to the amount that was billed out in November.
3: Remaining Balance – If we were to apply the current formulas to the remaining amount of open assessments.
This is all current through FY2010.
Co-Pay Model City First Share Model
Rebates Scenarios 1: Total Assessments – If we were to apply
the current proposals to total amount that was assessed on all open projects.
2: Billed Amount – If we were to apply the current formulas to the amount that was billed out in November.
3: Remaining Balance – If we were to apply the current formulas to the remaining amount of open assessments.
This is all current through FY2010.
Co-Pay Model City First Share Model
Rebates Scenarios 1: Total Assessments – If we were to apply
the current proposals to total amount that was assessed on all open projects.
2: Billed Amount – If we were to apply the current formulas to the amount that was billed out in November.
3: Remaining Balance – If we were to apply the current formulas to the remaining amount of open assessments.
This is all current through FY2010.
Co-Pay Model City First Share Model
Next Steps Decide which Model Resolution to adopt;
City Co-Pay Model City First Share Model Combination of both models Leave as-is
Confirm the funding source as the City of Missoula Road District Number 1;
Resolve Rebate applicability.