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value of new retail. office, and industrial development times the respective tax class rates. 3. Personal Property Assessed Value. This is the total Personal Property assessed value for each projection year. Given that the methodology assumes that future personal property assessed value associated with CII growth is limited, this line item remains constant into the future. 4. Total Assessed Value. This is the sum of the first three lines and represents the total assessed value in the City for each projection year. 5. Tax Capacity. Tax Capacity is the taxable value of the property derived by multiplying the assessed value times the class rates for each land use type. The total tax capacity in Roseville in the base (or current) year is $41.1 million This total increases each year based on the future land use projections. As shown in the table, by 2005, the total tax capacity is about $42.6 million. The tax capacity projections use the current class rates and assessed values and does not take into account the possibility of changing class rates regulated by the State which occurs periodically but is an unknown factor. 6. Fiscal Disparities Contribution. This is the tax capacity that is contributed to the areawide fiscal disparities pool by the City, which is ultimately redistributed to all of the participating jurisdictions in the seven county region. It is based on a contribution of 40 percent of the tax capacity growth in its commercial/industrial (Cn) property tax base since 1971. The total fiscal disparities contribution for Roseville in the base year is $6.6 million. Additional contributions thereafter are assumed to be 40 percent of the new nonresidential tax capacity based on the projections which adds to the net change in net tax capacity since 1971. It is assumed that all CII TIF development contributes to fiscal disparities. It is important to note that the fiscal disparities program does not distinguish between new and old property, but rather each year the growth in CII tax capacity since 1971 includes the effects of new construction, inflation, demolition, revaluation, appreciation, and depreciation. Since our approach is a marginal approach based on a snapshot of current levels of service, the effects on the net CII tax capacity from changing values of old properties, inflation, revaluation, etc., is not reflected. Furthennore. these effects are also unknown and cannot be predicted. Our methodology solely assumes the net CII tax capacity increases based on new development. 7. Tax Increments. This is tax capacity in Tax Increment Financing (TIF) districts. It is also subtracted from the total Tax Capacity in order to determine the Net Tax Capacity. Currently, in Roseville the TIF amount is $5.48 million. This value will increase over time for the Concentrated Growth scenario. For the Trends scenario, the value stays constant since no redevelopment is assumed. 8. Net Tax Capacity. The net tax capacity is calculated by subtracting the fiscal disparity contribution tax capacity and the TIF district tax capacity from the total citywide tax capacity. This value is then divided into the adjusted levy (total local tax revenues received by the city) Page 37 Tischler & Associates, Inc.