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to detennine the tax rate (explained in Point 19 below). The reduction of the tax capacity by the amount that goes into the areawide pool and the amount to be used solely by the TIP districts has the effect of raising the tax rate for the given annual levy. Essentially, the remaining tax base pays for the difference. (The tax base is also given a subsidy based on the fiscal disparity distribution amount explained below in Point 11 below.) 9. Fiscal Disparities Distribution. This is the Fiscal Disparities Tax Capacity that Roseville receives from the areawide pool. For the base year, this amount is $2.74 million. The distribution from the areawide pool is based on the relativefiscal capacity of Roseville compared to the areawide average. Fiscal capacity is defined as equalized market value per capita. Equalized market value is market value adjusted for the differential in assessment levels between jurisdictions. Those cities with greater fiscal capacity receive relatively less from the pool compared cities with less fiscal capacity. The methodology assumes that the growth in the fiscal disparities distribution is based on the total population each year (including that from new growth) times the fiscal disparities distribution per person each year (which changes over time as explained further in Point 21 below). Given that the distribution from the areawide pool is based on the relative fiscal capacity per person in Roseville compared to the areawide average, population is a major driver. If the total Citywide fiscal capacity stays constant, but population increases, then the distribution per person decreases and vice versa. In general, if the Roseville were to experience a lot of nonresidential growth and limited residential growth, then the total fiscal capacity per person would increase and the per capita amount distributed from the fiscal disparities pool would decrease given that the relative fiscal capacity in Roseville increases. It is important to note that when calculating the fiscal disparity distribution it is assumed that the average fiscal capacity and the proportion of CfI versus residential market value characteristics of the areawide pool remains constant. As a result, any changes in the fiscal capacity and CIl versus residential market value characteristics in Roseville will impact the relative differential, which in turn impacts the annual distribution of fiscal disparities to Roseville. This is necessary given that: 1) all jurisdictions in the entire seven county area cannot be modeled, and 2) our focus is looking at the marginal impacts of land use in Roseville using the snapshot approach. 10. Last Year's Tax Rate. The tax rate is the rate that the City applies to the tax capacity of each property to determine the amount of property taxes owed. This rate is unique for each city and depends on certified levy (the total annual property tax revenues received from all property in the city). For administrative purposes, the previous year's tax rate for each city is used to detennine the fiscal disparity revenues to the City. 11. Fiscal Disparity Revenues to City. This is detennined by multiplying last year's tax rate times the fiscal disparities distribution. This is subtracted from the current years certified levy to detennine the adjusted levy. The reason for doing this is to deduct the amount of revenues received from the areawide pool in order to calculate the local tax rate necessary to Page 38 Tischler & Associates. Inc.