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�= �� 45 ,�� r� � r I M15 �;� 5l� �� 5`� �� 54 SS �� -�� 5B 5{� �U �l �� b,� �� i� 7 �� �� 6� � C7 �� �I �� �3 ?� Taxpayer Impacts If the City were to extend the TIF District, the captured tax base would be unavailable to help shoulder the local tax burden for an additional 2 years. We can assess this impact by simply adding in the Centre Pointe TIF District tax base to the current local tax rate calculation. This is shown below. Current net tax capacity Centre Pointe tax capacity Total Net property tax levy Local tax rate Taxes on a $235,000 Home $$ Difference % Difference Active TIF District 44,500,000 Closed'T'I�' District 44,500,000 1,300,000 44,500,000 45,800,000 10,129,360 22.%6°�a 535 n/a �/a 10,129,360 ZZ.1 Z°�a 520 15 2.8% As is indicated in the table, once the Centre Pointe TIF District is closed, an averaged-valued home in Rose�ilIe will realize a tax reduction of approximately $15 annually in �'3rf- taxes or approximately $50 on their total tax bill (holding all other factors constant). Discussion Items In determining whether to extend the District it's important to keep in mind that this tax relief is coming either way. The only difference is whether it comes in 2008 or 2010. Over the additional two years, the one-time difference to individual homeowners is $100. From a Twin Lakes environmental cleanup perspective, the decision can be framed up as follows: S/tauld the City allow ��4� District to close �as sclieduled tliereby pwovicling $100 in relief to individual homeowners? �,—..�.. �r ---------- Should the City extend the District for an additional 2 years to capture over $3 million for envirorznzental cleanup in Twin lakes? Certainly this decision raises public policy questions on the merits of individual tax increment districts and how they contribute to the City's overall success. These policy questions may not necessarily be limited to environmental issues in Twin Lakes. �in�l Comments Staff will be available at the Council meeting for any questions.