2008/10/15 Council Agenda Packet

CITY OF EVERETT FISCAL ANNEXATION ANALYSIS Exhibit 17 Scenario 4 - Estimated Revenues for City of Everett Assuming Annexation in January 2009 (Millions) 2008 2010 2015 2020 2025 Property Tax/Road Levy 26.29 33.44 38.65 43.20 48.04 Sales Tax 25.23 29.84 40.15 50.39 64.70 Utility Taxes 15.71 18.68 23.78 29.22 35.87 Emergency Management Services Levy 4.25 9.17 10.59 15.06 21.71 Internal Charges for Service 3.21 3.65 4.61 5.68 6.98 Fines and Forfeits 2.17 2.95 3.73 4.60 5.67 Other Charges 1.95 2.55 3.22 3.98 4.91 Gas Tax(Street Maintenance) 1.74 2.29 2.89 3.57 4.40 Criminal Justice Sales Tax 1.64 2.16 2.73 3.37 4.15 Ambulance Transport Fees 1.60 1.93 2.44 3.01 3.70 Building Permits 1.41 2.26 2.87 3.53 4.35 Natural Gas Use Tax 1.34 1.43 1.70 2.02 2.40 Recreation Charges 1.34 1.61 2.03 2.51 3.08 Liquor Board Profits and Excise Tax 1.20 1.56 1.97 2.43 3.00 Gambling Tax 0.88 0.95 1.13 1.34 1.59 Property Management Revenues 0.61 0.65 0.77 0.92 1.09 Planning and Plan Check Fees 0.39 0.54 0.74 0.90 1.11 Admissions Tax 0.32 0.34 0.41 0.49 0.58 Leasehold Excise Tax 0.31 0.34 0.40 0.47 0.56 Transit Tax 0.17 0.18 0.23 0.28 0.35 Grants&Other Intergovernmental 0.09 0.12 0.15 0.18 0.23 Business Licenses and Permits 0.03 0.03 0.04 0.05 0.06 Total 107.84 135.81 170.71 210.09 261.28 Source:Berk&Associates analysis,2008 Property Taxes In future years, the base assessed value is expected to revalue at a rate of 1% above inflation. Additional assessed value will be added to the area through residential and commercial development. For the City of Everett and contemplated annexation areas, estimates of assessed value per unit that are similar to current newer properties in the area are utilized to estimate the value of new construction, and consequently, the increase in the assessed value base. The property tax levy (the amount that the City can collect) is limited to 1% above the previous year collections plus the value of new construction. Since property values are expected to increase by more than the allowed 1% increase in revenue, the property tax levy rate will necessarily decline over time. The result of this gradual reduction in the City's general property tax rate for Scenario 3 is shown in Exhibit 18 below. The picture of property tax millage rate decline is very similar in Scenario 4. The future millage rate depends entirely on the future assessed value in the current City and the value of new construction activity. 11 Final Report:October 2008 Page 28