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Section I <br /> <br />EXECUTIVE SUMMARY <br /> <br />This analysis attempts to illustrate the fiscal impacts of projected development within the City of <br />Ramsey to better enable the City to project future revenues. The. study period is 2000 through <br />2005. For this analysis, fiscal impact is defined as the difference between growth-related <br />property tax revenues and growth-related operating and capital costs. This particular study <br />focuses only on the City's general fund and assumes any net impact to the general fund would <br />be funded with property tax increases. <br /> <br />This study provides detailed projections of future revenues and expenditures. However, a fiscal <br />impact study must be viewed as a general indicator of financial outcomes, and not a definitive <br />answer, because the underlying assumptions are subject to a large number of variables and <br />limitations over the 6-year study period. <br /> <br />The conclusions included herein indicate that future growth will result in a cumulative net. <br />property tax burden to the City of $973,993 for the years 1999 through 2005. This situation <br />exists primarily as a result of growth-related capital costs that, when coupled with ongoing <br />operations, will exceed the revenues generated by growth. If this deficit results in increases in <br />property tax levies, then the typical Ramsey resident will experience a cumulative adverse <br />property tax impact. <br /> <br />This study is not intended to identify funding options, but rather to illustrate the potential impact <br />of growth-related expenditures on the City's general fund. <br /> <br />Per Capita Impacts <br /> <br />On a per capita basis, this analysis indicates that between 1999 and 2005 the impact of growth <br />will cost a Ramsey resident, on average, approximately $7.69 per year. <br /> <br />Tax Bill Impacts <br /> <br />For homestead property owners, this analysis indicates that the approximate tax impacts from <br />projected growth on a $100,000, $250,000, and $500,000 homes will be as follows: <br /> <br /> Residential High - 2002 Average - '00-'05 <br /> Homestead Growth-Related Growth-Related <br /> Property Value Tax Impact Tax Impact <br /> $100,000 $20 $14 <br /> $250,000 $62 $45 <br /> $500,000 $133 $96 <br /> <br />NOTE: The conclusions made herein are based on information provided <br />by the City of Ramsey. In the event these assumptions do not <br />occur, the results may change. <br /> <br />'1~ SPRINGSTED -19- Page 1 <br /> <br /> <br />