Agenda - Council Work Session - 01/18/2006 - Ramsey Town Center

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Live. Work. Play. FISCAL IMPACT ANALYSIS By James E. Norman Background: The City completed a fiscal impact analysis in 2003 and it was used extensively throughout the negotiations for the Master Development agreement of Ramsey Town Center. The study was updated in early 2004. In the last few months, staffhas been in the process of a thorough update of the study. In November 2005, an isolated fiscal impact was distributed to City Council that focused on the Town Center of projected development and projected revenue stream. The study has now been completed for City-wide impact on tax payers and the tax rate percentage of the total tax bill. This study, as has been the case with the past studies, is extended to the year 2015. While assembling the assumptions for the update in this study, staff found incorrect assumptions with some of the input and made corrections. As in the past, the study shows the tax rates from 2002 to 2015. The study performed in 2004 showed a spike in tax rate between the years 2005 to 2007. The new study shows a much more manageable tax rate aggression with two separate spikes in 2007 and 2009, but a decrease in the year 2008, between the two spike periods. The summaries of the rates can be followed on page 2 of the document. Staff has prepared a line graph progressive display (attached) to better explain the tax rate fluctuations between 2002 and 2015. As is the case with any study based on futur~ projections, these projections are only estimates and can change significantly or only slightly in revenues or expenditures. Action Statement: Based upon discussion. Reviewed by: City Administrator Finance Officer RTCWS: 01/18/06 -3-