HomeMy WebLinkAbout2006-123-12/05/2006-APPROVING THE COUNTY ASSESSORS CURRENT METHODOLOGY FOR CALCULATING TAX INCREMENT RESOLUTION 2006-123
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE COUNTY ASSESSOR'S CURRENT METHODOLOGY
FOR CALCULATING TAX INCREMENT
WHEREAS, the Larimer County Assessor has proposed and presented to the City a new
methodology for calculating tax increment in the context of urban renewals authorities; and
WHEREAS,the staffhas discussed the County's new methodology with the City Council and
has recommended that the City Council approve the new methodology as being in the best interest
of the City; and
WHEREAS, the City Council has determined that the County Assessor's current
methodology for calculating tax increment should be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the County's Assessor's proposed methodology for calculating tax increment, as set
forth in the letter of the County Assessor attached hereto and incorporated herein as Exhibit "A," is
hereby approved by the City Council.
Passed and adopted at a regular meeting of the Coun f the City of Fort Collin is 5th
day of December, A.D. 2006.
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Mayor
ATTEST:
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City Clerk
EXHIBIT"A"
LARIMER LARRY G. JOHNSON
COUNTY LARIMER COUNTY ASSESSOR
PO Box 1190,FORT COLLINS CO 80522-1190
TELEPHONE: 970-498-7050;FAX:970-498-7070
November 8, 2006
Charles M. Seest
Finance Director
City of Fort Collins
215 N. Mason Street—2nd Floor
Fort Collins, CO 80522-0580
Regarding: North College Urban Renewal Area
Dear Chuck,
The purpose of this letter is to explain how the County Assessor's Office intends to handle any
"proportionate adjustment" of tax revenues between the Fort Collins Urban Renewal Authority ("URA")
and other taxing entities under C.R.S. Section 31-25-107(9)(e).
This methodology has been approved by our county attorney and will be applied to the North College
URA.
This methodology will attribute any change in valuation that occurs between reassessments to two
categories: reappraisal and redevelopment. The change in valuation attributed to reappraisal will be
proportionately shared between the increment and the base. The change in valuation attributed to
redevelopment will be assigned exclusively to the increment's valuation.
In determining the portion of the change in valuation resulting from reappraisal to be allocated to the
base, the Assessor will apply a percentage that represents what the Assessor finds as a typical increase
due to market activity on a county-wide basis during the reappraisal timeframe. This increase will take
into account the market changes throughout all of Larimer County, which would include the tax
increment district's plan area, even though there may or may not be a strong correlation between the
market changes experienced by all parcels in Larimer County and the market changes experienced by
the specific parcels within the boundaries of the tax increment district. After this percentage has been
calculated, it will then be applied to the overall change in valuation experienced within the tax increment
district. For example, if the valuation of the base within the tax increment district is $20 million and the
overall change between the prior year and the current year's valuation is an increase of$1 million and
the market changes in Larimer County experienced a 10% increase, then the change in valuation
assigned to the base as a result of reappraisal would be 10% of the $1 million assuming no prior
increment. As a result, the base would increase from $20,000,000 to $20,100,000. This increase of
$100,000 is derived from the 10% increase applied to the $1 million overall valuation change in the tax
increment district. Any increase in value above the amount attributable to county-wide inflation will be
assigned to the increment. The portion of the change in valuation resulting from redevelopment will all
be allocated to the increment.
In summary, once the overall change in valuation is determined and the portion attributed to reappraisal
of the base has been calculated, the remaining change in valuation will all be allocated to the increment.
Using the example provided above, the remaining $900,000 of the overall change in the tax increment
district of$1 million would be assigned to the valuation of the increment.
It should be noted that the methodology outlined above will be utilized only in reassessment years (odd
numbered years) to determine what increase the tax entities included within the base (Poudre School
District, Latimer County, City of Fort Collins, etc.) will receive as compared to what portion of the
change in valuation is assigned to the increment of the specific tax district. In intervening years (even
numbered years), any and all changes in valuation will be assigned to the increment of the tax district.
It has been a pleasure meeting with you and working through this process. Please feel free to contact
our office in the future if you have any concerns or issues.
Sincerely,
Larry G. John
Latimer County Assessor