1993-07-15 Resolution 79 - Laserfiche WebLink

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SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY GENERAL COMMENTS Tax Increment Revenue Estimate - Pa eg B-11 (Cont'd) (Cont'd) The tax incremental assessed value is determined by subtracting the Base Net Assessed Value from the current net assessed value as of the assessment date. The tax incremental assessed value is then multiplied by the aggregate of the current property tax rates of all taxing units overlapping the EDA to determine gross tax increment which is then reduced by the Additional Credit, which is equal to the State Property Tax Replacement Credit (the "PTRC"), to determine the annual Tax Increment. After property taxes are paid to the County Treasurer on or before each June 30 and December 31, such taxes are paid over to the County Auditor who, based on the previous year's certification, pays the portion of property tax receipts which represents Tax Increment to the Commission to deposit in the Principal and Interest Account. See "Procedures for Property Assessment, Tax Levy and Collection" in the Official Statement dated July 9, 1993. The "Tax Increment Revenue Estimate" is based in part on the estimated increased incremental assessed valuation which occurs as certain real property tax abatements are reduced on approximately thirty properties within the EDA. These improvements were completed and assessed primarily in the mid to late 1980's, but were granted real property tax abatements. The increased assessed value is produced as the property tax abatements are reduced according to percentages established by State statute. The estimates of increased assessed values rely on copies of actual abatement schedules on record in the St. Joseph County Auditor's office. The estimated Tax Increment to be generated from the reduction in these existing real property tax abatements is shown in the "Abatement Reduction" column of this schedule. These net figures are derived from the sum of estimated annual incremental assessed value from all the existing abatement reduction schedules multiplied by the 1993 property tax rate, less the Additional Credit equal to the PTRC. The "Tax Increment Revenue Estimate" schedule also includes estimated Tax Increment from new developments that were constructed in the EDA and were first assessed in 1992, but are not subject to tax abatement. The assessed values for these developments were obtained from property tax records from the St. Joseph County's Auditor's office. The net figures shown in the "Unabated 1992 Development" column of this schedule are derived from the sum of their estimated incremental assessed values multiplied by the 1993 property tax rate, less the Additional Credit. In making the calculations described in the foregoing paragraphs, the incremental assessed value was determined by subtracting the base net assessed value from the anticipated annual increased net assessed value. The current 1993 property tax rate of $14.0249 per $100 assessed valuation and the PTRC factor of .15848 for South Bend-German Township were used to calculate the estimated Tax Increment shown in this schedule. The "Adjusted Tax Increment" column represents the sum of the previous two columns, adds an estimated annual $27,000 Tax Increment to account for the increase in the value of developed land in the EDA, and assumes a 95% annual collection rate (beginning with the 1994 collection year). (Continued on next page) B-6