Attachment

ATTACHMENT #1 Regular LF&A Meeting of 6/12/2006

ATTACHMENT #2 Regular LF&A Meeting of 6/12/2006 CITY OF DOVER LEGISLATIVE, FINANCE & ADMINISTRATION COMMITTEE JUNE 12, 2006 AGENDA ITEM NO. 2 DOWNTOWN DOVER BUSINESS IMPROVEMENT DISTRICT - ASSESSMENT (TAX) RATES FOR FISCAL YEAR 2006-2007 Submitted by: Donna Mitchell INTRODUCTION The Business Improvement District (BID) Ordinance adopted by City Council requires that Council must adopt a BID budget and assessment every year. This report presents the proposed budget and assessment for fiscal year 2006-07. ORDINANCE REQUIREMENT AND BUDGET (A) Appendix D, Article III, Section 9(f) requires that a budget be submitted to City Council for consideration and approval. For your consideration, we have attached the FY 2006-07 budget showing BID tax revenue and the expenses charged against this revenue (Attachment A). (B) For your consideration, we have also provided the tax calculation worksheet with recommended rates (Attachment B). REQUEST FOR ACTION We request Council to approve the following budget for fiscal year 2006-07 Attachment A, and Assessment (Tax) Rate for 2006-07 - Attachment B. \\Dover_1\finance\DDDC\DDDC-BID FY2007.doc 1

ATTACHMENT A DOWNTOWN DOVER BUSINESS IMPROVEMENT DISTRICT CASH RECEIPTS BUDGET FOR 2006-07 BID TAX REVENUE AND EXPENSES CHARGED AGAINST THIS REVENUE ADMINISTERED THROUGH MAIN STREET, INC. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. The amount hereinafter named aggregating Forty-nine thousand, three hundred and eighty-six dollars ($49,383) or so much thereof as may be necessary are hereby appropriated from current revenues and other funds for the use by the City of Dover/Main Street, Inc. for the fiscal year beginning July 1, 2006, and ending June 30, 2007: REVENUE PROPOSED Tax Revenue $49,383 EXPENSES Salary and Personnel Costs $49,383 \\Dover_1\finance\DDDC\DDDC-BID FY2007.doc 2

ATTACHMENT B DOWNTOWN DOVER BUSINESS IMPROVEMENT DISTRICT TAX CALCULATION WORKSHEET JULY 1, 2006 TO JUNE 30, 2007 ZONE 1 ZONE 2 ZONE 3 TOTAL Aggregate Assessments $32,457,900 $48,005,100 $29,654,800 $110,117,800 Assessment Tax Rate per $100 0.0849 0.0362 0.0150 --- Revenue Raised $27,557 $17,378 $4,448 $49,383 % Revenue Raised 56% 35% 9% 100% Number of Parcels 125 117 49 291 Average Assessment $220 $149 $91 $170 NOTE: These figures were estimated per the reassessed values. The revenue percentages by Zone are per the City of Dover Code Appendix D-Article III, Section 9(e). JULY 1, 2005 TO JUNE 30, 2006 ZONE 1 ZONE 2 ZONE 3 TOTAL Aggregate Assessments $29,476,600 $55,924,600 $33,291,700 $118,692,900 Assessment Tax Rate per $100 0.0849 0.0362 0.0150 --- Revenue Raised $25,026 $20,245 $4,994 $50,264 % Revenue Raised 50% 40% 10% 100% Number of Parcels 121 113 49 283 Average Assessment $207 $179 $102 $178 NOTE: Information provided by the Assessor's Office. \\Dover_1\finance\DDDC\DDDC-BID FY2007.doc 3

ATTACHMENT #3 Regular LF&A Meeting of 6/12/2006 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. That Chapter 102 – Taxation, Article IV – Abatement of Real Estate Taxes, be amended by adding a new Section 102-116 – Affordable Apartment Housing Complexes, as follows: Section 102-116. Affordable Apartment Housing Complexes (a) A multi-family apartment complex which meets all of the following criteria shall be entitled to a five-year phase- in of real property taxes: (1) It must consist of no less than thirty(30)units (2) It must be required by a deed restriction or other legal document to lease not less than 80% of the residential units located therein to persons whose annual income is 60% or less of area median income adjusted by household size as defined by the Federal Department of Housing and Urban Development(HUD) for Kent County,Delaware (3) It must have been approved by the Delaware State Housing Authority(DSHA) for financing of new construction,or DSHA defined substantial rehabilitation of existing housing; and, acquisition if DSHA defined substantial rehabilitation is being done. (b) The phase-in of real property taxes shall be in accordance with the following table: TABLE INSET: Reduction of Taxes Year of Operation (Percent) 1 100 2 75 3 50 4 25 5 0 (c) Unless otherwise directed by the council, year one of the abatement period begins in the tax year after the completion of the new construction or rehabilitation of existing housing. (d.) All quarterly property taxes for new construction, as defined in section 49A of the city Charter, will likewise be abated for apartment complexes that meet the aforementioned criteria.. (e) This property tax abatement program will have no effect on both citywide revaluations of property values for taxation purposes and the institution of those new values. (f) Any person who purchases a property for which an application for the abatement was made, or for which the abatement was approved, will have the rights and benefits of the application or approved abatement. (g) The approval of all abatements under this program shall be by the City Assessor. Notice of action taken in determining entitlement to the abatement shall be given to the property owner. The property owner shall have rights of appeal as outlined in section 47 of the Dover City Charter. ADOPTED