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Tualatin-Tigard Schools

Urban Renewal Extension. Tualatin-Tigard Schools. Urban Renewal. Frozen property taxes within an area Property owners still pay regular taxes, but dollars paid are re-invested in the area Increased value eventually returned to tax rolls Central Urban Renewal District (CURD)

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Tualatin-Tigard Schools

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  1. Urban Renewal Extension Tualatin-Tigard Schools

  2. Urban Renewal • Frozen property taxes within an area • Property owners still pay regular taxes, but dollars paid are re-invested in the area • Increased value eventually returned to tax rolls • Central Urban Renewal District (CURD) • $14 million frozen base (1985) • $194 million total AV (2010)

  3. House Bill 3056 • Overlaying tax districts get to vote when: • An existing district • Planning on an extension greater than 20% • 75% of overlaying value must vote yes • Schools typically represent just over 30% • Veto power • New Urban Renewal not subject to a vote

  4. Reason for 3056 • Impacts on funding for overlaying tax districts • Not planning, policy, design, or specific projects

  5. Oregon School Funding • Schools funded out of the State School Fund Grant • State Income Tax collection • Local Property Tax • Local Property Tax is held as an “offset” to the State Income Tax collection funds

  6. TTSD Funding • TTSD State School Fund Grant • $90 million (a per student formula) • $40 million Local Property Tax • $50 million State School Fund pot • What if TTSD Local Property Tax collection changed? • $90 million (per student formula) • If $20 million Local Property Tax • Then $70 million State School Fund pot • If $45 million Local Property Tax • Then $45 million State School Find pot

  7. State School Fund is Limited • State School Fund = • Total $ / # of students = amount per student • Change in Local Property Tax collection impacts per student funding for the whole state • Metro Area contributes to rural areas. • TTSD would increase Local Property Tax collection if CURD ends • the state keeps the difference

  8. CURD Specifics • Statewide: • School property taxes foregone through 2035 • Total $27,472,947 • Average Annual of $1,098,918 • TTSD • With State School fund offset (TTSD 2.17%) • Total $596,163 • Average Annual of $23,163

  9. Other TTSD $ Considerations • Local Option outside of SSF • Local Option is collectable in CURD • Additional collections for new development is about $12,500 per year • Will increase as AV increases • School Bonds are collectable in CURD • Will increase as AV increases • Reduces burden on homeowner • What impact does CURD have on values outside of the renewal district for TTSD? • How do these values impact the State School Fund?

  10. Other TTSD $ Considerations • Construction Excise Tax (CET) • $1.00 per square foot residential • $.50 per square foot commercial with a cap of $25,000 per building • CURD Estimates: • 529 to 669 housing units • 1.3 to 1.8 million sq. ft. commercial

  11. Construction Excise Tax (CET) • One Comparable – Apartments/Commercial/Mixed Use: • Apartments: 367 units with 413,834 sq. ft. • Commercial: 22,900 sq. ft. • Parking Structures: 209,000 sq. ft. • Accessory Buildings: 106,000 sq. ft. • Generated CET Estimate = $639,734

  12. CURD CET Estimates • CURD Estimates: • 529 to 669 housing units • 1.3 to 1.8 million sq. ft. commercial • CET estimate for housing = • $596,507 to $754,373 • Commercial estimate @ $.25/sq. ft.= • $326,000 to $468,340

  13. TTSD Net Estimate • ($ 23,847)/year ($596,163) total • $12,500 local option… increase w time • Favorable impact on Bond collections • CET estimate: • $922,507 to $1,222,713 • Property value increase outside CURD • CURD returns to rolls at $800,000,000 plus • Student population growth

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