Urban Renewal and School Funding in Oregon
This content discusses the concept of urban renewal in Tualatin and Tigard schools, frozen property taxes, House Bill 3056, Oregon school funding, TTSD funding, State School Fund limitations, and CURD specifics related to school property taxes. It sheds light on how these factors impact funding and taxation in the state of Oregon.
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Presentation Transcript
Urban Renewal Extension TUALATIN TUALATIN- -TIGARD SCHOOLS 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) $14 million frozen base (1985) $194 million total AV (2010)
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
Reason for 3056 Impacts on funding for overlaying tax districts Not planning, policy, design, or specific projects
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
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
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
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
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?
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
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
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 $468,340
TTSD Net Estimate ($ 23,847)/year $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 ($596,163) total
