Alliance Management Group Tax Year 2012 Update 1.

Alliance Management Group

Tax Year 2012 Update

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Part I: Overview

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How is Your Real Property Valued?

The Assessor is mandated by Arizona State Statute to value property at its Full Cash (Market) Value. Full Cash Value is the basis for assessing, fixing, determining and levying secondary property taxes.

Sales Comparison

It is also known as Market. This method compares your property to other similar properties that have recently been sold. This method is used mostly for homes and land.

Income

The Income Method is based on the income potential of the property. Using operating Income and Expense Data supplied by the owner, the value is determined by capitalizing the potential net income. This valuation method is primarily used on commercial properties.

How is Your Real Property Taxed?

Tax Rates are set by all budget authorities and are separated into two types. Primary Rates are set by governmental entities

such as counties and cities and towns. They are applied to the “limited value” to determine taxes due. These taxes are used for the basic expenses of government and schools

Secondary Rates are set by special districts, fire districts, and bond issues. Usually taxpayers vote for these districts and bonds, so the rates are applied to the Full Cash Value to determine taxes due.

Estimate a Tax Bill

Limited Value (statutory calculation) used for primary tax rates $100,000 x 10% = $10,000 assessed value

$10,000 value x $7.0331 tax rate = $703.31 (primary tax)

Full Cash Value (market value) used for secondary tax rates $100,000 x 10% = $10,000 assessed value

$10,000 value x $3.0205 tax rate = $302.05 (secondary tax)

Total taxes due = $1,005.36

Notice of Value Information

When Do I File an Appeal?

If you believe the Full Cash Value on your Notice of Valuation is higher than actual Market Value or the Legal Class is incorrect according to current use, you will want to file a “Petition for Review,” DOR 82130

The Notice of Valuation is mailed prior to March 1st. This valuation is used for the next calendar year’s tax computations.

Statutory Appeal Process

Level 1 Appeal to Assessor Property Owner may make a request to meet

with the Assessor informally

Level 2 Appeal to the BOE

Level 3 Appeal to Tax Court

Overview: Flagstaff Area Valuation Trend Data

*Projected

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 *FY14Limited Property Value (Primary) 7% 8% 9% 11% 12% 10% 5% -6% -3% -19%Full Cash Value (Secondary) 9% 8% 12% 19% 20% 4% -5% -11% -4% -19%

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Overview: Flagstaff Area Valuation Trend Data

Limited Property Values Increased by 82% between FY04 and FY11

Value Increases & New Construction Projected Total 26% decline FY11-FY14

Full Cash Values Increased by 97% between FY04 and FY10

Value Increases & New Construction Projected Total 31% decline FY10-FY14

Limited Property and Full Cash Values are

within 1% of each other for FY13 & FY1412

Overview: Sample Tax Bill

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Part 2: Agency Information

CCCFUSD

City of FlagstaffCoconino County

Summit Fire DistrictHighlands Fire District

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Coconino Community College

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Coconino Community College:Primary Property Taxes

• General Fund Levy for College Programs (Instruction, Academic Support, Student Services, Institutional Support, and Facilities)

• Levy is capped at 2% growth + new construction

Coconino Community College has the lowest primary property tax rate of all Community Colleges in the State of Arizona

Evaluation FY 2012 FY 2013 ChangeAssessed Value 1,808,850,474$ 1,747,818,103$ -3.37%Primary Tax Rate 0.3649 0.3875 6.19%Primary Tax Levy 6,600,495$ 6,772,795$ 2.61%

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Coconino Community College:Secondary Property Taxes

• $25 Million Debt Service for 20-year bonds used for the construction of Lone Tree and Williams buildings and expansion of Page Campus

• Debt Services complete in FY 19

Evaluation FY12 FY13 ChangeAssessed Value 1,840,142,610$ 1,759,609,915$ -4.38%Secondary Tax Rate 0.1085 0.1052 -3.04%Secondary Tax Levy 1,996,555$ 1,851,110$ -7.28%

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• For all properties in the City of Flagstaff, the average change for Community College property taxes is a levy increase of $.9465 or 8%

Coconino Community College:Property Tax Summary

*Average Taxpayer Impact on owner occupied residential (class 3) properties only

Average Value FY12 FY13 ChangeAverage Primary Value 238,800.00$ 232,350.00$ -2.7%Average Secondary Value 243,700.00$ 232,799.00$ -4.5%

CCC Tax Rates FY12 FY13 ChangeAverage Taxpayer

ImpactPrimary - General Fun 0.3649 0.3875 0.0226 2.8975$ Secondary - Debt Service 0.1085 0.1052 -0.0033 (1.9510)$ Total 0.4734 0.4927 0.0193 0.9465$

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Flagstaff Unified School District

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Budget Area FY 2011 Amt. FY 2013 (Est.)

I. Total M&O Budget $67,800,000 $63,600,000 $60,300,000

II. Vocational JTED Fund (596-Tchr cost only) 400,000 500,000 700,000

III. Prop 301 Funds 1,200,000 1,400,000 1,650,000

IV. Instructional Improvement Fund 400,000 400,000 400,000

V. Major Federal Grants 7,000,000 4,750,000 4,000,000

VI. Capital Outlay Budgets A. Unrestricted Capital Outlay (610) 3,800,000 3,500,000 2,700,000 B. Capital Outlay Override (611) 2,700,000 2,200,000 1,500,000

C. Soft Capital (625) 800,000 200,000 100,000

VII. Adjacent Ways 900,000 790,000 750,000

Sub Total for General & Capital Outlay $85,000,000 $77,340,000 $72,100,000

VIII. Debt Service 4,300,000 5,300,000 5,050,000

Grand Totals $89,300,000 $82,640,000 $77,150,000

FY 2012 Amt.

Flagstaff Unified School District #1Comparisons of Overall Budgets FY 2011, 2012, & FY 2013

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Flagstaff Unified School District #1History of State Equalization Aid to FUSD

2005

2006

2007

2008

2009

2010

2011

2012

47.3% 46.1%

46.8%

48.3%

43.9%

40.6%

27.5%

19.7%

15.0%

2013

$23,412,679 $23,375,382

$25,400,096

$27,790,677

$25,014,482

$22,637,098

$14,078,328

$9,800,000

$7,000,000

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Tax RateCategories

FY 2012Tax Rates

FY 2013-ProjectedTax Rates

ProjectedDifferences

Primary Tax Rates:

Maintenance & Operation $3.7092 $3.6182 -($0.0910)

Unrestricted C.O. $0.0000 $0.0000 $0.0000

Soft Capital $0.0000 $0.0000 $0.0000

Adjacent Ways $0.0226 $0.0459 +$0.0233

Total Primary Tax Rate $3.7318 $3.6641* -($0.0677)

Secondary Tax Rates:

Overrides $0.7961 $0.7959 -($0.0002)

Debt Service $0.4179 $0.4112 -($0.0067)

Total Secondary Tax Rate $1.2140 $1.2071 -($0.0069)

Totals for FUSD Primary &Secondary Tax Rates $4.9458 $4.8712 -($0.0746)

Flagstaff Unified School District #1Tax Rate Projections - Primary & Secondary - for

August 2012 Levy (FY 2013)

*Homeowners who have a primary residence elsewhere in Arizona will lose the homeowner's rebate for taxes in FY 2013.The affidavit sent out to second homeowners requires that they select a primary residence, so many of these owners could see an increase in their property taxes of up to $600.

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$200, $100,000 House-2011 $200,000-House 2012 $100,000 -House 2012 $100,000-House 2013 $200,000-House 2013

FUSD Tax TypeTax Rate Taxes

Tax Rate Taxes

Tax Rate Taxes

FUSD Primary Tax $3.63 $363.00 $3.73 $373.00 $3.66 $366.00FUSD Secondary Tax $1.05 $105.00 $1.21 $121.00 $1.21 $121.00Total Rates and Taxes $4.68 $468.00 $4.94 $494.00 $4.87 $487.00

If House Decreases in Value:

Comparison of FUSD TAXES for FY2011, FY 2012 and FY 2013 Projected Taxes

*School Districts are limited by State government to a regulated budget capacity/spending authority. Budget capacity is supported by cash from State aid and property taxes. Cash balances are important in setting each year's levy.

If House Decreases in Value by 1% in FY 2013, the property value would be $99,000 and the total taxes…for FUSD would be $482 or a decrease of $5.00.

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City of Flagstaff

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City of Flagstaff:Primary Property Taxes

• General Fund Levy for City Services (including: Police, Fire, Parks, Recreation, City Court, Administration, Management Services…)

• Levy is capped at 2% growth + new construction• Council decision to keep Levy flat.• Increase due to new construction

FY 2012 FY 2013 Change

Value 780,015,901$ 760,916,404$ -2%

Rate 0.6917 0.7131 3%

Levy 5,395,370$ 5,426,095$ 1%

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City of Flagstaff:Secondary Property Taxes

• Debt Service Obligations– Water, Sewer, Lighting, Open Spaces,

Recreation, and Fire Facilities (20%)

– Other General Obligation Debt (6%)


Value 791,371,939$ 765,276,651$ -3%

Rate 0.8366 0.8366 0%

Levy 6,620,618$ 6,402,304$ -3%

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• For owner occupied residential properties in the City of Flagstaff, the average change for City property taxes is a levy decrease of $3.98, or -1.1% based on average property values.

City of Flagstaff:Property Tax Summary



Average Primary Value 235,123$ 229,755$ -2.3%

Average Secondary Value 236,373$ 230,185$ -2.6%

City Taxing Authority FY 2012 FY 2013 Change

Primary Property Tax 0.6917 0.7131 0.0214 1.20$ Secondary Property Tax 0.8366 0.8366 - (5.18)$

Total: City Taxing Authority 1.5283 1.5497 0.0214 (3.98)$

Tax Rate* Average Taxpayer Impact

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• For demonstration purposes only. Impact on a $100,000 home valued in 2012 with comparisons to change in proposed rates and home value changes.

City of Flagstaff:Property Tax Summary


City Taxing Authority Rate Taxes Rate Taxes

Primary Property Tax 0.6917 69.17$ 0.7131 71.31$ Secondary Property Tax 0.8366 83.66$ 0.8366 83.66$

Total: City Taxing Authority 1.5283 152.83$ 1.5497 154.97$

Increase 2.14$

If Property Decreases in Value by 1% ($99,000) 153.42$

Change (0.59)$

$100,000 Property in 2012 $100,000 Property in 2013

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Coconino County

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Coconino County

Property Tax Disbursement

Education65%

Fire Districts10%

Other Special Districts

8%

Coconino County Primary

Levy5%

Cities9%

Public Health Service District

3%

The Coconino County Treasurer is responsible for collecting taxes on behalf of all taxing jurisdictions in the County.

Pie chart is based on FY12 levy data

Coconino County:Primary Property Taxes

General Fund Levy for County Services (Sheriff, Parks and Recreation, Superior Court,

County Attorney, Public Defender, Probation)

Levy is capped at 2% growth + new construction

Coconino County has the second lowest primary property tax rate of all Counties in the State of Arizona

Average Impact = $0.26 increase per $100,000 of FY12 Value

FY12 FY13 ChangeValue 1,808,850,474$ 1,747,818,103$ -3.4%Rate 0.4303$ 0.4480$ 4.1%Levy 7,783,484$ 7,830,225$ 0.6%

Primary

Coconino County:Secondary Property Taxes

Library District County-wide, funds library operations No rate or levy restrictions

Average Impact = $1.04 decrease per $100,000 of FY12 Value

FY12 FY13 ChangeValue 1,840,142,610$ 1,759,609,915$ -4.4%Rate 0.2367$ 0.2367$ 0.0%Levy 4,355,618$ 4,164,997$ -4.4%

Library District


Public Health Services District County-wide, funds public health services $0.25 rate limit


FY12 FY13 ChangeValue 1,840,142,610$ 1,759,609,915$ -4.4%Rate 0.2500$ 0.2500$ 0.0%Levy 4,600,357$ 4,399,025$ -4.4%

Public Health Services District


Flood Control District Excludes incorporated Flagstaff, Page,

Fredonia $0.50 rate limit


FY12 FY13 ChangeValue 793,804,431$ 744,387,189$ -6.2%Rate 0.4000$ 0.4000$ 0.0%Levy 3,175,218$ 2,977,549$ -6.2%

Flood Control District

Coconino County:Property Tax Summary

For all properties in the City of Flagstaff, the average change for County property taxes is a levy increase of $0.66, or .2%

For properties in other incorporated and unincorporated areas, the average change for County property taxes is a levy decrease of $7.14, or -3%

Class 3 Property Changes FY12 FY13 ChangeAverage Primary Value 238,800$ 232,350$ -2.7%Average Secondary Value 243,700$ 232,799$ -4.5%

County Taxing District FY12 FY13 ChangeGeneral Fund Primary 0.4303$ 0.4480$ 0.0177$ Library District 0.2367$ 0.2367$ -$ Public Health Services District 0.2500$ 0.2500$ -$ Subotal: County-wide Districts 0.9170$ 0.9347$ 0.0177$ Flood Control District 0.4000$ 0.4000$ -$ Total: All County Districts 1.3170$ 1.3347$ 0.0177$

Tax Rate

Other Taxing Jurisdictions Property Tax Summary FDAT

State required formula, dependent upon Fire District levies County-wide

Maximum rate = $0.10 Expect slight drop in levy

State Equalization State required rate 11% rate increase for FY13

JTEDs Statutory rate of $0.05 Expect drop in levy = drop in property value

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State Aid to Education(Homeowner’s Rebate) Owner Occupied Residential Properties

(Class 3) Credit of up to $600 (tax reduction) Formula to determine credit rate

FY12 formula = Lesser of 40% of School District Primary Tax Rate or 40% QTR up to $600 credit

FY13 formula = Lesser of 40% of School District Primary Tax Rate or 40% QTR up to $600 credit

Estimated Rebate = For a house appraised at $100,000 ($10,000 Assessed Valuation) the homeowner would receive a $144.00 tax credit reduction for FUSD’s Primary Tax Levy

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State Aid to Education (Homeowner’s Rebate)

HB2001 (Special Session) Changes which homeowners qualify for State Aid to Education

beginning tax year 2012 Properties no longer receiving State Aid to Education

Bank owned and corporate owned Secondary Residences (vacation homes)

Properties that will receive State Aid to Education Primary Residences as declared by homeowner Residences occupied by immediate family members per ARS 42-12053

Loss of State Aid to Education homeowners will increase their total tax bill to the same amount of a property that is residential rental

City of Flagstaff $360; Summit FD $394; Forest Highlands FD $427 See examples at the end for tax increase detail

Creates multiple new mailing and filing requirements and additional appeal rights for the homeowner

Additional time and resources will be required by the Assessor to administer40

Part 3: Property Tax Projections

For properties located in the following taxing areas:

City of FlagstaffHighlands Fire DistrictSummit Fire District

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Tax Rates by Taxing Area The following slides show sample tax

assessments based on the typical property by taxing area. The average value changes by taxing area. The chart below shows the tax rates that would apply in each Flagstaff area jurisdiction.

Location Primary Secondary Total RateCity of Flagstaff 5.6844$ 2.7856$ 8.4700$ Summit Fire District 4.9713$ 5.4590$ 10.4303$ Highlands Fire District 4.9713$ 5.2990$ 10.2703$

FY13 Projected Rates

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Tax Levy by Taxing Area Assessed values changed by area as well.

The chart below shows the average change in total tax levy for a home that was valued at $200,0000 in FY12 by various location. The net tax levy will change for each property based on change in value and change in area tax rates

Excludes State Aid to Education Homeowner’s Rebate which would result in a $288.68 reduction for a home value of $200,000/

Location FY12 FY13City of Flagstaff 1,721$ 1,694$ (27)$ -2%Summit Fire District 2,042$ 2,086$ 44$ 2%Highlands Fire District 2,046$ 2,054$ 8$ 0%

ChangeProjected Levy: $200,000 Home Value (FY12 Value)

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Tax Year 2012 (FY2013) Property Tax Projection: Property Located in the City of

Flagstaff

FY12 FY13 ChangePrimary Value 235,123$ 229,755$ -2%Secondary Value 236,373$ 230,185$ -3%

FY12Tax

FY13Tax Change

Primary Taxing Jurisdictions:Coconino County General Fund 101$ 103$ 2%State Education Equalization 100 108 8%Flagstaff Unified School District 917 842 -8%Coconino Community College 86 89 4%City of Flagstaff 163 164 1%

Total Primary 1,367$ 1,306$ -4%

Secondary Taxing Jurisdictions:Library District 56$ 54$ -3%Fire District Assistance Tax 24 23 -3%Public Health Service District 59 58 -3%Flagstaff Unified School District 287 278 -3%Coconino Community College 26 24 -6%Joint Vocational Tech Institute 12 12 -3%City of Flagstaff 198 193 -3%

Total Secondary 660$ 641$ -3%

Combined Total 2,027$ 1,947$ -4%

State Aid to Education (367)$ (360)$ -2%

Net Tax Assessment 1,660$ 1,587$ -4%

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Tax Year 2012 (FY2013) Property Tax Projection:Residential Property Located in the Highlands Fire

District


FY12Tax

FY13Tax Change

Primary Taxing Jurisdictions:Coconino County General Fund 121$ 122$ 1%State Education Equalization 120 129 7%Flagstaff Unified School District 1,100 999 -9%Coconino Community College 103 106 3%

Total Primary 1,444$ 1,356$ -6%

Secondary Taxing Jurisdictions:Library District 68$ 66$ -3%Fire District Assistance Tax 29 28 -3%Public Health Service District 72 69 -3%Flagstaff Unified School District 347 334 -4%Coconino Community College 31 29 -6%Joint Vocational Tech Institute 14 14 -3%Coconino County Flood Control 115 111 -3%Highlands Fire District 845 817 -3%

Total Secondary 1,520$ 1,467$ -3%




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Tax Year 2012 (FY2013) Property Tax Projection: Owner Property Located in the

Summit Fire District


FY12Tax

FY13Tax Change

Primary Taxing Jurisdictions:Coconino County General Fund 116$ 113$ -3%State Education Equalization 115 119 3%Flagstaff Unified School District 1,056 922 -13%Coconino Community College 99 98 -1%

Total Primary 1,386$ 1,252$ -10%

Secondary Taxing Jurisdictions:Library District 65$ 60$ -7%Fire District Assistance Tax 27 26 -7%Public Health Service District 69 64 -7%Flagstaff Unified School District 333 308 -7%Coconino Community College 30 27 -10%Joint Vocational Tech Institute 14 13 -7%Coconino County Flood Control 110 102 -7%Summit Fire District 805 795 -1%

Total Secondary 1,453$ 1,395$ -4%




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Alliance Management Group Tax Year 2012 Update 1.

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Transcript of Alliance Management Group Tax Year 2012 Update 1.