SLVLESA Certified Tax Rate Rather than go over the 4 pages of property valuation detail that was provided in the Board packet. I thought that time would better served providing an overview and history of the SLVLESA property valuations.

Financial Goals Financial Stability for Public Safety Maintain a 15% level fund balance Structurally Balanced Budget Ongoing revenue equals ongoing expenditures Provide New Resources with New Growth Revenue Before we jump in to the property valuations, wanted to provide some framework and background on the overarching goals, property definitions, and how the total property valuation is determined. These are the 3 overarching goals that set the financial framework for the district.

Property Tax Definitions Real Property Real property consist of land, buildings and other improvements. Personal Property Personal property consists of everything not treated as real property such as machinery, business equipment, office furniture/fixtures and supplies. Centrally Assessed All property that operates as a unit across county lines i.e. telephone, cable, utilities, airlines, and all mines and mining claims. These are the three different property types included in the property tax for taxation.

Certified Tax Rate Value Total Property Valuation Tax Increment Board of Equalization Adjustment 5 Year Average Collection Rate Proposed Tax Rate Value Proposed Tax Rate Value New Growth Certified Tax Rate Value

Total Property Valuation The total property valuation for 2017 is 16.9 billion. Of which, real property is 13.4 billion or 79% of the value, personal is 381 million or 2%, and centrally assessed is 3.1 billion or 18%.

Project Participation Tax Increment Project Participation Tax Increment Value West Millcreek – 15F 23,958,221 West Millcreek – 16B 23,324,239 Magna – 26A 38,042,239 Magna Arbor Park – 26C 16,594,762 Riverton City Redwood Road – 42A 20,914,006 Total Tax Increment Value 122,833,467

BOE Adjustments & Collection Rate Board of Equalization Adjustment 2012 2013 2014 2015 2016 2017 BOE Adjustments 42,213,502 54,452,033 70,032,121 67,082,956 61,022,272 56,755,454 5 Year Average Collection Rate 2012 2013 2014 2015 2016 2017 Collection Rate 99.99% 95.86% 96.76% 97.38% 97.67% 97.80% The Board of Equalization adjustments are adjustments deducted from the total value for property owners appealing the assessed value of their property. The collection rate of 99.99% in 2012 is higher than the other years due to being the first year of SLVLESA. Since, the collection rate is known and has begun to normalize.

Proposed Tax Rate Value This slide represents the total tax rate value from the deduction of the tax increment, BOE adjustments and the collection rate. The total proposed tax rate value for 2017 is 16.445 billion. Of which, 16.050 billion is the base value and the new growth value for 2017 is 395 million. It is important to note that valuation increases do not equate more revenue. Meaning, that the growth in the base valuation does not equate to increased revenue, rather the certified rate decreases to generate the same revenue. There are only two ways to increase property revenue: new growth (actual new brick and mortars) and tax rate increases above the certified tax rate. Property valuation increases do not produce more money for the entity, rather valuation increases result in a lower rate which gives more tax rate headroom.

Property Tax Rates

Planning for the Future

Tax Increase Timeline 2017 2017 Jun Jul Aug Sep Oct Nov Dec Today Adoption of the 2018 SLVLESA Tentative Budget. 10/19/2017 Authorize Notice of Intent to Advertise a 2018 Tax Increase 8/17/2017 Begin notifying each Council of the intent to increase property tax for approval Mail parcel specific 10/31/2017 8/21/2017 Finish notifying each Council of the intent to increase property tax for approval Notify Public with 1st newspaper advertisement 9/15/2017 11/30/2017 Notify County Treasurer to prepare parcel specific mailing 9/16/2017 Notify with 2nd newspaper advertisement 12/7/2017 Adopt 2017-2018 Amended Budget & Tax Rate Notification of public meeting of intent to increase property taxes Public Budget and Truth in Taxation Hearing and adopt property tax increase 6/21/2017 10/1/2017 UPD 2017-2018 Begins 7/1/2017 12/14/2017 2017 Jun Jul Aug Sep Oct Nov Dec 2017 Today