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<br />46 <br /> As shown in the tables below, as of June 30, 2014, there were 14 appeals pending <br />within the Plaza Project Area and 35 appeals pending within the West San Leandro/MacArthur <br />Boulevard Project Area, with respect to total assessed value of approximately $377 million. The <br />Fiscal Consultant notes that, assuming a 7% reduction in assessed value (based on actual <br />reductions in fiscal years 2006-7 through 2013-14) the Successor Agency could experience a <br />loss of $27.1 million or approximately $271,000 in tax increment revenue on the pending <br />appeals in assessed value in the Project Areas. Were the full amount of disputed valuation <br />granted, the reduction in assessed value would be $153.3 million or approximately $15.3 million <br />in tax increment revenue. <br /> <br />The projections of Tax Revenues prepared by the Fiscal Consultant and set forth in the <br />section of this Official Statement entitled “THE PROJECT AREAS – Projected Available Net Tax <br />Increment and Estimated Debt Service Coverage” do not take into account any reductions in <br />assessed value related to any pending appeals. See APPENDIX H - “FISCAL CONSULTANT’S <br />REPORT.” <br /> <br />As discussed in “PROPERTY TAXATION IN CALIFORNIA – Proposition 8” above, <br />Proposition 8 allows a temporary reduction in assessed value when the current market value of <br />a property is less than the current assessed value as of the lien date. <br /> <br />The Fiscal Consultant reports that with respect to the Plaza Project Area, 128 parcels, <br />largely residential, posted an increase in valuation above the inflation rate for fiscal 2014-15 with <br />no change in ownership, thereby indicating a restoration of Proposition 8 values. These parcels <br />gained $9.1 million in assessed valuation in fiscal year 2014-15. Ten parcels, mainly <br />commercial, posted decreases in valuation in the Plaza Project Area with no change in <br />ownership, resulting in a $2 million decrease in valuation in fiscal year 2014-15. Over half of <br />that amount was from a property owned by World Savings whose decrease in valuation is <br />attributable to the removal of a business fixture assessment from the property rather than to a <br />Proposition 8 reduction. See APPENDIX H - “FISCAL CONSULTANT’S REPORT.” <br /> <br />With regard to the West San Leandro/MacArthur Boulevard Project Area, the Fiscal <br />Consultant reports that the assessed valuation of 48 parcels increased above the inflation rate <br />for fiscal year 2014-15 with no change in ownership, thereby indicating a restoration of <br />Proposition 8 values. These parcels gained $39.7 million in assessed valuation in fiscal year <br />2014-15. In addition, the Fiscal Consultant reports that seventeen, mainly commercial, parcels <br />had decreases in assessed valuation totaling $2.7 million with no change in ownership, which <br />may include some Proposition 8 reductions. See APPENDIX H - “FISCAL CONSULTANT’S <br />REPORT.”