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Objective: To neutralize the impact of the loss of the <br />personal property tax base and keep the host <br />communities fiscally sound <br /> <br />· Reduce the class rate from 3.5% to.85% for personal <br /> property the is generation equipment only <br /> <br />· To retain the EMV on the tax roll for the purpose of <br /> preserving the bond rating for the host communities <br /> <br />Have the commissioner of Finance issue bonds to <br />establish a "trust fund." Bonds are repaid by the <br />IOUs thorough surcharge in lieu of taxes <br />· The "trust fund" is held by the host communities if <br /> greater than $1 million; if less than $1million then <br /> the communities enter into a joint powers <br /> agreement to administer <br />· The trust fund shall be audited <br />· The fund balance is based calculated on a principal <br /> amount (using 200'1 income stream) which invested <br /> at a 6% rate will replace the income loss from the <br /> 75% reduction in class rate <br />· The fund is created to include the interest "gap" <br />· Upon 2nd year of retirement of the facility or part <br /> thereof, the trust monies shall be returned to the <br /> state for distribution ('1/3 to the site and '1/3 to units) <br /> · No "dipping" into the principal; no commingling <br /> <br />· If nameplate increases efficiency, then option to have <br /> a siting agreement in lieu of the .85% of the class rate <br /> <br />New facilities have the option of being exempt if enter <br />into a siting agreement with the host communities; <br />leaves the Koch exemption unaffected <br /> <br /> <br />