---Original Message-----

From: Jim Poplinger

Sent: Wednesday, March 18, 2009 12:01 AM

Subject: Fw: Fairway Taxes and Debit


Dear All,


As I was tending to the annual chore of completing my 2008 income tax returns, I came to the realization that the schedule of property taxes that was attached to my February 24, 2009 e-mail, below, did not present a true picture of the situation.  First, the numbers that I presented for the 2007 and 2008 tax bill years included both real estate taxes and personal property taxes while the numbers presented for the previous years included real estate taxes only.  This has been corrected in the attachment entitled "Real Estate Taxes."  Supporting documentation for this schedule is also attached in the files entitled "Real Estate Tax 1998," Real Estate Tax 1999 - 2001," "Real Estate Tax 2002 - 04," and "Real Estate Tax 2006 - 08."


STORMWATER UTILITY FEE


The second and more significant realization was that looking at the mil levy and the revenue generated by the mil levy does not tell the entire story.  In 2005, the City of Fairway began assessing an annual Stormwater Utility Fee of $60.00 per residence to pay for stormwater projects including the MISSION ROAD BRIDGE.  This fee is included in the annual real estate tax bill and is in addition to the tax assessed on the basis of the mil levy.


So what does this mean?  It means that when John St. Clair claims that he "replaced Mission Bridge with no tax rate increase because we secured significant federal and county funding" he is giving you only part of the story.  The rest of the story was told by Pete Barham as recorded in the minutes from the August 2, 2005, Stormwater Public Forum, a copy of which is attached to this e-mail.  The fact is that while the tax rate (mill levy) did not increase, the tax revenue did increase because of annual increases in the appraised value of our property and, since 2005 we have each been paying a $60.00 stormwater fee in addition to the tax that is based on the mill levy.  To put this in perspective, the 2008 Fairway mill levy tax on a $300,000 house would be $439.94 so the addition of the $60.00 stormwater fee amounts to a 13.6% tax increase on that same residential property.


Is the assessment of this additional tax justified by the need to build a new bridge and make other stormwater improvements?  That question is certainly open for debate.  But, before we go there, let's acknowledge the fact that the bridge was not built without an increase in our respective real estate tax bills.


Regards,

Jim Poplinger

Council member

Ward I

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