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Legislators oppose Multi-HousinCi~ Ma~ger's Office 50 West 13th Street Dubuque, Iowa 520014864 (319) 5894110 (319)5894149 FAX December 5, 2001 The Honorable Mike Connolly Iowa State Senator 3458 Daniels Dubuque, IA 52001 Re: Legislation on Multi-Unit Housing Assessments Dear Senator Connolly: The Dubuque City Assessor was contacted by the Appanoose County Assessor's Office regarding anticipated legislation that would have a major impact on city finance. The legislation that is being discussed would provide that multi-unit housing would no longer be classified as commercial property when applying the state-wide rollback factors. For fiscal year 2003, all commercial properly will be taxed at 98.8% of its assessed value. If this type of structure was treated as residential property for application of the rollback factor, it would be taxed at only 51.7% of its assessed value. The impact this would have on the City of Dubuque would be to reduce taxable valuation from $115,650,400 to $60,517,466, or a loss of $55,132,933 in taxable valuation. If the fiscal year 2002 tax rate were applied to this valuation loss, the estimated tax loss would be $1,715,818. This would cause an 11% property tax increase for the remaining City properties to make up for the loss of municipal revenues. We have not analyzed the impact on the remaining taxing bodies. We urge you to oppose this legislation if it is introduced due to the dire consequences it would have on our ability to maintain essential City services and provide the quality of life our citizens desire. Sincerely, Michael C. Van Milligen City Manager MCVM:jh The Honorable Mike Connolly Iowa State Senator 3458 Daniels Dubuque, IA 52001 The Honorable Pam Jochum Iowa State Representative 2368 Jackson Dubuque, IA 52001 The Honorable Robert Osterhaus Iowa State Representative 216 Austin Maquoketa, IA 52060 The Honorable Thomas Flynn Iowa State Senator 21367 Girl Scout Road Epworth, IA 52045 The Honorable Pat Murphy Iowa State Representative 155 N. Grandview Avenue Dubuque, IA 52001 The Honorable Paul Scherrman Iowa State Representative P.O. Box 309 Farley, IA 52046