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• have a higher taxable value assessed as a golf course deferral than its present timber/farm deferred value. The advantage is bath in terms of using higher value to increase revenue to the City's tax base and in reducing the City's debt service levy tax rates. What hypothetical tax rates are possible? There are two additional scenarios which demonstrate the hypothetical effect on tax rates: 1) Assume a golf course deferred value of $6,000,000 (the value which the assessor might place on the golf course as open space.) 2) Assume that the raw land is available for a highest and best use as single family residential . at a value of $50,000 per acre, giving a hypothetical value of $7,500,000. As presented in Attachment B, the aggregate effect is to slightly decrease property tax rates within Salem. 0 What would be the hypothetical revenue differences to the City? Multiplying the various hypothetical assessed values by the City's composite tax rate per thousand would result in the following: $ 6 Milton Assessed Value: $33,023 additional revenue $ 7.5 Million Assessed Value: $41,277 additional revenue The extent which the golf course adds to the value of the associated residential development is speculative, but the subjective conclusion is that the golf course would add to the residential units' value for taxation purposes. ALTERNATIVES The City Council has two alternatives: . A. Designate the Creekside Golf Course as open space land, or B. Not designate the Creekside Golf Course as open space land. eL__%( Kenne h P. Battaile " Planning Administrator Attachment A. Open Space Policies of the Salem Area Comprehensive Plan B. Ltr. 6 May 1993 from Bennett re: Creekside Golf Club and Estates C. Open Space Land Designation: Creekside Golf Course • CCukad.op Salem City Council - 28 June 1893 Open Spice Lid Designation 93-1 Page 3