There is levied upon the city's water, golf, sewer, stormwater, refuse, and street lighting enterprise funds an annual payment in lieu of taxes based on the calculation of the value of assets within city limits held and used by each of said enterprise funds, using the income method of property evaluation. As suggested by the May 17, 1989, KPMG Peat Marwick report to the mayor and city council on charges for services between funds, for years subsequent to fiscal year 1990-1991, the payment in lieu of taxes shall be calculated using the income method of valuation for each said fund as follows:
A. Net revenue shall be calculated by subtracting operating expenses from operating revenue.
B. The asset value shall be calculated by dividing the net revenue by the capitalization rate of nine and one-half percent (91/2%).
C. The payment in lieu of taxes shall be calculated by multiplying the asset value by the city's property tax rate.
D. The sums due the city's general fund under this chapter for each fiscal year after 1990-1991 shall be determined by the city's finance department following the city's administrative policies and procedures and using audited financial data. Each said enterprise fund shall be notified of the pilot due in the city's budget, with payment due on or before December 30 of each year, beginning in 1990.
(Ord. 28-20, 2020; Ord. 47-04 § 1, 2004)