Financial Impacts

The financial impact on businesses and households varies depending on the type of financing selected.  The following table summarizes credit terms and the repayment effect for an average household in Rainier using a property tax repayment plan and a sewer utility repayment plan.  The utility repayment plan costs more because borrowing costs are slightly higher and because the amount of sewage generated by the U.S. Gypsum Plant is proportionally less than its land and improvement value relative to the rest of the community.  This has a direct impact on the portion of the sewer plant improvements that are financed by residential properties.

Analysis

The estimated property tax payment for a single-family home in Rainier assumes that the house would have an assessed value of $125,000 and that total assessed value will rise significantly next year when the USG Plant enters the tax roll.  The table above shows a typical property tax payment for various classes of properties in Rainier.  The property tax estimates are preliminary and subject to change because the property valuation data are not final and they are estimated based on property class averages.  Individual property tax assessments will vary from the average amounts shown.

The estimated monthly cost to repay a sewer revenue bond is based on the sewer rate increase that would be necessary to cover debt service on a $7 million revenue bond.  The cost is significantly higher for residential properties because the residential waste contribution to the sewer plant is significantly higher than the residential share of property values in the city.