Assignment Questions 1. What is the average cost to each property owner in Districts A, B, C, and D if costs are allocated based on relative property values as suggested by Ms. Martyn (use the allocation of 10% of the total cost to the endangered lots provided in Table 6). What is the average cost to each property owner in Districts A, B, C, and D if costs are allocated based on relative benets received as suggested by Ms. Olson (use the allocation of 10% of the total cost to the endangered lots provided in Table 6). Suppose property values for the participants attending the meeting were as follows: Name District & Location Assessed Value Roger McDonald Endangered lot, District A $430,000 Chrissy Olson Not endangered, District A 270,000 Jeff Baker District B 370,000 Stephanie Martyn District C 190,000 Jim Alford Sound-front lot, District D 212,000 John Aimes Interior lot, District D 160,000 How much will each of these owners pay using each of the three cost allocation methods? TABLE 1 FIGURE 8 ISLAND PROPERTIES Number of Properties Total District Developed Undeveloped Properties A (South oceanside)\" 61 42 103 B (North oceanside) 55 T0 125 C (South Middle Sound side) 99 98 197 D (North Middle Sound side and interior lots) 56 87 143 271 297 568 \"South oceanside contains 15 endangered properties Developed Endangered = 8 lots Undeveloped Endangered = 7 lots TABLE 2 ALLOCATION OF 10% OF TOTAL COST TO ENDANGERED LOTS Developed Undeveloped W Lots Lots Iotale Total Cost $750,000 10% Allocation $75,000 # Endangered Lots 15 8 15 Direct Cost To Each Endangered Lot $5,000 Developed Undeveloped HIGH ESTIMATE - 1 250 000 % Lots Imam Total Cost $1,250,000 10% Allocation $125,000 # Endangered Lots 15 8 15 Direct Cost To Each Endangered Lot $3,333 TABLE 3 REMAINING COST ALLOCATION - BASED ON NUMBER OF LOTS Low ESTIMATE $750,000 District A District B District C District D Total HIGH ESTIMATE $1,250,000 District A District B District C District D Total Total # of Total cost to Cost Per 103 18.13% $675,000 $122,403 $1 .188 125 2.01% $675,000 $148,548 $1 .188 197 34.68% $675,000 $234,111 $1,188 143 25.18% $675,000 $169,938 $1 .188 568 100.00% $675,000 Plus Direct Allocation to District A $75,000 TOTAL PROJECT COST $750,000 Total # of Total cost to Cost Per 103 18.13% $1,125,000 $204,005 $1 .981 125 22.01% $1,125,000 $247,579 $1,981 197 34.68% $1,125,000 $390,185 $1 .981 143 25.18% $1,125,000 $283,231 $1 .981 568 100.00% $1,125,000 Plus Direct Allocation to District A $125.000 TOTAL PROJECT COST $1,250,000 Table 4 SUMMARY OF COSTS TO PROPERTY OWNERS BY DISTRICT Average Lot PROJECT COST $750,000 TO $1,250,000 $750,000 $1,250,000 DISTRICT A - ENDANGERED $6, 188 $10,314 DISTRICT A $1, 188 $1,981 DISTRICT B $1, 188 $1,981 DISTRICT C $1, 188 $1,981 DISTRICT D $1, 188 $1,981 TABLE 5 FIGURE 8 ISLAND ASSESSED PROPERTY TAX VALUES Property Values Total Assessed Developed Lots Undeveloped Lots Property Value District A Endangered Lots 2,585,246 $ 1, 164,987 $ 3,750,233 Other Lots 17, 127,254 5,824,933 22,952, 187 Total Value District A 19,712,500 6,989,920 26,702,420 District B 18,909,200 10,805,000 29,714,200 District C 21, 122,690 7,463,460 28,586, 150 District D 13,831,510 6,635,000 20,466,510 90,703, 154 $ 37,718,313 $ 132, 171,700TABLE 6 ALLOCATION OF 10% OF TOTAL COST TO ENDANGERED LOTS Average Average Total Lots Developed Lots Undeveloped Lots Total Property Value District A $26,702,420 $19,712,500 $6,989,920 # Lots 103 61 42 Average Value Per Lot $259,247 $323, 156 $166,427 # Endangered Lots 15 Value of Endangered Lots (Table 5) $3,750,233 $2,585,246 1164987 Average Value Per Endangered Lots $250,016 $323, 156 166427 % Value Per Endangered Lot 68.9% 31.1% Low Estimate for Allocation $750,000 10% of Low Cost Estimate $75,000 High Estimate for Allocation $1,250,000 10% of High Cost Estimate $125,000 Based on Average Value of All Endangered Lots Low Cost Estimate $750,000: Allocation of $75,000 (10%) Cost Allocated As a Percent of Average Endagered Lot Value 2.00% Direct Cost To Each Endangered Lot $5,000 High Cost Estimate $1,250,000: Allocation of $125,000 (10%) Cost Allocated As a Percent of Average Endagered Lot Value 3.33% Direct Cost To Each Endangered Lot $8,333 Based on Relative Value of Developed versus Undeveloped Lots Low Cost Estimate Developed Lots Undeveloped Lots Allocation of $75,000 Low Project Cost $51,702 $23,298 Allocation Per Lot $6,463 $3,328 High Cost Estimate Allocation of $125,000 Low Project Cost $86, 170 $38,830 Allocation Per Lot $10,771 $5,547