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SECTION IV FISCAL IMPACT Due to the anticipated purchase of the property by the RDC and the resulting tax -exemption, the net assessed value of the Town will not increase as a result of annexation. It is assumed that the effective date of this annexation will be as soon as practically possible, but no later than December 31, 2018. Based on the assumed effective date, Annexation Area property owners will not pay property taxes to the Town until 2019 payable 2020. However, the Town will begin providing non -capital municipal services to the property owners within one (1) year after the effective date of the annexation, and it will begin providing capital municipal services to the property owners within three (3) years after the effective date of the annexation. It is anticipated that there will be minimal additional costs to the Town as a result of the annexation. The additional costs are related to the Police Department and the Street Department. The causes of the anticipated increased costs are discussed on the prior pages, and a summary of the costs is demonstrated in Appendix I. It is anticipated that the Town will not realize an increase in its levy as a result of annexation; therefore, there is not anticipated to be a tax rate increase as a direct result of this annexation. If there is a shortfall in revenue from the annexation, the services described in this plan can be provided using finds on hand. Due to the relatively minimal amount of current net assessed value in the Annexation Area, it is anticipated that the impacts to tax rates in all other taxing units will be negligible.