7A, 2011 Operating Levy Payable 2012 and 2011 Truth-In-Taxation

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� EN HILLS MEMORANDUM DATE: September 12, 2411 TU; Honorable Mayor and City Council FROM: Patrick Klaers, City Administrator Sue Iverson, Directar a� Finance and Adnainistrative Services SUSJECT: Esiablishing 2011 Truth-In-Taxation Hearing Dates Adoption of the Preliminary 2Q ll Operating Levy Payable in 2012 Bac�ground: By Septetnber 15, 20I 1, the City is reyuired to adop# and certify to Ramsey County a preliminary levy and Truth-In-Taxation hearing dates. Discussion�: Uperatin� Le� Based on City Cauncil direction at the August 29, 2011 work session, staff has prepared a preIiminary levy of $3,132,264. (This is an increase of $91,300 over the number given to the City Councit at the work session as staff has incozporated the chang�s r�quested by ihe City Council.) There are no levy lirnits for taxes payabI� in 2012. The proposed levy is a 3.0% increase over the 2011 levy; however, the City's portion of the levy zs $2,869,920 after Fiscal Dispariiies which equates to a 4.7% increase over the 2011 City portian of the levy of $2,740,931. This results in a. 7.0% increase in the Tax Rate from 2011, as the City's tax capacity fell by $243,213 or -2.1 % due to market changes and the formula changes for t�able val�e regarding the Market Value Exclusion program (MVE}. The impact on an average tnedium home valued at $272,800 is an increase of $31.63 or 4.9% annually. The average decrease in market value for residential property in Arden Hills was 1.2°/o. Determination of �he preliminary levy amount is based on 2Q12 budget information asse�bled to-date. (This inforrnation is summarized in Attachment A.) Public Safety accounts for 1.9°/a of the levy increase and $7.62 or 2G.1% of the taY inerease to the average madium homeowner in the City of Arden HilIs. Without the public safety increase, ihe budget would show a l.�% increase in the Levy over last year. {If no chang�s were made to the levy over last year, the average rn�dium homeowner in the City of Arden Hilis would still see an increase of $1 Q.22 in their property taxes as a result of the Legislative changes and market shifts - see Attachment A.)