8A, 2012 Proposed Final Budget and Tax Levy

Home Browse Search

�- �S�EN HILLS MEMORANDUM DATE: December 12, 2011 TO: Honorable Mayor and City Council FROM: Patrick Klaers, City Administrator Sue Iverson, Director of Finance and Administrative Services SUBJECT: 2012 Proposed Final Budget and Tax Levy INTRODUCTION In preparation for adoption of the final tax levy, this memo addresses the following information: proposed tax levy, residential property values, operating budget, salary, and benefit changes, and fund balance projections. This information has been updated based on the feedback received from the City Council after the Truth-In-Taxation Hearing on December 5, 2011. PROPOSED TAX LEVY You will see that the levy has increased by 2.15% over 2011 but the tax rate has increased by 6.04%, this is due in part to the change in legislation regarding the Market Value Homestead Credit (MVHC) program, a reduction in our share of fiscal disparity dollars, and the increase in the levy. The table below provides a comparison of the 2011 adopted levy and the levy needed to support the proposed 2012 budget and capital projects. It also shows a comparison of the City's tax rate.