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Memo - City Council <br /> 2013 Proposed Final Budget and Tax Levy <br /> 2 <br /> Fiscal Disparities runs on a one year lag and is based on the levy amounts that jurisdictions <br /> submitted for 2012 (or last year). Jurisdictions who increased their levies will receive more, <br /> while those that kept their levies flat or fairly small will see decreases. The effects of the Market <br /> Value Exclusion from last year are also seen in this year's Fiscal Disparities numbers for the first <br /> time. <br /> RESIDENTIAL PROPERTY VALUES <br /> According to information provided by Ramsey County in May of this year, the median home <br /> value in Arden Hills will decrease from $272,800 for 2012 taxes, to $257,400 for 2013 taxes <br /> which is a 5.6% drop in value compared to the county average decrease of 7.6%. According to <br /> Ramsey County, assessed value has now declined for five consecutive assessments; this has <br /> primarily been the result of the recession and loss of financing liquidity and has been fueled by <br /> pessimistic buyer expectation. The loss in value this period has been the largest loss in value of <br /> residential property. However, there are now encouraging signs that the markets have stabilized, <br /> or are stabilizing; we are now experiencing a flattening in the decline of residential values, rising <br /> apartment values, and the commercial markets are also showing promise of appreciation (from <br /> Ramsey County Assessor Stephen Baker). Foreclosures are"at a lower percentage than they have <br /> been in many years. <br /> In order to evaluate the true impact to the residential property owner, you need to take into <br /> account the decrease in fiscal disparities (decrease of 8.2%) and the change in the taxable value <br /> (decrease of 4.5%after exclusions). <br /> To help illustrate this, the following table shows the impact to the residential property owner due <br /> to the reduction in fiscal disparity dollars and changes in the assessed market value. This results <br /> in a net Tax Rate increase of 5.5%before any levy changes are made. <br /> With a 0% increase to the levy,the impacts look like this: <br /> -4- <br />