7B, 2013 Proposed CIP, Final Budget and Tax Levy

Home Browse Search

'It ,- RQEN HILLS MEMORANDUM DATE: December 10, 2012 TO: Honorable Mayor and City Council FROM: Patrick Klaers, City Administrator Sue Iverson, Director of Finance and Administrative Services SUBJECT: 2013 Proposed Final Budget and Tax Levy INTRODUCTION In preparation for adoption of the final tax levy, this memo addresses the following information: preliminary tax levy, residential property values, operating budget, salary and benefit changes, and preliminary fund balance projections. PRELIMINARY TAX LEVY The table below provides a comparison of the 2012 adopted levy and the levy amount the City Council directed staff to prepare for the preliminary levy certification. It also shows a comparison of the tax rate at this levy amount. Actual Proposed Item Pay 2012 Pay 2013 Change A 13 C 1. Levy before reduction for state aids $3,096,994 $3,191,230 3.0% 2. State Aids - $0 $0 0.0% 3. Certifed Property Tax Le = $3,096,994 $3,191,230 3.0% 4. Fiscal Disparity Portion of Le - $262,344 $240,789 -8.2% 5. Local Portion of Le = $2,834,650 $2,950,441 4.1% 6. Local Taxable Value - 11,097,287 10,597,521 -4.5% 7. Local Tax Rate = 25.544% 27.841% 9.0% 8. Market Value Referenda Le $0 $0 0.0% 9. Fiscal Disparity Portion of Le SDs only) $0 $0 0.0% 10. Locall-evy $0 $0 0.0% 11. Referenda Market Value - 1,074,744,200 1,033,491,700 3.8% 12. Market Value Referenda Rate 0.00000% 0.00000% 0.0% You will see that the levy has been increased 3% per Council directive, while the City's share of Fiscal Disparities has decreased, as well as the City's Tax Capacity (line 6), which results in a 9.0% increase in the tax rate. Fiscal Disparities runs on a one year lag and is based on the levy amounts that jurisdictions submitted for 2012 (or last year). Jurisdictions who increased their levies will receive more, while those that kept their levies flat or fairly small will see decreases. The effects of the Market