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

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Memo - City Council 2013 Proposed Final Budget and Tax Levy 2 Value Exclusion from last year are also seen in this year's Fiscal Disparities numbers for the first time. RESIDENTIAL PROPERTY VALUES According to information provided by Ramsey County in May of this year, the median home value in Arden Hills will decrease from $272,800 for 2012 taxes, to $257,400 for 2013 taxes which is a 5.6% drop in value compared to the county average decrease of 7.6%. According to Ramsey County, assessed value has now declined for five consecutive assessments; this has primarily been the result of the recession and loss of financing liquidity and has been fueled by pessimistic buyer expectation. The loss in value this period has been the largest loss in value of residential property. However, there are now encouraging signs that the markets have stabilized, or are stabilizing; we are now experiencing a flattening in the decline of residential values, rising apartment values, and the commercial markets are also showing promise of appreciation (from Ramsey County Assessor Stephen Baker). Foreclosures are at a lower percentage than they have been in many years. In order to evaluate the true impact to the residential property owner, you need to take into account the decrease in fiscal disparities (decrease of 8.2%) and the change in the taxable value (decrease of 4.5% after exclusions). To help illustrate this, the following table shows the impact to the residential property owner due to the reduction in fiscal disparity dollars and changes in the assessed market value. This results in a net Tax Rate increase of 5.5%before any levy changes are made. With a 0% increase to the levy, the impacts look like this: Actual Proposed % ROM Pay 2012 Pay 20131 Cbange A B C 1. Levy before reduction for state aids $3,096,994 $3,096,994 0.0% 2. State Aids $0 $0 0.0% 3. Certified Property Tax Le = $3,096,994 $3,096,994 0.0% 4. Fiscal Disparity Portion of Le $262,344 $240,789 -8.2% 6. Local Portion of Le = $2,834,650 $2,856,205 0.8% 6. Local Taxable Value 11,097 287 10,597 521 -4.5% 7. Local Tax Rate = 26.644% 26.962% 5.6% 8. Market Value Referenda Le $0 $0 0.0% 9. Fiscal Disparity Portion of Le SDs only) $0 $0 0.0% 10. Local Le = $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% D E F G H I Taxable Taxing Market Homestead 'taxable District Val Exclusion Market' Tax Net Bt4 Credit Credit Vakre'- capacity° Tax Proposed Pav 2013' Impact from Market Shifts Pay 2013 MV 78,0000.40% 1 500,00001.0% (87 x G)+ Total Change and Fiscal Disparities X04988 -pto n799 @.09 (D-E) rem 01.25% (B12 x D) Annual Increase Monthly incr. Annual Increase Monthly incr. Estimated Tax District rate as%of total rate: WA 150,000 23,740 1 126,260 1,263 $340.40 $7.25 $ 0.60 $7.25 $ 0.60 257,400 14,074 243,326 2,433 $655.74 $8.66 $ 0.72 ($8.66)__$ 0.72 350 000 5 740 344,260 3,443 $927.96 ($9.50) $ (0.79) ($9.50) $ (0.79) .0:2 0 000 500,000 5 000 $1 347.60 ($25.13) $ (2.09) ($25.13) $ (2.09) 750.000 750,000 8 125 1 $2,189.85 ($28.65) $ (2.39) ($28.65) $ (2.39)