09-10-13 Agenda - Laserfiche WebLink

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Fiscal Capacity is calculated as follows: Fiscal Capacity = Population, Multiplied times For Arden Hills, the 2012 Fiscal Capacity was: 9552 * $94,800 $104,403 Metro IMV per Capita (Divided by) The MCD IMV per Capita = 8673.41 Arden Hills' Fiscal Capacity The Fiscal Capacities of all MCD's totaled 3,117,288. Arden Hills' percentage share of the total Fiscal Capacity was .27824%. This percentage was multiplied times the total regional pool Tax Capacity contributions of $389,815,867. Arden Hills' share of the regional Tax Capacity in 2012 was $1,084,613. Multiplying this times the local 2011 tax rate of 24.187% resulted in the amount of $262,335 in tax revenue received by Arden Hills for 2012 from Fiscal Disparities. This averages out to about $27.46 per capita. C. Fiscal Disparities Distribution and Land Use The degree to which different land uses in Arden Hills bring in Fiscal Disparities revenue can also be calculated in a similar manner. Arden Hills has Bethel University, which has population, yet does not have taxable market value. Without Bethel, Arden Hills would receive less revenue, because its population would be lower. Likewise, the mobile home park, in which the mobile homes are taxed as personal property, also has a considerable amount of population, yet a relatively small taxable market value. Arden Hills' single-family homes tend to be higher than the regional average market value per capita, and therefore do not bring in as much revenue as the other residential uses. The amount each residential land use can be calculated in the same manner as calculating the regional distribution. Table 11 shows this. First, each land use must receive a per capita share of the commercial/industrial market value used in the computations; then equalization factors must be factored in. The result is the Indicated Market Value (IMV) for each residential land use. Next, the population to derive Fiscal Capacity divides the IMV. Note that Bethel University, other exempt residential and the mobile home park have very low Fiscal Capacities. The other uses have higher Fiscal Capacities than the regional average ($94,800) as well as the city's average of $104,403. As a result, their proportions compared to the city average are less than 1. This proportion is multiplied times the population to get the distribution index, just as in the regional calculations. Next the distribution indices are divided by the city total to get the percentage that each land use is responsible for the city's Fiscal Disparities distribution. Note that Bethel and the other exempt uses bring in about $67 per capita, and the mobile home park brings in about $48. The apartments and condominiums bring in amounts closer to the city average while the town homes, 2-3 unit residence units and single-family homes bring in far less than the city average. Map 10 shows the Fiscal Disparities revenue distribution. Blue dots represent parcels that bring in less than the city average because of their higher value. Yellow dots show parcels that bring in almost the average, while green dots show parcels and land uses that bring in substantially more revenue because of their lower taxable market value per capita. Think of these land uses as individual cities, with each bringing in revenue in inverse proportion to their relative wealth. 20