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ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2013 4 value compared to the county average increase of 0.2%. She provided the Council with examples on calculating property tax rates. Director of Finance and Administrative Services Iverson noted that according to Ramsey County, assessed values have declined for five consecutive years as a result of the recession and loss of financing liquidity, and had also been fueled by pessimistic buyer expectation. There are now encouraging signs that the markets have stabilized, or are stabilizing. We are now experiencing a slight increase in residential values, rising apartment values, and the commercial markets are also showing promise of appreciation but are still down. Foreclosures are at a lower percentage than they have been in many years. Director of Finance and Administrative Services Iverson explained that in order to evaluate the true impact to the residential property owner, you need to take into account the increase in fiscal disparities (increase of 5.8%) and the change in the taxable value (increase of 1.7% after exclusions). To help illustrate this, she reviewed a number of tables showing the impact to the residential property owner due to the increase in fiscal disparity dollars and changes in the assessed market value. This results in a net tax rate decrease of 2.1% before any levy changes are made. Director of Finance and Administrative Services Iverson reported that the Council would be holding a Truth-In-Taxation hearing this evening before adopting the final budget and levy. The proposed levy increase for 2014 was 3.1%. She reviewed the proposed levy amount in comparison to several neighboring communities. The key budget elements were then discussed. Staff reported that a final levy needs to be approved by the Council and certified with the County by December 26, 2013. Mayor Grant stated that New Brighton would be receiving $739,000 in LGA next year. This allowed New Brighton to reduce their levy for 2014. Councilmember Werner asked why surface water management would be increasing in 2014. Public Works Director Maurer explained that the future PMP's had significant storm sewer improvements planned. Also, the new MS4 permit regulations require significant technical analysis in updating the City's Storm Water Pollution Prevention Plan (SWPPP) and the City will need to hire a consultant to assist with this process. Mayor Grant requested a list of items that were removed from the 2014 budget. Director of Finance and Administrative Services Iverson explained that the Council directed staff to reduce expenses at their November 18th work session and eliminated Council meals, the estimated 2014 sales tax savings due to new legislation, Celebrating Arden Hills, and City Council national training expenses. She then reviewed the changes made to the transfers and the PIR fund. Mayor Grant questioned the number of FTE's for 2014.