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NEW BUSINESS – 8A <br /> <br /> <br /> <br /> <br />MEMORANDUM <br /> <br /> <br />DATE: September 29, 2014 <br /> <br />TO: Honorable Mayor and City Council <br /> <br />FROM: Patrick Klaers, City Administrator <br /> Sue Iverson, Director of Finance and Administrative Services <br /> <br />SUBJECT: 2015 Proposed Preliminary Budget and Tax Levy <br /> <br /> <br />INTRODUCTION <br /> <br />In preparation for adoption of the preliminary tax levy at the last meeting in September, this <br />memo addresses the following information: residential property values, discussion on <br />preliminary levy, salary assumptions being used to prepare the preliminary budget, a discussion <br />on EDA funding, and structural changes the Council made last year. <br /> <br />RESIDENTIAL PROPERTY VALUES <br /> <br />According to information provided by Ramsey County in May of this year, the median home <br />value in Arden Hills will increase from $264,700 for 2014 taxes, to $295,100 for 2015 taxes <br />which is an 11.5% increase in value compared to the county average increase of 9.4%. <br />According to Ramsey County, assessed value had declined for five consecutive assessments, the <br />markets have stabilized, and we are now experiencing an increase of residential, apartment, and <br />commercial values. <br /> <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 2.4%) and the change in the taxable value <br />(increase of 6.4% after exclusions). <br /> <br />To help illustrate this, the following table shows the impact to the residential property owner due <br />to the decrease in fiscal disparity dollars and changes in the assessed market value. This results <br />in a net Tax Rate decrease of 5.8% before any levy changes are made. <br /> <br />Assuming no City levy change, the home owner that has a median valued home ( value going <br />from $264,700 to $295,100) will see their City taxes going up by $46.33 or 6.6% as illustrated <br />on the following chart.