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Memo - City Council
<br />2015 Proposed Preliminary Budget and Tax Levy
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<br />PROPOSED PRELIMINARY PROPERTY TAX LEVY AND BUDGET
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<br />Staff is presenting a Preliminary General Fund levy increase of 5.0% and a preliminary General
<br />Fund Budget of $4,437,830 which uses $18,998 in reserves and includes a transfer from the
<br />General Fund to the EDA of $30,000. The proposed levy would have the following effect on
<br />the median valued home in Arden Hills as shown on the following page.
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<br />Actual Proposed %
<br />Item Pay 2014 Pay 2015 Change
<br />(A)(B)(C)
<br />1.Levy before reduction for state aids $3,257,456 $3,421,950 5.0%
<br />2.State Aids - $0 $0 0.0%
<br />3.Certifed Property Tax Levy = $3,257,456 $3,421,950 5.0%
<br />4.Fiscal Disparity Portion of Levy - $254,738 $248,682 -2.4%
<br />5.Local Portion of Levy = $3,002,718 $3,173,268 5.7%
<br />6.Local Taxable Value ÷ 10,741,749 11,425,974 6.4%
<br />7.Local Tax Rate = 27.954%27.772%-0.7%
<br />8.Market Value Referenda Levy $0 $0 0.0%
<br />9.Fiscal Disparity Portion of Levy (SDs only)- $0 $0 0.0%
<br />10.Local Levy = $0 $0 0.0%
<br />11.Referenda Market Value ÷ 1,052,783,000 1,119,584,100 6.3%
<br />12.Market Value Referenda Rate = 0.00000%0.00000%0.0%
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<br />Taxable Taxing
<br />Market Homestead Taxable District
<br />Value Exclusion Market Tax Net
<br />B/4 Credit Credit Value Capacity Tax
<br />Proposed Pay 2015
<br />Pay 2013 MV 76,000@.40%500,000@1.0%(B7 x G) +
<br />X 0.988 - rem up to 413799 @.09%(D - E)rem @ 1.25%(B12 x D)Annual Increase Monthly incr.Annual Increase Monthly incr.Annual IncreaseMonthly incr.
<br />Estimated Tax District rate as % of total rate:
<br />150,000 23,740 126,260 1,263 $350.76 $44.94 3.75$ $26.77 2.23$ $18.17 1.51$
<br />295,100 10,681 284,419 2,844 $789.84 $87.36 7.28$ $46.43 3.87$ $40.93 3.41$
<br />350,000 5,740 344,260 3,443 $956.19 $103.87 8.66$ $54.33 4.53$ $49.54 4.13$
<br />500,000 - 500,000 5,000 $1,388.60 $135.14 11.26$ $63.19 5.27$ $71.95 6.00$
<br />750,000 - 750,000 8,125 $2,256.48 $255.53 21.29$ $138.61 11.55$ $116.92 9.74$
<br />Impact from Market Shifts
<br />Total Change and Fiscal Disparities Impact from Levy Incr
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<br />TAKING A LOOK AT ARDEN HILLS LEVY TAX RATE HISTORY
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<br />The State of Minnesota has granted local municipalities the authority to levy taxes to fun d
<br />operations and debt payments. The City’s entire tax levy goes for General Fund expenditures.
<br />For the City of Arden Hills, the property tax levy accounts for approximately 79% of the General
<br />Fund revenues. Historically, the City does not use reserves to balance the City’s budget,
<br />however, due to the current economic environment $41,201 was used to balance the budget for
<br />2010 and $20,000 was used in 2011, no reserves were used in 2012, $20,454 were used in 2013,
<br />and no reserves were used for 2014. The following table provides a historical view of the City’s
<br />property tax levies:
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