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Memo - City Council
<br />2015 Budget and Tax Levy Discussions
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<br />markets have stabilized, and we are now experiencing an increase of residential, apartment, and
<br />commercial values.
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<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.
<br />
<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 $3,257,456 0.0%
<br />2.State Aids - $0 $0 0.0%
<br />3.Certifed Property Tax Levy = $3,257,456 $3,257,456 0.0%
<br />4.Fiscal Disparity Portion of Levy - $254,738 $248,682 -2.4%
<br />5.Local Portion of Levy = $3,002,718 $3,008,774 0.2%
<br />6.Local Taxable Value ÷ 10,741,749 11,425,974 6.4%
<br />7.Local Tax Rate = 27.954%26.333%-5.8%
<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.
<br />Estimated Tax District rate as % of total rate:
<br />150,000 23,740 126,260 1,263 $332.59 $26.77 2.23$ $26.77 2.23$
<br />295,100 10,681 284,419 2,844 $748.91 $46.43 3.87$ $46.43 3.87$
<br />350,000 5,740 344,260 3,443 $906.65 $54.33 4.53$ $54.33 4.53$
<br />500,000 - 500,000 5,000 $1,316.65 $63.19 5.27$ $63.19 5.27$
<br />750,000 - 750,000 8,125 $2,139.56 $138.61 11.55$ $138.61 11.55$
<br />Impact from Market Shifts
<br />Total Change and Fiscal Disparities
<br />
<br />
<br />The City’s share of Fiscal Disparities (line 4) has decreased, and the City’s Tax Capacity (line 6)
<br />has increased, which results in a 5.8% decrease in the tax rate.
<br />
<br />Fiscal Disparities runs on a one year lag and is based on the levy amounts that jurisdictions
<br />submitted for 2014 (or last year). Jurisdictions that increased their levies will receive more,
<br />while those that kept their levies flat or fairly small will see decreases.
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