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AGENDA ITEM – 1D <br /> <br /> <br /> <br /> <br />MEMORANDUM <br /> <br /> <br />DATE: August 17, 2015 <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: 2016 Proposed Preliminary Budget and Tax Levy <br /> <br /> <br />INTRODUCTION <br /> <br />In preparation for adoption of the preliminary tax levy in September, this memo addresses the <br />following information: residential property values, discussion on preliminary levy, salary <br />assumptions being used to prepare the preliminary budget, and a discussion on capital <br />improvement funding. <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 $295,100 for 2015 taxes, to $300,300 for 2016 taxes <br />which is a 1.8% increase (last year we saw a 11.5% increase) in value compared to the county <br />average increase of 3.4%. According to Ramsey County, assessed value had declined for five <br />consecutive assessments, the markets are stabilizing, and we are now experiencing an increase of <br />residential, apartment, and commercial values. <br /> <br />In order to evaluate the true impact to the residential property owner, you need to take into <br />account the increase in fiscal disparities (increase of 6.2%) and the change in the taxable value <br />(increase of 6.5% after exclusions). This does account for the Round Lake TIF District being <br />back on the tax roles. <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, the changes in the assessed market values, and the <br />addition of the Round Lake TIF District coming back on the tax roles. This results in a net Tax <br />Rate decrease of 6.5% before any levy changes are made. <br />