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Memo - City Council
<br />2016 Proposed Preliminary Budget and Tax Levy
<br />2
<br />Assuming no City levy change, the home owner that has a median valued home ( value going
<br />from $295,100 to $300,300) will see their City taxes going down by $36.03 or 4.7% as illustrated
<br />on the following chart.
<br />
<br />
<br />Actual Proposed %
<br />Item Pay 2015 Pay 2016 Change
<br />(A)(B)(C)
<br />1.Levy before reduction for state aids $3,359,775 $3,359,775 0.0%
<br />2.State Aids - $0 $0 0.0%
<br />3.Certifed Property Tax Levy = $3,359,775 $3,359,775 0.0%
<br />4.Fiscal Disparity Portion of Levy - $248,682 $264,113 6.2%
<br />5.Local Portion of Levy = $3,111,093 $3,095,662 -0.5%
<br />6.Local Taxable Value ÷ 11,425,974 12,163,391 6.5%
<br />7.Local Tax Rate = 27.228%25.451%-6.5%
<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 ÷ 1,119,584,100 1,144,235,400 2.2%
<br />12.Market Value Referenda Rate = 0.00000%0.00000%0.0%
<br />
<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 2016
<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 $321.45 ($14.27)(1.19)$ ($14.27)(1.19)$
<br />300,300 10,213 290,087 2,901 $738.33 ($36.03)(3.00)$ ($36.03)(3.00)$
<br />350,000 5,740 344,260 3,443 $876.28 ($42.67)(3.56)$ ($42.67)(3.56)$
<br />500,000 - 500,000 5,000 $1,272.55 ($64.89)(5.41)$ ($64.89)(5.41)$
<br />750,000 - 750,000 8,125 $2,067.89 ($99.19)(8.27)$ ($99.19)(8.27)$
<br />Impact from Market Shifts
<br />Total Change and Fiscal Disparities
<br />
<br />
<br />The City’s share of Fiscal Disparities (line 4) has increased, and the City’s Tax Capacity (line 6)
<br />has increased, which results in a 6.5% 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 2015 (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.
<br />
<br />RECAP OF RAMSEY COUNTY FINANCE DIRECTORS MEETING
<br />
<br />On August 13, 2015, Ramsey County held a meeting with its Finance Directors from all taxing
<br />districts. The Assessor is optimistic that our real estate markets are much improved and still
<br />getting better.
<br />
<br />Residential markets experienced the most positive improvements, with buyer activity improving,
<br />there are fewer foreclosure and short sales. Apartment markets continue to be very healthy and
<br />there is substantial construction of new apartments across the Twin Cities metro area.
<br />
<br />Commercial and industrial markets have recovered most of the loss in value from the recession.
<br />County-wide Commercial/Industrial aggregate values have increased 2.2%. Ten years of tax
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