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NEW BUSINESS – 9A <br /> MEMORANDUM <br /> <br />DATE: September 28, 2015 <br /> <br />TO: Honorable Mayor and City Council Members <br /> <br />FROM: Patrick Klaers, City Administrator <br /> <br />SUBJECT: 2016 Proposed Maximum Tax Levy <br /> <br /> <br /> <br />Background <br /> <br />The proposed maximum tax levy needs to be approved by the City Council and certified <br />to Ramsey County by the end of September 2015. The final 2016 tax levy amount is set <br />by the City Council in December 2015 following the Truth in Taxation public hearing. <br /> <br />The proposed maximum tax levy established by the City Council in September can be <br />lowered in December but it cannot be increased in December. Accordingly it is very <br />important for the City Council to discuss the financial needs of the City before it <br />establishes the proposed maximum levy amount. <br /> <br />Discussion <br /> <br />At the August 17, 2015, City Council work session, staff provided the Council with 2016 <br />property valuation and tax levy information and offered some general comments on <br />important budget issues. <br /> <br />The information staff presented at the August 17 work session showed that, without <br />increasing the City tax rate, the Council could increase tax revenues by $217,000 or <br />6.5%. This tax revenue situation is possible due to a number of factors including having <br />the valuation from TIF District # 2 Round Lake coming onto the tax roll (TIF 2 is <br />scheduled to be decertified in 2015). <br /> <br />At this August work session the majority of the Council agreed, as a starting point, to <br />consider a 3% proposed maximum tax levy during the September 28, 2015, City Council <br />meeting. <br /> <br /> <br /> <br />