Laserfiche WebLink
Memo - City Council <br />2016 Proposed Preliminary Budget and Tax Levy <br />3 <br />appeals were settled with the Ford Motor Plant earlier this year, which will impact the Fiscal <br />Disparities pool and the Count-wide rates/values. <br /> <br />TAKING A LOOK AT ARDEN HILLS LEVY TAX RATE HISTORY <br /> <br />The State of Minnesota has granted local municipalities the authority to levy taxes to fund <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 />no reserves were used for 2014, and $58,305 were used to balance the budget in 2015. The <br />following table provides a historical view of the City’s property tax levies: <br /> <br />% <br />Year Tax Levy Change Tax Rate <br />2002 2,201,002$ -25.092% <br />2003 2,265,712$ 2.94%23.930% <br />2004 2,333,337$ 2.98%23.367% <br />2005 2,440,453$ 4.59%21.299% <br />2006 2,537,520$ 3.98%20.191% <br />2007 2,688,944$ 5.97%20.206% <br />2008 2,797,348$ 4.03%19.585% <br />2009 2,948,646$ 5.41%20.520% <br />2010 3,016,465$ 2.30%22.647% <br />2011 3,040,964$ 0.81%24.180% <br />2012 3,096,994$ 1.84%25.544% <br />2013 3,191,230$ 3.04%27.931% <br />2014 3,257,456$ 2.08%27.954% <br />2015 3,359,775$ 3.14%27.228% <br />In 2009 the LJFD duty crew implementation began, while 2010 and 2011 saw the unallotment of <br />the MVHC to cities. The City Council has been very conservative in budgeting and has reduced <br />department budgets or used reserves to deal with the increased costs of our contracted services <br />while still maintaining services the last few years. <br /> <br /> <br /> <br />OPERATING BUDGET <br /> <br />Salary and Benefits <br /> <br />The 2016 preliminary budget has been prepared assuming a 3% wage adjustment for all staff. <br />Union negotiations will be held this fall as the current contract will end on December 31, 2015 – <br />it is unknown what the results of those negotiations will be. Our health insurance increase will be