11-16-15-WS - Laserfiche WebLink

Home Browse Search

I MEMORANDUM DATE: November 16, 2015 TO: Honorable Mayor and City Council FROM: Sue Iverson, Acting City Administrator/Director of Finance and Admin Svcs SUBJECT: 2016 Proposed Budget and Tax Levy INTRODUCTION Previously staff provided data to the City Council on August 17, 2015, which detailed residential property values, a recap of the Ramsey County Finance Director meeting, past Arden Hill’s levy rate history and general levy information and scenarios. On September 28, 2015, the City Council adopted a Preliminary Levy of 3.5%. RESIDENTIAL PROPERTY VALUES According to information provided by Ramsey County in May of this year, the median home value in Arden Hills will increase from $295,100 for 2015 taxes, to $300,300 for 2016 taxes which is a 1.8% increase (last year we saw a 11.5% increase) in value compared to the county average increase of 3.4%. According to Ramsey County, assessed value had declined for five consecutive assessments, the markets are stabilizing, and we are now experiencing an increase of residential, apartment, and commercial values. In order to evaluate the true impact to the residential property owner, you need to take into account the increase in fiscal disparities (increase of 6.2%) and the change in the taxable value (increase of 6.5% after exclusions). This does account for the Round Lake TIF District being back on the tax rolls. To help illustrate this, the following table shows the impact to the residential property owner due to the increase in fiscal disparity dollars, the changes in the assessed market values, and the addition of the Round Lake TIF District coming back on the tax rolls. This results in a net Tax Rate decrease of 6.5% before any levy changes are made. Assuming no City levy change, the home owner that has a median valued home ( value going from $295,100 to $300,300) will see their City taxes going down by $36.03 or 4.7% as illustrated on the following chart.