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The Official City Newsletter for Arden Hills Residents January/February 2016 by Tina Kulzer2016 tax levy unchanged from preliminary 3.5 percent rate set in September At its December 14, 2015, meeting, the City Council adopted a 2016 property tax levy of $3,478,775. This sets the City’s property tax rate increase for 2016 at 3.5 percent, which is unchanged from the preliminary levy rate set in September 2015. Funding from the City’s share of regional fiscal disparities has increased for 2016 and will contribute $264,113 toward the levy total. The City’s tax capacity has also increased, and taxes paid by City property owners will account for the balance, or $3,214,662. The impact of a 3.5 percent levy – applied to a net tax rate decrease resulting from the increase in fiscal disparity dollars and in- creases in assessed market values of homes in Arden Hills – translates to a $36.03 (or 4.7 percent) decrease in annual taxes paid by resident owners of median valued homes (value ranging from $295,100 to $300,300). In Arden Hills, the entire tax levy goes toward General Fund expenditures in the City’s budget. The property tax levy accounts for approximately 79 percent of the General Fund revenues. Due to the current economic environment, $160,326 in reserves was used to balance the 2016 budget. This is up from $58,305 in reserves used to balance last year’s budget. Revenues: • General Fund revenues in the 2016 bud- get are set at $4,510,291. • The most notable revenue line item is the levy amount, which will result in an addi- tional $119,000 in revenue over last year. • Police Aid (received as part of the Ramsey County Sheriff’s Department [RCSD] contract group) and Antenna Revenues are estimated to increase. Expenditures: • General Fund expenditures for 2016 total $4,670,617. • Public Safety costs are set to increase by 7.85 percent for the Lake Johanna Fire Department, 1.81 percent for the RCSD contract, and 2.43 percent for 911 dis- patch service. These costs alone represent a $54,039 increase in the budget, or a 1.6 percent increase to the levy. • Expenditures for City Hall maintenance and an infrastructure/capital reserve fund to address increasing repair costs for City Hall are included this year. • A General Fund expenditure increase of $56,614 is related to wage adjustments and health insurance increases for City staff in the operating budget. (The effects on the Salary & Benefits expenditures resulting from union contract negotia- tions that took place late last year are as of yet unknown.) Other rate increases: 2016 utility fees are increasing as well. The water and sanitary sewer rates are increas- ing by two percent, and the surface water management rate is increasing by three percent. The overall budget for the City in 2016 was set at $11,102,350. The approved budget and tax levy information can be viewed in detail in the December 14, 2015 City Council agenda posted on the City’s website. 2016 General Fund basics