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Memo - City Council
<br />2018 Proposed Preliminary Budget and Tax Levy
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<br />Currently, there is a historic low supply of homes for sale on the market, while demand for
<br />properties and land is high; however, the longer term effect is yet to be seen.
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<br />ARDEN HILLS LEVY TAX RATE HISTORY
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<br />The State of Minnesota has granted local municipalities the authority to levy taxes to fund
<br />operations and debt payments. For the City of Arden Hills, the property tax levy accounts for
<br />approximately 76% of the General Fund revenues. For the past ten years the City Council has
<br />passed a budget with a deficit (i.e. revenues that do not cover expenses). However, as the
<br />economy changes and anticipated costs change, the City may end the fiscal year with either a
<br />surplus or deficit as the below table shows.
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<br />Year *Budgeted Surplus (Deficit)Actual Surplus (Deficit)
<br />2008 (488,645)(320,166)
<br />2009 (82,851)(28,506)
<br />2010 (41,201)(59,068)
<br />2011 211 387,849
<br />2012 (124,954)199,584
<br />2013 (46,100)14,787
<br />2014 (162,417)(19,764)
<br />2015 (35,305)736,468
<br />2016 (725,447)(137,597)
<br />2017 (195,955)TBD Note: The budgeted amounts represent the amended budget, which can change in the actual
<br />budget year, however, is still a motion approved by the City Council.
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<br />The following table provides a historical view of the City’s property tax levies:
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<br />Year Taxy Levy % Change Tax Rate % Change
<br />2008 2,797,348 -19.59%-
<br />2009 2,948,646 5.4%20.52%4.7%
<br />2010 3,016,465 2.3%22.65%10.4%
<br />2011 3,040,964 0.8%24.18%6.8%
<br />2012 3,096,994 1.8%25.44%5.2%
<br />2013 3,191,230 3.0%27.93%9.8%
<br />2014 3,257,456 2.1%27.95%0.1%
<br />2015 3,359,775 3.1%27.23%-2.6%
<br />2016 3,478,775 3.5%26.43%-2.9%
<br />2017 3,641,290 4.7%27.05%2.3%
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