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<br />-5- <br />Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s <br />property classification system to each property’s market value. Each property classification, such as <br />commercial or residential, has a different calculation and uses different rates. Consequently, a city’s total <br />tax capacity will change at a different rate than its total market value, as tax capacity is affected by the <br />proportion of the City’s tax base that is in each property classification from year-to-year, as well as <br />legislative changes to tax rates. The City’s tax capacity increased 2.3 percent for taxes payable in 2017, <br />and increased 7.3 percent for taxes payable in 2018. <br /> <br />The following graph shows the City’s change in tax capacities over the past 10 years: <br />$– <br /> $2,000,000 <br /> $4,000,000 <br /> $6,000,000 <br /> $8,000,000 <br /> $10,000,000 <br /> $12,000,000 <br /> $14,000,000 <br /> $16,000,000 <br /> $18,000,000 <br />2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 <br />Local Tax Capacity <br /> The following table presents the average tax rates applied to city residents for each of the last three levy <br />years: <br /> <br />2016 2017 2018 <br />Average tax rate <br />City 26.5 27.2 25.5 <br />County 58.9 55.9 54.0 <br />School 26.2 25.3 28.5 <br />Special taxing 9.1 8.6 8.2 <br />Total 120.7 117.0 116.2 <br />Rates Expressed as a Percentage of Net Tax Capacity <br />City of Arden Hills <br /> <br />The total average tax rate was consistent with the prior year. An increase in the school portion was offset <br />by decreases in the other taxing authority rates. <br />