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<br /> <br />PropertyTax <br /> <br />TheCityofArdenHillsleviespropertytaxesforitsGeneralFundOperations.Theleviesare <br />allowedbyStateLaw,andarecollectedfrompropertyownersbyRamseyCountyand <br />distributedtotheCityinJuly,December,andJanuary. <br /> <br />PropertyTaxReform <br />During2001,theStateLegislaturepassedamajorPropertyTaxReformBillthatdramatically <br />impactedStatefundingtolocalgovernments.Levylimitsreturned,andamajorshiftinthe <br />StateFundingofschooldistrictsresultedintheeliminationofsomeaidsforcities.The <br />intentionoftheStateLegislaturewastohavecitiesmakeupforthislostaidthroughthe <br />propertytaxlevy.ThisreducedtherelianceofcitiesonStateAid,andallowsthepropertytax <br />levytomakeupalargershareoftheGeneralFundRevenues.ArdenHillsdidnotreceivea <br />significantportionofLocalGovernmentAid,thuswasnotimpacted. <br /> <br />AstheLegislatureenteredthe2003session,thesituationwiththeeconomywascreatinga <br />StateDeficitofover$4billion.TheStateenactedmanyreductionsinordertobalancethe <br />budget.Aspartofthosereductions,citieshadtheirpropertytaxaiddecreasedfor2003and <br />2004.TheMarketValueHomesteadCredit(MVHC)reductionamountfor2003was$100,979 <br />or100%oftheaidamountthecitywasinitiallycertifiedtoreceive.Thecitieswerethenonly <br />allowedtolevybackfor60%ofthepermanentLGAlossesfrom2003and2004.In2005,the <br />LegislaturereadjustedtheformulaforStateAidandincreasedtheoverallStateAidtocitiesby <br />$48million.Theformulachangewasdetrimentaltomostinnerringsuburbsandmostcitiesin <br />turnsawatotaleliminationofitsLGA. <br /> <br />In2008,theStateagainwasfacingadeficitandtheGovernmentchosetounallotthesecond <br />halfpaymentsofLGAandMVHCwhichweretobedistributedinDecember2008.Thiswasa <br />lossof$26,272totheCity.AstheStateeconomicforecastdidnotimprovein2009or2010,all <br />LGAandMVHCaidwasunallotted,thiswasalossof$55,923and$61,774fortheCity.InmidͲ <br />2010,theGovernorunallottedthe2011MVHCaidwhichwasestimatedat$61,774forArden <br />Hills. <br /> <br />The2011legislatureeliminatedtheMVHCprogramfor2012,thustakinglocalgovernmentsout <br />oftheequation.AnewprogramgiveshomesteadedpropertyownersaMarketValueExclusion <br />(MVE)onthevalueoftheirpropertyandgivesthesepropertyownersbasicallythesameeffect. <br />However,thisshiftstaxestononͲhomesteadedpropertyaseachlocaljurisdictionisnow <br />receivingitsfulllevy,includingtheCity.ThisresultsinshiftingasignificantportionoftheCity’s <br />levy(andotherlocaljurisdiction’slevy)toCommercial/Industrialpropertyandthose <br />homesteadswhosevalueisover$413,800wheretheexclusioniseliminated. <br /> <br /> <br /> <br /> <br />12