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<br /> - <br /> . CITY' OF ARDEN HILLS <br /> MEMJRANDUM <br /> DATE: August 10, 1993 <br /> TO: Dorothy Person, City Administrator <br /> FRCXoI:@ Terry Post, City A=untant <br /> SOBJECr : Real Prooertv Estimated Market Value (EMIl) and Net Tax <br /> Capacitv (NTCl Reductions-Uodate <br /> In conjunction with analyzing preliminary property valuation infonnation <br /> for the 1994 budget process, I have observed that the EMIl and NTC for <br /> real property continues to decline for the city of Arden Hills. '!he <br /> following table summarizes this trend for the last three tax payable <br /> years (dollars in millions) : <br /> 1992 1993 1994 <br /> EMV $466.0020 $464.3719 $457.296 <br /> . - $ change - ($1. 6301) ($7.0759) <br /> - % change - ( .35%) ( 1.52%) <br /> NI'C 12.726235 12.096468 11.450863 <br /> - $ change - ($.62977) ($.64561) <br /> - % change - ( 4.95%) ( 5.34%) <br /> Of pri1nary concern in interpreting this data is the erosion of <br /> approximately $8,710,000 in market valuation in the last two (1993-1994) <br /> years. Of this net total decrease, commercial parcels have declined <br /> $20,260,900 in valuation. '!he decline is 19.5% of the 1992 commercial <br /> EMV payable base. <br /> This deterioration in commercial valuation results in IOOre of the tax <br /> burden being shifted to residential property. The following table shows <br /> how the relative Net Tax Capacity (NTC) mix is shifting: <br /> 1993 1994 <br /> Residential % of total <br /> -- EMIl 63.18% 64.98% <br /> -- NTC 35.60% 37.78% <br /> Commercial % of Total <br /> -- EMIl 20.18 % 18.34% <br /> - NTC 35.89% 33.13% <br /> . <br />