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<br /> ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 6,1999 0
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<br /> . property taxes, each of the jurisdictions have created a budget which was translated to a levy for
<br /> the needs of the budget which are supported by property taxes. This levy amount was compared
<br /> against the total tax capacity for the jurisdiction and a percentage yielded, In the case of Arden
<br /> Hills, the local City levy proposed for 2000 would be 18.985 percent. This percentage,
<br /> multiplied by the tax capacity of$2,110.53, would result in a local city tax of$400,68. When
<br /> this was added to the other jurisdictions' levy rates, the total proposed 2000 property tax payable
<br /> for a $157,850 home would be $2,487,79,
<br /> Slide #2A listed a number of Lcgislative changes in class, The Legislature has made a deliberate
<br /> effort over the past four years to compress the class rates, The class rates for
<br /> Commercial/Industrial have changed from a maximum of 4.60 percent in 1997 to a maximum of
<br /> 3.40 percent in 2000, There was a substantially lesser amount of compression for the residential
<br /> homestead rates, changing from a maximum of 2,00 percent in 1997 to a maximum of 1.65
<br /> percent in 2000. Over the last three years, property tax burden has been shifted from one class to
<br /> another.
<br /> Mr. Craig Wilson, 1677 Lake Valentine Road, asked how the shifting of property taxes from one
<br /> class to another affects the City of Arden Hills, Mr. Post stated that this would affect the City of
<br /> Arden Hills more than, for example, the City of Shoreview, since Arden Hills has a relatively
<br /> higher commercial and industrial tax base than Shoreview does, Therefore, the residents of
<br /> Arden Hills will experience a greater degree of tax burden shift than will the residents of
<br /> Shoreview.
<br /> . Mr. Elwood Caldwell, 1457 Arden View Drive, confirmed that the term compression was
<br /> referring to the fact that the class rates for Commercial/Industrial were moving closer to the
<br /> Residential class rates, Mr. Post stated that this was correct.
<br /> Since the majority of the class rates were decreasing for the year 2000 from previous years,
<br /> Councilmember Larson asked if the effect of this was that the actual tax rate would have to go up
<br /> since the tax capacity for all classes of property was increasing, Mr, Post explained that market
<br /> valuation is impacting tax capacity more than rate compression such that tax rates generally
<br /> should be decreasing rather than increasing.
<br /> Slide #3, Market Valuation, Tax Capacity and Levy Data Payable 1993 to Payable 2000, was a
<br /> historical look at the City's valuation, tax capacity and tax levies since payable year 1993, The
<br /> City of Arden Hills as a community experienced a reduction in market valuation for several years
<br /> in the early 1990's. Towards the end of the 1990's the market valuation began to stabilize and
<br /> has begun to pick up. The market valuation for 2000 was up 8.49 percent over 1999.
<br /> Throughout most of the 1990's the tax capacity had been decreasing, however, the tax capacity
<br /> has begun to pick up in the last couple of years, With regard to the Fiscal Disparities pool, the
<br /> City of Arden Hills is a net contributor to this pool. Of the total tax capacity of $11,991,914 for
<br /> the year 2000, the City of Arden Hills will contribute $2,005,653 to the Fiscal Disparities pool.
<br /> . The City will receive back from this pool $908,726, Therefore, the City of Arden Hills is a net
<br /> contributor to this pool of $1,096,927 or 92% of total tax capacity.
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