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<br /> ARDEN HILLS TRUTH-IN-TAXATION - DECEMBER 7,1998 3
<br /> . year 1999, the City's market valuation increases approximately $46 million dollars. This
<br /> resulted in a tax capacity increase of2,97%. The City's market value increase has been partially
<br /> due to the fact that the City has had a couple of strong previous years in terms of
<br /> CommerciallIndustrial building permit activity, When a building permit was requested for
<br /> construction, the valuation does not occur that year, rather there is a lag factor to be reflected in
<br /> valuation, In the future, the City will see the results of some strong building permit valuation
<br /> from permits granted in 1997 and 1998.
<br /> Slide 3A, Comparative Market Valuation and Tax Capacity Data, indicates that the residential
<br /> properties had decreased in valuation from 69% to 67% in payable year 1998, however, the tax
<br /> capacity has remained the same. With regard to Commercial/Industrial, the valuation has
<br /> increase approximately 3% and the tax capacity has increased by only 1 %, due to the property
<br /> class rate reductions,
<br /> Slide #5, Components of Total Proposed 1999 Rates, explains the portions of the property tax
<br /> bill from each of the jurisdictions, For a resident within the Independent School District #621,
<br /> the City of Arden Hills' levy represents 16% of the total property tax bill. Ramsey County
<br /> represents 39% and the School District represents another 39% of the total bill. For those
<br /> residing in Independent School District #623, the City's portion ofthe bill was 15% and the
<br /> School District's portion was 44%, due to the higher tax rate ofI.S,D, No, 623.
<br /> . The miscellaneous portion ofthe bill was primarily represented by Regional Transit, the
<br /> Metropolitan Council, the Mosquito Control District, Special Independent School District #916,
<br /> and the Rice Creek Watershed District.
<br /> Slide #6, Analysis of 1998 State Aid to Cities, looks at the distribution of State Aid for North
<br /> Metro cities. The HACA and Local Government Aid may be used as a dollar-for-dollar
<br /> reduction in need for property tax levy, The City of Arden Hills has historically been a
<br /> significantly less than average recipient of State Aid funds, Arden Hills receives approximately
<br /> $9 per capita in State Aid which was substantially lower compared to the amount of such aid
<br /> received by neighboring cities,
<br /> Slide #7, City Delivers Quality Services at an Affordable Price, presents a hypothetical check
<br /> which breaks down the General Fund services being funded by the property taxes based upon the
<br /> total City taxes of $376 for a $146,850 median-valued home, The monthly bill for this median-
<br /> valued home would be $31.33, In terms of the value of the services being provided, this appears
<br /> to be a reasonable cost,
<br /> Slidc #8, How Does the 1999 Proposed Budget Impact Your City Taxes, utilizes various
<br /> categories of valuation for both residential and commercial/industrial uses, assuming there was
<br /> no change in market value from 1998 to 1999. This provides a look at the spending from one
<br /> year to the next and the impact on the levy request as well as the property class rates and results
<br /> in reductions across the board for estimated 1999 City portion of property taxes,
<br /> . Slide #9, General Fund Revenues/Transfers In, provides an overview of the sources of Arden
<br /> Hills' General Fund revenues, The largest portion was received by property taxes, The next
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