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<br /> /J})mit!j ~J .. <br /> ARDEN HILLS TRUTH-TN-TAXATION - DECEMBER 5.1996 2 I <br /> Mr. Post explained there are three components which determine the Property Tax Payable. The first .. <br /> aspect is the market valuation which is placed on a property which is a function of the Ramsey I <br /> County Assessor's Office. The second aspect of determining property taxes is the class rates which <br /> are applied to different types of property. These rates are set by statute by the legislature. These two <br /> aspects yield the Net Tax Capacity. This Net Tax Capacity is then applied against the jurisdiction . <br /> needs. The Levy need is then divided by the Total Net Capacity of the jurisdiction which yields a <br /> fraction. This fraction times the individual Net Tax Capacity then determines the individual local <br /> Property Tax amount. Ramsey County, the School District, and other miscellaneous jurisdictions I <br /> amount of taxes are then added to determine the total Property Tax Payable. <br /> Mr. Post explained the components of the total local tax rate for 1997 Property Taxes Payable. He I <br /> noted the City component is the second lowest portion of the total. Mr. Post eXplained the Arden <br /> Hills City tax rate is in the lower y, in comparison to other cities in the east metro area in terms of <br /> comparable taxes on a $120,000 home. I <br /> Mr. Post presented a chart which illustrated the 5 year trend information regarding market valuation <br /> of property, net tax capacity, fiscal disparities and tax levies. He noted in 1992, 1993, 1994 and I <br /> 1995, the City of Arden Hills was faced with a declining Net Tax Capacity. This was a direct <br /> function of the aggressive challenges to market valuation that commercial/industrial property owners <br /> took in terms of challenging their valuation with the County Assessor in Tax Court. By and large, .. <br /> they were successful in reducing their valuation. This has reduced the Net Tax Capacity of the City <br /> of Arden Hills significantly. Mr. Post noted however, that one benefit of this lower valuation is that I <br /> the City now is contributing less to the Fiscal Disparities Pool, as the City has less valuation to <br /> contribute to the Metropolitan pool. <br /> Mr. Post explained in terms of the tax levy history, there was a spike in the tax levy in Payable 1994. I <br /> For Pay 1997 proposed tax levy increase 1.95% over the levy for Pay 1996. <br /> Councilmember Aplikowski arrived at 7:40 p.m. . <br /> Mr. Post presented a chart which compared the amount of State LGA and HACA Aid relative to the I <br /> net levy amount of Arden Hills to that of neighboring communities. The gross level of the City of <br /> Arden Hills levy increase of $35,000 or 1.95% is smallest compared to other neighboring <br /> communities. He noted many other cities also receive general State Aid in the form ofLGA and I <br /> HACA. The City of Arden Hills receives very little in State Aid. 95.3% of the dollars spent to <br /> conduct the services of the community are non-LGAlHACA generated dollars. <br /> Mr. Post then explained that property taxes will fund 72% of 1997 General Fund Revenue. This I <br /> percentage has not changed a great deal in the course of the past 5 years. He noted the <br /> intergovernmental funding portion was only 13% of the 1997 general tax revenue. This is much I <br /> lower than in most other cities. .. <br /> I <br />