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ARDEN HILLS TRUTH-IN-TAXA nON - DECEMBER 6, 1999 DRAFT 2 · The reconstruction of the park at the Arden Manor Mobile Home Park. The outcome of this project has been very successful for the City of Arden Hills as the City now has control over e the park land. · With the resignation of the City Administrator, Brian Fritsinger, and the Assistant to the City Administrator, Kevin Ringwald, the City staffhad been short-handed for approximately three months in 1999. Mr. Post was willing to take on the responsibilities as Interim City Administrator over that period of time. In November of 1999, the City hired Joseph Lynch as the new City Administrator; however, the City is still short by one staff member. It was anticipated that a new Assistant to the City Administrator will be hired early next year. Mayor Probst requested that Mr. Post provide a presentation reviewing the proposed budget and property taxes. With regard to the reconstruction of the Highway 96 and West Round Lake Road intersection, Mr. Post noted that, although this reconstruction was a positive accomplishment, since the project was not accomplished in combination with Ramsey County's work on Highway 96, the City of Arden Hills was responsible for funding approximately $900,000 of County project costs. The City expects these funds to be reimbursed; however, it appears that the timing for this reimbursement will be delayed several years. Mr. Post stated that the presentation for the Truth-In- Taxation public hearing reviewed the 2000 proposed budget in three general categories. e Category A, Making Sense of Property Taxes, provided an understanding of how the City's market valuation, tax capacity and median values, specific to Arden Hills, impacts the property taxes. Category B, Cost of City Services in Perspective, provided a hypothetical monthly service bill which breaks down the cost of the services received by the citizens of Arden Hills. Category C, Discussion of Proposed City Budget, explained the specifics of the proposed budget in a more detailed fashion. Mr. Post proceeded with the slide presentation. He explained that Slide #1, Who Determines Your Property Tax, was a three-legged process in terms of the components of the property taxes. In addition to the taxing jurisdiction determining the levy amount, State Legislature establishes property classes and class rates, determines formulas for State Aids and determines mandates that may impact local governments. The County Assessor determines market values and assigns property classes. Slide #2, Tax Computation Example, provided an example of how property taxes are calculated. The first step was determining the property's tax capacity, which was determined by the class rate, and the market value determined by the County Assessor. The first $76,000 of the estimated market value had a one-percent tax capacity. The estimated market value in excess of $76,000 had a tax capacity of 1.65 percent. For a home in Arden Hills, with an estimated median market value of$157,850, there would be a net tax capacity of$2,I1O.53. To determine the total e