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<br />ARDEN HILLS CITY COUNCIL WORK SESSION - AUGUST 27, 2007 <br /> <br />2 <br /> <br />Director Iverson indicated they did. <br /> <br />Mayor Harpstead questioned if the requests from the Economic Development Committee <br />were included in the budget. <br /> <br />Finance Director Iverson indicated she believed they were included. <br /> <br />Councilmember Grant asked about tax capacity. <br /> <br />Finance Director Iverson stated it went up to 7.3 percent. She also indicated the tax rate <br />could stay the same but that this could result in a 7 percent levy increase. <br /> <br />Mayor Harpstead asked about transferring monies into the capitaVequipment fund. <br /> <br />Finance Director Iverson indicated that has not been done yet. <br /> <br />Finance Director Iverson provided handouts of the impact of a 4%, 5%, and 6% tax levy <br />and if we maintained the same tax rate. <br /> <br />The county indicates the average market value for a single family residential homestead <br />in Arden Hills is $294,000. <br /> <br />Councilmember Hohnes had questions on the tax impact per household. <br /> <br />Finance Director Iverson explained the tax impact and dollar impact per household using <br />the handouts. <br /> <br />Councihnember Holden stated that we had to remember the school and county levies as <br />well. <br /> <br />Finance Director Iverson provided an update on how Arden Hills compared to other <br />metropolitan communities based on "effective tax rate" (ETR). She explained that this is <br />the rate when the city, county, and school district tax rates are combined. <br /> <br />In the Citizen's League 2006 Property Tax Review, the City's effective tax rate (ETR) <br />was 54 out of III metropolitan communities, with one being the highest and III being <br />the lowest. She stated that as a point of interest, Arden Hills itself was 91 st, Ramsey <br />County was number one, and Mounds View School District was 33rd She stated the <br />combination of these rates equated to the ranking of 54th. She explained that this <br />information showed that the City's tax rate was relatively low while Ramsey County's <br />rate was the highest in the metropolitan area. <br /> <br />Mayor Harpstead suggested 5% for two reasons. He also suggested designating I % for <br />capital equipment. <br />