1C, 2010 Proposed Final Budget Overview

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Memo City Council 2010 Budget Preliminary Overview 3 General Fund Revenue Highlights General Fund revenues are generally flat, particularly construction -related revenues. The key item affecting revenues is the elimination of the Market Value Homestead Credit (MVHC) revenue through the Governor's unallotment process. The amount that will be unalloted in 2010 is $61,774. Tax Levy, Levy Limit, and Impact on Property Owners The proposed 2010 budget reflects a levy of $3,090,471 or a 4.8% levy increase over 2009. Without the loss of the MVHC revenue, the levy increase would be 2.7%. The City has not yet received communication from the Department of Revenue on an initial overall levy limit; as per statute this is not due to cities until September 1, 2009. Staff has estimated the allowable levy limit for the City of Arden Hills based on instructions received from the League of Minnesota Cities which incorporates any law changes. The overall estimated levy limit is $3,152,235. We have not yet received all the information from Ramsey County to calculate the tax rate or impacts to property owners, but staff has completed estimates based on last year's values. The proposed budget equates to a $581.88 tax bill per year on an average value residential property based on Pay 2009 values. This is a $30.38 increase from 2009. Of this increase, $13.24 is due to the loss of MVHC revenue. Actual data will be available in the next week from Ramsey County in time to set the Preliminary Levy.