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ARDEN HILLS CITY COUNCIL—September 14, 2009 8 B. Motion to Adopt Resolution 2009-024: A Resolution Setting the Preliminary Levy for Taxes Payable in 2010 in the Amount of $390579666 Motion to Adopt Resolution 2009-025: A Resolution to Adopt Truth-In-Taxation Public Hearing Dates for Proposed Taxes Payable in 2010 Finance Director Susan Iverson stated that by September 15, 2009, the City is required to adopt and certify to Ramsey County a preliminary levy and Truth-In- Taxation hearing dates. Based on Council direction at the August 17, 2009, work session, Staff has prepared a preliminary levy of$3,057,666. This is a decrease of $32,805 over the number given the Council at the work session as Staff has incorporated the changes requested by the Council. Staff has also received word from the City's insurance carrier that the increase will be 1% and the previous percentage used was 8%. The overall levy limit for the City of Arden Hills with the State mandated levy .limit plus allowable special levies is $3,151,708. The proposed 2010 levy is $94,042 under that limit. The overall increase in the proposed levy is a 3.7% increase over the 2009 levy; however the City's portion of the levy is $2,792,928 after Fiscal Disparities, which equates to a 3.7% increase over the 2009 City's portion of the levy. This results in a 12% increase in the Tax Rate from 2009. The impact on an average medium home valued at $278,000 is an increase of $24.61 or 4.2% annually. The average decrease in market value for residential property in Arden Hills was 6.6%. One item to note is the unallotment of MVHC for the State of $61,774 for 2010. This amount is figured into the preliminary 2010 budget. Market Value Homestead Credit is credited to property owners on their property tax statements and then reimbursed to the City from the State. The City has been informed from the Department of Revenue that the City will not receive this amount, so the preliminary budget and levy has accounted for this. Finance Director Iverson stated that the 2009 Legislature changed the Truth-In- Taxation laws. The City is now only required to announce and schedule one regular meeting at which the Council discusses the budget and levy and takes comments from the public. The City may adopt the budget and final levy after the hearing during the same meeting. The meeting must be between November 25 and December 26 and must occur at or after 6:00 p.m. The City must notify the County Auditor by September 15, 2009. The Council may choose to continue as it has previously and have a separate meeting or the City may choose to do this at a regular meeting. It is anticipated the Council will adopt the final 2009 levy payable in 2010, and the 2010 budget, on December 14, 2009.