2B, 2011 Final Budget - Laserfiche WebLink

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Background: Discussion: �EI�1 HILLS MEMORANDUM DATE: September 13, 2010 TO: Honorable Mayor and City Council FROM: Patrick Klaers, City Administrator Sue Iverson, Finance Director SUBJECT: Establishing 2010 Truth -In- Taxation Hearing Dates Adoption of the Preliminary 2010 Operating Levy Payable in 2011 By September 15, 2010, the City is required to adopt and certify to Ramsey County a preliminary levy p vy and Truth -hi- Taxation hearing dates_ Operating Levy Based on City Council direction at the August 16, 2010 Work Session, staff has prepared a preliminary levy of $3,088,964. (This is a decrease of $30,539 over the number given the City Council at the work session as staff has incorporated the changes requested by the City Council and have done other minor adjustments_ We have also received word from our insurance carrier that our increase will be -13.1% and the previous percentage used was 10 The overall levy limit for the City of Arden Hills with the state mandated levy limit lus allowable special levies is $3,218,680. The proposed 2011 levy p P p p vY is $129,? 16 under that limit. The overall increase in the proposed levy is a 2A% increase over the 2010 levy; however, the City's portion of the levy is $2,788,931 after Fiscal Disparities which equates to a 1.4% increase over the 2010 City portion of the levy of $2,751,727. This results in a 9.0% increase in the Tax Rate from 2010, as the City's tax capacity fell by $849,662 or -7.0 The impact on an average medium home valued at $276,000 is an increase of $49.21 or 8.1% annually. The average decrease in market value for residential property in Arden Hills was 1.0 Determination of the preliminary levy amount is based on 2011 budget information assembled to -date. (This information is summarized in Attachment A.) One item to note is the unallotrnent of MVHC from the State of $63,339 for 2011. This amount is figured into the preliminary 2011 budget. Market Value Homestead g g d 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 we will not receive this amount, so the preliminary budget and levy has rY g vy ?ccounted for this This amou t 2.0% of th l evy i r .:,ase a 5.07 or 303.6°/ of the