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HomeMy WebLinkAbout6B, Truth In Taxation Public Hearing ,- SEN HILLS Request for Council Action 6B Prepared By: Sue Iverson, Council Meeting Date: December 10,2012 Director of Finance and Administrative Services Public Hearing—Truth in Taxation Hearing Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Recommendation: Hold Truth in Taxation Public Hearing. Supportinz Documents: 1. Truth in Taxation Hearing presentation. The City of Arden Hills The City of Arden Hills TruthTruth--InIn--Taxation Hearing:Taxation Hearing: December 10, 2012December 10, 2012 Mayor David GrantMayor David Grant Council MembersCouncil Members Brenda Holden, Fran Holmes,Brenda Holden, Fran Holmes, Ed Werner, and Nick Ed Werner, and Nick TambleTamble City VisionCity Vision Arden Hills is a strong community that values our unique environment setting, strong Arden Hills is a strong community that values our unique environment setting, strong residential neighborhoods, vital business community, well maintained infrastructure, fiscal residential neighborhoods, vital business community, well maintained infrastructure, fiscal soundness, and our longsoundness, and our long--standing tradition as a desirable City in which to live, work, and standing tradition as a desirable City in which to live, work, and play.play. Why Your Property Tax Bill Varies Why Your Property Tax Bill Varies from Year to Yearfrom Year to Year  Market value changesMarket value changes  Budgets and levies of various jurisdictionsBudgets and levies of various jurisdictions  Special AssessmentsSpecial Assessments  Voter approved referendumsVoter approved referendums  Changes in Federal and State mandatesChanges in Federal and State mandates  Changes in aid and revenue from State Changes in aid and revenue from State and Federal governmentsand Federal governments  State Legislative changesState Legislative changes Statutory Formulae Conversion of Statutory Formulae Conversion of Estimated Market Value (EMV) to Net Estimated Market Value (EMV) to Net Tax Capacity for Major Property Tax Capacity for Major Property ClassificationsClassifications Market value is set in spring by assessor and approved at the Board of Appeal and Equalization (April –May) General Net Tax CapacityNet Tax CapacityNet Tax Capacity ClassificationLevy Year 1999Levy Year 2000-2001Levy Year 2002-2013 Residential First $75,000 of EMV at 1%. EMV First $76,000 of EMV at 1%. EMV First $500,000 of EMV at 1%. Over excess of $75,000 at 1.7%in excess of $76,000 at 1.65%$500,000 at 1.25% Residential2.5% of EMV2.4% of EMV1.8% of EMV Non-Homestead Agricultural Land:First $115,000 of EMV on first 320 First $115,000 of EMV on first 320 First $600,000 of EMV at .55%. acres at .35%. EMV in excess of acres at .35%. EMV in excess of Over $600,000 at 1%. $115,000 on first 320 acres at .8%. $115,000 on first 320 acres at .8%. EMV in excess of $115,000 over 320 EMV in excess of $115,000 over 320 acres at 1.25%acres at .80%. Non-Homestead1.25% of EMV1.20% of EMV1% of EMV Commercial/First $150,000 of EMV at 2.45%. First $150,000 of EMV at 2.4%. First $150,000 of EMV at 1.5%. IndustrialEMV in excess of $150,000 at 3.5%EMV in excess of $250,000 at 3.4%.EMV in excess of $150,000 at 2%. Changes in market values for 2013Changes in market values for 2013  Market values of your and other properties Market values of your and other properties in your taxing district may change, shifting in your taxing district may change, shifting taxes from one property or class to another.taxes from one property or class to another. The median market value on a single family The median market value on a single family home in Arden Hills went down by 5.6% from home in Arden Hills went down by 5.6% from Pay 2012 to Pay 2013. ($272,800 to $257,400)Pay 2012 to Pay 2013. ($272,800 to $257,400) Total residential values (including Townhomes, Total residential values (including Townhomes, Condos, etc.) fell by 5.7%Condos, etc.) fell by 5.7% Apartment values increased by 3.6%Apartment values increased by 3.6% Commercial/Industrial values fell by 0.64%Commercial/Industrial values fell by 0.64% The effect of adding a 3% City levy The effect of adding a 3% City levy increase on your taxesincrease on your taxes ActualProposed% ItemPay 2012Pay 2013Change (A)(B)(C) 1.Levy before reduction for state aids$3,096,994$3,191,2303.0% 2.State Aids- $0$00.0% 3.Certifed Property Tax Levy= $3,096,994$3,191,2303.0% 4.Fiscal Disparity Portion of Levy- $262,344$240,789-8.2% 5.Local Portion of Levy= $2,834,650$2,950,4414.1% 6.Local Taxable Value÷ 11,097,28710,597,521-4.5% 7.Local Tax Rate= 25.544%27.841%9.0% 8.Market Value Referenda Levy $0$00.0% 9.Fiscal Disparity Portion of Levy (SDs only)- $0$00.0% 10.Local Levy= $0$00.0% 11.Referenda Market Value÷ 1,074,744,2001,033,491,700-3.8% 12.Market Value Referenda Rate= 0.00000%0.00000%0.0% TaxableTaxing MarketHomesteadTaxableDistrict ValueExclusionMarketTaxNet B/4 CreditCreditValueCapacityTax Proposed Pay 2013 Pay 2013 MV76,000@.40%500,000@1.0%(B7 x G) + Total Change X 0.988(D - E)rem @ 1.25%(B12 x D) Annual IncreaseMonthly incr. - rem up to 413799 @.09% Estimated Tax District rate as % of total rate: 150,000 23,740 126,2601,263$351.63$3.98$ 0.33 257,400 14,074 243,3262,433$677.37$12.97$ 1.08 350,000 5,740 344,2603,443$958.57$21.11$ 1.76 500,000 - 500,0005,000$1,392.05$19.32$ 1.61 750,000 - 750,0008,125$2,262.08$43.58$ 3.63 Who collects your tax dollars?Who collects your tax dollars? Your total property tax based on levies Your total property tax based on levies Your total property tax bill in 2013 with Your total property tax bill in 2013 with and tax rate is divided as illustrated and tax rate is divided as illustrated referendums is divided as illustrated referendums is divided as illustrated belowbelowbelowbelow Arden Hills represents 21Arden Hills represents 21¢ on the dollar Ramsey Co 49¢ School District 22¢ Other Agencies 8¢ This is before Market ReferendumsThis is before Market Referendums Looking at your Property Tax Looking at your Property Tax NoticeNotice Arden Hills Taxpayer  Property is valued at $253,100 Property is valued at $253,100 Property ID No. and tax rate is 1.32590 and tax rate is 1.32590 Arden Hills Taxpayer (132.590% of tax capacity)(132.590% of tax capacity)  Classification is : Residential Classification is : Residential HomesteadHomestead  Market Value Exclusion is Market Value Exclusion is calculated by taking 40% of the calculated by taking 40% of the first $76,000 of the taxable first $76,000 of the taxable market valuemarket value $76,000 x 40% = $30,400$76,000 x 40% = $30,400   The credit is then reduced by The credit is then reduced by 9% of taxable market value 9% of taxable market value over $76,000over $76,000 $253,100 $253,100 --$76,000 = $76,000 =  $177,100$177,100 $177,100 x 9% = $15,900$177,100 x 9% = $15,900   Total exclusion is $30,400 Total exclusion is $30,400 -- $15,900= $14,500$15,900= $14,500  Taxable Market Value is Taxable Market Value is $253,100 $253,100 --$14,500 = $238,600$14,500 = $238,600 Calculating you Property TaxCalculating you Property Tax Arden Hills Taxpayer  The Taxable Market Value is The Taxable Market Value is Property ID No. $238,600 and tax rate is $238,600 and tax rate is Arden Hills Taxpayer 1.32590 (132.590% of tax 1.32590 (132.590% of tax capacity)capacity)  Classification is : Residential Classification is : Residential HomesteadHomestead  Classification Rate is 1.00Classification Rate is 1.00  Tax Capacity is $238,600 x .01 Tax Capacity is $238,600 x .01 = $2,386= $2,386  Property tax on tax capacity is Property tax on tax capacity is $2,386 x 1.32590 = $3,164$2,386 x 1.32590 = $3,164  Voter approved levy rate is Voter approved levy rate is .0022828 (0.22828% of market .0022828 (0.22828% of market value)value)  Property tax on voter approved Property tax on voter approved levies is levies is 253,100 253,100 x .0022828 = x .0022828 = $578$578  Total Property tax is $3,164 + Total Property tax is $3,164 + $578 = $3,742$578 = $3,742  excluding excluding This is This is special special assessments.assessments. What makes up my Tax Rate?What makes up my Tax Rate? Arden Hills Taxpayer  As previously stated, the Tax As previously stated, the Tax Property ID No. Rate is 132.590%.Rate is 132.590%. Arden Hills Taxpayer  As shown in previous slides, As shown in previous slides, the City’s tax rate is 27.841%the City’s tax rate is 27.841% In this example the taxable capacity In this example the taxable capacity  of $2,386 x .27841 = $664.28of $2,386 x .27841 = $664.28  The other components of the The other components of the total tax rate are:total tax rate are: School District School District   #621 29.419%#621 29.419%  #623 15.393%#623 15.393% County County 65.144%65.144%  MiscMisc10.187%10.187%   All districts added together All districts added together comprise the total tax rate.comprise the total tax rate.  You must also take into account You must also take into account any referendums which are any referendums which are based on the market rates of:based on the market rates of: #621#6210.22828%0.22828%  #623#6230.24531%0.24531%  Proposed 2013 TaxesProposed 2013 Taxes  The Proposed Levy increase of 3.0% is primarily made The Proposed Levy increase of 3.0% is primarily made up of:up of: Public Safety Cost IncreasesPublic Safety Cost Increases1.8%1.8% Salary, benefits, and various other costsSalary, benefits, and various other costs1.2%1.2% TotalTotal3.0%3.0% Actual Cost of City Services Pay 2013 Property Tax Support for $257,400 Homestead City Service Percent Amount Monthly CategoryActualof Levyof LevyCost General Government Mayor/Council, Administration, Communications, Elections,$1,106,97826.7%$181$15 Auditor, Assessor, Legal, Planning Public Safety Building Inspection/Code Enforcement, Court, $1,778,42042.8%$290$24 Police Contract, Fire, Ambulance, Human Services, Animal Control Public Works Engineering, Streets, Street$318,8347.7%$52$4 Lighting, City Buildings Parks $444,64710.7%$73$6 Recreation $257,6286.2%$42$4 Transfers $240,0005.8%$39$3 Contingency $4,3540.1%$1$0 Capital Projects $00.0%$0$0 $4,150,861100.0%$677$56 Totals Tax Rate ComparisonTax Rate Comparison Tax RateRank  In comparing the In comparing the St. Anthony190.9481 “Effective Tax Rate” “Effective Tax Rate” St. Paul165.1492 of cities in Ramsey of cities in Ramsey Maplewood158.0293 County, Arden Hills County, Arden Hills Spring Lake Park157.5804 ranks 13 out of 19ranks 13 out of 19 Mounds View157.1375 New Brighton155.4526 North St. Paul148.5007  The “Effective Tax The “Effective Tax Roseville145.4218 Rate” is the rate Rate” is the rate Blaine143.4169 combined from all combined from all Shoreview143.14510 taxing authoritiestaxing authorities Gem Lake141.50111 Little Canada135.90112 Arden Hills132.59013  Note these are the Note these are the Vadnais Heights131.70214 adopted Preliminary adopted Preliminary White Bear Township131.04415 Rates that were set Rates that were set White Bear Lake129.08416 Lauderdale122.43617 in Septemberin September Falcon Heights116.39718 North Oaks113.20619 City Tax Rate ComparisonCity Tax Rate Comparison Tax RateRank  In comparing the In comparing the St. Anthony73.2791 “City Tax Rate” of “City Tax Rate” of Spring Lake Park50.8082 cities in Ramsey cities in Ramsey New Brighton50.7033 County, Arden Hills County, Arden Hills Mounds View50.3654 ranks 15 out of 19ranks 15 out of 19 Maplewood49.0135 St. Paul47.4036 Gem Lake39.9297  The “City Tax Rate” The “City Tax Rate” Roseville38.9618 is the local portion of is the local portion of Shoreview36.9539 the levy after state the levy after state North St. Paul36.74910 aids.aids. Blaine36.64411 Lauderdale31.63112 Little Canada30.85513  Note these are the Note these are the Vadnais Heights29.27314 adopted Preliminary adopted Preliminary Arden Hills27.84115 Rates that were set Rates that were set Falcon Heights26.56816 in Septemberin September White Bear Township26.29517 White Bear Lake21.46718 North Oaks10.77619 2013 Proposed City Tax Levy Changes:2013 Proposed City Tax Levy Changes: Comparison By Surrounding CitiesComparison By Surrounding Cities (As of Preliminary Levies)(As of Preliminary Levies) Levy Changes Levy Changes ––Neighboring CitiesNeighboring Cities  Shoreview Shoreview –– Up 3.4%Up 3.4% Tax Rate 36.953Tax Rate 36.953  New Brighton New Brighton –– Up 1.4%Up 1.4% Tax Rate 50.703Tax Rate 50.703  Mounds View Mounds View –– Up 0.2%Up 0.2%Tax Rate 50.365Tax Rate 50.365  Roseville Roseville -- Tax Rate 38.961Tax Rate 38.961 Up 16.7%Up 16.7%  Arden Hills Arden Hills –– Tax Rate 27.841Tax Rate 27.841 Up 3.0%Up 3.0% The average household will contribute $677 per year for City services. This translates to $56 per month or $1.86 per day. In 2012, $56 was contributed per month and $1.83 per day. Check Register Description of TransactionBalance Public Safety $24.17 Community Services$15.05 Parks and Recreation $9.55 Public Works$7.60 Capital $0.00 Contingency Reserves$0.06 January 1, 2012 City Of Arden Hills56.42 Fifty-six and forty-two cents MONTHLY police, fire, street maintenance, Homeowner parks, programs etc. 2013 Key Budget Elements2013 Key Budget Elements  Revenues are expected to relatively remain the same. Revenues are expected to relatively remain the same. This has been conservatively estimated as the City is This has been conservatively estimated as the City is primarily “builtprimarily “built--out” and has some redevelopment and out” and has some redevelopment and expansion, but cannot be estimated.expansion, but cannot be estimated.  General Fund revenues are estimated to be $4,130,408 General Fund revenues are estimated to be $4,130,408 or 2.13% over 2012, mainly due to the increase in the or 2.13% over 2012, mainly due to the increase in the tax levy and adjustments to the Fee Schedule.tax levy and adjustments to the Fee Schedule.  Utility revenues will increase 6.97% for Water, 1.96% for Utility revenues will increase 6.97% for Water, 1.96% for Sewer, and 2.96% for Surface Water Management. Sewer, and 2.96% for Surface Water Management. These increases reflect the increases in rates of 7% for These increases reflect the increases in rates of 7% for Water, 2% for Sewer, and 3% for Surface Water Water, 2% for Sewer, and 3% for Surface Water Management. Management. These revenues are not expected to fully fund operating and These revenues are not expected to fully fund operating and maintenance costs in these funds immediately but have been maintenance costs in these funds immediately but have been projected to over time while being sensitive to the increase to our projected to over time while being sensitive to the increase to our users.users. 2013 Key Budget Elements2013 Key Budget Elements  Levy increase is proposed at 3.0%. Levy increase is proposed at 3.0%.  Salary adjustments as part of COLA/steps budgeted at 2.0%.Salary adjustments as part of COLA/steps budgeted at 2.0%.  The proposed budget for Fire Protection has increased by The proposed budget for Fire Protection has increased by 5.52%.5.52%.  The proposed budget for Police Protection and Animal Control The proposed budget for Police Protection and Animal Control has increased by 3.34%.has increased by 3.34%.  The proposed budget for 911 Dispatch services has increased The proposed budget for 911 Dispatch services has increased by 5.79%.by 5.79%. Key Budget Elements (continued)Key Budget Elements (continued)  The proposed budget has kept operating costs The proposed budget has kept operating costs relatively flat or slightly decreased unless there have relatively flat or slightly decreased unless there have been contract services which have increased.been contract services which have increased.  The proposed budget includes transfers of:The proposed budget includes transfers of: $200,000 for capital reserves to be used for road $200,000 for capital reserves to be used for road  improvementsimprovements $40,000 for capital reserves to be used for equipment $40,000 for capital reserves to be used for equipment  replacementreplacement  This proposal does contain a contingency amount This proposal does contain a contingency amount for union negotiations as well as using $20,453 in for union negotiations as well as using $20,453 in reserves to balance the budget.reserves to balance the budget. Key Budget Elements (continued)Key Budget Elements (continued)  Overall, the City’s total proposed budget Overall, the City’s total proposed budget has increased by 11.43% mainly due to has increased by 11.43% mainly due to construction projects; General Fund budget construction projects; General Fund budget has decreased by 0.44% as compared to has decreased by 0.44% as compared to 2012.2012.  Total Staff in the 2013 budget are 26 FTEs Total Staff in the 2013 budget are 26 FTEs which is the same as 2012.which is the same as 2012. Key Budget Elements (continued)Key Budget Elements (continued)  Capital Improvement projects budgeted in 2013 include:Capital Improvement projects budgeted in 2013 include: Gateway SignsGateway Signs  Playground Structure ReplacementPlayground Structure Replacement  Forestry Implementation PlanForestry Implementation Plan  Park AmenitiesPark Amenities  Lake Johanna Fire Dept EquipmentLake Johanna Fire Dept Equipment  Regulatory Street Sign ReplacementRegulatory Street Sign Replacement  Storm Pond MaintenanceStorm Pond Maintenance  SpringbrookSpringbrookSoftware UpgradeSoftware Upgrade  Technology and Office EquipmentTechnology and Office Equipment  Communications EquipmentCommunications Equipment  Mounds View HS Trail ConnectionMounds View HS Trail Connection  Trail RehabilitationTrail Rehabilitation  2013 2013 CracksealCracksealand Sealcoatand Sealcoat  Innovation Way/Co Rd F Pond DredgingInnovation Way/Co Rd F Pond Dredging  Water Tower Repair and RepaintingWater Tower Repair and Repainting  City WebsiteCity Website  PlotterPlotter  Rehabilitate Lift Stations #4 and #9Rehabilitate Lift Stations #4 and #9  Storm Water Inlet/Outlet RepairsStorm Water Inlet/Outlet Repairs  Highway 96/US 10 Grade SeparationHighway 96/US 10 Grade Separation  RidgwoodRidgwoodAsbury Asbury ––2013 PMP2013 PMP  Sewer Lining RehabilitationSewer Lining Rehabilitation  Valve Replacement ProgramValve Replacement Program  Booster Station Monitoring UpgradeBooster Station Monitoring Upgrade  2013 Proposed Revenues2013 Proposed Revenues $12,412,401$12,412,401 2013 Proposed Expenditures2013 Proposed Expenditures $13,968,455$13,968,455 2013 Proposed General Fund Revenue2013 Proposed General Fund Revenue Property Taxes$3,220,791 Licenses & Permits$260,525 Intergovernmental Revenue$115,867 Charges for Services$417,482 Fines & Forfeits$40,301 Special Assessments$2,769 Miscellaneous Receipts$72,673 Total Proposed Revenue$4,130,408 2013 Proposed 2013 Proposed MAYOR & COUNCIL$76,371 ELECTIONS$18,000 General Fund General Fund ADMINISTRATION$333,017 FINANCE & ADMIN SERV$170,058 ExpendituresExpenditures TCAAP$50,000 PLANNING & ZONING$249,037 GOVT. BUILDINGS$210,495 POLICE & ANIMAL CONTROL$1,011,663 DISPATCH$52,067 FIRE PROTECTION$414,541 EMERGENCY MGMT$15,464 PROTECTIVE INSPECTION$284,685 STREET MAINTENANCE$318,834 PARK MAINTENANCE$444,647 RECREATION$232,628 CELEBRATING ARDEN HILLS$25,000 $4,354 CONTINGENCY OPERATING TRANSFERS OUT$240,000 Total General Fund Expenditures$4,150,861 City of Arden Hills City of Arden Hills Expenditures 2009Expenditures 2009--2012 2012 2010 Actual$3,769,188 General Fund 2011 Actual$3,817,447 2012 Budget$4,169,081 2013 Proposed$4,150,861 2010 Actual$10,210,084 All Funds 2011 Actual$10,007,230 2012 Budget$12,535,958 2013 Proposed$13,968,455 General Fund Expenditure Comparison 2010 General Fund Expenditure Comparison 2010 ––20132013 Questions?Questions? Thank you for attending!Thank you for attending!