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Home My WebLink About09-10-07 Item 7E, Prelim Operating Levy ~ ~HlLLS Request for Council Action Prepared By: Dept.: Council Mtg. Date: Final Action Needed By: suelverso~_~___ Finance ' .:$~pi~iii6erJ(j;2jjjjt Septemb"r1 0, 2007 Agenda Item: 7.E. .......... .,." -------- ffilClgetecfAmou"nt Actual Amount: Funding Source: -.--.-..........""----..-.-.iliiA ...... .... uu "uNiA NiA rtiRguJjQijfAQUPtTt~9[~t~0~~.mr~.~j~__________.____..,....,...".".,.__"____________n__'__...m"......"."....___n____________._..._......."............._.________________._.....'''...."..."""_.______n___n_.____m_.''...".,..__.."_________________...................._.________________...........".".'.._______n._........"._..__, ! 1. Adopt Resolution 07-66 which establishes the preliminary operating levy for taxes payable 2008 in the amount of $2,835,757, a 4.9%i ' increase from the 2007 levy. ' 2. Adopt Resolution 07-67 which establishes Truth-in-Taxation hearing dates for proposed taxes payable in 2008. The datesi established are December 3, 2007 and December 10, 2007. ~~~tf:~q~tci!!Jl;i:~f~~~~~';~f~~ch-estahi'i"sheS_"the-prei"i'iTl"inary-o-perath,'g"'lev};-for-taxes"'payabie--20'D'irin"the--an"olinf"or$2~83'5~'i57;--a-4'~9o/~'] increase from the 2007 levy. 2. Adopt Resolution -7-67 which establishes Truth-in-Taxation hearing dates for proposed taxes payable in 2008. The datesi established are December 3,2007 and December 10, 2007. x ! Memo/Letter: ~rue-lvfirso'l1-~-EsiabHsh-i-ng--2007'''Triith~rn-:faxatio'n"'cfates--an'cfAcfopHon""oftt1"e--Preifm"i"rl"ary--paya'bi'e--20-08,n <?J?~_~_~!_i_~.Q,.,~.~"Y.r~ ___ __ ._........""."______ "n' ...." __________ __... .........__.___ ____ ........ _'m __ _ _.._........." ________..... ....... _ _____ ...__......." "___ 07.66 and 07-67 iX'Resolution No.: iOrdinance No.: ....-----7" i Engineering Recommendation: __.._._..__.__.n......""__ !Attorney Recommendation: r""'; TOth-e~:" --.........."------ Tax Impact Worksheet .........""------._--.......""-----, \.._L__ ii!\'drm.~I~t:~rl~t1iiffll6:0l1i1jJj{i[~11j!jjjf~li?JlL.................................................................................................. . This is the preliminary levy, the final levy will be adopted in December. "'fhe"tinaf-ievy"may-"be-d'ec'reas-ec.fiJ'lit"'n:iay--ncifbe'"i'ncreiisecrfrom"'th'e'"-' preliminary amount. ~ ~HILLS MEMORANDUM DATE: September 10, 2007 TO: Honorable Mayor and City Council FROM: Sue Iverson, Finance Director~ SUBJECT: Establishing 2007 Truth-In- Taxation Hearing Dates Adoption of the Preliminary 2007 Operating Levy Payable in 2008 Background: By September 15, 2007, the City is required to adopt and certify to Ramsey County a preliminary levy and Truth-ill-Taxation hearing dates. Discussion: Operatinl! Levv Based on Council direction at the August 27, 2007 Work Session, staff has prepared a preliminary levy of $2,835,757. The City's portion of the levy is $2,602,044 after Fiscal Disparities which equates to a 4.9% increase over the 2007 City portion of the levy of $2,479,318. This results in a 2.2% decrease in the Tax Rate from 2007. The impact on an average medium home valued at $294, I 00 is an increase of $7.23 or 1.3%. The average increase in market value for residential property in Arden Hills was 3.2%. (With no market value increase the effect of taxes would have been a decrease of $12.45.) Determination of the preliminary levy amount is based on 2008 budget information assembled to-date. Trnth-in-Taxation Hearinl! Dates: The Truth-in-Taxation hearing dates are established as follows: Monday, December 3, 2007 - 6:30 p.m. - illitial hearing date Monday, December 10,2007 - 6:30 p.m. - Continuation hearing date (if needed) It is anticipated the Council will adopt the final 2007 levy payable in 2008, and the 2008 budget, on December 10, 2007. Recommended Action: 1. Adopt Resolution 07-66, a Resolution setting the preliminary levy for taxes payable in 2008 in the amount of$2,835,757. Memo City Council 2007 Truth-in- Taxation Hearing Dates and 2008 Preliminary Tax Levy 2 2. Adopt Resolution 07-67, a Resolution adopting Truth-in-Taxation public hearing dates for proposed taxes payable in 2008. The dates established are December 3,2007 and December 10, 2007. ~ ~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 07-66 A RESOLUTION SETTING THE PRELIMINARY LEVY FOR TAXES PAYABLE IN 2008 BE IT RESOLVED by the Arden Hills City Council that the following proposed sums of money be levied for levy year 2007 payable in 2008 upon taxable property in said City of Arden Hills for the following purposes: LEVY AMOUNT BEFORE HACA HACA CERTIFIED LEVY AMOUNT General Fund $2,835,757 $ - 0- $2,835,757 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 10th DAY OF SEPTEMBER, 2007. STANLEY D. HARPSTEAD, MAYOR ATTEST: MICHELLE A. WOLFE, CITY ADMINISTRATOR CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 07-67 RESOLUTION ADOPTING TRUTH IN TAXATION PUBLIC HEARING DATES FOR PROPOSED TAXES PAYABLE IN 2008 BE IT RESOLVED by the Arden Hills City Council that the following Truth in Taxation Public Hearing dates, time and places for proposed property taxes payable in 2008 be certified to the Ramsey County Auditor and that notice of the Public Hearings be published in accordance with Minnesota Statute. Public Continuation Hearing Hearinl! (If Needed) Adoption Hearinl! Date: December 3, 2007 December 10,2007 December 10,2007 Time: 6:30 P.M. 6:30 P.M. 7:00 P.M. Place: Council Chambers Council Chambers Council Chambers 1245 Highway 96 1245 Highway 96 1245 Highway 96 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 10th DAY OF SEPTEMBER, 2007. STANLEY D. HARPSTEAD, MAYOR ATTEST: MICHELLE A. WOLFE, CITY ADMINISTRATOR Proposed Pay 2008 Property Tax Impact Worksheet Taxing District: I Arden Hills-levy "increase 4.9% I STEP 1 - Calculate the Taxing District's Tax Rate: 1. Le before reduction for state aids 2. State Aids 3. Certifed Pro e Tax Le 4. Fiscal Dis ari Portion of Le 5. Local Portion of Le 6. Local Taxable Value 7. Local Taix Rate 8. Market Value Referenda Le 9. Fiscal Dis arit Portion of Le 80s ani 10. Local Le 11. Referenda Market Value 12. Market Value Referenda Rate = 12,270,288 13,163,124 7.3% 20.206% 19.768% -2.2% $0 $0 0.0% $0 $0 0.0% $0 $0 0.0% 0 0 0.0% 0.00000% 0.000000/, 0.0% = STEP 2 - Calculate the Impact of the Taxing District's Rate on Residential Homestead Taxes: 13. Assumes a 3.2% increase in market value from 2007 to 2008, which is the countywide median increase. 76,OOO@.40% -rem@.09% (G)x% (F)-(H) 14. Estimated Tax DIstrict rate as % of total rate: ;:;?::Ki2:~i.%lK?:2:: 15. 145,300 1,453 $293.59 $241.63 $50.74 $242.85 16. 193,800 1,938 $391.59 $197.98 $41.58 $350.01 17. 285,000 2,850 $575.87 $115.90 $24.34 $551.53 18. 484,500 4,845 $978.98 $0.00 $0.00 $978.98 19. 726,700 7,834 $1,582.94 $0.00 $0.00 $1,582.94 20, 21, 22, 23, 24. 25. 26. 27. 28. 29. 30. Instructions for Calculating a Residential Homestead Property Tax: D. Taxable Market Value of Residential Homestead Assumes that the Pay 2006 market value increased over Pay 2007 by 3.2%. The maximum increase allowed under the Limited Market Value law is the greater of: (1) 15% increase or (2) 33% of the difference from 2007 to 2008. Countywide, the median increase in taxable market value from Pay 2007 to Pay 2008 is 0.5%. E. Calculate the Net Tax CaDacitv of a Residential Homestead Pay 2007: 1 st 500,000 of Market Value @ 1.00%, remainder @ 1.25% Pay 2008: 1st 500,000 of Market Value @ 1.00%, remainder@ 1.25% F. Calculate the taxina district's cortion of the Gross Tax Pay 2007: multiply the Pay 2007 net tax capacity (E) by the Pay 2007 tax capacity local tax rate (A7), plus multiply the Pay 2007 market value (0) by the Pay 2007 market value local tax rate (A 12) Pay 2008: multiply the Pay 2008 net tax capacity (E) by the Pay 2008 tax capacity local tax rate (87) , plus multiply the Pay 2008 market value (0) by the Pay 2008 market value local tax rate (812) G. Calculate the total market value homestead credit 0.40% ofthe first 76,000 of market value (0), reduced by 0 .09% on the market value over 76,000 The credit decreases as the market value over 76,000 increases, until a 414,000 home receives 0 credit. H. Calculate the taxina district's estimated share of market value homestead credit The credit is apportioned to all taxing districts based on their share of the total tax rate. Example of 150,000 home: (76,000 x .40% = $304) - (74,000 x .09% = $66.60) = $237.40 Assume the city is 30% of the total tax, then the city receives 30% of the Credit $237.40 x 30% = $71.22 The actual percentage will vary depending on the combination of county, city/town. school, and special taxing districts. I. Calculate the taxina district's cortion of the Net Tax Gross Tax (F) minus the taxing district's share of credit (H) 260030. Calculate the % increase/decrease from 2007 to 2008 (2008 -2007) /2007