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The 2016 Recommended Tax Levy required to fund the Budget is $18,944,720, an increase of $667,818 <br />or 3.65%. The impact on residents will vary depending on the property's value and change in value <br />relative to other properties in the city. The estimated impact for a typical single-family home that <br />experiences an expected 0.0% increase in value is shown below. <br />Estimated Tax Impact - Residential with 0.0%valuation increase <br />$ Increase % Increase <br />Value of Home 2015 2016 Decrease Decrease <br />160,000 622 639 17 2.70% <br />180,000 700 719 19 2.70% <br />216,500 842 864 23 2.70% <br />235,000 913 938 25 2.70% <br />255,000 991 1,018 27 2.70% <br />Based on the Recommended Budget & Tax Levy, a median-valued home can expect to pay <br />approximately $72.02 per month, an increase of $1.90 in 2016. <br />A significant portion of the levy increase is necessary to strengthen the City's asset replacement <br />programs. Of the $667,818 levy increase, 60% or $398,000 is set aside for this purpose; with the <br />remainder for day-to-day operations. Absent the increase for asset replacement, the levy increase <br />would have been only 1.5%. <br />It's worth noting that the State of Minnesota provides a number of property tax relief programs that are <br />� designed to offset local tax increases. For 2014, eligibility for homeowners was capped at household <br />incomes of $107,150, while renters were eligible up to an income of $58,060. Depending on household <br />income, residents could potentially receive a partial refund of their increased taxes. This would <br />effectively reduce the tax impacts noted above. <br />POLICY OBJECTIVE <br />Adopting a preliminary budget and tax levy is required under Mn State Statutes. <br />FINANCIAL IMPACTS <br />See above. <br />STAFF RECOMMENDATION <br />Staff Recommends the Council adopt the preliminary 2016 Tax Levy and Budget Levy as outlined in <br />this report and in the attached resolutions. <br />REQUESTED COUNCIL ACTION <br />The Council is asked to take the following separate actions: <br />a) Motion to approve the attached Resolution to adopt the 2016 Preliminary Tax Levy <br />� b) Motion to approve the attached Resolution to adopt the 2016 Preliminary Debt Levy <br />� c) Motion to approve the attached Resolution to adopt the 2016 Preliminary Budget <br />Prepared by: Chris Miller, Finance Director <br />Attachments: A: Resolution to adopt the 2016 Preliminary Tax Levy <br />B: Resolution to adopt the 2016 Preliminary Debt Levy <br />C: Resolution to adopt the 2016 Preliminary Budget <br />D: Summary of the City Manager Recommended Tax Levy Changes <br />Page 2 of 7 <br />