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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 />c 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% resulting in an impac� of only $0.19 per month. <br />�� <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 OBJECTNE <br />� Establishing long-term financial plans and planning processes is consistent with municipal best <br />T; � practices as well as the goals and objectives established by the City Council. <br />FINANCIAL IMPACTS <br />Not applicable. <br />STAFF RECOMMENDATION <br />Not applicable. <br />REQUESTED COUNCIL ACTION <br />For information purposes only. No formal Council action is required. <br />Prepared by: Chris Miller, Finance Director <br />Attachments: A: 2016 Budget Reconciliation <br />B: 2016 Budget Summary Schedules <br />Page 7 of 7 <br />