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— City Manager's 2006 Budget Recommendations Thursday, October 2 0. 2 0 0 5 Let me give a simple example. In percentage terms, if you increase one dollar by one dollar, you have a 100% increase; two dollars is 100%more than one dollar. But in real terms, $2 is just $lmore than $l. Yes, it is a 100% increase, but its only an increase in real terms of $l. The point is you need to look at changes in numbers in real, absolute terms not just in percentage terms. And here are some examples of what I mean in the context of Roseville property taxes: — • If the Council chose not to increase Roseville's property tax levy at all in 2006, Roseville property taxes per household would actually decrease _ This is because new tax base is created each year and the total assessed _ value of some property in the City increases each year. Therefore, on av- — erage less tax from each household is necessary to create the same total tax — levy in 2006 as in 2005. Hence, when the City's levy increase is 0%, City taxes actually fa1L (Note: This assumes the Ramsey County Assessor does not negate this decrease by increasing the assessed value of your property relative to other property. But even if the Ramsey Assessor in- creases the value of your property, how your taxes are impacted depends on how much your property value changes relative to other property in Roseville; your Roseville property taxes could still fall if your assessed value is increased less relative to the increase in assessed value of other Roseville property.) • ff the Council chose to increase Roseville's property tax levy by 5% in - 2006, taxes on the average Roseville home would increase approximately $20 over the course of a year -- or roughly $1.50 more in taxes each month. Yes, the property �ax levy is ir�creasing_5%; but,it,is 5% of a relatively '�; small number ( approximately $400) �� ; hence, the actual impact annu- ally or monthly is also small -- $20 per year or $1:5D per month: ff the Council chose to increase Roseville's property tax levy by 10% in 2006, taxes on the average Roseville home would increase approximately $34 over the course of a year – or roughly $3 more per household per month. If the Council chose to increase Roseville's property tax levy by 15% in 2006, taxes on the average Roseville home would increase approximately $41 over the course of the year – or roughly $4.50 more per household F�r month. Even though Roseville has low taxes, and percentage increases on that low num- ber produces a relatively small increase, Roseville residents do not have low me- dian incomes. The median per capita income of Roseville residents is higher than average as compared with other cities in the Twin Cities metropolitan area. Here are the data. —�