The City of Arden Hills Truth-In-Taxation Hearing: December 9, 2013 Mayor David Grant Council Members Brenda Holden, Fran Holmes, Ed Werner, and Dave McClung City Vision Arden Hills is a strong community that values our unique environment setting, strong residential neighborhoods, vital business community, well maintained infrastructure, fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play.
Why Your Property Tax Bill Varies from Year to Year Market value changes Budgets and levies of various jurisdictions Special Assessments Voter approved referendums Changes in Federal and State mandates Changes in aid and revenue from State and Federal governments State Legislative changes
Statutory Formulae Conversion of Estimated Market Value (EMV) to Net Tax Capacity for Major Property General Classification Classifications Market value is set in spring by assessor and approved at the Board of Appeal and Equalization (April May) Net Tax Capacity Levy Year 1999 Net Tax Capacity Levy Year 2000-2001 Net Tax Capacity Levy Year 2002-2014 Residential First $75,000 of EMV at 1%. EMV excess of $75,000 at 1.7% First $76,000 of EMV at 1%. EMV in excess of $76,000 at 1.65% First $500,000 of EMV at 1%. Over $500,000 at 1.25% Residential Non-Homestead 2.5% of EMV 2.4% of EMV 1.8% of EMV Agricultural Land: First $115,000 of EMV on first 320 acres at.35%. EMV in excess of $115,000 on first 320 acres at.8%. EMV in excess of $115,000 over 320 acres at 1.25% First $115,000 of EMV on first 320 acres at.35%. EMV in excess of $115,000 on first 320 acres at.8%. EMV in excess of $115,000 over 320 acres at.80%. First $600,000 of EMV at.55%. Over $600,000 at 1%. Non-Homestead 1.25% of EMV 1.20% of EMV 1% of EMV Commercial/ Industrial First $150,000 of EMV at 2.45%. EMV in excess of $150,000 at 3.5% First $150,000 of EMV at 2.4%. EMV in excess of $250,000 at 3.4%. First $150,000 of EMV at 1.5%. EMV in excess of $150,000 at 2%.
Changes in market values for 2014 Market values of your and other properties in your taxing district may change, shifting taxes from one property or class to another. The median market value on a single family home in Arden Hills increased by 2.8% from Pay 2013 to Pay 2014. ($257,400 to $264,700) Total residential values (including Townhomes, Condos, etc.) increased by 1.78% Apartment values increased by 8.43% Commercial/Industrial values fell by 3.69%
Problems with your Estimated Market Value? The time to protest your Estimated Market Value was in Spring of 2013 for taxes payable in 2014. In 2013, the assessor determines the value for taxes payable in 2015 and the hearings will be held in the Spring of 2014. You will receive Valuation Notices in March with details on how to appeal any concerns you have with those values. The diagram shown on the left was sent with your Proposed Tax Statements detailing this process.
The effect of adding a 3.1% City levy increase on your taxes Actual Proposed % Item Pay 2013 Pay 2014 Change (A) (B) (C) 1. Levy before reduction for state aids $3,191,230 $3,289,027 3.1% 2. State Aids - $0 $0 0.0% 3. Certifed Property Tax Levy = $3,191,230 $3,289,027 3.1% 4. Fiscal Disparity Portion of Levy - $240,789 $254,738 5.8% 5. Local Portion of Levy = $2,950,441 $3,034,289 2.8% 6. Local Taxable Value 10,563,169 10,741,749 1.7% 7. Local Tax Rate = 27.931% 28.248% 1.1% 8. Market Value Referenda Levy $0 $0 0.0% 9. Fiscal Disparity Portion of Levy (SDs only) - $0 $0 0.0% 10. Local Levy = $0 $0 0.0% 11. Referenda Market Value 1,035,471,700 1,055,008,700 1.9% 12. Market Value Referenda Rate = 0.00000% 0.00000% 0.0% Taxable Taxing Market Homestead Taxable District Value Exclusion Market Tax Net B/4 Credit Credit Value Capacity Tax Proposed Pay 2014 Pay 2013 MV 76,000@.40% 500,000@1.0% (B7 x G) + Total Change X 0.988 - rem up to 413799 @.09% (D - E) rem @ 1.25% (B12 x D) Annual Increase Monthly incr. Estimated Tax District rate as % of total rate: 150,000 23,740 126,260 1,263 $356.77 $16.57 $ 1.38 264,700 13,417 251,283 2,513 $709.87 $30.03 $ 2.50 350,000 5,740 344,260 3,443 $972.58 $39.96 $ 3.33 500,000-500,000 5,000 $1,412.40 $53.84 $ 4.49 750,000-750,000 8,125 $2,295.15 $96.98 $ 8.08
Who collects your tax dollars? Your total property tax based on levies and tax rate is divided as illustrated below Your total property tax bill in 2013 with referendums is divided as illustrated below Arden Hills represents 21 on the dollar This is before Market Referendums Ramsey Co 49 School District 23 Other Agencies 7
Arden Hills Taxpayer Arden Hills Taxpayer Property ID No. Arden Hills Taxpayer Property ID No. Looking at your Property Tax Notice Property is valued at $256,100 and tax rate is 1.31468 (131.468% of tax capacity) Classification is : Residential Homestead Market Value Exclusion is calculated by taking 40% of the first $76,000 of the taxable market value $76,000 x 40% = $30,400 The credit is then reduced by 9% of taxable market value over $76,000 $256,100 - $76,000 = $180,100 $180,100 x 9% = $16,200 Total exclusion is $30,400 - $16,200= $14,200 Taxable Market Value is $256,100 - $14,200 = $241,900
Arden Hills Taxpayer Arden Hills Taxpayer Arden Hills Taxpayer Property ID No. Arden Hills Taxpayer Property ID No. Calculating you Property Tax The Taxable Market Value is $241,900 and tax rate is 1.31468 (131.468% of tax capacity) Classification is : Residential Homestead Classification Rate is 1.00 Tax Capacity is $241,900 x.01 = $2,419 Property tax on tax capacity is $2,419 x 1.31468 = $3,180 Voter approved levy rate is.0021045 (0.21045% of market value) Property tax on voter approved levies is 256,100 x.0021045 = $540 Total Property tax is $3,180 + $540 = $3,720 This is excluding special assessments.
Arden Hills Taxpayer Arden Hills Taxpayer Arden Hills Taxpayer Property ID No. Arden Hills Taxpayer Property ID No. What makes up my Tax Rate? As previously stated, the Tax Rate is 131.468%. As discussed in previous slides, the City s tax rate is 28.236% In this example the taxable capacity of $2,419 x.28236= $683 The other components of the total tax rate are: School District #621 29.667% #623 23.301% County 63.743% Misc 9.822% All districts added together comprise the total tax rate. You must also take into account any referendums which are based on the market rates of: #621 0.21045% #623 0.09604%
What Does The Sales Tax Handout I received Mean? The 2013 Legislature exempted counties and cities from most state sales and use taxes starting in 2014. As a requirement of this exemption, counties and cities are required to show what the average savings would be based on 2012 actual figures. Effects on Arden Hills The figure shown, (84,861) is all funds, including construction and capital funds. Actual amount really attributed to the General Fund against Tax Levy is only about $12,000. The City took a conservative approach and reduced its budget by $10,000 in the General Fund to reflect estimated savings. The remaining savings will be seen in construction, capital, internal service, and enterprise funds which are not supported by Tax Levy.
Proposed 2014 Taxes The Proposed Levy increase of 3.1% is primarily made up of: Public Safety Cost Increases 1.6% COLA 0.2% Other costs 1.3% Total 3.1%
Actual Cost of City Services Pay 2014 Property Tax Support for $264,700 Homestead City Service Percent Amount Monthly Category Actual of Levy of Levy Cost General Government Mayor/Council, Administration, Communications, Elections, $1,341,136 30.4% $216 $18 Auditor, Assessor, Legal, Planning Public Safety Building Inspection/Code Enforcement, Court, $1,826,000 41.4% $293 $24 Police Contract, Fire, Ambulance, Human Services, Animal Control Public Works Engineering, Streets, Street $469,593 10.6% $75 $6 Lighting, City Buildings Parks $492,247 11.2% $79 $7 Recreation $235,258 5.3% $38 $3 Transfers $50,000 1.1% $8 $1 Reserves $0 0.0% $0 $0 Capital Projects $0 0.0% $0 $0 Totals $4,414,234 100.0% $709 $59
Tax Rate Comparison In comparing the Effective Tax Rate of cities in Ramsey County, Arden Hills ranks 12 out of 19 The Effective Tax Rate is the rate combined from all taxing authorities Note these are the adopted Preliminary Rates that were set in September Tax Rate Rank St. Anthony 183.910 1 St. Paul 163.667 2 Spring Lake Park 162.789 3 Maplewood 162.780 4 North St. Paul 152.174 5 Mounds View 150.283 6 New Brighton 148.781 7 Roseville 144.912 8 Gem Lake 143.851 9 Shoreview 143.229 10 White Bear Lake 131.558 11 Arden Hills 131.468 12 Little Canada 130.343 13 Vadnais Heights 130.241 14 White Bear Township 128.668 15 Lauderdale 126.085 16 Blaine 125.102 17 Falcon Heights 120.882 18 North Oaks 111.826 19
City Tax Rate Comparison In comparing the City Tax Rate of cities in Ramsey County, Arden Hills ranks 15 out of 19 The City Tax Rate is the local portion of the levy after state aids. Note these are the adopted Preliminary Rates that were set in September Tax Rate Rank St. Anthony 75.143 1 Spring Lake Park 57.388 2 Maplewood 49.476 3 Gem Lake 46.490 4 St. Paul 46.147 5 New Brighton 45.549 6 Mounds View 44.791 7 Roseville 40.052 8 Shoreview 37.474 9 Blaine 36.302 10 North St. Paul 36.134 11 Little Canada 31.299 12 Lauderdale 29.999 13 Vadnais Heights 29.351 14 Arden Hills 28.236 15 White Bear Township 25.436 16 Falcon Heights 24.796 17 White Bear Lake 21.140 18 North Oaks 10.935 19
2014 Proposed City Tax Levy Changes: Comparison By Surrounding Cities (As of Preliminary Levies)
Arden Hills History of Levy Changes % % % of Levy % of Levy Remaining Year Tax Levy Change Tax Rate Change MVHC Public Safety Levy 2002 $ 2,201,002-25.092% - 2003 $ 2,265,712 2.94% 23.930% -4.63% 2004 $ 2,333,337 2.98% 23.367% -2.35% 2005 $ 2,440,453 4.59% 21.299% -8.85% 2006 $ 2,537,520 3.98% 20.191% -5.20% 2007 $ 2,688,944 5.97% 20.206% 0.07% 2008 $ 2,797,348 4.03% 19.585% -3.07% 2009 $ 2,948,646 5.41% 20.520% 4.77% - 13.10% -7.69% 2010 $ 3,016,465 2.30% 22.647% 10.37% 1.10% 2.10% -0.90% 2011 $ 3,040,964 0.81% 24.180% 6.77% 2.00% 1.80% -2.99% 2012 $ 3,096,994 1.84% 25.544% 5.64% - 1.50% 0.34% 2013 $ 3,191,230 3.04% 27.931% 9.34% - 1.83% 1.21% 2014 $ 3,289,027 3.05% 28.248% 1.13% - 1.63% 1.42% Legislative changes to the MVHC program effected 2010 and 2011, the majority of the increases in recent years have been due to Public Safety.
Levy Changes Neighboring Cities Shoreview Up 3.3% New Brighton Down 7.0% Mounds View Up 3.2% Roseville - Up 4.6% Arden Hills Up 3.1% Tax Rate 36.474 Tax Rate 45.549 Tax Rate 44.791 Tax Rate 40.052 Tax Rate 28.236 Note: Both New Brighton and Mounds View received substantial increases in Local Government Aid, while Shoreview, Roseville and Arden Hills receive no Government Aid
The average median household will contribute $709 per year for City services. This translates to $59 per month or $1.94 per day. In 2013, $56 was contributed per month and $1.85 per day. Check Register Description of Transaction Balance Public Safety $24.00 Community Services $18.00 Parks and Recreation $10.00 Public Works $6.00 Capital (transfers) $1.00 Contingency Reserves $0.00 January 1, 2012 City Of Arden Hills 59.00 Fifty-nine and zero cents MONTHLY police, fire, street maintenance, parks, programs etc. Homeowner
2014 Key Budget Elements Revenues have been evaluated based on current economic conditions and past trends but this estimate has been conservative as the City is primarily built-out and has some redevelopment and expansion, but cannot be estimated. Revenues are basically expected to relatively remain the same except with some minor adjustments which include: Fines and Forfeits as the City has seen a reduction in this revenue due to the road construction in the City this should return to normal in the future as the major road construction projects are completed Celebrating Arden Hills Donations as this has celebration has been eliminated for the 2014 Budget year. Addition of a County Contribution for TCAAP development of $20,820.
Key Budget Elements (continued) General Fund revenues are estimated to be $4,258,439. Due to the large expenditures and revenues in the TCAAP budget as a result of the Joint Development with the County, staff has removed these for comparison purposes to show the actual change in the budget in 2014 from 2013. The General Fund revenues without the TCAAP project are estimated to be $4,237,619 or 2.6% over the 2013 final budget and are primarily due to the levy increase of 3.05% or $97,797.
Key Budget Elements (continued) Utility revenues will increase 1.92% for Water, 1.96% for Sewer, and 15.48% for Surface Water Management. These increases reflect the increases in rates of 2% for Water, 2% for Sewer, and 15% for Surface Water Management. These revenues are not expected to fully fund operating and maintenance costs in these funds immediately but have been projected to over time while being sensitive to the increase to our users.
Key Budget Elements (continued) Levy increase is proposed at 3.05%. Salary adjustments as part of COLA/steps budgeted at 2.0%. The proposed budget for Fire Protection has increased by 3.97%. The proposed budget for Police Protection and Animal Control has increased by 2.71%. The proposed budget for 911 Dispatch services has increased by 15.91%.
Key Budget Elements (continued) The proposed budget has kept operating costs relatively flat or slightly decreased unless there have been contract services which have increased. The proposed budget includes expenditures for TCAAP in the TCAAP budget as a result of the Joint Development with the County. These are estimated at $206,222 for 2014. The proposed budget includes transfers of: $50,000 for capital reserves to be used for equipment replacement This proposal does not contain a contingency amount or uses reserves to balance the budget.
Key Budget Elements (continued) General Fund expenditures are estimated to be $4,414,234. Due to the large expenditures and revenues in the TCAAP budget as a result of the Joint Development with the County, staff has removed these for comparison purposes to show the actual change in the budget in 2014 from 2013. The General Fund expenditures without the TCAAP project are estimated to be $4,150,861 or 1.4% over the 2013 final budget and are primarily due to the Public Safety contract increases of $52,130.
Key Budget Elements (continued) Overall, the City s total proposed budget has increased by 8.3% from the final 2013 budget mainly due to construction projects; General Fund budget has increased by 1.38% (without TCAAP) as compared to the final 2013 budget. Total Staff in the 2014 budget are 32 FTEs which is the same as 2013 budget.
Key Budget Elements (continued) Capital Improvement projects budgeted in 2014 include: Central File System Gateway Signs Springbrook Software Upgrades Technology and Office Equipment Communications Equipment City Website Forestry Implementation Plan Perry #3 Fencing Perry #4 Field Renovation Lake Johanna Fire Department Equipment Ridgewood Asbury 2013 PMP West Round Lake Road PMP Glenview Neighborhood 2015 PMP Co. Rd. E Improvement between Hwy. 51 and Lexington Ave. Regulatory Street Sign Replacement Program Lexington Ave. Improvement (I-696 to Co. Road F) Hwy. 96 Sidewalk Improvement 1-694/T.H. 10 Landscaping Reconstruct Lift Station #11 Valve Replacement Program
2014 Proposed Revenues $13,599,031
2014 Proposed Expenditures $15,233,345
2014 Proposed General Fund Revenue Property Taxes $3,319,127 Licenses & Permits $259,873 Intergovernmental Revenue $138,100 Charges for Services $418,767 Fines & Forfeits $31,900 Special Assessments $1,822 Miscellaneous Receipts $88,850 Total Proposed Revenue $4,130,408
2014 Proposed General Fund Expenditures MAYOR & COUNCIL $72,919 ELECTIONS $18,910 ADMINISTRATION $302,901 FINANCE & ADMIN SERV $173,951 TCAAP $329,340 PLANNING & ZONING $232,303 GOVT. BUILDINGS $210,812 POLICE & ANIMAL CONTROL $1,039,029 DISPATCH $60,352 FIRE PROTECTION $431,006 EMERGENCY MGMT $15,497 PROTECTIVE INSPECTION $280,116 STREET MAINTENANCE $469,593 PARK MAINTENANCE $492,247 RECREATION $235,258 CELEBRATING ARDEN HILLS $0 CONTINGENCY $0 OPERATING TRANSFERS OUT $50,000 Total General Fund Expenditures $4,414,234
City of Arden Hills Expenditures 2011-2014 General Fund 2011 Actual $3,817,447 2012 Actual $4,110,023 2013 Budget Amended $4,493,793 2014 Proposed $4,414,234 All Funds 2011 Actual $10,022,425 2012 Actual $10,753,964 2013 Budget Amended $15,909,498 2014 Proposed $15,122,345
General Fund Expenditure Comparison 2011 2014 Actual Actual Budget Amended Proposed FY 2011 FY 2012 FY 2013 FY2013 FY 2014 Expenditures by Department Mayor & Council $ 71,687 $ 70,212 $ 76,371 $ 76,371 $ 72,919 Elections 17,268 17,276 18,000 18,000 18,910 Administration 322,094 302,107 333,017 333,017 302,901 Finance & Administrative Services 131,723 149,850 170,058 170,058 173,951 TCAAP 27,898 41,571 50,000 354,182 314,340 Planning & Zoning 215,913 171,871 249,037 249,037 232,303 Government Buildings 202,552 207,130 210,495 210,495 210,812 Police & Animal Control 939,612 987,210 1,011,663 1,011,663 1,039,029 Dispatch 42,166 49,219 52,067 52,067 60,352 Fire Protection 379,402 392,869 414,541 414,541 431,006 Emergency Management 9,699 9,308 15,464 15,464 15,497 Protective Inspections 269,923 290,062 284,685 284,685 280,116 Street Maintenance 273,165 377,101 318,834 318,834 469,593 Park Maintenance 437,568 441,883 444,647 444,647 492,247 Recreation 204,284 217,912 232,628 232,628 235,258 Celebrating Arden Hills 19,894 19,487 25,000 25,000 - Reserves/Contingency - - 4,354 4,354 - Transfers 252,600 364,955 240,000 270,000 50,000 Capital Outlay - - - - - Other Financing Uses (TCAAP) - - - 8,750 15,000 Total Expenditures $ 3,817,447 $ 4,110,023 $ 4,150,861 $ 4,493,793 $ 4,414,234
Questions? Thank you for attending!