The City of Arden Hills Truth-In-Taxation Hearing: December 8, 2014 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 2015 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 11.5% from Pay 2014 to Pay 2015. ($264,700 to $295,100) Estimated % Change in Tax on Median Valued Home With No Change in Levies County City School Other Total Est $ Change Dist 621 4.30% 6.60% 4.30% 5.00% 4.80% $ 184 Dist 623 4.30% 6.60% 4.80% 5.00% 4.90% $ 180
Problems with your Estimated Market Value? The time to protest your Estimated Market Value was in Spring of 2014 for taxes payable in 2015. In 2014, the assessor determines the value for taxes payable in 2016 and the hearings will be held in the Spring of 2015. The diagram shown on the left was sent with your Proposed Tax Statements detailing this process. You will receive Valuation Notices in March with details on how to appeal any concerns you have with those values.
Programs that may Reduce Your Property Taxes Refunds/Deferrals Available 1. Some homeowners will qualify for a Special Property Tax Refund. To qualify for the special refund, all of the following must be true: You have owned and lived in the same home on both Jan. 2, 2014, and Jan. 2, 2015. The net property tax on your homestead increased by more than 12 percent from 2014 to 2015. The increase was at least $100 and wasn t due to improvements you made to the property. There is no limit on household income for the special refund. You may qualify even if you don t qualify for the regular refund. The maximum special refund is $1,000. 2. Homeowners, with household income under $107,150, can apply for a Regular Property Tax Refund. Higher income limits apply if you have dependents or if you are a senior or disabled. 3. Senior Citizens may qualify to defer a portion of their homestead property taxes to a later time. For details on these Property Tax Refund and deferral opportunities, go to: www.revenue.state.mn.us Or call (651) 296-3781 Market Value Exclusion on Homestead Property of Disabled Veterans If you are a disabled veteran with a 70-100% disability, you may be eligible for a market value exclusion. This exclusion will reduce property taxes for the homesteads of qualifying disabled veterans. Application qualifications and deadline apply. Homestead Applications Due By December 15, 2014 You must contact your County Assessor to file a homestead application if one of the following applies: You are a new owner. You have changed your marital status. You have changed your name. You have changed residence or mailing address. You have added or removed an owner. If you sell, move, or for any reason no longer qualify for the homestead classification, you are required to notify the County Assessor within 30 days of the change in homestead status. Special Homestead Classification (1B) for Persons who are Blind or Permanently and Totally Disabled If you own and occupy a home and are 100% disabled or legally blind, you may qualify for this program. This is in addition to the benefit provided to regular homesteads and will reduce your property taxes. Application qualifications and deadlines apply. For information on any of these topics, go to: www.co.ramsey.mn.us/prr or call, 651-266-2040, or Email: AskHomesteads@co.ramsey.mn.us Supplemental Agricultural Homestead Credit Agricultural homesteads may have received a supplemental agricultural homestead credit in October 2014. This credit was a reduction in property taxes payable in 2014. Minnesota Laws 2014, Chapter 308, Article 1, Section 14
The effect of adding a 5.0% City levy increase on your taxes Actual Proposed % Item Pay 2014 Pay 2015 Change (A) (B) (C) 1. Levy before reduction for state aids $3,257,456 $3,421,950 5.0% 2. State Aids - $0 $0 0.0% 3. Certifed Property Tax Levy = $3,257,456 $3,421,950 5.0% 4. Fiscal Disparity Portion of Levy - $254,738 $248,682-2.4% 5. Local Portion of Levy = $3,002,718 $3,173,268 5.7% 6. Local Taxable Value 10,741,749 11,425,974 6.4% 7. Local Tax Rate = 27.954% 27.772% -0.7% 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 1,052,783,000 1,119,584,100 6.3% 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 2015 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 $350.76 $44.94 $ 3.75 295,100 10,681 284,419 2,844 $789.84 $87.36 $ 7.28 350,000 5,740 344,260 3,443 $956.19 $103.87 $ 8.66 500,000-500,000 5,000 $1,388.60 $135.14 $ 11.26 750,000-750,000 8,125 $2,256.48 $255.53 $ 21.29
Effect of Changes to Parcels in Arden Hills Number of Parcels with % Change in City Tax School Dist. School Dist. 621 623 Total Parcels 2,514 115 Decrease of 0% 686 52 0% - 10% 1,091 38 10% to 20% 619 25 20% to 30% 78 - Greater than 30% 40 - Median % Change 5.50% 2.30% Compared to Surrounding Cities Mounds View 4.90% Roseville 5.30% 7.20% Shoreview 6.80% 1.40% New Brighton 1.90% 9.40% Number of Parcels with Change in Total Property Tax School Dist. School Dist. 621 623 Total Parcels 2,514 115 Decrease or $0 692 52 $1 to $100 280 7 $101 to $200 341 15 $201 to $300 361 8 $301 to $400 325 12 $401 to $500 221 9 Greater than $500 294 12 Median Tax Change $185 $86
Average Yearly Change in Property Taxes from 2008-2015 City Levy % Year Tax Levy Change 2008 $ 2,797,348 4.03% 2009 $ 2,948,646 5.41% 2010 $ 3,016,465 2.30% 2011 $ 3,040,964 0.81% 2012 $ 3,096,994 1.84% 2013 $ 3,191,230 3.04% 2014 $ 3,257,456 2.08% 2015 $ 3,421,950 5.05% Taxes by Property Type Averaged Residential 0.90% Commercial/Industrial -5.00% Apartment -1.20%
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 2015 without referendums is divided as illustrated below Arden Hills represents 23 on the dollar This is before Market Referendums Ramsey Co 48 School District 22 Other Agencies 7
This property value increased 14.81 % over 2014 Arden Hills Taxpayer Arden Hills Taxpayer Property ID No. Looking at your Property Tax Notice Property is valued at $295,100 and tax rate is 1.22957 (122.957% 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 $295,100 - $76,000 = $219,100 $219,100 x 9% = $19,700 Total exclusion is $30,400 - $19,700 = $10,681 Taxable Market Value is $295,100 - $10,681 = $284,400
Calculating you Property Tax This property value increased 14.81 % over 2014 Arden Hills Taxpayer Arden Hills Taxpayer Property ID No. The Taxable Market Value is $284,400 and tax rate is 1.22957 (122.957% of tax capacity) Classification is : Residential Homestead Classification Rate is 1.00 Tax Capacity is $284,400 x.01 = $2,844 Property tax on tax capacity is $2,844 x 1.22957 = $3,497 Voter approved levy rate is.0021864 (0.21864% of market value) Property tax on voter approved levies is 295,100 x.0021864 = $645 Total Property tax is $3,497 + $645 = $4,142 This is excluding special assessments.
What makes up my Tax Rate? This property value increased 14.81 % over 2014 Arden Hills Taxpayer Arden Hills Taxpayer Property ID No. As previously stated, the Tax Rate is 122.957%. As discussed in previous slides, the City s tax rate is 27.751% In this example the taxable capacity of $2,844 x..27751 = $789 The other components of the total tax rate are: School District #621 27.275% #623 17.145% County 58.777% Misc 9.154% 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 0.21864% #623 0.25915%
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Proposed 2015 Taxes The Proposed Levy increase of 5.0% is primarily made up of: Public Safety Cost Increases 2.6% COLA at 2% 0.6% Street Maintenance Costs 1.2% Other costs 0.6% Total 5.0%
Actual Cost of City Services Pay 2015 Property Tax Support for $295,100 Homestead City Service Percent Amount Monthly Category Actual of Levy of Levy Cost General Government Mayor/Council, Administration, Communications, Elections, $1,106,978 26.7% $211 $18 Auditor, Assessor, Legal, Planning Public Safety Building Inspection/Code Enforcement, Court, $1,778,420 42.8% $338 $28 Police Contract, Fire, Ambulance, Human Services, Animal Control Public Works Engineering, Streets, Street $318,834 7.7% $61 $5 Lighting, City Buildings Parks $444,647 10.7% $85 $7 Recreation $257,628 6.2% $49 $4 Transfers $240,000 5.8% $46 $4 Contingency $4,354 0.1% $1 $0 Capital Projects $0 0.0% $0 $0 Totals $4,150,861 100.0% $790 $66
Tax Rate Comparison In comparing the Effective Tax Rate of cities in Ramsey County, Arden Hills ranks 14 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 170.703 1 Gem Lake 153.116 2 Maplewood 152.597 3 St. Paul 151.996 4 Spring Lake Park 149.712 5 North St. Paul 144.062 6 Mounds View 139.361 7 New Brighton 138.105 8 Roseville 136.415 9 Blaine 134.124 10 Shoreview 132.393 11 Little Canada 127.443 12 White Bear Lake 123.358 13 Arden Hills 122.957 14 Vadnais Heights 119.897 15 White Bear Township 118.280 16 Lauderdale 113.873 17 Falcon Heights 108.007 18 North Oaks 103.399 19
City Tax Rate Comparison In comparing the City Tax Rate of cities in Ramsey County, Arden Hills ranks 14 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 71.296 1 Gem Lake 60.760 2 Spring Lake Park 52.809 3 Maplewood 46.785 4 St. Paul 43.725 5 New Brighton 42.899 6 Mounds View 42.458 7 Roseville 39.632 8 Blaine 36.105 9 North St. Paul 35.153 10 Shoreview 34.823 11 Little Canada 30.849 12 Lauderdale 28.805 13 Arden Hills 27.751 14 Vadnais Heights 26.888 15 Falcon Heights 23.459 16 White Bear Township 23.074 17 White Bear Lake 20.301 18 North Oaks 10.39 19
2015 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 $ 3,257,456 2.08% 27.954% 0.08% - 2.70% -0.62% 2015 $ 3,421,950 5.05% 27.772% -0.65% - 2.64% 2.41% 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 3.5% New Brighton Up 1.9% Mounds View Up 1.9% Roseville - Up 4.2% Arden Hills Up 5.0% Tax Rate 34.823 Tax Rate 42.899 Tax Rate 42.458 Tax Rate 39.632 Tax Rate 27.751 Note: Both New Brighton and Mounds View received substantial increases in Local Government Aid in 2014, while Shoreview, Roseville and Arden Hills received no Government Aid
The average median household will contribute $786 per year for City services. This translates to $65 per month or $2.15 per day. In 2014, $59 was contributed per month and $1.94 per day. Check Register Description of Transaction Balance Public Safety $28.39 Community Services $17.19 Parks and Recreation $10.97 Public Works $8.93 Capital (transfers) $0.00 Contingency Reserves $0.00 January 1, 2015 City Of Arden Hills 65.48 Fifty-nine and zero cents MONTHLY police, fire, street maintenance, parks, programs etc. Homeowner
2015 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 is returning to normal s the major road construction projects are completed Plan Check Fees and Plan Review Fees are expected to rise due to the TCAAP development and other projects in the City.
Key Budget Elements (continued) General Fund revenues are estimated to be $4,418,832 which is 5.14% over the 2014 final budget and primarily due to the levy increase of 5.05% or $164,494. Utility revenues will increase 1.21% for Water, 1.96% for Sewer, and 2.95% for Surface Water Management. These increases reflect the increases in rates of 2% for Water, 2% for Sewer, and 3% 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%. Compensation Study is currently being completed consultant has recommended a 3% COLA increase based on preliminary results. The proposed budget for Fire Protection has increased by 6.54%. The proposed budget for Police Protection and Animal Control has increased by 4.71%. 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 transfers of: $50,000 for capital reserves to be used for equipment replacement This proposal does not contain a contingency amount but uses $18,998 in reserves to balance the budget.
Key Budget Elements (continued) General Fund expenditures are estimated to be $4,437,830. The General Fund expenditures are primarily due to the Public Safety contract increases of $86,118 and Street Maintenance of $40,000.
Key Budget Elements (continued) Overall, the City s total proposed budget has decreased by $2,726,273 from the final 2014 budget mainly due to construction projects in 2014; General Fund budget has increased by 1.62% as compared to the final 2014 budget. Total Staff in the 2015 budget are 32 FTEs which is a 0.5 FTE increase as the Finance and Administrative Services were cut in 2014.
Key Budget Elements (continued) Salaries and benefits have remained steady as the City pays a flat amount per employee of $699.61 per month. Due to restructuring our benefit packages in 2008, the City has received very favorable rates from the Service Cooperative and premiums have remained relatively flat the last six years with a decrease in 2011 From 2008 2015, the City had a total cumulative increase in contribution rates of 7.96% or $51.61 per month per employee.
Key Budget Elements (continued) Capital Improvement projects budgeted in 2014 include: Springbrook Software Upgrades Technology and Office Equipment Communications Equipment New Voting System Lake Valentine Road Mounts View HS Trail Forestry Implementation Plan Lake Johanna Fire Department Equipment Sewer Lining/Rehabilitation Reconstruction of Lift Station 11 start in 2015 Glenview Neighborhood 2015 PMP Grant Rd./Noble Rd/Fairview Ave/Lake Ln. 2015 PMP Co Rd. E Improvements between Highway 51 and Lexington Ave Regulatory Street Sign Replacement Program MnDOT Bridge Projects Storm Water Repairs Oak Avenue Storm Sewer Repair Valve Replacement Program Hydrant Replacement Program
2015 Proposed Revenues $13,582,393 Internal Serv Funds 6.8%, $925,819 Enterprise Funds 35.9%, $4,877,177 General Fund 32.5%, $4,420,832 Capital Funds 17.6%, $2,385,765 Special Revenue Funds 5.1%, $687,900 Debt Service Funds 2.1%, $284,900
2015 Proposed Expenditures $17,829,554 Internal Serv Funds 6.8%, $925,819 Enterprise Funds 35.9%, $4,877,177 General Fund 32.5%, $4,420,832 Capital Funds 17.6%, $2,385,765 Special Revenue Funds 5.1%, $687,900 Debt Service Funds 2.1%, $284,900
2015 Proposed General Fund Revenue Charges for Services 10.1%, $447,629 Intergovernmental Revenues 2.8%, $125,328 Fines & Forfeits 0.9%, $38,740 Special Assessments 0.1%, $3,000 Miscellaneous 1.8%, $80,355 Property Taxes $3,452,050 Licenses & Permits $273,730 Intergovernmental Revenue $125,328 Licenses and Permits 6.2%, $273,730 Charges for Services $447,629 Fines & Forfeits $38,740 Special Assessments $3,000 Miscellaneous Receipts $80,355 Taxes 78.1%, $3,452,050 Total Proposed Revenue $4,420,832
2015 Proposed General Fund Expenditures Celebrating Arden Hills 0.0%, $0 Reserves/Contingency 0.0%, $0 Recreation 5.4%, $239,654 Park Maint 11.3%, $503,587 Transfers 1.8%, $80,000 Mayor & Council 2.0%, $89,654 TCAAP 7.5%, $329,340 Administration 6.4%, $285,873 Elections 0.5%, $23,000 Finance & Admin Services 3.9%, $173,951 Planning & Zoning 4.6%, $202,913 MAYOR & COUNCIL $89,654 ELECTIONS $23,000 ADMINISTRATION $285,873 FINANCE & ADMIN SERV $192,118 TCAAP $160,071 PLANNING & ZONING $202,913 GOVT. BUILDINGS $211,401 POLICE & ANIMAL CONTROL $1,087,872 DISPATCH $69,468 FIRE PROTECTION $459,179 EMERGENCY MGMT $13,542 PROTECTIVE INSPECTION $294,246 Street Maint 11.8%, $525,222 Protective Insp 6.6%, $294,246 Police & Animal Control 24.5%, $1,087,872 Gov't Bldgs 4.8%, $211,401 STREET MAINTENANCE $525,222 PARK MAINTENANCE $503,587 RECREATION $239,654 CELEBRATING ARDEN HILLS $0 Emergency Mgmt 0.3%, $13,542 Fire Protection 10.3%, $459,179 Dispatch 1.6%, $69,468 CONTINGENCY $0 OPERATING TRANSFERS OUT $80,000 Total General Fund Expenditures $4,437,800
City of Arden Hills Expenditures 2012-2015 $4,500,000 $4,400,000 General Fund $4,300,000 $4,200,000 $4,100,000 $4,000,000 $3,900,000 2012 Actual 2013 Actual 2014 Budget 2015 Proposed 2012 Actual $4,110,023 2013 Actual $4,086,632 2014 Budget Amended $4,367,265 2015 Proposed $4,437,830 All Funds $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- 2012 Actual 2013 Actual 2014 Budget 2015 Proposed 2012 Actual $10,743,837 2013 Actual $13,129,602 2014 Budget Amended $15,103,281 2015 Proposed $17,829,554
General Fund Expenditure Comparison 2012 2015 Actual Actual Budget Amended Proposed % Change FY 2012 FY 2013 FY 2014 FY2014 FY 2015 14 vs 15 Expenditures by Department Mayor & Council $ 70,212 $ 68,213 $ 82,419 $ 82,419 $ 89,654 8.78% Elections 17,276 17,317 18,910 18,910 23,000 21.63% Administration 302,107 289,955 296,009 296,009 285,873-3.42% Finance & Administrative Services 149,850 177,712 167,250 167,250 192,118 14.87% TCAAP 41,571 7,037 307,321 116,099 160,071 37.87% Planning & Zoning 171,871 194,931 240,595 240,595 202,913-15.66% Government Buildings 207,130 215,138 210,798 210,798 211,401 0.29% Police & Animal Control 987,210 1,023,115 1,039,029 1,039,029 1,087,872 4.70% Dispatch 49,219 52,067 60,352 60,352 69,468 15.10% Fire Protection 392,869 414,541 431,006 431,006 459,179 6.54% Emergency Management 9,308 5,161 15,496 15,496 13,542-12.61% Protective Inspections 290,062 284,664 279,998 279,998 294,246 5.09% Street Maintenance 377,101 391,712 469,593 469,593 525,222 11.85% Park Maintenance 441,883 455,409 492,112 492,112 503,587 2.33% Recreation 217,912 218,721 235,181 235,181 239,684 1.91% Celebrating Arden Hills 19,487 940 - - - 0.00% Reserves/Contingency - - - - - 0.00% Transfers 364,955 270,000 50,000 212,417 80,000-62.34% Capital Outlay - - - - - 0.00% Other Financing Uses (TCAAP) - - 15,000 - - 0.00% Total Expenditures $ 4,110,023 $ 4,086,632 $ 4,411,070 $ 4,367,265 $ 4,437,830 1.62%
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