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• <br />FALCON HEIGHTS CITY COUNCIL MINUTES <br />September 8, 2004 <br />Information on Fiscal Disparities <br />-3- <br />Mayor Gehrz said that she asked staff to review the fiscal disparities calculation and estimates <br />for 2006, based on the current year allocation, and the city's tax rate. Staff prepared a prof ection <br />of future fiscal disparities allocations based on the formula used to calculate each city's <br />allocation, and the impact of the city's tax rate on the allocation. Staff also prepared information <br />on how fiscal disparities are collected and allocated. She said it is important to discuss fiscal <br />disparities and what the options are, and she gave a brief power point presentation, outlined <br />below, for the benefit of the City Council and the viewing audience. <br />The 2005 Budgeting Goals: <br />1. Maintain service levels <br />2. No City levy increase <br />3. Use reserves to plug the gap between revenue and expenditures <br />• <br />How are property taxes calculated? <br />Total Revenue: <br />Property Tax: $874,338 <br />Ad Valorem (Taxes <br />on homes and <br />businesses): 716,611 <br />Fiscal Disparities: 157,727 <br />Other Sources: 671,008 <br />Licenses, Fees, Grants, <br />Contracts, Assessments, <br />Reserves <br />Property Tax and Fiscal Disparities <br />• Ad Valorem Tax Calculation <br />$1,545,346 <br />• Tax rate = ad valorem (City levy) divided by the local tax capacity <br />• Limited Market Value x City Tax Rate <br /> <br />• Fiscal Disparities Calculation <br />• City's share of pool x City's prior year tax rate =fiscal disparity amount <br />3 <br />