09-09-2020 Workshop Packet - Laserfiche WebLink

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and IT services since it is cost-effective to do so. This 2021 budget proposal continues to provide these services through annual or multi-year contracts. Community Trends According to the latest estimate from the Metropolitan County, the population of Little Canada as of April 1, 2019 is 10,580 living in 4,694 households. The Ramsey County Assessor determines the market value for all property in the City. It is this market value that is applied to the class rates assigned by the State and is used to determine a property’s taxable value. The County estimates the City’s taxable value for taxes payable in 2021 is $12,954,828, which is a 10.52% increase. Fiscal disparities is a tax-base sharing program in the metro area. It reduces large differences in property tax wealth between communities with a lot of commercial-industrial tax base and those with little. The goal of the program is to promote orderly and efficient growth, improve equity, strengthen economic competitiveness, and encourage land uses that protect the environment and increase livability. •Contributions to the shared pool are based on 40% of the growth in commercial, industrial, and public utility property tax base since 1971. •Distributions of the shared pool are based on market value of all property tax per person, compared to the average market value per person. Cities with less market value wealth per capita receive a larger distribution from the pool than cities with greater market value wealth per capita. Taxable Value Comparison Payable 2020 Preliminary Payable 2021 2020 to 2021 % Change Real Estate $14,166,929 $15,506,834 9.46% Personal Property 189,565 225,343 18.87% Subtotal 14,356,494 15,732,177 9.58% Less: Fiscal Disparity Contribution (2,087,178) (2,053,908) -1.59% Less: Tax Increment (547,681) (723,441) 32.09% Total $11,721,626 $12,954,828 10.52% The City’s property tax levy is divided by the taxable value to determine the City’s tax rates, which is applied to each property’s tax capacity to determine that property’s City property tax amount before any credits are applied. Between 2020 and 2021, the City’s tax rate is expected to decrease from 25.773 to 23.923 (-7.18%). Ramsey County produces a report that measures the percentage change in estimated market for value for residential homestead properties from year to year. Overall, residential property in Ramsey County increased in value by 5.3%. Little Canada median value home experienced a 5.5% increase in value from $277,800 to $293,000. This compares with an 8.6% increase from 2019 to 2020. DRAFT DOCUMENT -9/3/2020 4