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Inflation is moderate at present. (2 - 2 /2%) The state imposed a 3% levy cap for 2014. The
<br />City's charter cap is less restrictive for 2014 so the City would be subject to the state cap. Both
<br />caps exclude debt service levies and the City cap also excludes capital project levies from
<br />inclusion in the cap calculation. A 1% levy increase would generate an additional $41,814 in tax
<br />revenue. Below is the effect of decertification of TIF district 1 and levy increases of 1, 2, and 3
<br />percent on residential properties for the City levy only.
<br />Sample Estimated Home Tax Impact
<br />City of Mounds View Only
<br />Decertify
<br />TIF 1
<br />2013 2013
<br />2013
<br />2013
<br />2013
<br />2013
<br />Market Taxable 2013
<br />Tax No levy
<br />Tax 1% levy
<br />Tax 2% levy
<br />Tax 3% levy
<br />Value Value Tax
<br />Increase
<br />Increase
<br />Increase
<br />Increase
<br />$ 50,000 30,000 151
<br />126
<br />128
<br />129
<br />131
<br />100,000 71,800 362
<br />301
<br />305
<br />310
<br />314
<br />150,000 126,300 637
<br />530
<br />537
<br />544
<br />552
<br />200,000 180,800 912
<br />759
<br />769
<br />779
<br />790
<br />250,000 235,300 1,186
<br />987
<br />1,001
<br />1,014
<br />1,028
<br />300,000 289,800 1,461
<br />1,216
<br />1,233
<br />1,249
<br />1,266
<br />350,000 344,300 1,736
<br />1,444
<br />1,464
<br />1,484
<br />1,504
<br />400,000 398,800 2,011
<br />1,673
<br />1,696
<br />1,719
<br />1,742
<br />450,000 450,000 2,269
<br />1,888
<br />1,914
<br />1,940
<br />1,966
<br />Tax
<br />capacity for
<br />Local
<br />local rate
<br />tax rate
<br />Tax Levy
<br />2005
<br />$ 6,679,189
<br />46.966
<br />3,838,994
<br />2006
<br />7,533,462
<br />39.939
<br />3,838,994
<br />2007
<br />8,364,245
<br />37.328
<br />3,838,994
<br />2008
<br />8,574,618
<br />34.962
<br />3,838,994
<br />2009
<br />8,475,755
<br />32.351
<br />3,799,393
<br />2010 7.9% levy increase (Streets)
<br />7,580,259
<br />40.968
<br />4,099,393
<br />2011 2% levy increase (Gen Fund)
<br />7,039,380
<br />41.172
<br />4,181,381
<br />2012 (Mkt. Value Homestead Credit ended)
<br />6,421,849
<br />48.893
<br />4,181,381
<br />2013
<br />6,026,790
<br />50.422
<br />4,181,381
<br />2013 after TIF Dist1 decertified
<br />7,243,491
<br />41.953
<br />4,181,381
<br />2013 after TIF Dist 1 decertified and 1% levy increase
<br />7,243,491
<br />42.530
<br />4,223,195
<br />2013 after TIF Dist 1 decertified and 2% levy increase
<br />7,243,491
<br />43.107
<br />4,265,009
<br />2013 after TIF Dist 1 decertified and 3% levy increase
<br />7,243,491
<br />43.684
<br />4,306,823
<br />The above Is an estimate of the effect on property taxes after TIF District 1 is decertified
<br />Taxes will decline by 16.56%
<br />The City will begin to negotiate all three union contracts (LELS Patrol, LELS Sergeants, Public
<br />Works) for 2014 and 2015, a probable range for a cost of living wage increase is 1 % to 2%. 10
<br />employees will receive step or longevity increases in 2014 of 2% to 10%. The 2013 and 2012
<br />budgets provided 1'/2% wage increases and the 2011 and 2010 budgets provided for no cost of
<br />living wage increase. Health insurance cost increases are not known, we will receive our rate
<br />notice in mid August. The impact to the budget will depend upon union negotiations and the
<br />size of the unknown rate increase. The City's health insurance contribution increased $42.67 in
<br />2013 to $960 per month. The actual premium rate increase was 20% for 2013, 21% for 2012,
<br />and 0% for 2011.
<br />The employer's share of PERA will remain at 7.25% for Coordinated (non -police officer) plan
<br />members, PERA coordinated rates have increased from 5.53% in 2005 to 7.25% in 2013. The
<br />Police plan will increase from 14.4% to 16.2% over two years starting in 2014, police PERA
<br />rates have increased from 9.3% in 2005 to 15.3% in 2014 and 16.2% by 2015. The Police
<br />PERA increase will add $13,280 in 2014 and $13,545 in 2015.
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