Agenda Packets - 2006/01/09 - Laserfiche WebLink

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Mounds View City Council December 5, 2005 Truth in Taxation Meeting Page 3 1 Finance Director Beer presented a pie chart identifying the General Fund revenues, noting 2 property taxes makes up the largest percentage at 66%, other taxes at 6%, licenses and permits at 3 3%, intergovernmental revenues at 5%, other revenues at 3%, and transfer from other funds at 4 17%. He explained how you would go about calculating your property taxes, noting the chart 5 available from Ramsey County does not include the homestead credit calculation which is spread 6 to all entities within the County. 7 8 Finance Director Beer showed a slide of the sample home tax impact which shows that for a 9 home valued at $103,500 in 2005, the City tax would be $351.58. After Ramsey County 10 increased market values by 15%, that same home would valued $119,025 with a City tax of 11 $370.88 or a difference of $19.30. This change between the two years is an increase of less than 12 4%. The City’s tax rate in 2005 was 46.966 and is proposed to be 39.688 in 2006, or a 7.278 13 drop from the previous year equaling a 15.5% decrease in the rate. In Mounds View, the median 14 taxable value in 2005 was $162,300 and in 2006 will be $186,600, an increase of $24,300 or 15 15%. He advised this is the second year in a row that the City has experienced a 15% increase in 16 taxable market values. 17 18 Finance Director Beer drew the Council’s attention to a recent Star Tribune article that looked at 19 all counties and cities within those counties and the proposed tax rate. In the article, the Mounds 20 View proposed rate was at 8% but that has now been reduced to 0% for 2006. The article 21 projected that the City taxes would go up $314 including the county, school district, and 22 miscellaneous taxing districts. However, once you factor in the lower rate of a 0% increase, the 23 taxes would go down to a $290 increase. 24 25 Finance Director Beer advised that in 2006 of every property tax dollar paid in Mounds View, 26 32.04 cents would go to Mounds View, 36.01 cents to Ramsey County, 27.19 cents to the school 27 district, and 4.76 cents to the other taxing districts. He advised that in 2005, for every property 28 tax dollar paid in Mounds View 33.5 cents went to Mounds View, 35.8 cents went to Ramsey 29 County, 26.1 cents went to the school district, and 4.7 cents went to the other taxing districts. 30 31 Finance Director Beer displayed a slide showing the per capita tax for Mounds View and 32 surrounding cities. He pointed out that Mounds View is ranked the third lowest at $298.35 per 33 capita tax. 34 35 Finance Director Beer stated some significant items that have impacted Mounds View’s budget 36 are a reduction in Local Government Aid (LGA) to the City by $477,000 in 2004, $301,000 in 37 2005, and $122,000 in 2006. At one time this made up 19% of the General Fund budget and now 38 equals 0%. He stated the Council has done an admirable job in making this budget adjustment. 39 This has been the driving force behind recent levy increases. For 2006 insurance savings, other 40 expenditure reductions, having no major constructions projects, and the sale of the golf course 41 property has allowed the City to propose no levy increase. He noted that in 2004 a voter 42 referendum approved the addition of two police officers. There was also new contracts for 43 copiers, phone service, and uniforms that reduced costs. He noted land was decertified from TIF 44 Districts which increased the tax base and there was a 2004 street project. 45