2008 Budget Book - Laserfiche WebLink

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MEMORANDUM DATE: November 15, 2007 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: TAX RATE CALCULATION AND IMPACT The proposed general fund levy for collectible 2008 taxes totals $2,796,900 and represents a 5.12% increase from last years levy. The infrastructure/road improvement levy totals $968,031, the lease revenue bonds levy for the new Public Works and Fire buildings totals $394,417, a tax abatement levy of $27,740 (funding for Central Park Improvements), and a Public Employees Retirement levy of $7,500 for a total Local Levy of $4,194,588. The 2008 tax rate of 45.618% is based on the amount of St. Anthony's total Local Levy, less the City's distribution from the Fiscal Disparities ($477,995) pool and then dividing the total local levy by current valuation estimates from Hennepin and Ramsey Counties ($8,147,746). In early November, Truth -in -Taxation statements were mailed to St. Anthony residents and reflect a decrease in the property tax rate of 0.181 % for collectible 2008 taxes. The City's general operating levy increased $136,100 and road improvement levy increased $82,197. Combined the levy increases with a residential property market that is becoming somewhat flat, 80.8% of residential properties will either see a decline or an increase of less than 5% in their property taxes. A percentage breakdown of the "decrease or increase" in property taxes for St. Anthony residential properties is as follows: 1) 36.37% will decrease in 2008. 2) 44.43% will experience an increase of less the 5.00%. 3) 11.03% will increase between 5.00% - 9.90%. 4) 8.17% will be higher than a 10% increase. For the past few years, residential property values have significantly increased while commercial and industrial properties have not experienced these rapid increases. The net result for those years was that a greater portion of the tax burden shifted to residential properties causing them to pay a larger portion of the tax levy. For collectible 2008 the residential market has slowed down considerably. 16