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11TA91 ti '0 t . .law DATE: November 15, 2008 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director The proposed general fund levy for collectible 2009 taxes totals $2,945,511 and represents a 5.31 % increase from last years levy. The infrastructure/road improvement levy totals $1,059,596, the lease revenue bonds levy for the new Public Works and Fire buildings totals $399,536, a tax abatement levy of $79,294 (Central and Emerald Park Improvements), and a Public Employees Retirement levy of $7,500 for a total Local Levy of $4,491,437. The 2009 tax rate of 50.328% is based on the amount of St. Anthony's total Local Levy, less the City's distribution from the Fiscal Disparities pool ($560,078) and then dividing the total local levy by current valuation estimates from Hennepin and Ramsey Counties ($7,811,945). In early November, Truth -in -Taxation statements were mailed to St. Anthony residents and reflect an increase in the property tax rate of 4.704% for collectible 2009 taxes. The City's general operating levy increased $148,611; the road improvement levy increased $91,565; the public facilities levy increased by $5,119; and the tax abatement levy increased $51,554. Combining the factors that contribute to the amount of property taxes paid (the levy increases for the general fund; road improvements and tax abatement; and a residential property market that has declined) most residential properties will see an increase in their 2009 "City" property taxes. A percentage breakdown of the "decrease or increase" in property taxes for St. Anthony residential properties is as follows: 1) 1.02% will decrease in 2009. 2) 16.24% will experience an increase of less the 5.0%. 3) 33.13% will increase between 5.0% - 9.9%. 4) 45.49% will increase between10.0% - 14.9% increase. 5) 4.12% will be greater than 15.0% 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 2009 the residential market has slowed down considerably. The average taxable valuation decreased in 2009 compared to 2008 which means some of the burden will shift back to commercial/industrial taxes. 16