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24 <br /> MEMORANDUM <br /> DATE: September 1, 2000 <br /> TO: Mike Mornson, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: CERTIFICATION OF PROPOSED LEVY <br /> By September 15, 2000 each "taxing authority" must adopt a proposed budget for <br /> payable 2001 and certify a proposed property tax levy to the County Auditor. <br /> On July 25th the City Council held a work session to discuss the proposed budget. <br /> Based on those discussions, staff adjusted the budget to reflect a line item.for Budget <br /> Reserves of$112,000 and keep the levy at $1,763,475. To accomplish this, most <br /> budgets were adjusted downward and prepared by taking the 1999 actuals and adding a <br /> 3% increase for 2000 and another 3% for 2001. <br /> The proposed increase in.the levy is as follows: <br /> 2000 Levy $1,646,970 <br /> Add: <br /> Inflationary increase 2.92% $ 48,130 <br /> Village Fest contribution $ 5,000 <br /> Park Maintenance Employee $ 26,900 <br /> Civil Defense Increase $ 2,000 <br /> Fire Protection Increase 34,475 <br /> 2001 Levy $1,763,475 (7.07%) <br /> The next step in the process is to calculate the impact the levy increase has on the tax <br /> rate and ultimately St. Anthony taxpayers. To determine the tax rate, the levy (less <br /> fiscal disparities) is divided by the total tax capacity or valuation of the City. The <br /> information should be available from Hennepin County between September 20' and <br /> October 1". <br /> In preparing last year's calculation, the tax rate dropped 1.852% due to a $23,570 <br /> increase in Fiscal Disparities and a 6.7% increase in St. Anthony's Total Tax Capacity <br /> ($4,820,500 to $5,141,361). The net result was that taxes on a property valued at <br /> $118,000 in 1999 (average valuation in `99) with a valuation increase to $125,000 <br /> • (average valuation in 2000) remained the same. For properties with no valuation <br /> increase, property taxes went down. <br />