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Home My WebLink AboutTNT Hearing Documents Proposed Levy/Budget Increases The Proposed General Fund Levy for 2002 has increased $379,144 (25 %). There are several expenditure increases that contribute to this increase as well as revenue losses that contribute. Expenditure Increases 1. Insurance increases of 23% $39 2. Salary and benefit increases of 5% $66 3. Sealcoat/Crack Seal increase $72 4. Police squad car $26,500 5. Utility costs increase of 13% $11 6. Fire contract increase of 14% $10.785 Total expenditure increase $22700 Revenue Losses 1. Loss of State Aids (HACA) $79 2. Loss of construction/developer fees $67 3. Loss of TIF admin Fees $10.000 Total revenue loss $156,600 Total budget changes $3839080 ➢ "Truth in Taxation" Changes for Taxes Payable in 2002 only • Truth in taxation hearings are optional • The format of the proposed tax notice is modified due to the short timeframe for implementation. - The prior year tax is shown in total only, not by taxing jurisdiction. Only the proposed 2002 tax is shown by taxing jurisdiction. - Columns for "change due to spending" and "change due to other" are eliminated. - The mailing date is pushed back to December 14. • The requirement to hold a tax rate increase hearing and pass a resolution authorizing an increased tax rate was repealed. ➢ Impact of Class Rate Compression on Washington County's Tax Base The class rate compression and expansion of tiers will have a significant impact on Washington County's tax capacity. 79% of the county's market value is residential homestead, 13% is commerciaVindustrial /utility, 6% is.residential non - homestead, and 2% is agricultural land and seasonal Of the 68,900 residential homesteads in the county, over 98% have a value under 500,000, so the majority will be taxed at 1 %. 99% of the homesteads in the county have a value over 76,000 so much of the value was previously taxed at 1.65 %, which is a reduction of 40 %. The commercial /industrial class rate decrease from 3.4% to 2.0% is a41% reduction. Staff estimates that the class rate reductions wouldecause a 30% decrease in tax capacity. However, factoring in growth of 14% over 2001, staff estimates a net reduction of 19% from pay 2001 tax capacity. Estimated Levy Limits Payable 2002 1. Adjused Levy Limit Base for Payable 2000: 1,725,941 2. Implicit PricE.Deflator Adjustment 1.043 3. Household Growth Adjustment 1.022 4. Adjustment for Payable 2000 Market Value of New CA Construction 1.002 5. Adjusted Levy Limit Base for Payable 2001 (1x2x3x4) 1,843,439 6. New Net Tax Capacity -Based Referendum Levies: 7. 2001 Property Tax Aids a. 2001 Certified Local Government Aid 4,878 b. 2001 Certified H9CA 79,603 c. Total (a +b) 84,481 8. 2000 Tax Rate Excess Tax Increments 0 9. Payable 2001 Overall Levy Limitation (5 +6 =7c -8) 1,758,958 1. Adjusted Levy Limit Base for Payable 2001: 1,843,439 2. Implicit Price Deflator Adjustment 1.033 3. Household Growth Adjustment 1.000 4. Adjustment for Payable 2001 Market Value of New C/I Construction 1.002 5. Adjusted Levy Limit Base for Payable 2002 (1x2x3x4) 1,908,081 6. New Net Tax Capacity -Based Referendum Levies: 7. 2002 Property Tax Aids a. 2002 Certified Local Government Aid 4,880 8. 2001 Tax Rate Excess Tax Increments 0 9. Payable 2002 Overall Levy Limitation (5 +6 -7a -9) , . 1,903,201 OR Estimated Levy Limits Payable 2002 - #2 1. Final Certified Levy for Payable 2001: 1,529,035. 2. 2001 Property Tax Aids a. 2001 Certified Local Government Aid 4,878 b. 2001 HACA 79,603 3. Beginning Levy Limit Base for Payable 2002(1 +2a +3) 1,613,516 4. Implicit Price Deflator Adjustment 1.033 5. Household Growth Adjustment 1.000 6. Adjustment for Payable 2001 Market Value of New C/I Construction 1.002 7. Adjusted Levy Limit Base for Payable 2002 (1x2x3x4) 1,670,096 8. New Net Tax Capacity -Based Referendum Levies: 9. 2001 Tax Rate Excess Tax Increments 0 10. 2002 Certified Local Government Aid 4880 11. Payable 2002 Overall Levy Limitation (8 +9- 10-11) 1,665,216 Proposed Pay 2002 Property Tax Impact Worksheet Taxing District -Oak Park Heights Step 1 - Determine the Taxing District's Tax Rate: Actual_, , - Proposed $ Item Pay 2001 Pay 2002 Amount (A) (B) Increase Increase Levy before reduction for state aids 1 - State Aids (HACA, LGA) 2 _ = Certified Property Tax Levy 3 $1,588,435 $1,959,400 $370,965 23.4% - Fiscal Disparity Portion of Levy 4 $80,831 $80,831 $0 0.0% = Local Portion of Levy 5 $1,507,604 $1,878,569 $370,965 24.6% + Local Taxable Value 6 $6,451,666 $4,515,903 ($1,935,763) -30.0% = Local Tax Rate 7 23.368% 41.599% 18% 78.0% Market Value Referenda Levy 8 - FD Levy (school districts only) 9 = Local Levy 10 + Referenda MV 11 = MV Rate 12 Step 2 - Calculate the Impact of the Taxing District's Tax Rate on Residential Homestead Properties Assuming county average inflationary increase in market value from 2001 to 2002 (8 %) (Taxing District portion of tax only) 13 14 1s 16 17 18 19 20 21 22 axal .af «QN, 4$ X AMBLJ I $270.13 108, 1,08 1 1,1 �r�r $449.2711 $84.7211 $364.5511 $94.4 35.0 150. 1' 1 1 I $462.91 �� 162, „ 1,62 200, 01 $673.901 $71.2211 $602.6811 $139.771 30.2 _ 1. $655.70 216, 2,1601 $898.541 $57.7211 $840.8211 $185.14 28.2 25(3, 3, 831 $848.4811 270, 2,70011 41,123.17, $44.2211 $1,078.95( $2304 27.2 13. - Taxable Market Value of Residential Homestead for Pay 2001 14. - Calculate the Net Tax Capacity of a Residential Homestead for Pay 2001 1st 76,000 of Market Value @ 1.00 %, remainder @ 1.65% 15. - Calculate the taxing district's portion of the Pay 2001 tax multiply the Pay 2001 net tax capacity (14) by the Pay 2001 tax capacity local tax rate (A7), plus multiply the Pay 2001 market value (13) by the Pay 2001 market value local tax rate (A 12) 16. - Taxable Market Value of Residential Homestead for Pay 2002 17. - Calculate the Net Tax Capacity of a Residential Homestead for Pay 2002 1st 500,000 of Market Value @ 1.00 %, remainder @ 1.25% 18. - Calculate the taxing district's portion of the Pay 2002 gross tax before credit muflip/y the Pay 2002 net tax capacity (17) by the Pay 2002 tax capacity local tax rate (B7), plus multiply the Pay 2002 market value (16) by the Pay 2002 market value local tax rate (B12) 19.- Calculate the taxing district's Pay 2002 estimated share of market value homestead credit Calculate total credit. .40% of the first 76,000 of market value, reduced by. 09% on the market value over 76,000 (414,000 receives 0) The credit is apportioned to all taxing districts based on their share of the total tax. Example of 150,000 home: (76,000x.40% Assume the City is 30% bf the total tax, then the city receives 30% of the Credit $237.40 x 30% - $71.22 The actual percentage will vary depending on the combination of county, cityRown, school, and special taxing districts. 20. - Calculate the taxing district's Pay 2002 net tax Proposed 2002 gross tax (18) minus the taxing district's share of credit (19) 21. - Calculate the $ increase /decrease in tax 22. - Calculate the % increase /decrease in tax 2002 Net tax (20) minus the Pay 2001 tax (15) $ Change (21) divided by the Pay 2001 tax (15)