HomeMy WebLinkAboutBaytown Annexation-Phase In TO G
3 �G� " WASHINGTON COUNTY., @ m ry
AUDITOR- TREASURER'S OFFICE I !
14949 62ND STREET NORTH P.O. BOX 6 • STILLWATER, MINNESOTA 55092EOb06 �IJt7 fg�U �p I�
a ppp6PE5 FAX: (651) 430 -6178 IV
WRITER'S DIRECT DIAL: (651) 430 -6195 EMAIL: HelmJ @co.washington.mn.us
Administration Elections Finance- Taxation Land Records
430 -6181 430 -6188 430 -6175 430 -6183
August 3, 1998
Judy Holst
Finance Director
City of Oak Park Heights
1416857 th Street North - P.O. Box 2007
Oak Park Heights, MN 55082
Judy:
The Auditor - Treasurer's Office has processed 2 annexations this year involving property annexed from
Baytown to Oak Park Heights. Both annexations provided for a phase in of the tax rate over 6 years, but
did not give a specific schedule for accomplishing this. I came up with one that would phase in the rate
from Baytown's Pay 98 tax rate to Oak Park Heights' Pay 98 tax rate in approximately even increments
over 6 years. I would like you to review it and see if what I came up with is what the city intended:
Baytown Pay 1998 Tax Rate 5.479%
Oak Park Heights Pay 1998 Tax Rate 26.363%
Baytown rate as a % of Oak Park Heights 21%
Annual % increase to reach 100% in 6 years 13%
Proposed Tax Rate Phase in schedule: 1999 34%
2000 47%
2001 60%
2002 74%
2003 87%
2004 100%
I thought it might also be helpful to go over how this phase in affects the tax rate calculations. Basically,
the value of the parcels in the annexation area is multiplied by the phase in percentage to arrive at an
adjusted value. The adjusted value is used to calculate the tax rate for all funds except debt. The tax rate
is then multiplied by the adjustment factor to come up with the tax rate for the annexation area parcels.
This adjustment is only done for non -debt funds; there is no reduction for debt levies. I have enclosed a
spreadsheet which gives an example of the calculations (values are hypothetical).
I hope this isn't too confusing! Please give me a call if you have any questions, or if you would like to
make a change to the phase in schedule.
Sincerely,
Joanne Helm
Property Management Program Coordinator
LICENSE CENTERS: Forest Lake 430 -8280 • Stillwater 430 -6176 • Woodbury 731 -5780
Washington County does not discriminate on the basis of race, color, national origin, sex, religion, age, and handicapped status in employment or the provision of services.
Impact of Phase in of Tax Rate due to Annexation
on Tax Rate Calculation
Example of impact on values
Values are compiled by "unique taxing area" and adjusments
are made for annexation phase ins.
Oak Park Heights now has 7 "unique taxing areas" due to
the combination of watershed districts, storm sewer district, and
annexation tax rate phase ins:
Local Pay 1999 Adjusted
Tax Annexation Tax
District Code Capacity Adjustment Capacity
(A) x (B)
_ (A) (B) (c)
6101 Oak Park Heights 1,910,676 100% 1,910,676
6102 Oak Park Heights/VBWS 18,610 100% 18,610
6103 Oak Park Heights•Stm Swr 3,048,354 100% 3,048,354
6104 Oak Park Heights/BCWS 418,926 100% 418,926
6105 Oak Park Heights Annx1VBWS 101,702 34% 34,564
6106 Oak Park Heights Annx/BCWS 37,572 34% 12,769
6107 Oak Park Heights Annx 5,000 34% 1,699
City Total 5,540,840 5,445,598
(A) is used to calculate the tax rate for debt funds
(C) is used to calculate the tax rate for all funds
except debt
Example of Tax Rate Calculation:
% of fund Fiscal Local Tax Pay 1999 Annexation
Fund Levy to total Disparities Levy Value Rate Annexation Area
(E) x FD$ debt: (A) Adjustment Tax Rate
total (D) - (F) all other: (C) (G) I (H) nondebt: (B) (1) x (J)
( D) (E) (F) (G) (H) (I) (J) (K)
General $1,440,637 94.5271% $73,367 $1,367,270 5,445,598 25.108% 34% 8.533%
Storm Sewer $25,000 1.6404% $1,273 $23,727 3,048,354 0.778%
Debt $58,410 3.8326% $2,975 $55,435 5- 540,840 1.000% 100% 1.000%
Total $1,524,047 100.0000% $77,615 $1,446,432 26.886% 9.533%