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Memo Property Tax LevyF TY 0 ot C1 e F 0 MINNESOTA g DATE: 22 November 2013 MEMORANDUM TO: Lori Johnson, City Administrator FROM: Dan Jordet, Administrative Services Director RE: Property Tax Levy Pay 2014 The attached pages give some additional analysis of the proposed property tax levy for taxes payable in 2014. Page I shows the components of the levy and compares them with the Pay 2012 and Pay 2013 levies. Page 2 shows the effect of the proposed Pay 2014 levy on various properties, Pages 3 through 7 give comparative property tax statistics for the years Pay 2010 through Proposed Pay 2014. The comparisons include tax capacity, dollars of levy certified, the resulting City Tax Rate and, at the bottom, an indication of a comparable City Tax rate if all TIF and other reductions of tax capacity were eliminated. This does not have an effect on Otsego. For 2012 and 2013, there is also a section in the lower portion of each page showing the portion of taxable homestead value that is excluded under the Homestead Market Value Exclusion program, Higher percentages show cities with lower average residential property values as the HMVE increases proportionately as market value declines. Pages 8 through 14 take the same data from pages 3 through 7 and sort them by city rather than by tax year. Pages 15 and 16 are graphs of: 0 Page 15 — the taxable tax capacity per year for each city showing the trend of both value changes and additions to the tax bases. 0 Pagel 6 — the dollars of property tax levied by each city by year. These graphs were chosen as they represent the two variables in property tax calculation that can be managed and/or changed by local officials, I will be present at the November 25, 2013 meeting to respond to questions and/or explain the materials that are attached. City of Otsego Calculation f Property Tax Levy Options for taxes payable 2014 Pay 2012 Pa O1 General Fund Levy 21831,000 31213,145 Fire Deserve Levy Storm Sewer Levy Pavement Management Levy Park Tail Management Levy Capital Equipment Revolving Fuad Levy Parks Capital Equipment Subtotal: Other Limited Levies TOTAL: Limited Levy 20106 Building Bonds 2003A Improvement Bonds 2004A Improvement Bonds 20066 Improvement Bonds Subtotal: Bonded Debt Levies Tax Abatement TOTAL: Certified Levy Kellar Increase Percentage Increase 4801000 140,000 . 57,765 300,000 300,000 25,000 25,000 150,000 175,000 50 OO 251000 U05,0000 7221F765 31836,000 31035,910 150,000 150,000 100,000 100,000 75,000 75,000 100,000 100,000 45,000 4251000 17,000 41261,000 41377,910 116,010 2.74% Proposed Pay 2014 3,313,000 145,000 25,000 320,000 25,000 160,000 53,000 728,000 4,041,000 200,285 100,000 75,000 100,000 475,285 23,000 4,539,255 161,575 .0 C:\Users\Dan\Documents\2014 Budget\Property Tax Levy Pay 2014 1 11/22/207.3 City of Otsego Effect of Proposed Tax Levy on Various Properties Taxes Payable 2013 and 2014 Pay 2013 Pay 2014 Taxable Tax City Tax Taxable Tax City Tax Dollar % Market Value Capacity Tax Rate Payable Market Value Capacity Tax Rate Payable Change Change Residential: Value Up 5.00% $ 200,000 2,000 46.23% $ 924.60 $ 210,000 2,100 44.62% $ 937.02 12.42 1.34% Residential: Value Stable $ 200,000 2,000 46.23% $ 924.60 $ 200p000 2,000 44.62% $ 892.40 (32.20) (3.48%) Residential: Value Down 5.00% $ 200,000 2,000 46.23% $ 924.60 $ 190,000 11900 44.62% S 847.78 $ (76.82) (8-31%) Commercial: Value Up 5.00% $ 875,000 16,750 46.23% $ 7,743,53 $ 918,750 17,625 44.62% 7,864.28 120.75 1.56% Commercial: Value Stable $ 875o000 16,750 46.23% $ 7,743.53 $ 875,000 16,750 44.62% 7,473.85 $ (269.63) (3.49%) Commercial: Value Down 5.00% $ 875,000 16,750 46.23% $ 7,743.53 $ 831,250 15,875 44.62% $ 7,083.43 $ (660.10) (8.52%) Comparative City Property Tax Statistics 2010 for property taxes payable 2010 Otsego Saint Michael Albertville Rogers Monticello Elk River Buffalo Total Tax Capacity 13,012,184 11,965,737 8,037,382 16,852,350 17,796,301 25,921,245 13,637,704 Cess: captured TIF and Fiscal Disparities Contrib, - 351,880 28,165 8,672,990 1,105,041 888,279 115,448 Taxable Tax Capacity 13t012;184 11,613,857 8,009,217 8,179,360 16,6910260 25,032,966 13,522,256 Property Tax Levy Certified 3,818,034 5,106,380 2,939,784 31593,469 7,648,269 11,112,634 4,866,525 less: Fiscal Disparities Levy - - 272,076 - - - Net City Levy 31818,034 5,106,380 2,939,784 3,321,393 7,648,269 11,112,634 4,866,525 Average City Tax Rate 29.34% 43.97% 36.71% 40.61% 45.82% 44.39% 35.999 Average Tota I NTC Tax Rate 106.34% 144.84% 120.69Yo 129.67% 108.34% 133.54% 101.71% Average City MV Tax Rate 0.009 0.00% O.00YO O.00YG 0.00% O.00YO 0.0193% Gross Property Tax Certified /Total Tax Capacity 29.341 42,68Yo 36.58% 21.32% 42,98% 42.871 35.68% 3 Comparative City Property Tax Statistics for property taxes payable 2011 Total Tax Capacity less: captured TIF and Fiscal Disparities Contrib. Taxable Tax Capacity Pro pe rty Tax Levy Certified less: Fiscal Disparities Levy Net City Levy Average City Tax Rate Average Total NTC Tax Rate Average City MV Tax Rate Gross Property Tax Certified / Total Tax Capacity 2011 Otsego Saint Michael Albertville Rogers Monticello Elk River Buffalo 114660,126 14,513,347 7,405,167 15,033,127 17,400;28() 25,087,945 12,477,528 - 399,105 21,696 7,127,502 970,759 784,101 98,207 11,660,126 14,114,242 7,383,471 7,905,625 16,429,521 244303,844 12,379,321 3,966,075 4,858,264 3oO96,1123,558,302 7,677,351 11,112,447 4,759,600 - - 313, 276 - - - 3,966,07.5 41858,264 3,096,112 3,245,026 7,677,351 11,112,447 4,759,600 34.01% 34.42% 41.93% 41.05% 46.73% 45.72% 98.451 117.38% 124.290 130.02 137.86% 114.57% 140,511 111.53% 0.00% 0.00% 0.0010 0.00% 0.00% 0.00% 0.0313% 34.01% 33.47% 41.817o 23.67% 44.12% 44.29 38-15% Comparative City Property Tax Statistics 2012 for property taxes payable 2012 Otsego Saint Michael Albertville Rogers Monticello Elk River Buffalo Total Tax Capacity 10,278,548 13,009,859 6,758,432 134802,522 16,628,999 224290,987 11,175,671 less: captured TIF and Fiscal Disparities Conl6b. - 339,424 21,696 3,525,472 857,311 698,117 99,975_ Taxable Tax Capacity 10,278,548 12j670,435 6,736,736 10,277,050 l5j771,688 21,592,870 11,075,696 Property Tax Levy Certified 4,260,869 4,965,407 3,142,351 4,637,294 7,850.1042 10,275,592 5,213,995 less: Fiscal Disparities Levy - - 404,897 - - - Net City Levy 4,260,869 4,955,407 3,142,351 4,232,397 7,850,042 10,275,592 5,213,995 Average City Tax Rate 41.45% 39.11% 46.65% 41.18% 49.7776 47.59% 47.08% Average Total NTC Tax Rate 130.6 0 134.68Yo 140.32 142.78% 122.73% 150.45% 127.72% Average City MV Tax Rate O.00YO 0.0-0% 0.00ya 0.00% 0.00% 0.005yo 0.0320% Homestead Market Values 778,400,800 1,034,280,700 360,056t100 511,326,500 479o301,900 1,39,715,1698jO85,,100 MV Excluded under HMVE 94,957,400 91,614,700 41,461,600 42,980,806 72,370,200 131,644,600 87,337,400 Homestead After HMVE 683,443,400 942,666,000 318,594,500 468,345,694 406,931,700 1,108,070,500 6101747,700 % of HIVIV Excluded 12.20% 8.86% 11.52% 8.41% 15.10% 10.6260 12.51% Gross Property Tax Certified /Total Tax Capacity 41.45% 38.09% 46.50% 33.60% 47.21% 46.10% 46.65 Comparative City Property Tax Statistics for property taxes payable 2013 Total Tax Capacity less: captured TIF and Fiscal Disparities Contrib. Taxable Tax Capacity Property Tax Levy Certified less: Fiscal Disparities Levy Net City Levy - Average City Tax Rate Average Total NTC Tax Rate Average City MV Tax Rate Homestead Market Values MV Excluded under HMVE Homestead After HMVE % of HMV Excluded Gross Property Tax Ce rtIfi ed /Total Tax Capacity 2013 Otsego Saint Michael Albertville Rogers Monticello Elk River Buffalo 7.41% 9,470,288 11,965,737 6,191,899 18,383,489 19,579,693 20,323,367 10,387,252 - 351,880 21,696 4,058,665 886,931 122,642 106,585 9,470,288 11,613,857 6,1700203 14,324,824 18,692,762 20,200,725 10,280,667 4,378,021 5,106,380 3,2075,113 5,924,192 7,899,937 10,175,711 5,326,207 - - 45t623,,000 439,074 - - - 4,378,021 5,106,380 3,205,113 5,485,118 7,899,937 10,175,711 51326,207 7.41% 46.23% 43.97% 51.95% 38.29% 42.26% 50.37% 51.81c/'. 139.53% 144.94'Yo 150.90% 14S.65% 113.39% 160.12% 135.25% 0.00% 0.00% 0.00% 0.00% 0.00% O.00YO 0.0374% 730,582j40D 9501,442,500 316,751,200 7171256,900 424,303,400 1,098,426,000 630,022,000 99,506,700 99,225,800 45t623,,000 54,494,569 76,343,300 141,908,700 92,IS4,900 631,075,700 851,216,700 271,128,200 662,762,331 347,960,100 956,517,300 5371867,100 13.62% 10.44% 14.40% 7.60% 17.991 12.92% 14.631 46.23YS 42.68% 51,76% 32.23% 40.35% 50.07% 51.28% i Comparative City Property Tax Statistics 2014 for property taxes payable 2014 (projected) Otsego Saint Michael Albertville Rogers Monticello Elk River Buffalo Total Tax Ca pa d ty 10J200229 12,738,390 6,482,816 19,035,571 10,700,623 less. captured TIF and Fiscal Disparities Contrib. - 305,947 23,265 791,437 94,084 Taxable Tax Capacity 10)120,229 12,432,443 60459,551 15,425o757 18,244,134 10,606,539 Property Tax Levy Certified 4,539t285 5,261,719 3,300,124 8,150,000 5,300,724 less: Fiscal Disparities Levy - - - - Net City Levy 4,539,2 35 5,261,719 3,300,124 6,315,305 8,150,000 5,300,724 Average City Tax Rate 44.85% 42.32% 51.09% 40.94% 44.67% tIDIV/0) 49.9 0 Average Total NTC Tax Rate 0.00?/0 0.00% 0.00% 0.00% 0.00% 0.00yo O.00YO Average City MV Tax Rate 0.00% 0.00% O.00YO 0.00yo 0.00ye 0.00% 0.0341% Homestead Market Values - - - MV Excluded under HMVE Homestead After HMVE % of HMV Excluded #DIV/01 HDI /0C HDIV/01 #DIV/0 1 YD)WOI #DIV/01 -HDIV/01 Grass Property Tax Certified /Total Tax Ca pa city 44.851 41.319' 50-91% WIV/01 42.811 #DIV/01 49.54% Comparative City Property Tax Statistics for property taxes payable 2010 - 2014 by City Total Tax Capacity less: captured TIF and Fiscal Disparities Contrib. Taxable Tax Capacity Property Tax Levy Certified less: Fiscal Disparities Leery Net City Leery Average City Tax Rete Average Total CFTC Tax Rate Average City MV Tax Rate Homestead MarketValues subject to HMVE MV excluded under H0111E Homestead Mil after HMVE 10HMV Excluded Grass Property Tax Certified Total Tax Capacity OTS E;+ (Proposed) Pay 2010 Pay 2011 Pay 2012 Pay 2013 Pay 2014 Otsego Otsego Otsego Otsego Otsego 131F0.2,184 11,660,x.2+6 10,278,548 9,470,288 10,172,309 13,0121184 11,660#126 10,278,548 91470,288 10,1720309 (10-39%) (11.85%) (7.86%) 7.41% 31818,,034 31966,075 4,200,869 41378,021 415390285 3,818,034 31F966,075 4,260,869 4,378,021 4,539,285 3.88% 7.431 2.75% 3.68% 29.34% 34.01% 41.451 46.23% 44.621 106.34% 1.7.38% 130.63% 139.531 0.00% 0.00% 0.00% 0.001 (not applicable) able) 778,400,800 730,5820400 94,957,400 99,606,700 683,443,400 631,075,700 12.201 13.62% 29.34° 34.011 41.451 46.23% 44.621 Comparative City Property Tax Statistics SAINT MICHAEL for property taxes payable 2010 - 2014 by City (Proposed) Pay 2010 Pay 2011 Pay 2012 Pay 2013 Pay 2014 Saint Michael Saint Michael Saint Michael Saint Michael Saint Michael Total Tax Capacity 11,965,737 14,513.,347 13,009,859 11j965J,737 12,738,390 less: captured TIF and Fiscal Disparities Contrib. 351,880 399/105 339.,424 351,880 305,947 Taxable Tax Capacity 11,6130857 141114,242 12,670,,435 11,6131857 12.,432.,443 Property Tax Levy Certified 51106.380 4,,858,264 41955.,407 5,106,380 5.,261.,719 less: Fiscal Disparities Levy - - - Net City Levy 5,106,380 4,858,264 4,?955,407 5,rlO6;380 5,0261,719 Average City Tax Rate 43-97% 34.42% 39.11% 43.97% 42.32% Avera a Total NTC Tax Date 144.84% 124.29% 134.68% 144.84% Average City MV Tax Rate 0.001 0.00% 0.00% 0.00% Homestead Market Values subject to HMVE 1,,034;280.,700 950,442p500 MV excluded under HIVE 91,614,700 99,225.,800 Homestead MV after HMVE 942..666.,000 851,216,700 % of HMV Excluded 8.86% 10.44% Comparative City Property Tax Statistics for property taxes payable 2010 - 2014 by City Total Tax Capacity less: captured TIF and Fiscal Disparities Contrib. Taxa ble Tax Capacity Property Tax Levy Certified less: Fiscal Disparities Levy Net City Levy Average City Tax Rate Average Total NTC Tax Bate Average City My Tax Rate Homestead Market Values subject to H VE V excluded under HMVE Homestead MV after HMVE % of HMV Excluded Gross Property Tax Certified / Total Tax Capacity AL ERT ILLE 10 (Proposed) Pay 2010 Pay 2011 Pay 2012 Pay 2013 Pay 2014 Albertville Albertville Albertville Albertville Albertville 81037,332 7,405,7.67 6,753,432 6,191,899 60432,816 281 165 21,696 21,696 21,696 23,265 8,0090217 7,383,471 6,736,730 6,170,203 6,453,551 2,939,784 3,096,112. 31142,351 3,205,3.13 31300,7.24 2,939,784 3,095,112 3,142,35. 3,205,113 3,300,124 36.71% 41.93% 46.65% 51,9.5% 51.09% 120.69% 130.02% 140.32% 150.90% 0.00% 0,00% 0.00% 0.00% 3600056,100 316,751,200 41,461,600 45,623,000 3180594,500 277.,7.28,200 11.52% 14.40% 36.58% 41.811 46.50% 51.76% 50.91% 10 Comparative City Property Tax Statistics for property taxes payable 2010 - 2014 by City Total Tax Capacity less: captured TIF and Fiscal Disparities Contrib. Taxable Tax Capacity Property Tax Levy Certified less: Fiscal Disparities. Leery Net City Leery Average City Tax Rate Average Total [STC Tax Rate Average City MV Tax Rate Homestead MarketValues subject to HMV'E V excluded under H11VE Homestead MV after HVE of HMV Excluded Gross Property Tac Certified Total Tax Capacity (Proposed) Pay 2010 Pay 2011 Pay 2012 Pay 2013 Pay 2014 Rogers Rogers Rogers Rogers Peers 1.60852,350 15,033,127 130802,522 18,383,489 - 8,672,990 7,1271502 3,525,472 410580665 - 81179,60 7,905,625 10,277,050 14,324,824 151425,757 3,503,469 3,558,302 41637,294 519249192 272,076 3.3,276 404,897 489,074 31321,303 3,2450026 4,232,397 5,485,118 6,3x 5,305 7.411 40.61% 41.05° 41.18% 38+201 40.94% 129.67% 137.86% 142.78./ 145.65% 0.00% 0.00% 0.00% 0.00% 511,326,500 717,2 6,900 42,980,806 54,404,509 468,345,094 6620762,331 8.41% 7.60% 21.32 23.671 33.60% 32.23% #DIV/01 Comparative City Property Tax Statistics for property takes payable 2010 - 2014 by City Total Tax Capacity less: eaptured TIF and Fiscal Disparities Contri la. Taxable Tax Capacity Property Tax Levy Certified less: Fiscal [disparities Levy Net City Leery Average City Tax Pate Average Total NTC Tax Rate Average City MV Tax Fate Homestead Market Values subject to HMVE MV excluded under HMVE Homestead MV after HMVE f HMV Excluded Gross Property Tax Certified Total Tax Capacity MO TI ELLO (Proposed) Pays 2010 Pay 2011 Pay 2012 Payr 2013 Pay 2014 Monticello Monticello Monticello Monticello Monticello 1.7,796,301 171F400,280 16,628,999 19,579,693 19,035,571 1.11.05,041 970,759 857,311 886,9. 791,437 16,691.,260 16,429,521 15,771.,688 18,692,762 18,244,134 71648,269 7,677,351 7,r8500042 71899,937 8;150,000 7,64,269 7,677,351 7,850,042 71899,937 8,1.50,000 45.82% 46.73° 49.77% 42.26% 44.67 108.34% 114.57% 122.73/ 113.39 0.00/ 0.00% 0.00% 0.00° 479,301.,900 424,303,400 72,370,200 76,343,300 406,931,700 3471960,100 15.10% 17.99% 42.98% 44.12% 47.21% 40.35% 42.81/ Comparative City Property Tax Statistics for property takes payable 2010 - 2014 by City N Total Tax Capacity less: captured TIF and Fiscal Disparities Contrib. Taxable Tax Capacity Property Tax Levy Certified less: Fiscal Disparities levy Net City Lever Average City Tax Rate Average Total HTC Tax Rate Average City Iry Tax Rate Homestead Market Values subject to H VE Hill excluded under HMVE Homestead MV after HMVE of HMV Excluded Grass Property Tax Certified Total Tax Capacity - ELK RIVER 13 (Proposed) Pay 2010 Pay 2011 Pay 2012 Pay 2013 Pay 2014 EIEC River Elk River Elly River Elk River EIEC River 25,921,245 25,087,945 22,290,987 20,3231367 - 888,279 784,101, 6981117 122,642 - 25,02,966 24,808,844 21,592,870 20,200,725 - 1.1,112,634 11,1.1.2,447 lOr275,592 10,1751711 111112,634 1.1,112,447 1.0,275,592 10,175,71.1 44.39% 45.72% 47.59° 50-37% % ##QlV/0 1 1.33.54% 140.51% 150.45% 1.60.12% 0.00% 0.00% 0.00 O-OOYO 1123%715,100 1,098,426,000 131;644,600 141,908,700 1,1.08,070,500 956,517,309 10.62% 12.92 42.871 44.29% 46.1.0% 50.07% UDIV/0 1 13 Comparative City Property Tax Statistics BUFFALO for property taxes payable 201 - 2014 by City (Proposed) Pay 2010 Pay 2011 Pay 2012 Pay 2013 Pay 2814 Buffalo Buffalo Buffalo Buffalo Buffalo Total Tax Capacity 13,637,704 12,477,528 11,175,671 10,387,252 10,7 100623 less. captured TIF and Fiscal Disparities Contrib. 115,448 98,207 99,975 106,585 94,084 Taxable Tax Capacity- 18,522,256 12,879,321 11,075,696 10,167 10,606,539 Property Tax Levy Certified 4,866,525 41759,600 5,218,995 5,326,207 5,300,724 less: Fiscal Disparities Levy - - .. Net City Levy 40866,525 41759,600 51213,995 5,325,287 513001724 Avera eitiyf Tax Rate f 35.99% 38.45% 47.08, 51.81% v 49.98 Average Total NTC Tax Rate 1+01.71% 111.53% 127.721 135.25% Average City MV Tax Rate 0.0193% 0.0313% 0.0320% 0.0374% Homestead Market Values subject to HIVE 698,0850100 6300022,000 MV excluded under HMVE 87,337,400 92,154,900 Homestead MV after H VE 610,747,70 } 537,867,1 }0 of HMV Excluded 12.1% 14.63° Gross Property Tax Certified Total Tax Capacity 85.68% 38.15% 46.65% 51.28% 49.541 14 15 Taxable Tax Capacity ,0001000 2510OOpOOO 20,0001000 �Saint Michael 15,000,000 (=-D Roger --_�---- )Monticello �- lk y River ty --)Buffalo 10"000.'000 � � v 2010 2011 2012 2013 2014 15 Certified Tax Capacity Levy (in dollars) $120000,000 $10,000,000 $8,000,000 .30tsego c ---)Saint Michael c-----DAIbertviIIe $6,0001000 Rogers Wonticello Elk River -,-,BLIffalo $4jOOO,,000 $2,FOOOIOOO $- 2010 2011 2012 2013 2014 16