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    8.    
City Council Regular
Meeting Date: 09/05/2017  
Subject:    Consider Resolution 17-92 Adopting Preliminary 2018 Tax Levy
From: Sharon Legg, Finance Director

INTRODUCTION
A preliminary tax levy must be certified to the County by September 30, 2017 to compute parcel specific notices.
DISCUSSION
As discussed at the workshop on August 8 held to review the proposed 2018 budget, the proposed City tax levy is $26,845,674.  This levy can be reduced before final certification in December but cannot be increased.

The following summarizes key factors to determine the tax rate.  The net levy is divided by the net tax capacity value to determine the rateFiscal disparity distribution is the dollar amount that the City receives.  Fiscal disparity contribution is the value that the City’s commercial and industrial properties contribute to the pool.  Fiscal disparity distribution is calculated by using the value that the City gets from the pool multiplied by the prior year’s tax rate.
  Pay 2018 Pay 2017 Pay 2016
Tax levy 26,845,674 25,613,000 24,873,760
$ received from fiscal disparities (distribution) 5,128,594 (4,883,975) (4,632,339)
Net levy 21,717,080 20,729,025 20,241,421
       
Tax capacity value (preliminary pay 2018) 59,027,389 54,020,606 51,614,051
Value contributed (given) to fiscal disparity pool (7,158,313) (6,927,780) (6,355,191)
Captured tax increment (preliminary pay 2018) (274,744) (205,767) (185,394)
Net tax capacity value 51,594,332 46,887,059 45,073,466
       
Tax rate (preliminary) 42.092 44.211 44.908
 
Fiscal disparity distribution calculation:                                             
  Value received from the pool 11,600,005 10,875.512 10,350,803
  Prior year tax rate 44.211 44.908 44.753
  Fiscal disparity distribution 5,128,594 4.883.975 4.632.339



                                                                                                                                                           
The impact on the benchmark homes is as follows:


2017 value, Pay 2018
               
2016 value, Pay 2017
 
Taxable Value City Taxes   Taxable Value City Taxes % Increase
121.200 399   114,700 388 2.89
174.400 643   148,900 553 16.37
213.700 824   189,900 750 9.76
229.900 898   206,400 830 8.20
307.900 1.256   283,800 1,203 4.40
372.400 1.552   384,100 1,686 (7.98)
   
 
RECOMMENDATION
Adopt Resolution 17-92  Establishing the Preliminary Tax Levy for the City of Coon Rapids.

Attachments
RS 17-92

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