Agenda - Council - 06/12/2018 - Laserfiche WebLink

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Tax capacity is considered the actual base available for taxation. It is calculated by applying the state's property classification system to each property's market value. Each property classification, such as commercial or residential, has a different calculation and uses different rates. Consequently, a city's total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of the its tax base that is in each property classification from year-to-year, as well as legislative changes to tax rates. The City's tax capacity increased 5.0 percent for 2016 and 6.2 percent for 2017. The following graph shows the City's change in tax capacities over the past 10 years: $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 1 Tax Capacity Value 1 1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 The following table presents the average tax rates applied to city residents for each of the last three levy years, along with comparative state-wide and metro area average rates from the two most recent years for which the information is available: Rates Expressed as a Percentage of Net Tax Capacity All Cities Seven -County City of State -Wide Metro Area Ramsey 2015 2016 2015 2016 2015 2016 2017 Average tax rate City 46.9 46.5 43.4 43.0 42.3 43.3 42.5 County 44.7 44.1 42.9 42.3 38.4 39.4 37.3 School 27.1 27.5 28.3 28.6 24.6 22.8 20.5 Special taxing 6.9 6.9 8.8 8.7 5.2 5.5 5.1 Total 125.6 125.0 123.4 122.6 110.5 111.0 105.4 Note: State-wide and metro area average tax rates are not available for 2017. The school tax rate for the City represents an average of Independent School District (ISD) No. 11, Anoka -Hennepin and ISD No. 728, Elk River Area Schools. As presented in the table above, the average tax rates for the City and other taxing authorities are similar to the state-wide and metro area averages. In total, the City is below both averages for both the current year and prior year presented. -6-