Council Plans To Lower Tax Impact For 2011
12-06-2010
At a Council/Manager meeting Nov 9, City Council directed staff to use the remaining Valley Square tax increment funds to reduce the City’s debt levy and proposed 2011 property tax levy by $160,000. On a $250,000 median home, this will reduce the tax impact on the City’s portion by $12 per year from the amount reported on the proposed property tax statement taxpayers received from Hennepin County in November.
This is a result of a 2009 decision by City Council to close the Valley Square tax increment district a year early, allowing Hennepin County to distribute remaining tax increment funds to the County, City, and school district.
In September, the City Council certified a preliminary 2011 tax levy of $16,569,450, a 1.48 percent increase from 2010 (a $25 increase on a median home). Using the tax increment funds will lower the 2011 proposed levy to $16,409,450, which will be a .50 percent increase from 2010 (a $13 increase on a median home).
Even though general fund expenditures decreased by $61,700 for 2011 (the result of not filling two positions, one in street maintenance and one in police), the general fund levy increased by $207,545 to offset the loss of revenue from building permits, interest earned, and the state unallotment of market value homestead credit (MVHC). This increase also was needed to maintain a balanced budget.
City taxes make up one portion of the entire tax bill. For more information about how your City tax dollars are used or the City’s proposed 2011 budget or tax levy, go to City Budget.
This entry posted in | Administrative Services | City Budget | Finance Department
