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Truth in Taxation Hearing to be held at 7:00 p.m. on Monday, December 7. 1998 <br />December 4, 1998 <br />Clarification of Property Tax Statement Information <br />Questions have been raised about the impact of the City's budget and tax levy on the property tax <br />bill as reflected in the presentation of the property tax information on the tax statements. <br />Specifically, for those properties with increases in tax capacity, the column titled "Increase Due to <br />Spending" indicates an increase beyond the City's 5.1% levy increase. This has rai.sed concerns <br />about whether the impact of the City's levy was correctly projected. <br />A review of the tax statement ’ 'ith Hennepin County staff clarified that the "Increase Due to <br />Spending" column reflects more than simply the tax levy increase. It reflects the tax levy increase <br />plus the changing share of the City tax "pie" allocated to the property. The property's share of the <br />total tax pie is based on whether the property's tax capacity increased proportionately more than the <br />City's overall tax capacity. Because the City's overall tax capacity has been reduced (due to <br />reductions in the tax capacity of higher-valued residential properties and commercial/industrial <br />properties), any property with an increase in tax capacity will have an increase greate*’ than 5.1% in <br />the "Increase Due to Spending" column. Staff will be prepared to clarify this tax statement <br />information at the Truth in Taxation hearing. <br />L