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CITY OF <br /> FALCON HEIGHTS <br /> 2077 W. LARPENTEUR AVENUE FALCON HEIGHTS, MN 55113 -5594 PHONE (612) 644 -5050 FAX (612) 644 -8675 <br /> 6 January 1993 <br /> TO: Mayor and Councilmembers <br /> FROM: Susan Hoyt, City Administrator <br /> RE: Unbudgeted LGA and Equalization Aid Revenue <br /> All cities receiving local government aid and equalization aid <br /> for local property tax relief received an 8 1/2% increase in <br /> their 1992 allocation in the December 26, 1992 aid payment. This <br /> increase was due to the accrual of more sales tax revenue than <br /> anticipated in the local government trust fund than originally <br /> projected. In 1990 and 1991 the amount of LGA to Falcon Heights <br /> was reduced. <br /> For Falcon Heights, this increase resulted in an additional <br /> $14,569 in revenue in 1992 in addition to the $171,397 of LGA and <br /> equalization aid. This is a one -time increase due to the <br /> additional sales tax revenue. The anticipated 1993 LGA of <br /> $158,830 will not include this additional property tax relief <br /> aid. <br /> It is appropriate to designate the use of this unbudgeted <br /> revenue. Because of its one -time nature, the revenue may best be <br /> designated to minimize future increases in property taxes, which <br /> is what local government aid is intended to do. <br /> Staff recommends that at this time the council designate the <br /> additional $14,569 be allocated to: <br /> 1. Cover possible state aid reductions in 1993 or 1994; <br /> 2. Be used to reduce levy increases when budgeting and <br /> determining the local property tax levy for 1994; <br /> 3. Be allocated to the city's infrastructure fund for the <br /> city's on -going infrastructure improvements. This <br /> additional revenue will minimize property tax increases <br /> for current and future infrastructure improvements and <br /> direct assessments over time. <br /> 4. Not be used to fund new programs that the city had not <br /> planned to undertake and could not continue without <br /> continued additional revenue. <br /> A final decision on the allocation may be made during the 1994 <br /> budgeting process, which begins in mid- July. <br /> HOME OF THE MINNESOTA STATE FAIR AND THE U OF M INSTITUTE OF AGRICULTURE <br /> PRINTED ON RECYCLED PAPER <br /> TREE CITY IL sn iii, <br />