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(Of note: <br /> The decline in fiscal disparities is the impact of falling <br /> commercial property values in the metro area. This trend, <br /> along with the lower tax class rate for C/I and multi family <br /> rental residential property, reduces the property taxes <br /> generated from commercial and industrial and apartment <br /> properties.) <br /> 2. Intergovernmental revenues. <br /> Local government aid (LGA). The local government trust fund, <br /> which was created from a 2 1/2% increase in property tax <br /> revenue in 1991, was eliminated this legislative session. All LGA <br /> increases are based upon a need formula with no city falling <br /> below the 1993 level. <br /> Increase 3,025 or 1.7% <br /> Homestead and agricultural credit. <br /> No change anticipated. Final figures are not in yet. <br /> Minnesota State Aid (MSA). Because the city has a population of <br /> 5,000 it receives an annual credit toward road reconstruction <br /> projects from the state gas tax. In 1994 the city began to "draw <br /> down" 35% of this allocation for annual maintenance. In 1994 <br /> about $20,000 of the estimated 25,000 went into the <br /> infrastructure capital fund. Most cities put it directly into the <br /> general fund for street maintenance. <br /> This is not new revenue but it adds 18,113 to the general fund. <br /> Fire insurance premium. The revenue comes from fire insurance <br /> premiums and goes to the Fire Relief Association pension fund. <br /> 3. Charges for services No anticipated change. <br /> 4. Court fines <br /> This is primarily generated from traffic fines. Revenues have <br /> increased over the past two years and this level is expected to be <br /> maintained or increased with the new police service. <br /> Increase 25,000 or 50% <br /> 5. Miscellaneous No anticipated change. <br /> 2 <br />