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MINUTES <br />CITY COUNCIL <br />May 30, 1990 <br />4. The City's collection rate for special assessments <br />has diminished over the past two years. <br />The Auditor pointed out that while local government <br />aids decreased, homestead and agricultural aid was <br />increased. The Auditor estimated an additional loss of <br />local government aids of approximately $27,000 for <br />1990. This information is based on the League of MN <br />Cities estimate. The Auditor reported that this will <br />be a permanent loss to our revenue base since the City <br />will not be allowed to make up for the loss in <br />additional levies. <br />Council discussed the fact that this additional aid <br />loss will have to be compensated for with budget <br />adjustments. <br />The Auditor pointed out that the City's 1989/90 <br />certified tax levy increased about 27% after remaining <br />relatively consistent for the preceeding 5 years. The <br />increase was necessary due to the shift of $255,959 in <br />State Aid from the City to the School District, and to <br />cover bonded debt on the 1990 fire station lease. The <br />Auditor submitted to the Council a comparison of tax <br />capacity rates comparing cities, counties and school <br />districts. <br />The Auditor reviewed the City's cash and investments <br />pointing out the increase in interest earnings. The <br />Auditor recommended that the City continue to monitor <br />the Franklin U. S. Government Securities Fund for an <br />opportune time to liquidate. This should be at a time <br />when interest rates are low. <br />The Auditor then reviewed taxes receivable as well as <br />special assessments receivable as detailed in the <br />report. The Auditor pointed out the special <br />assessments due on tax-forfeit property and indicated <br />that these assessments are covered by the Refunding <br />Bonds of 1985. The Auditor felt that this situation <br />could have an adverse effect on these Bonds, and <br />indicated the bond issue will need to be monitored <br />closely. <br />The Auditor next reviewed the increasing problem in the <br />area of developer deposits. The Auditor reported that <br />this problems needs to be addressed during 1990. <br />Page 2 <br />