04-14-2011 Charter Packet - Laserfiche WebLink

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.••,1 The allowed growth in the levy limit base for Pay 2009- 2011 is less than usual Local governments may levy "outside of limits" for certain purposes Local governments may go to voters for authority to exceed limits In recent history, the levy limit base has usually been adjusted for inflation, new households, and new commercial and industrial property. For Pay 2009-2011, stricter limits were imposed. A local government's levy limit base (levy plus aids) is increased for growth for the three factors but limited as follows: • The rate of inflation, as measured by the implicit price deflator (IPD) for state and local government purchases, but only to a maximum of 3.9 percent • Only one-half of the percent growth number of households in the local jurisdiction, as estimated by the state demographer or the Metropolitan Council, rather than the usual 100 percent of the growth rate • One-half of the increase in the total market value in the jurisdiction due to new commercial/industrial development The levy limits do not apply to "special levies." Special levies can be imposed for whatever amount the city or county needs outside of levy limits for specified purposes. For taxes payable in 2009 these purposes include: • debt for capital purchases and projects; • state and federal required matching grants; • preparation for and recovery from natural disasters; • certain abatements; • increases in public employee retirement association (PERA) rates after June 30, 2001; • required jail operation costs; • operation of lake improvement districts; • repayment of a state or federal loan related to highway or capital projects; and • for an animal humane society. For Pay 2009-2011 the special levy for pension plan rates was expanded to all local government pension plans and five new special levies were added, which include: • to cover increased costs related to reductions in federal health and human service program grants; • to cover city costs in cities with high foreclosure rates; • for Minneapolis to cover unreimbursed costs related to the I -35W bridge collapse; • for salaries and benefits for police, fire, and sheriff personnel; and • to recoup any LGA or county program aid losses if the governor unallots moneys from these programs due to a future budget crisis. When levy limits are in effect, a local government may certify a levy higher than its levy limit if approved by the voters at a referendum. A vote to exceed the limit may be for any amount, and the tax is spread on tax capacity. Unless approved by a referendum, the final levy may not exceed the limited amount plus the amounts levied for authorized special levies. For more information: Contact legislative analyst Pat Dalton at 651-296-7434. Statutes governing levy limits are Minnesota Statutes, sections 275.70 to 275.74. The Research Department of the Minnesota House of Representatives is a nonpartisan office providing legislative, legal, and information services to the entire House. House Research Department 1600 State Office Building 1 St. Paul, MN 55155 1 651-296-6753 1 www.house.mn/hrd/hrd.htm