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League of Minnesota Cities How to estimate your 2011 levy limit Page 6 Examples of how to estimate your city's levy limit Example 1: City has small debt levy (also had for pay 2010) Information needed for calculation: ✓ 2010 adjusted levy limit base = levy limit base for pay 2011 = $900,000 ✓ Percent change in number of households over last year = 2% ✓ Percent change in total market value of all property types as a result of new construction of CII = 0% ✓ 2011 estimated LGA= $3,250 ✓ 2011 taconite aid= $0 ✓ 2011 wind energy production tax= $0 ✓ 2011 utility transition aid = $0 Calculation: Step 1: $900,000 Step 2: $900,000 x 1.68%= $915,120 Step 3: $915,120 x (l+half of 2%) = $915,120 x 1.01 = $924,271 Step 4: $924,271 x (1+0) = $924,271 x 1 = $924,271 (adjusted levy limit base for pay 2010) Step 5: $924,271 - $3,250 - 0 - 0 - 0 = $921,021 (2011 levy limit) Example 2: City uses police/fire wage and benefit cost special levy (for 1st time in pay 2011) Information needed for calculation: ✓ 2010 adjusted levy limit base = pay 2011 levy limit base = $125,000 ✓ 2010 levy for police/fire wage and benefit costs = $35,000 (treat as if it would have been a special levy) ✓ Percent change in number of households over last year = 3% ✓ Percent change in total market value of all property types as a result of new construction of C/I = 1% ✓ 2011 estimated LGA= $3,250 ✓ 2011 taconite aid= $0 ✓ 2011 wind energy production tax= $0 ✓ 2011 utility transition aid = $0 Calculation: Step 1: $125,000 Step 2: $125,000 - $35,000 = $90,000 Step 3: $90,000 x 1.68% = $91,512 Step 4: $91,512 x (l+half of 3%) = $91,512 x 1.015 = $92,885 Step 5: $92,885 x (l+half of 1%) = $92,885 x 1.005 = $93,349 (adjusted levy limit base) Step 6: $93,349 - $3,250 - 0 - 0 - 0 = $90,099 (2011 levy limit)