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Ilawr <br />YEAR & <br />STATUTE <br />REFERENCE <br />CITY OF LINO LAKES, MINNESOTA <br />STATE LEGISLATIVE ACTION <br />APPENDIX A <br />1989 <br />MS 477A.013 <br />Subd. 5 <br />#9 Tax Base Equalization Aid, is a program that targets aid to low tax base <br />cities starting in 1990. Tax Base Equalization Aid is to be administered similar to <br />HACA whereby the county auditor is to deduct the aid from the amount of taxes <br />certified by the city. Payments of Tax Base Equalization Aid are to be made on <br />July 20 and December 15, 1990 from the Department of Revenue. <br />1989 <br />SP1 Ch 1, <br />Art. 5 <br />Section 51 <br />its 1989 levy limits for Cities repealed starting with collectible 1992 levy. In <br />1990 the effective date was extended to collectible 1993 levies. (See #15). <br />1989 <br />MS 273.1398 <br />Subd. 2 <br />#7 Transition Aid re- termed to Homestead and Agricultural Credit Aid <br />(HACA). The formula for distribution was modified from the 1988 Transition <br />Aid formula for Unique Taxing Jurisdictions (UTJ) as follows: <br />Payable 1989 gross taxes of UTJ less [Payable 1989 local tax rate X payable <br />1990 net tax capacity X .9767) <br />As with the original Transition Aid the above HACA to be distributed to local <br />governments based on the percent of local government levy to total UTJ levies. <br />HACA was subject to additional reductions if the level of local government aid <br />was insufficient to absorb the education aid shift and other cuts. The education <br />shift and the subsequent cuts were first taken from LGA, then from Equalization <br />Aid, then from HACA and finally from Disparity Reduction Aid. <br />1989 <br />MS 273.1398 <br />Subd. 2 <br />#6 LGA initially increased for 1990 by approximately $30 million from the <br />1989 level. Funding transfer to school districts subsequently approved. The aid <br />transfer to school districts is a method of increasing the State fmancial support for <br />education while decreasing financial support for cities. The aid transfer for a city <br />is an amount equal to 3.4% of its adjusted net tax capacity. Cities received <br />increased property tax levy authority to replace the aid transfer. <br />1989 <br />MS 477A.013 <br />Subd. 3 <br />#5 LGA formula revised to reduce household guarantee factor from 1.08 in <br />1989 to 1.04 in 1990 to reduce the expenditure /unlimited ratio factor by 50 %. A <br />15% ceiling increase over prior year LGA factor was also added. <br />1988 <br />MS 273.13 <br />#4 Taxes spread to property owners based on tax capacity valuations. <br />Taxes levied divided by tax capacity valuations equal tax capacity rates. This is a <br />change from the prior system in which taxes were spread to property owners <br />based on assessed valuations. Taxes levied divided by assessed valuations <br />equaled mil rates. <br />PREPARED BY TAUTGES, REDPATH & CO., LTD. <br />PAGE 7 OF 8 <br />