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City of Lino Lakes, Minnesota <br />— Management Report, Page 2 <br />Imew <br />Imp <br />RECENT LEGISLATIVE ACTIONS <br />The State legislature has made a progression of changes in funding cities. The most <br />significant changes started with the 1988 Legislative session and continued through the 1992 <br />session. Appendix A of this report presents a summary of this Legislation and an estimate of the <br />initial year impact on 1) cities - statewide; and 2) the City of Lino Lakes. <br />The 1992 legislative actions impact City finances and affect not only the General Fund, but <br />other funds as well. A summary of the 1992 legislative actions is as follows: <br />Levy Limits. The 1992 legislature did not change the 1990 law which repeals levy limits <br />starting with taxes payable in 1993. <br />Sales Tax. The omnibus tax bill imposes a sales tax on purchases by local governments. <br />The sales tax becomes effective June 1, 1992. The sales tax rate is 6.5% and generally applies <br />to purchase of goods and certain services. The 1992 impact of sales tax on the City of Lino <br />Lakes is as follows: <br />Fund Amount <br />General Fund $13,000 <br />Water and Sewer 3.000 <br />Total $16,000 <br />Water Connection Fee. The omnibus finance bill includes a provision which requires <br />Cities to collect a $5.21 fee from all accounts to which the City supplies water. This fee will <br />be remitted to the Department of Revenue and will be used for testing water supplies. <br />