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Wow <br />WNW <br />low <br />YEAR & <br />STATUTE <br />REFERENCE <br />CITY OF LINO LAKES. MINNESOTA <br />STATE LEGISLATIVE ACTION <br />Appendix A <br />Page 3 of 12 <br />INITIAL YEAR <br />ESTIMATED <br />IMPACT <br />1991 HF 1698 <br />Section 5 <br />#26 If any County does not approve the local option sales <br />tax of la% there would be no payments made to the local <br />government trust fund to the County or to City, Town or <br />Special Taxing Jurisdictions located in the County. (See #30 <br />for increased levy authority). <br />If the local option <br />sales tax is not <br />passed, the City of <br />Lino Lakes would <br />lose $491,000 of <br />State aid beginning <br />in 1992. <br />1991 HF 1698 <br />Art. 2 Section 3 <br />#25 The local government trust fund is authorized to make <br />the following payments to Counties, Cities, Towns and <br />special taxing districts: <br />1) <br />2) <br />3) <br />4) <br />5) <br />6) <br />7) <br />8) <br />HACA <br />Disparity Reduction Aid <br />Local Government Aid and Equalization Aid <br />Increased HACA Guarantees <br />Supplemental Homestead Property Tax Relief <br />Disparity Reduction Credit <br />25% of the State Aid for County Human Services <br />Attach Machinery Aid, a fee for the Commissioner of <br />Revenue to administer the local option tax ($852,000 <br />for 1992 and $660,000 for fiscal year 1993). <br />9) Other fees to the Commissioner of Finance and to the <br />Advisory Commission on inter- governmental <br />relations. <br />If revenue is insufficient to pay each of the above amounts, <br />the Commissioner of Revenue is authorized to reduce the <br />payments of the first four items (HACA and LGA). <br />There should be no <br />impact on the City of <br />Lino Lakes or other <br />governmental <br />jurisdictions if <br />revenues reach <br />forecasted levels. If <br />however, revenue is <br />less than anticipated, <br />there likely will be <br />reductions in HACA <br />and local government <br />aid. The HACA <br />reductions, if made <br />during the year, will <br />cause property tax <br />collection rates to be <br />reduced. This is an <br />extremely <br />unfavorable bond <br />indicator which is <br />already impacting <br />Minnesota Local <br />Governments based <br />on 1991 reductions <br />in HACA. Note: The <br />tax rate "buy down" <br />will increase HACA. <br />Prepared by Tautges, Redpath & Co., Ltd. <br />April 30, 1992 <br />