|
City of Lino Lakes, Minnesota
<br />Management Report, Page 4
<br />The 1986 through 1991 legislative changes have impacted the funding of the City of Lino
<br />Lakes as follows:
<br />City of Lino Lakes
<br />Local Homestead and Tax Base
<br />Govemment Agricultural Equalization Increase
<br />Aid Credit Aid Aid Total (Decrease)
<br />1986 $219,728 $249,813 $469,541
<br />1987 232,159 277,294 509,453 $39,912
<br />1988 232,157 300,698 532,855 23,402
<br />1989 330,823 284,060 614,883 82,028
<br />1990 163,165 362,289 $49,684 575,138 (39,745)
<br />1991 * 94,735 290,400 49,701 434,836 (140,302)
<br />* LGA presented after effect of 1991 legislative cut of $68,690
<br />The 1989 increase in Local Government Aid (LGA) resulted from a formula change in
<br />distributing the aid. A key variable in calculating LGA is the "revenue base ". The revenue base is
<br />- a concept which has been used to calculate funding of cities for a number of years. The revenue
<br />base consists of a city's property tax levy plus LGA. The revenue base for the City of Lino Lakes
<br />has been as follows:
<br />OMNI
<br />Property
<br />Tax LGA Total
<br />1988 $1,146,850 $232,157 $1,379,007
<br />1989 1,146,850 330,823 1,477,673
<br />1990 1,529,821 163,165 1,692,986
<br />1991 (est.) 1,717,473 94,735 1,812,208
<br />The aid amount established by the 1990 LGA formula is now the base LGA from which the
<br />1991 and 1992 cuts has been subtracted. There cuts are calculated as follows:
<br />July December
<br />1991 1991 1992*
<br />Payable 1991 total levy $1,717,473 $1,717,473 $1,717,473
<br />Initial 1991 LGA 163 425 163 425 163,425
<br />1991 revenue base 1,880,898 1,880,898 1,880,898
<br />Reduction percentage 2.052% 1.600% 3.900%
<br />Estimated 1991 LGA cuts $38,596 $30,094 $73,355
<br />* estimated using 1991 tax levy and LGA
<br />
|