Management Report and Recommendations 12/31/1989

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City of Lino Lakes, Minnesota Management Report, Page 2 1989 and 1990 LEGISLATIVE ACTIONS The 1989 and 1990 Legislatures approved several changes in the property tax system and state aid distribution system. The table below summarizes the dollar impact of these changes. Local Governmental Aid Homestead and Agricultural Aid Tax Base Equalization Aid Totals State Totals For Cities 1988 $297,037,000 111,873,000 0 1989 $376,376,000 106,308,000 0 1990 $317,343,000 146,523,000 18.339.000 1990 Percent inaease/(Decrease) Increase over 1989 (1 cease) ($59,033,000) (15.68)% 40,215,000 37.83% 18,339,000 $ 408, 910,000 $482,684,000 $482,205,000 ($479,000) (0.10)% Statewide Local Government Aid (LGA) initially increased by approximately $30 million for 1990. However, after the effect of the aid transfer for education (1989 Special Legislation Session) of $74.7 million and the 1990 legislative retroactive aid cut, LGA will decrease by approximately $59 million from the 1989 level. The aid transfer to school districts is a method of increasing the State financial support for education while decreasing financial support for cities. The aid transfer for a city is an amount equal to 3.4 % of its adjusted net tax capacity. Cities received increased property tax levy authority to replace the aid transfer. Property tax related state aids for the City of Lino Lakes have been as follows: Local Governmental Aid Homestead and Agricultural Aid Tax Base Equalization Aid City of Lino Lakes 1985 1986 $196,177 226 ,529 0 1987 1988 1989 1990 $219,728 3232,159 3232,157 3330,823 3163,103 • 249,813 277,294 289,347 283,691 357,397 0 0 0 0 49.684 Totals lemmiL7122m6 inie6m241 3509.453 521 504 5614.514 3570.184 *Net of aid transfix for education of 3148,175 and 1990 legislative aid at of 326,304