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City of Lino Lakes <br />Management Report, Page 3 <br />Cities are often under statutory restrictions which regulate the amount of property <br />taxes which can be levied for an operating year. Additionally, there are self- imposed <br />restrictions on the amount of property taxes which a city is willing to tax its citizens <br />in light of increasing school district, county, and other taxing authority increases. <br />Property tax revenue is therefore (oftentimes) a limited financing source for cities. <br />Additionally, full collection of these property taxes is not assured. Delinquent pro- <br />perty taxes reduce the amount available for expenditure during the current operating <br />cycle. For 1982, the State of Minnesota contributed to the delinquency of property <br />taxes levied through a reduction of the State paid homestead credit (after the reduction <br />owners property tax bills). There is speculation that this type <br />II <br />of individual property p p y ) P YP <br />of delinquency may occur in future periods as the State looks to solve other funding <br />shortfalls. <br />For 1984, the City of Lino Lakes took action to improve the property tax base for <br />future years. The property tax levy for 1984 was not under statutory limitation. <br />Future property tax levies may be under such limitations based on current legislation <br />for cities with a population over 5,000. We concur with the action taken which should <br />improve the overall financial position of the City and may assure greater financial <br />independence in future periods. <br />Since 1979, State aids and local property taxes used to finance the General Fund of <br />the City of Lino Lakes were as follows: <br />State Aids Property Taxes <br />Year Amount Percent Amount Percent <br />1979 $184,184 35.05% $166,149 31.62% <br />1980 239,622 39.57 171,440 28.32 <br />1981 300,971 41.92 212,914 29.78 <br />1982 283,089 36.63 305,804 39.57 <br />1983 349,076 37.50 355,684 38.21 <br />