Management Report and Recommendations 12/31/1982

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City of Lino Lakes Management Report, Page 9 The effect of these State "solutions" is increased property taxes to m aintain the same or reduced levels of service. These property tax increases are especially burden- some on homestead property owners because the State will be paying a lesser propor- tionate amount of property taxes on homestead property. 1 It is now left to local government to determine a final and lasting solution. Options available to local government fall into two primary categories. 1. Decrease the cost and /or level of services now being provided. 2. Determine and utilize alternative financial resources. A final and lasting solution should and will probably be a combination of factors in the above primary categories. Determining the level and degree of each factor are the critical choices facing all elected and appointed local government officials. These choices have not and will not be easy. Local governments possess the ability and authority to reduce the level of services below that now being provided. However, local government has only limited authority to increase its financial resources to finance those services and levels of service deemed necessary. The present levy limitations on Minnesota Cities plus decreasing State aids will become extremely restrictive. An easing of the levy limitation restrictions seems necessary as an alternative to severe reductions in levels of services now being pro- vided by Minnesota Cities and Counties. Without additional financial resources (i.e. authority), the only option available to Minnesota Cities will be to decrease the cost and /or level of services being provided. To obtain these additional financial resources, the State must be induced to ease the present levy limitation restrictions. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1