09/08/2003 Council Packet - Laserfiche WebLink

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• • AGENDA ITEM 3B STAFF ORIGINATOR Al Rolek MEETING DATE September 8, 2003 TOPIC Consideration of Resolution 03 -146 adopting the preliminary 2003 Tax Levy, collectible in 2004. Simple Majority VOTE REQUIRED BACKGROUND Minnesota State Statutes require the City of Lino Lakes to adopt and certify a preliminary tax levy for the coming year on or before September 15th of each year. The Minnesota State Legislature during the 2003 legislative session cut 100% of Local Government Aid and Market Value Homestead Credit Aid that the City of Lino Lakes was to receive for 2003 and 2004, amounting to $546,816 for each year. The Legislature has re- implemented tax levy limits for 2003/04 and has restricted general tax levies to the amounts levied for 2002/03; however, cities are allowed to include in their 2003/04 tax levies 60% of lost Local Government Aid and Market Value Homestead Credit Aid. This amount has been incorporated into the preliminary 2003/04 tax levy. The tax levy proposed for 2003 collectible in 2004 is the maximum levy allowed under the city's levy limit. The proposed levy will result in a decrease in the city's tax rate for 2004 and may reduce the city share of the tax bill for property owners. The proposed levy in Resolution 03 -146 is the City's maximum levy for 2003/04. The final levy may be decreased, but can not be more than the proposed levy when it is adopted in December. The total levy includes funding for the general operating budget, general bonded debt and a tax abatement under agreements between the City and Target and Kohl's. The levy will be further reviewed by the City Council and staff between September 8th and December 8th, for changes if necessary. OPTIONS 1. Adopt Resolution 03 -146 adopting the proposed 2003 tax levy, collectible in 2004. 2. Return to Staff for further review. RECOMMENDATION Option 1