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• CITY COUNCIL AGENDA ITEM 3B STAFF ORIGINATOR: Jeff Karison, City Administrator MEETING DATE: January 9, 2012 TOPIC: Resolution Supporting Fiscal Disparities VOTE REQUIRED: 3/5 INTRODUCTION The Anoka County Board adopted a resolution at its October 25 board meeting in support of continuing the fiscal disparities program. Because all but one city in Anoka County is a net recipient under this tax -base revenue sharing program, the County Board has asked cities and school districts to adopt similar resolutions in order to communicate a united message of support for the program to legislators. BACKGROUND The fiscal disparities program, which was implemented in the 7- county metropolitan area in 1975, was designed as a means to share tax revenue to narrow the gap between communities with a strong and growing commercial- industrial tax base and communities with small or stagnated commercial - industrial tax base. To lessen the difference between these "haves" and "have - nots," the law requires that 40 percent of new commercial - industrial tax base be put back into a pool and apportioned back to communities according to their population and overall tax base. During the 2011 legislative session, there was an effort by legislators in the southern and west regions of the metro area to eliminate the fiscal disparities program. If fiscal disparities were eliminated, most homeowners and business owners in Anoka County would see an average tax increase of 10 percent on their combined city /school /county tax statement. For example, in Lino Lakes, a homeowner with property valued at $200,000 would have paid $174 in additional taxes without the Fiscal Disparities Program, including $46 in city taxes. RECOMMENDATION Staff recommends the adoption of Resolution No. 12 -01, "Resolution Requesting No Change in Fiscal Disparities." ATTACHMENTS Resolution No. 12 -01