HomeMy WebLinkAbout07/08/2010 Council PacketLINO LAKES CHARTER COMMISSION AGENDA
JULY 8, 2010
FOR JOINT MEETING WITH
CITY COUNCIL
6:30 PM
1. Call to Order and Roll Call
2. Pledge of Allegiance
3. Open Mike / Public Comment
Welcome Mayor and City Council to our Joint meeting
Old Business
Charter Agenda for Joint Meeting with City Council
A. Charter Budget
B. The unpaid bills from Attorney Marty
D. Code of Conduct / Conflict of Interest
E. Tax Cap Amendment
New Business
A. Road Improvements — How do we get there? (Council initiated agenda item)
1 a. Joint Subcommittee (Council initiated agenda item)
Adjournment for Joint Meeting with Council 9:00 PM
6:30 PM
Caroline Dahl Christopher Lyden Kelly Gunderson
Chair Vice Chair Secretary
MARTY LAW FIRM, LLC
3601 Minnesota Drive
Suite 500
Bloomington, MN 55435
August 18, 2009
Invoice submitted to:
Lino Lakes Charter Commission
Caroline Dahl, Chair
Telephone: 952 -921 -5559
e -mail: kmarty@ix.netcom.com
Fax: 651 -294 -1026
4/7/09 Invoice submitted for last 3 months of 2008 $1126.65
5131/09 Payment received for end of 2008 - 1126.65
2008 Sum still due $ 0.00
2009 Legal Services Rendered:
Date Work related to city's audit Hours Fees
1/8/09 Spoke with Chair regarding recording meetings.
Researched issue.
1/16/09 Researched data practices law issues. Sent response to Chair.
1/28/09 Reviewed emails regarding audit. 1.41 204.45
2/2/09 Spoke with Chair regarding data request.
2/3/09 Reviewed data request and data practices act.
Spoke with Chair re same.
2/4/09 Responded to legal question.
2/25/09 Spoke with Chair regarding data practices. 1.92 278.40
3/13/09 Responded to additional questions about data practices.
Researched law and opinions re same.
3/16/09 Sent requested information to Chair. Discussed audit
with Chair.
3/18/09 Sent letter to audit attorney. 4.00 580.00
5/28/09 Received and read Work Session staff report pages 0.67 97.15
regarding the Charter commission audit.
6/1/09 Spoke with Chair about snuiit attorney memo. 0.42 60.90
Completed and sent response letter.
6/2/09 Researched public purpose law and cases regarding 1.17 169.65
expenditure of money in a campaign.
6/4/09 Completed research into spending public money and 3.17 459.65
public purpose. Sent information to Chair regarding that,
additional legal analysis, and duty of the charter commission.
Spoke with Chair re same.
6/5/09 Spoke with Chair about city council work session earlier 0.42 60.90
in the week.
6/8/09 Listened to city council work session CD. Made notes 2.33 337.85
regarding what was said. Checked charter cases regarding
powers. Analyzed city council comments.
6/19/09 Read newspaper article. Responded to questions from 0.08 11.60
Chair.
6/23/09 Responded to questions about audit. 0.50 72.50
6/24/09 Read draft city council minutes. Sent corrections and 1 145.00
comments to the chair, relating to charter commission issues.
Also responded to draft opinion piece re charter commission
activities.
6/26/09 Edited and added comments to draft letter. 0.25 36.25
7/29/09 Received call from a reporter. Read emails from the 0.08 11.60
Chair and responded to question.
TOTAL related to city's audit:
Date Work related to amending the Charter Hours
$2525.90
Fees
4/20/09 Responded to questions about data practices and the .08
Internet.
6/23/09 Sent note re charter amendment 0.08
7/30/09 Responded to emails about preparing charter amendments 0.25
7/31/09 Spoke with Charter Commission member regarding 0.33
two proposed charter amendments.
TOTAL related to amending the Charter
MINUS payment received
UNPAID for first half of 2009
11.60
11.60
36.25
47.85
1062.85
157035
Section
204A.01
204A.02
204A.03
204A.04
204A.05
204A.06
CHAPTER 204 CODE OF CONDUCT
Procedures
Disclosure
Removal of influence
Representation of interested party
City employment
Removal from office
§ 204A.01 PROCEDURES.
Any elected official, city employee or agent appointed by the City Council, or any member
of a committee or commission who has been appointed by the City Council or Mayor, who in
the discharge of their official duties, would be required to take action or make a decision
which could substantially affect the official's financial interest, or those of an associated
business, unless the effect on the official is no greater than that on any other members of the
official's business classification, profession or occupation, shall take the following action.
(Prior Code, § 204A.01) (Ord. 14 -95, passed 9 -11 -1995)
§ 204A.02 DISCLOSURE.
Disclosure to the Council or chairperson, and other members of the commission of which
they are a member, their participation in the matter, prior to the time the matter is considered
by the Council, committee, or commission.
(Prior Code, § 204A.02) (Ord. 14 -95, passed 9 -11 -1995)
§ 204A.03 REMOVAL OF INFLUENCE.
Remove themselves in the manner prescribed by the Council, or the chairperson of the
committee or commission of which they are a member, from any consideration or influence
over the action and decision in question.
(Prior Code, § 204A.03) (Ord. 14 -95, passed 9 -11 -1995)
1
§ 204A.04 REPRESENTATION OF INTERESTED PARTY.
Not appear before the Council or committee or commission of which they are a
member, on their own behalf, or as a representative for any other person, firm,
corporation, partnership, or association, operated either for profit or non - profit.
(Prior Code, § 204A.04) (Ord. 14 -95, passed 9 -11 -1995)
§ 204A.05 CITY EMPLOYMENT.
No member of the City Council shall accept any employment, except as a Council
member, with the city.
(Prior Code, § 204A.05) (Ord. 14 -95, passed 9 -11 -1995)
§ 204A.06 REMOVAL FROM OFFICE.
Any officer, employee, agent member of a committee or commission who
intentionally violates the provisions for this section can be removed as an officer,
employee, agent, or member of a committee or commission by a majority action of the
entire City Council, after a hearing held by the Council, pursuant to written charges, and
at least 10 days personal notice, or in the event the individual cannot be served after
due diligence, by 10 days published notice, or both.
(Prior Code, § 204A.06) (Ord. 14 -95, passed 9 -11 -1995; Am. Ord. passed 10- -1995)
2
SECTION XXX CODE OF CONDUCT.
XXX.XXX. Purpose.
The city council of the city of Lino Lakes confirms its determination that standards of
professionalism, ethics, and will of the people be adhered to among its members, as well
as appointed and hired officials and employees of the City. The standards of conduct set
forth below are intended to serve as a guideline for the members of the city council and
others in carrying out their duties, as referenced in the Lino Lakes City Charter, Chapter
XII, Section 12.03, Code of Conduct. By eliminating conflicts of interest and providing a
guide for conduct in city matters, the city council upholds that it is essential that the
public have trust and confidence in the integrity and transparency, and to encourage its
citizens to serve on its council and commissions.
The residents and businesses of Lino Lakes are entitled to have fair, ethical and
accountable local government. Such a government requires that public officials:
• Comply with both the letter and the spirit of the laws and policies affecting
operations of the government.
• Be independent, impartial and fair in their judgment and actions.
• Use their public office or position for the public good, not for personal gain.
• Conduct public deliberations and processes openly, unless legally confidential, in
an atmosphere of respect and civility.
XXX.XXX. Standards of Conduct.
1. Act in the Public Interest
Recognizing that stewardship of the public interest must be their primary concern,
council members shall work for the common good of the people of Lino Lakes and not
for any private or personal interest, and they will endeavor to treat all persons, claims and
transactions in a fair and equitable manner.
2. Comply with the Law
Council members shall comply with the laws of the nation, the State of Minnesota and
the City in the performance of their public duties. These laws include, but are not limited
to: the United States and Minnesota constitutions; the Lino Lakes City Charter; laws
pertaining to conflicts of interest, election campaigns, financial disclosures, employer
responsibilities and open processes of government; and City ordinances and policies.
3. Conduct of Members
Council members shall refrain from abusive conduct, personal charges or verbal attacks
upon the character or motives of other members of the City council, boards,
commissions, committees, staff or the public. Council members shall support the
maintenance of a positive and constructive environment for residents, businesses and City
employees.
4. Conduct of Public Meetings
Council members shall inform themselves of public issues, listen attentively to public
discussions before the body and focus on the business at hand. Council decisions shall be
based upon the merits and substance of the matter at hand.
5. Compensation or Reimbursement
A council member or member of any board or commission may accept compensation or
expense reimbursement for the performance of the person's public duties only from the
sources listed below. A council member or member of any board or commission must
not solicit or accept, and a person must not offer or pay to a public official or employee,
compensation or expense reimbursement for the performance of the person's public duties
from any source other than:
a. compensation and expenses paid by the city;
b. compensation and expenses from other employment, if the person happens to
conduct public business while being paid for the other employment and if the
other employment does not interfere with, influence, or compromise the person's
public position; and
c. compensation and expenses paid by another governmental agency or municipal
association to a council member or member of a board or commission who serves
as a city representative for that agency, but only if the city does not also pay the
person for the same activity.
6. Contract or Proprietary Interest
A council member or member of any board or commission must not enter into a contract
with the city of Lino Lakes, unless authorized by law. A council member or member of a
board or commission who has a proprietary interest of 10 percent or more in an agency
doing business with the city must make known that interest in writing to the city council
and the city clerk.
7. Public Data Disclosure and Privacy
A council member or member of a board or commission must not disclose to the public,
or use for the private gain of self or others, information that was gained by reason of the
official's public position and that is not public data. Further, a council member or
member of a board or commission must not disclose information received, discussed, or
decided in conference with the council's or board's attorney that is protected by the
attorney /client privilege, unless a majority of the council or board has authorized that
disclosure.
It is the responsibility of council members or member of a board or commission to
publicly share substantive information that is relevant to a matter under consideration that
they have received from sources outside of the public decision - making process with all
other Council members or member of a board or commission.
Council members or member of a board or commission shall respect and preserve the
confidentiality of information provided to them concerning the confidential matters of the
City. They shall neither disclose confidential information without proper legal
authorization nor use such information to advance their personal, financial or private
interests.
8. Coordination with City Staff
Appropriate City staff should be involved when council members or member of a board
or commission meet with officials from other agencies and jurisdictions to ensure proper
staff support as needed and to keep staff informed.
9. Conflict of Interest
In order to assure their independence and impartiality on behalf of the public good,
council members or member of a board or commission shall not use their official
positions to influence government decisions in which they have a financial interest or
where they have an organizational responsibility or a personal relationship that would
present a conflict of interest under applicable State law.
Except as permitted by law, a council member or member of a board or commission must
disclose a potential conflict of interest for the public record and refrain from participating
in the discussion and vote, when a matter comes before that person that:
a. affects the person's financial interests or those of a business with which the person
is associated, unless the effect on the person or business is no greater than on
other members of the same business classification, profession or occupation; or
b. affects the financial interests of an organization in which the person participates
as a member of the governing body, unless the person serves in that capacity as
the city's representative.
10. Gifts and Favors
Council members or member of any board or commission shall not take advantage of
services or opportunities for personal gain by virtue of their public offices that are not
available to the public in general. They shall refrain from accepting gifts, favors or
promises of future benefits that might compromise their independence of judgment or
action or give the appearance of being compromised as prohibited by state law.
11. Use of Public Resources
A council member or member of any board or commission must not use public money,
time, personnel, facilities, or equipment for private gain or political campaign activities
except when:
a. the use is required or authorized by law; or
b. the use is no greater than that allowed for members of the general public.
This paragraph does not prohibit correspondence at any time to individual residents in
response to the resident's specific inquiries, or general surveys of residents that are
conducted before the time of filing for candidacy for elective office.
12a. Representation of Private Interests
In keeping with their role as stewards of the public trust, council members or member of
a board or commission shall not appear on behalf of the private interests of a third -party
before the City council or any board, commission or committee or proceeding of the City.
12b. Advocacy
To the best of their ability, council members or member of a board or commission shall
represent the official policies and positions of the body. When presenting their personal
opinions or positions, members shall explicitly state that they do not represent the council
or the City.
A council member or member of a board or commission must not act as an agent or
attorney for another before the city council or a board or commission in a matter where a
conflict of interest exists or may exist.
13. Improper Influence
A council member or member of any board or commission must not use the official
position to secure special privileges or exemptions for the person or others.
Council members shall refrain from using their position to improperly influence the
deliberations or decisions of City staff, boards, commissions or committees.
14. Intentional Violation of Provisions
A council member or member of any board or commission must not intentionally violate
a provision of the city charter or the city ordinances.
Council members shall respect and adhere to the council- Administrator structure of Lino
Lakes City government as provided in State law and the City Charter.
XXX.XXX Implementation
City council members shall sign this personal code of conduct at the first council meeting
in January each year as a symbol of each council member's continuing commitment to
abide by the principles of this code.
Code of Conduct standards shall be included in the regular orientations for City council
candidates or potential members of any board or commission or city staff. Council
members entering office shall sign this statement affirming they read and understand the
Lino Lakes City Code of Conduct.
.XXX. Disclosures.
All City officials shall take an oath upon assuming office, pledging to uphold the Home
Rule Charter and laws of the City, the State and the Federal government. As part of this
oath, officials commit to disclosing to the appropriate authorities and/or to the City
council any behavior or activity that may qualify as corruption, abuse, fraud, bribery or
other violation of the law.
Within 30 days after taking the oath of office or being appointed to a position, each
council member and member of a city board or commission must file a report with the
city clerk, on a form prepared by the clerk, which contains the information specified
below for the preceding year. Subsequently, each person must file a supplemental report
on the first day of February of each year in office and within 30 days after any change in
information provided under paragraph 5. The information must be for the individual, the
individual's spouse, and all minor children (collectively referred to below as "person "):
a. a business entity in which the person is an officer, director, member, or employee,
and the position held;
b. a business entity in which the person has an ownership interest, either legal or
equitable, greater than 5 percent;
c. sources of income, compensation, fees, or commissions that are received from
employment, for services rendered, or from pensions, except the employment of
minor children;
d. non -profit organizations in which the person serves on the governing body, and
the position held, except if serving in that capacity as the city's representative; and
e. real property within the city owned by the person or in which the person has a
beneficial interest and that has an assessed valuation in excess of $10,000. The
person's homestead need not be included.
The term "business entity" includes any business, proprietorship, firm, partnership,
person in representative or fiduciary capacity, association, venture, trust or corporation.
Compliance and Enforcement
Council members themselves have the primary responsibility to assure that ethical
standards are understood and met and that the public can continue to have full confidence
in the integrity of City government.
This code of conduct shall be considered to be the definitive document relating to ethical
conduct by Lino Lakes council members or member of any board or commission.
XXX.XXX. Compliance and Enforcement.
The council may hold a hearing after receiving a written complaint questioning adherence
to these principles or alleging a conflict of interest or failure to file a required disclosure
statement, or on the council's own volition. At the hearing, the person accused must have
the opportunity to be heard. A hearing will be held only if the city council determines (1)
upon advice of the city attorney, designee or other attorney appointed by the council, that
the allegations rise to the level of a violation of these principles or to the level of a
legally - recognized conflict of interest, and (2) that the complaint has been lodged in good
faith and not for impermissible purposes such as delay. If after the hearing, the council
finds that a conflict of interest, failure to file a required disclosure, or violation of these
principles does exist, the council may take whatever action it deems appropriate,
including referring the matter for criminal prosecution, imposing a civil penalty not
exceeding $2000 per violation, directing an official not to participate in a decision, or
removing an appointed member of an advisory board or commission from office. A
council member or member of a board or commission must not participate in a decision if
the council prohibits the participation.
I affirm that I have read and understand the City of Lino Lakes City council Code of
Conduct.
Signature
Date
CODE OF CONDUCT
Purpose
To establish a code of conduct and associated remedies that council members agree to abide by
in carrying out their duties as elected officials. This code of conduct does not supersede any
existing or future statutory or constitutional rights, but simply outlines appropriate council
expectations, behavior and interactions with each other, city staff, citizens and all other groups
encountered as a result of city business, so as to efficiently and effectively develop and carry out
the mission, vision, goals and established policies of the city.
Roles/Responsibilities
Meetings — By Charter, the mayor presides over meetings of the city council. Speakers,
including council members, do not speak until recognized by the mayor.
Act in the Public Interest — Recognizing that service to our citizens must be our primary
concern, council members shall work for the common good of the people of Lino Lakes and not
for any private or personal interest. Council members will treat all persons, claims and
transactions in a fair and equitable manner.
Preparation — Council members are expected to be prepared for city council meetings and work
sessions.
Agenda Preparation — The city administrator directs preparation of draft meeting agendas. The
final agenda is determined by the city council prior to the meeting. At the council meeting,
agenda items may be added or deleted by council members per procedures established in the city
code.
Conduct of Members
Staff Direction — The mayor and city council members direct city staff, contract employees and
consultants only through the city administrator, as determined by majority vote. At work
sessions, the mayor will state the concerns of the council or specific directions provided by the
council to the staff. The city administrator will request further clarification if he feels it is
required so that there is a clear understanding of what the council's expectations are in terms of
the actions to be taken by staff.
Respect for Staff Time — If a council member is utilizing an inordinate amount of staff time, the
city administrator is required to bring this to the attention of the city council for resolution.
Interactions — Council members shall refrain from abusive conduct, personal charges or verbal
attacks upon the character or motives of other members of the city council, boards, commissions,
committees, staff or the public.
Respect for Process — Council member duties shall be performed in accordance with the
processes and rules of order established by the city council.
Use of Public Resources — Public resources not available to the general public (e.g., city staff
time, equipment, supplies or facilities) shall not be used by council members for private,
personal or political purposes.
Advocacy — To the best of their ability, council members shall speak with one voice in
representing the official policies and positions of the city council. When presenting their
personal opinions or positions, members shall explicitly state that they do not represent the
council or the city.
Improper Influence — Council members shall refrain from using their position to improperly
influence the deliberations or decisions of city staff, boards, commission or committees.
Positive Work Environment — Council members shall support a positive, efficient and effective
environment for residents, businesses and city employees.
Steward of City Funds — When the end of a council member's service on the city council has
been determined by means of not seeking re- election, resignation, or the results of an election,
that council member shall not subject the city to unnecessary travel and/or tuition costs.
Communication
Sharing of Information — It is the responsibility of council members to publicly share
information with all other council members that they have received from sources outside of the
public decision - making process, which pertains to a topic under consideration. Whenever
possible, new information or data obtained by council members, pertinent to a topic being
discussed, will be distributed through the city administrator to the city council members. Upon
reviewing the "new information" the council may adopt a motion to postpone further
consideration of the information until all members have had time to review and interpret this new
information.
Focused Discussions — Council members shall work to keep discussions and debates focused on
the item under discussion without introducing extraneous or irrelevant information.
Request for Information - All council members shall receive the same information at the same
time when deemed ready for distribution by staff. If an elected official requests information in
advance of others on the city council, the matter shall be resolved by a majority of the city
council.
Coordination with City Staff — City staff should be involved when council members meet with
officials from other agencies and jurisdictions to ensure proper staff support as needed and to
keep staff appropriately informed.
Citizen Questions — Elected officials should refer questions and concerns from citizens to the
city administrator or appropriate department director. City staff should report back to the city
council on the resolution of the referral.
Confidential Information — Council members shall respect and preserve the confidentiality of
non - public, protected non - public, private, and confidential information provided to them
concerning matters of the city. They shall neither disclose confidential information without
proper legal authorization nor use such information to advance their personal, financial or private
interests.
Notice of Attendance — If any council member has knowledge or reason to believe that there
will be a large or emotional attendance at an upcoming council meeting or work session, they
have an obligation to inform the city administrator as soon as they become aware of the potential
situation.
Implementation
Orientation — This Code of Conduct shall be included in the regular orientations for new city
council members. Following each election, the new council shall, by resolution of its elected
members, adopt a city council code of conduct.
Compliance and Enforcement — Council members themselves have the primary responsibility
to assure that the code of conduct is understood and followed and that the public can continue to
have full confidence in the integrity of the Lino Lakes city government.
Remedies
It is the responsibility of the city council to police its members. When inappropriate behaviors
are observed, any member of the council can intervene. If inappropriate behavior is observed,
the city council will discuss the behavior at a council work session. By direction of the council,
it will be determined whether:
a. A letter is sent to the offending council member stating that they have been found
operating outside the established code of conduct, requesting them to correct the
behavior identified as inappropriate; or
b. The council member is formally sanctioned by resolution at a council meeting.
Resolution 06 -58 adopting this Code of Conduct was adopted by the Lino Lakes City Council on
April 10, 2006.
John Bergeson, Mayor
City of Lino Lakes
2010 Adopted Tax Levy
General Fund Levy
Special Levy - PERA Contribution
Adopted Adopted Adopted
2008 2009 2010
7,864,704 8,247,178 7,768,238
38,418 47,994 47,994
7,903,122 8,295,172 7,816,232
Special Levy - Target/Kohls Abatemt 70,114
Special Levy - Legacy/YMCA Abatemt 2006C 42,443
112,557
Debt Levy
Certificate of Indebtedness 2005 40,404 - -
Certificate of Indebtedness 2006 122,603 120,698 -
Certificate of Indebtedness 2007 66,990 62,948 60,349
Certificate of Indebtedness 2008 82,975 81,732
Certificate of Indebtedness 2009 - 126,840
Civic Complex Bond 1998A ** 191,213 126,788
Public Project Revenue Bond 1999C 109,557 104,570
Taxable G.O. Imp Bond 2003B 20,741 19,534 23,524
G.O. Improvement Bond 2005A - -
G.O. Improvement Refunding Bond 2005B 108,041 113,482 124,176
G.O. Tax Abatement Bond 2006C 66,148 108,591 140,091
G.O. CIP Refunding Bond 2006E ** 125,580 209,580 322,470
Total Debt Levy 851,277 949,166 879,182
Total Levy 8,866,956 9,244,338 8,695,414
** Is decreased by School District lease
B -7
LEAGUE OF
MINNESOTA
CITIES
CONNECTING & INNOVATING
SINCE 1913
How to estimate your 2011 levy limit
Updated 5/21 /2010
• Again for 2011 levy limits will only be in effect for cities over 2,500 population. Under current
law, levy limits expire after 2011.
• The language on levy limits is contained in Chapter 275 of Minnesota statutes.
• Slight changes to the levy limit law were made during the 2010 session: HF3729 and Chapter 215.
• The final inflationary increase percentage will NOT be known until later this summer.
• The Dept. of Revenue will be certifying levy limits by Sept. 1, 2010. Cities must indicate to the
Dept. using the PT280 form which special levies they are intending to use by Sept. 30, 20] 0.
Step 1: Start with your city's adjusted levy limit base for pay 2010 (note that starting with the adjusted
levy limit from last year means that any unused levy authority is retained going forward for your
city). You can arrive at this figure by adding your maximum allowable levy (the limited piece)
for payable 2010 to your certified 2010 LGA, 2010 taconite aid (if applicable), 2010 wind energy
production tax (if applicable) and your 2010 utility valuation transition aid (f applicable). This
is your city's levy limit base.
Step 2: Multiply your levy limit base by 1.68% (the levy limit law says the inflationary increase is the
lesser of 3.9% OR the change in the implicit price deflator (IPD) for local governments). The
2010 legislature clarified that the change cannot be less than zero percent. The most recent data
(May 2010) on the IPD factor from the Bureau of Economic Analysis shows the change in the
deflator at 1.68 percent. [NOTE: this is NOT the final IPD figure that will be used; DOR will use
the most recent data available — likely from June —when it calculates levy limits].
Step 3: Multiply the result of Step 2 by I plus one -half of the percentage increase, if any, in the number
of households in your city over the last year.
Step 4: Multiply the result of Step 3 by 1 plus one -half of the percentage increase in the total taxable
market value for all kinds of property as a result of new construction of just commercial and
industrial (CI) property. (This adjustment only applies, in other words, if your total taxable
market value increased AND you had new CI construction). The result is your adjusted levy
limit base for pay 2011.
Step 5: From your adjusted levy limit base for 2011, subtract your 2011 certified LGA (if applicable),
your 201 l taconite aid (if applicable), your 2011 wind energy production tax
(if applicable), and your 2011 utility valuation transition aid (if applicable). The 2010 Legislature
confirmed and clarified that certified aid amounts are to be used in the calculation. At this point,
2011 LGA amounts are estimates only (see spreadsheet on LMC website). Cert f ed aid amounts
for 2011 will be announced by DOR in July 2010.
The result is your 2011 levy limit. See the following pages for detailed information on special levies for
pay 2011.
145 UNIVERSITY AVE. WEST
ST. PAUL, MN 55103 -2044
PHONE (651) 281 -1200 FAX: (651) 281 -1299
TOLL FREE: (800) 925 -1122 WEB: WWW.LMC.ORG
League of Minnesota Cities
How to estimate your 2011 levy limit
Page 2
Special Levies for 2011
There are several special levies allowed beyond this levy limit. Below is a list of the most frequently used
"special levies." Those marked with an " *" are special levies that cities can use for the first time for
payable 2011. For a complete list of special levies, see MS 275.70. subd 5.
• *Levies to recover 2010 LGA cuts in ratified unallotments
• *Levies to recover 2010 MVHC reimbursement cuts in ratified unallotments
• *Levies to recover 2010 LGA cuts in supplemental budget passed by 2010 legislature
• *Levies to recover 2010 MVHC reimbursement cuts in supplemental budget
• *Levies to recover 2011 MVHC reimbursement cuts in supplemental budget
• Levies for bonds and most certificates of indebtedness.
• Voter approved levies.
• Levies to pay for federal or state matching requirements.
• Levies for natural disaster recovery.
• Levies for property tax abatements.
• Levies for increases in PERA employer contributions.
• Levies to repay a federal or state loan for a transportation or capital project.
• Levy increases to fund police and firefighter relief associations.
• Levies related to foreclosure costs
• Levies for police and firefighter wage and benefit costs.
Example of how to estimate the levy limit
Information needed for calculation:
✓ Pay 2010 adjusted levy limit base = $900,000 = levy limit base for pay 2011
✓ Percent change in number of households over last year = 2%
✓ Percent change in total market value of all property types as a result of new construction of
• commercial /industrial property= 0%
✓ 2011 estimated LGA= $3,250
✓ 2011 taconite aid= $0
✓ 2011 wind energy production tax= $0
✓ 2011 utility transition aid = $0
Calculation:
Step 1: $900,000
Step 2: $900,000 x 1.68 % = $915,120
Step 3: $915,120 x (l+half of 2 %) = $915,120 x 1.01 = $924,271
Step 4: $924,271 x (1 +0) = $924,271 x 1 = $924,271 (adjusted levy limit base for pay 2010)
Step 5: $924,271 — $3,250 — 0 — 0 - 0 = $921,021 (2011 levy limit)
For more information about levy limits, contact the following League of Minnesota Cities staff:
Gary Carlson Jennifer O'Rourke Rachel Walker
Director of Intergovernmental Relations Intergovernmental Relations Policy Analysis Manager
(651) 281 -1255 or (800) 925-1122 Representative (651) 281 -1236 or (800) 925 -1122
exarlson iiiroe ure (651) 281 -1261 or (800) 925 -1122 rwalkcrelme.ore
iorourkefu!lmc.ore
League of Minnesota Cities
How to estimate your 2011 levy limit
Page 3
FAQ: 2011 Special Levies
Q: Are there special levies that we should consider for the first time?
A: Yes. There are several special levies that cities can take advantage of for the first time. These
are special levies to allow cities to recoup the amounts of LGA and /or MVHC reimbursement that
were unalloted by the Governor AND the amounts of LGA and /or MVHC reimbursement that
were cut by the Legislature in the supplemental budget bill of 2010
Q: If we used a special levy in 2010, do we have to use it again in 2011?
A: Technically, the answer is no. However, the Department of Revenue makes adjustments to
your levy limit base once you start using a special levy (i.e. your base is reduced). If you opt to
stop using a special levy, the Department will NOT restore your base. Therefore, it is in the city's
best interest to continue to use a special levy once it starts.
Q: Do we have to use special levies?
A: No. They are optional, keeping in mind the answer above. If your city is going to use one or
more special levies for the first time in 2011, there may be special calculations you need to do in
order to estimate your levy limit base (see below).
Q: If we use special levies for the first time for pay 2011, what information do we need to
provide to DOR?
A: For most of the allowed special levies, the Dept. of Revenue needs baseline data. When you
decide to start using a given special levy, the Department will use the information provided by
cities on the property tax levy report. This report was due to the Department in December of 2009.
If you are concerned that your city's report was incomplete or inaccurate for any reason, you need
to contact the Department in order to work with them on calculating an accurate baseline.
Cities will need to submit form PT280 by September 30th to the Dept. of Revenue. That form
indicates which special levies a city intends to use.
Q: Do we need to submit any forms to the Dept. of Revenue?
A: Yes. Cities will need to submit form PT280 by September 30th to the Dept. of Revenue. That
form indicates which special levies a city intends to use.
Q: Should we use special levies?
A: It depends. The use of special levies is optional. Keep in mind that the inflationary increase
on the limited levy is just 1.68% (note that this figure will be finalized in early July using the data
available at that time and may change slightly). If you are going to see an increase of less than the
inflationary increase PLUS the other 2 percentage adjustments for household growth and
commercial - industrial growth in a category of spending that could be a special levy, it may be of
more benefit to NOT treat that category as a special levy. This way, you retain those dollars in the
calculation of your levy limit base.
League of Minnesota Cities
How to estimate your 2011 levy limit
Page 4
Q: Where does the household data come from for calculating levy limits?
A: The state demographer and Metropolitan Council will certify population and household counts
to the Dept. of Revenue by July 15.
Q: Where does the commercial /industrial new construction data come from?
A: Data on new construction of C/I property is available from the 2009 Fall Mini Tax Abstract
from the Dept. of Revenue. Total taxable market value for all property types in a city will be
available on the 2010 Abstract of Tax Lists in July.
Q: How is new construction within TIF districts or within JOBZ areas handled in the levy
limit calculations?
A: Levy authority is adjusted for a portion of the percentage increase in total taxable market value
as a result of new construction of commercial /industrial property. New construction of C/I
property within TIF and JOBZ areas will count in the calculation of this adjustment.
Select Special Levies Allowed for Taxes Payable 2011
A table listing several of the special levies allowed in the levy limit law is below. For each of
these special levies, the table makes note of whether or not cities that are using the special levy for
the first time must back out the entire 2010 levy amount for a given special levy in order to
calculate the levy limit base. The table also includes additional information on some of the more
complex special levies. DOR will issue highly detailed instructions on special levies when it sends
out the PT280 forms.
Special Levy
If city will use this special
levy FOR THE FIRST
TIME in 2011, does city
need to subtract entire
2010 amount from levy
limit base calculation?
Notes
Unalloted (ratified) 2010 LGA or
MVHC cuts
No.
Supplemental cuts to 2010 LGA
or MVHC
No.
Cuts to 2011 MVHC
No.
Costs attributable to police /fire
wages and benefits
YES.
The special levy is the
entire amount —not just the
change.
If you contract with another city or county
for police services, you need to ask the
provider for documentation as to the
portion of contract costs that go to cover
wage/benefits. Then, you need to
determine the amount of levy you have
used /will use to cover that part of the
contract cost.
Levies for bonds and most
certificates of indebtedness
YES.
The special levy is the
entire amount —not just the
change.
If a city issued an emergency debt
certificate to recover from aid and credit
cuts rather than using the special levy for a
similar purpose, it must use this special
levy to pay the certificate back, not the aid or
credit cut special levy
League of Minnesota Cities
How to estimate your 2011 levy limit
Page 5
Special Levy
If city will use this
special levy FOR THE
FIRST TIME in 2011,
does city need to
subtract entire 2010
amount from levy limit
base calculation?
Notes
Levies approved via voter
referendum
YES.
The special levy is the
entire amount —not just the
change.
Levies to fund matching
requirements for federal or state
grants
Yes —the special levy is for
the change since 2001 only.
To the extent that matching
requirement exceeds requirement in
2001 or it is a new requirement that
didn't exist prior to 2002
Levies to pay expenses incurred
in preparing or repairing the
effects of natural disaster
YES.
The special levy is the
entire amount —not just the
change.
There is also a separate application to
DOR Commissioner.
Levies for property tax
abatements
YES.
The special levy is the
entire amount —not just the
change.
Levies for increases in PERA
employer contribution rates or
for locally administered plans
effective after 6/30/01
YES levy is
Cities cannot use a special levy for
PERA rate increases if they are
accounting for those rate increases as
part of the police /fire wages and
benefits special levy and vice versa.
No double counting is allowed.
—the special
for the change since 2001
only.
Levies to repay state or federal
loan used to fund spending on
transportation or other capital
project
YES.
The special levy is the
entire amount —not just the
change.
Levies to fund police and
firefighter relief associations.
YES.
The special levy is the
entire amount —not just the
change.
Levies to pay costs incurred for
securing, maintaining, or
demolishing foreclosed or
abandoned residential properties
YES.
Requires separate application to DOR
commissioner. City must meet
threshold: foreclosure rate of at least
1.4% in 2007 OR foreclosure rate in
2007 in city or zip code area of city
that is at least 50% higher than average
metro foreclosure rate. Foreclosure
rate is number of foreclosures in sheriff
sales records divided by number of
households in 2007.
League of Minnesota Cities
How to estimate your 2011 levy limit
Page 6
Examples of how to estimate your city's levy limit
Example 1: City has small debt levy (also had for pay 2010)
Information needed for calculation:
✓ 2010 adjusted levy limit base = levy limit base for pay 2011 = $900,000
✓ Percent change in number of households over last year = 2%
✓ Percent change in total market value of all property types as a result of new construction of C/I =
0%
✓ 2011 estimated LGA= $3,250
✓ 2011 taconite aid= $0
✓ 2011 wind energy production tax= $0
✓ 2011 utility transition aid = $0
Calculation:
Step 1: $900,000
Step 2: $900,000 x 1.68 % = $915,120
Step3 $$915;120 x (l +half-of -2 %) _ $915,120 x 1.01 = $924,271
Step 4: $924,271 x (1+0) = $924,271 x 1 = $924,271 (adjusted levy limit base for pay 2010)
Step 5: $924,271 - $3,250 - 0 - 0 - 0 = $921,021 (2011 levy limit)
Example 2: City uses police /fire wage and benefit cost special levy (for 1st time in pay 2011)
Information needed for calculation:
✓ 2010 adjusted levy limit base = pay 2011 levy limit base = $125,000
✓ 2010 levy for police /fire wage and benefit costs = $35,000
(treat as if it would have been a special levy)
✓ Percent change in number of households over last year = 3%
✓ Percent change in total market value of all property types as a result of new construction of C/I =
1%
✓ 2011 estimated LGA= $3,250
✓ 2011 taconite aid= $0
✓ 2011 wind energy production tax= $0
✓ 2011 utility transition aid = $0
Calculation:
Step 1: $125,000
Step 2: $125,000 - $35,000 = $90,000
Step 3: $90,000 x 1.68% = $91,512
Step 4: $91,512 x (l +half of 3 %) = $91,512 x 1.015 = $92,885
Step 5: $92,885 x (l +half of 1%) = $92,885 x 1.005 = $93,349 (adjusted levy limit base)
Step 6: $93,349 - $3,250 - 0 - 0 - 0 = $90,099 (2011 levy limit)
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DATA
YOY % YOY
Population Change Tax Levy Change
1998 15053 $ 2,889,626
1999 15760 4.49% $ 3,699,918 21.90%
2000 16791 6.14% $ 4,187,526 11.64%
2001 17380 3.39% $ 4,766,240 12.14%
2002 17942 3.13% $ 5,902,158 19.25%
2003 18368 2.32% $ 6,124,621 3.63%
2004 18725 1.91% $ 6,550,620 6.50%
2005 19698 4.94% $ 7,269,302 9.89%
2006 19736 0.19% $ 7,976,907 8.87%
Percentage of Change
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Year over Year % of Change
1999 2000 2001 2002 2003 2004 2005 2006
® Population
® Tax Levy