Agenda Packets - 1999/09/13 - Laserfiche WebLink

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City of Mounds View Staff Report To: Chuck Whiting, City Administrator From: Bruce A. Kessel, Finance Director Item Title/Subject: Resolution for increase in tax rate for the year 2000 Date of Report: September 7, 1999 During the 1999 Legislative session, a new law was passed which requires that cities hold a public hearing(defined as action at a regularly scheduled City Council meeting; no notice is required to be published) and adopt a resolution authorizing an increase in the tax rate if they will have a tax rate increase. The resolution must be passed and filed with the County Auditor no later than October 20th . For purposes of this calculation, the State has specified a formula to be used to calculate whether there will be a tax rate increase. Due to the structure of the formula, a city can certify a 0% change in its certified levy when compared to the prior year and still have a"tax rate increase"if the city receives more state aid than they did in the previous year. While tax capacity values have not been finalized, preliminary data indicates that our tax capacity increased in excess of 5%. Our preliminary proposed property tax levy increased less than 1%. However,the formula indicates that we will have an increase in our tax rate. As such, we are required to pass a resolution authorizing such an increase.