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MAYOR AND CITY COUNCIL <br /> PAGE NINE <br /> MAY 31, 1990 <br /> County roads which are necessary because of a <br /> TIF project. Districts that were created <br /> prior to this Law and have a tight revenue <br /> stream, having to pay these costs, which were <br /> likely not budgeted for, could jeopardize the <br /> ability to pay debt service costs. The Law <br /> does not address this possibility. As a <br /> result, a city affected by this requirement <br /> would either have to levy for the revenue <br /> shortfall or seek resolution through the <br /> courts or legislature. <br /> Excess Increments - Excess funds in the debt <br /> service account at the time bonds are retired <br /> and which are distributed to the city, county <br /> and school district would result in <br /> penalties. Each jurisdiction would have <br /> their levies reduced by the amount they <br /> receive. This requirement will force cities <br /> to retire bonds early, as soon as adequate <br /> funds are available or use the increments for <br /> 411 other eligible activities in the district <br /> rather than redistributing excess increments <br /> back to the taxing jurisdictions. <br /> LGA Cuts/Levy Limits - As you know, local <br /> government aids were cut by 1.53% of 1990 LGA <br /> plus total levies. For Mounds View it is <br /> expected that this will result in an LGA cut <br /> of $31,159. <br /> The same amount of LGA is cut in 1991 after <br /> the levy limit base calculation has been <br /> made. For Mounds View this calculation is as <br /> follows . <br /> 1990 Levy $1,391,306 <br /> 1990 LGA (before cut) $ 645,260 <br /> $2,036,566 <br /> x 1.03 (3% Inc. ) <br /> $2,096,663 <br /> - 31, 159 LGA Cut <br /> $2,066,504 1991 <br /> Levy ($29,938 or <br /> 1.5% Increase over <br /> 1990) <br />