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<br />Item No: 8C <br />Meeting Date: September 22, 2003 <br />Type of Business: Council Business <br />City of Mounds View Memorandum <br />To: Honorable Mayor and City Council <br />From: Charles Hansen, Finance Director <br />Item Title/Subject: Correction to Resolution 6091 Authorizing Certification of <br />the Proposed General Fund Budget and Property Tax <br />Levy for Fiscal Year 2004 <br /> <br />There is an error in resolution 6091 that was adopted by the City Council on Monday, <br />September 8, 2003. It is a technicality, but to be safe, a corrected resolution needs to be <br />adopted by the City Council at the Monday, September 22, 2003 meeting. <br /> <br />The problem begins with the overall 2004 levy limitation. The State certified this to us at <br />$2,832,903. However, the State will pay part of this through the Market Value Credit aid <br />and Mounds View taxpayers will pay the rest. <br /> <br />Based on statements from the State, I thought they were telling me that the Market Value <br />Credit would be $227,793 for 2004 and that I should deduct that from the $2,832,903 levy <br />limitation before certifying the tax levy to Ramsey County. <br /> <br />However, as I talked with Ramsey County about details of the certification process, they <br />informed me that the Market Value Credit is different from other aid that the State <br />provides to cities. <br /> <br />In the case of other aids, the State tells the local government what the aid will be for the <br />next year. In the case of the Market Value Credit, Ramsey County calculates the credit in <br />December and tells the State what the amount will be. <br /> <br />Essentially the problem is that our budget showed $2,605,110 of base tax levy plus <br />$227,793 of Market Value Credit when it should have shown $2,832,903 of base tax levy <br />and nothing for Market Value Credit. The total revenues and total budget are correct. <br /> <br />Proper certification of the proposed property tax levy to Ramsey County requires the City <br />to show a base tax levy of $2,832,903 plus special levies of $74,353 for a total tax levy of <br />$2,907,256. A Corrected Resolution 6091 is attached. <br /> <br />Respectfully submitted, <br /> <br />___________________________ <br />Charles Hansen, Finance Director <br />Reviewed by City Administrator: ________ <br />