1983 July 18 to 1984 July 9 - Council Packets

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-2- 1. Local Government Aids - Article 5, Local Government Aids, of the 19ti3 tlmulbus 'lix hill, II.F. 1259, cal is for a nuidilI- ca tion In the formula For cnmpnting Local Government Aids, LGA. The formula, in the case of most cities, including Mounds View, wlII rrrsuIL In a reduction iu LGA, however, the fill limits the Impact by stipulnLing that no rity experience a reduction during any one year that Is more than it could raise through a three -fourths equa!Ized mill levy. Doe to some modifications in the formula for LGA, including new factors not yet fully established, we are uncertain as to the exact amount of the reduction for Mounds View, however, it is estimated to be approximately $51,500. It was staff's initial understanding that each city would have cite option of special levying the amount of reduced LGA when the total levy is certified to the County. We have now been led to believe from information provided by the Revenue Department that it is their intention to include the reduced LGA in the individual levy computations for each city thus eliminating the need to special levy. The decision then before the Council is do we leave the reduced LGA in the levy computations or do we reduce the amount levied, thus not Levying up to the maximum, by an amount equal to the reduced LGA? 2. Levy Limitation Increase - Besides the Increase in the levy limits resulting from the addition of the reduction in LGA, an additional increase results from the Revenue Department's inclusion of the City's LGA allotment in the beginning of the levy limit formula rather than at the end as had been past practice. This change results in the application of the levy limit formula to the City's previous year's levy plus LGA which increases the amount that the City can levy by $42,716 above and beyond the $51,507 reduction in LGA. The obvious question before the Council is do we wish to take advantage of a "windfall" resulting from a statutorily mandated formula or do we reduce the amount levied, thus not levying up to the maximum, by an amount equal to the increase resulting from a change in the formula? 3. Forestry Special Levy - Article 3, Levy Limits, of the 1983 Omnibus Tax Bill included the reinstatement of the special levy authority for Forestry Program costs which was elim- inated by the 1981 Omnibus Tax Bill. To the best recollec- tion of staff, it has been the standard practice of the City since inception of the Forestry Program to take advantage of this authority. The question before the Council is do we special levy for the cost of. the 1984 Forestry Program which is proposed in the first draft at $23,201?