Agenda Packets - 1989/02/06 - Laserfiche WebLink

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Q ,))C,- I ;� MEMO TO: Mayor 6 Council FROM: Finance Director -Treasurer Brager DATE: February 1, 1989 RE: 1989 LONG TERM FINANCIAL PLAN (LTFP) AND 1990 BUDGET CALENDARS Attached is a proposed resolution adopting the 1989 LTFP and 1990 Budget Calendars. Due to compliance with recently enacted Truth In Taxation legislation by the State of Minnesota the budget process will start much earlier this year. work or. the LTFP is proposed to begin March 10 and work on the Budget is proposed to begin April 24. Truth In Taxation legislation requires that the City certify its proposed property tax levy to the County Auditor by August 1. The County Auditor calculates our property tax levy and sends notice to all taxpayers of the proposed levy and the date of our public hearing on the Budget. In addition, the City is required to place an advertisement in either the Minneapolis or St. Paul papers. The notices to taxpayers and the notice in the newspaper are to disclose it taxes are proposed to increase. The method prescribed to calculate whether taxes are the same or have increased will, in most Cities, result in tax increases. If the total dollar amount levied City wide increases it is considered a tax increase. Increases in valuations due to new construction and revaluation of properties is not to be considered. In my opinion, that method is just plain stupid. Over the past ten years the dollar amount of our overall levy has increased but the mill rate has decreased each year (and consequently individual tax bills) because of increases in valuations from new construction and revaluations. The part that is stupid is to send a notice saying there is a tax increase and if the trend continues, send a tax bill that is lower than the previous year. Should you 1^ave any questions please de not hesitate to contact me. RECOMMENDATION: Consider adopting Resolution No. 2445, ADOPTING THE 1989 LONG TERM FINANCIAL PLAN AND 1990 BUDGET CALENDARS" DB/ds Attachment