Agenda Packets - 1989/05/08 - Laserfiche WebLink

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,� '> i�"'�D:sii.cU ,�l.14 naaaw2 ad��.7stt;nu' ^l��P° ' (@viQ,7 tr}lY� ed brs �i!.�'� •r.^`. OHGve of $e; i get /,Y.1 f5ll rv•n ilt',L'v. li., .5'!, ISnrl. 111' i5/!/!-ri !G May i, 1989 TO: Mayors, Managers, Clerks FROM: Donald A. Slater, Executive Directors RE: Levy Limits Proposed by Tax Bills-- v Cities Need to Contact Legislators (612) Both House and Senate tax. bills (H.F. 1734 and S.F. 473) propose a severe tightening of levy limits for Pay 1990. Both bills impose a strict three percent limit for next year. The Senate bill would impose such limits on all cities, including small cities with populations under 2,500. Population/household adjustments are also restricted under both bills. A summary of levy limit provisions is provided below. now cne proposed levy limits will result in -cutbacks Incity or services, programs and number of employees. Copies of any correspondence should also be sent to tax conferees (list attached). "he tax bills are expected to be considered this week on the House and Senate floors, Conference action will begin next week. The League is opposing this tightening of levy limits because it will pose financial problems for many cities. The three percent adjustment is well below the inflation rate. Stringent limits are being imposed at a time when cities are struggling with the high costs of mandates --particularly comparable worth and binding arbitration, Three Percent Levy Limit Both House and Senate bills impose a three percent levy limit for Pay 1990. For larger cities with populations over 2,500, the three percent increase will be applied to the Pay 1989 levy limit base (rather than the actual levy for Pay 19891. Under the Senate bill, small cities must use actual levies for Pay 1989 as the levy limit base for Pay 1990. Under the House bill, cities with reserve appeals for Pay 1989 and 1990 must use a different levy limit base (see previous Action