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MAYOR AND CITY COUNCIL <br />PAGE FOUR <br />JUNE 29, 1988 <br />t ' <br />school debt and school referenda. This special aid is the basis <br />for the Municipal Legislative Commission's legal challenge to the <br />1988 Omnibus Tax Law. <br />Anticipated Impacts on Mounds View <br />It is not too difficult for us to compute the amount of our 1989 <br />levy given that we have all of the information necessary and we <br />know what our 1989 LGA will be. The only assumption necessary is <br />for population or household growth which we estimate to be 2%. <br />Exhibit F illustrates the computations necessary to determine our <br />1989 levy. If our assumption on growth is correct, the City <br />should have a levy limit of $1,054,250 which is $123,339 less <br />than the 1988 levy limit while having a $36,332 increase in <br />property tax and LGA revenues. This decrease in levy and <br />increase in revenues results from two factors. The first is that <br />the $135,000 increase in the 1988 levy authorized by the <br />Commissioner of Revenue is a permanent part of our base. The <br />second is the $229,541 increase in LGA. The LGA increase offets <br />the $135,000 increase in levy and the adjustments for inflation <br />and growth with money left over. <br />It is likely based upon the above information and the increase in <br />homestead credit benefits that the City's portion of the 1989 <br />property tax bill will decrease. This assumption does not allow <br />for any increased valuations in existing structures or new <br />valuations due to new construction. <br />We hope that the above information adequately responds to any <br />questions you might have. We will be present at the July 18th <br />Agenda Session to discuss this with you in detail if you so <br />desire. <br />DFP/DB/mjs <br />Attachments: <br />