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.. �. <br /> • <br /> STATE OF MINNESOTA <br /> DEPARTMENT OF REVENUE <br /> Mail Station 2240 <br /> St. Paul, MN 55146-2240 <br /> September 4, 1987 <br /> Mr. David M. Childs <br /> City Manager, City of St. Anthony Village <br /> 3301 Silver Lake Road <br /> St. Anthony, MN 55418 <br /> Dear Mr. Childs: <br /> The appeal you submitted for a payable 1988 levy.1imit base adjustment for the City <br /> of St. Anthony has been reviewed. <br /> The City of St. Anthony's requested levy limit base adjustment of $183,000 is based <br /> • on the following considerations: <br /> 1. The use of $150,000 in reserve funds in 1987.to reduce the city's payable <br /> 1987 property tax levy; and <br /> 2. The loss of federal revenue sharing funds totalling $33,000. <br /> I have recommended to John E. Haynes, Assistant Commissioner in the Department <br /> of Revenue, that the requested levy limit base adjustment of $150,000 for the use of <br /> reserve funds in 1987 to reduce the city's payable 1987 property taxes be approved. <br /> The 1987 budget information submitted in support of the City of St. Anthony's appeal <br /> clearly indicates that the city intended to use $300,000 in reserve funds (retained <br /> earnings from the municipal liquor store) to finance expenditures in the general fund <br /> in 1987. This use of,reserve funds was included in the budget that was adopted for <br /> 1987 and was a reduction in setting the city's property tax levy for payable 1987. In <br /> the spring of 1987 it was determined that the municipal liquor store profits would be <br /> much less than anticipated. It was, therefore, decided to replace $150,000 of the <br /> transfer of retained earnings from the municipal liquor store to the general fund with <br /> an equal amount from the fund balance of the general fund. This was trading one <br /> source of reserve funds for another and has no adverse effect on the city's request for <br /> a levy limit base adjustment. <br /> I have recommended, however, that the requested levy limit base adjustment of <br /> $33,000 for the loss of federal revenue sharing in 1987 be denied. The loss of federal <br /> revenue sharing is not a.valid reason for an appeal because it is based on the.loss of a <br /> levy limit adjustment authorized for prior years. :For payable 1987, the calculation of <br /> • a city's levy limit included an adjustment for any loss.in federal revenue sharing. The <br /> 1987 Legislature repealed that adjustment for payable 1988. The fourth criterion of <br /> the "Levy Limit Appeal Guidelines" states that no appeal based on the loss of an <br /> adjustment authorized for prior years is to-be accepted._ <br /> AN EQUAL OPPORTUNITY EMPLOYER <br />