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Tax rate increase law clarified Eric Willette League staff members have received guage for the resolution can be found decrease is less than your increase in many inquiries regarding the new in the LMC Research memo,"Guide- HACA from 1999 to 2000 you will "tax rate increase authorization"law lines for Preparing City Budgets need to pass a resolution. If you have The new law,which applies to cities 2000." any questions,please call Eric Willette over 500 population,requires passage a ote that even if you or Gary Carlson at the League,(651) of a council resolution to authorize a decre se you evy in 2000,if the 281-1200 or (800) 925-1122. property tax rate increase.Most of th * ` questions are in two areas—the time l of the public hearing and resolution, and how to make the necessary calculations. Calculation for Sample City Mosquito The law states that the resolution Heights must be passed after holding a public 1999 Calculation hearing on the issue ie eari 1• Pay 1999 Certified Net Tax Capacity Levy 1,000,000 b a re ar or s ecial council meet- ,2• Pay 1999 Certified Referendum Market Value Levy + 100,000 _� if�nu old a special council 3. Pay 1999 Total Certified Levy (1+2) = 1,100,000 meeting,you must follow all the 4. Pay 1999 Certified Levy for General Obligation Bonds - 50,000 normal publication requirements for 5. Pay Total Certified Non-Debt Levy (3-4) = 1,050,000 a special meeting.There are no new 6. Pay 2000 Fiscal Disparity Distribution Tax - 100,000 additional publication requirements 7. Pay 2000 HACA Net Tax Capacity Adjustment - 30,000 if you hold the hearing at a regu F rly- 8. Pay 2000 HACA Fiscal Disparity Adjustment - 20,000 scheduled-c ng. here 9. 1999"Net Levy"(5-6-7-8) 900,000 is no restriction m-the law on the ate of the hearnn or t e timing 2000 Calculation for passing the resolution—an time I rior to October 20 is acceptable. 10. Pay 2000 Proposed Net Tax Capacity Levy 975,000 any cities plan to pass the resolution 11. Pay 2000 Proposed Referendum Market Value Levy + 100,000 concurrent wit t ie adoption o t etr 12. Pay 2000 Proposed Total Levy (1+2) = 1,075,000 preliminary lei 13. Pay 2000 Proposed Levy for G.O. Bonds - 50,000 e calculations for the new 14. Pay Total Proposed Non-Debt Levy (3-4) = 1,025,000 law can be confusing.To estimate if 15. Pay 2000 Fiscal Disparity Distribution Tax - 100,000 your proposed 2000 levy will require 16. 2000 Proposed"Net Levy"(5-6) = 925,000 a council resolution,follow the table at the right.The information needed If 2000 line#16 is greater than 1999 line#9, you need to pass a tax rate for the calculations must be supplied resolution to your city by the county by Octo- ber 1.The resolution must be submit- Notes: ted to the county by October 20. Lines 6, 8, and 15 only apply to cities in the metro area and on the Iron Range Failure to submit the resolution will Lines 7 and 8 only reflect increases in HACA from 1999 to 2000 limit your city to your 1999 levy, except for increases in general obligation debt levies.Sample lan- August 18, 1999 Page 5