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Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) Annual Debt Service Payments Including This Issue
<br /> "Fiscal Disparities Law"
<br /> G.O. Debt
<br /> The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as Supported Primarily by G.O. Debt Supported
<br /> Fiscal Disparities, was first implemented for taxes payable in 1975. Forty percent of the
<br /> Special Assessments by Tax Increments
<br /> increase in commercial-industrial (including public utility and railroad) net tax capacity valuation Principal Principal
<br /> since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan Year Principal & Interest(a) Principal & Interest
<br /> area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, 2002 (at 1-2) $ 220,000 $ 415,855.01 $ 250,000 $ 490,700.00
<br /> excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax 2003 290,000 561,805.85 295,000 507,762.50
<br /> base. A distribution index, based on the factors of population and real property market value 2004 400,000 631,311.26 315,000 511,460.00
<br /> per capita, is employed in determining what proportion of the net tax capacity value in the area- 2005 405,000 619,377.51 330,000 508,868.75
<br /> wide tax base shall be distributed back to each assessment district. 2006 410,000 606,406.26 350,000 510,000.00
<br /> 2007 430,000 607,340.01 365,000 504,830.00
<br /> 2008 445,000 601,951.26 390,000 508,155.00
<br /> Iron Range Fiscal Disparities 2009 465,000 600,227.51 410,000 504,742.50
<br /> 2010 440,000 553,288.13 435,000 504,603.75
<br /> In 1996 Minnesota Legislature established a commercial-industrial tax base sharing program for the 2011 405,000 497,761.25 210,000 259,106.25
<br /> Iron Range that is modeled after the Twin Cities metropolitan area program commonly known as 2012 335,000 410,176.25 225,000 258,538.75
<br /> "fiscal disparities." 2013 345,000 404,191.25 240,000 256,720.00
<br /> 2014 290,000 334,143.75 55,000 61,730.00
<br /> Under the Iron Range Fiscal Disparities (1RFD") program, 40% of the growth in each municipality's 2015 230,000 261,796.25 55,000 59,172.50
<br /> commercial-industrial tax base after 1995 is contributed to an area wide pool. The tax base pool is 2016 205,000 226,301.25 60,000 61,440.00
<br /> distributed back to municipalities on the basis of property wealth per capita; i.e., municipalities with 2017 210,000 221,160.00
<br /> lower property wealth receive greater distributions. For the purposes of the IRFD program, 2018 120,000 123,000.00
<br /> commercial-industrial property includes public utility property, but does not include commercial, Total $5,645,000(6) $7,676,092.80 $3,985,000(°) $5,507,830.00
<br /> seasonal, recreational property. All local taxing jurisdictions in the area, including counties, cities,
<br /> towns (including unorganized towns), school districts, and special taxing districts, participate in the
<br /> IRFD program. G.O. Debt Supported
<br /> by Revenues Revenue Debt
<br /> The IRFD program is identical to the Twin Cities metropolitan area program except for the Principal Principal
<br /> provisions summarized below: Year Principal & Interest Principal & Interest
<br /> 1. The geographical.area involved is the taconite tax relief area. This includes all of Cook 2002 (at 1-2) $ 150,000 $ 277,660.00 (Paid) $ 20,731.50
<br /> County and Lake County, most of Itasca County and St. Louis County (the City of Duluth 2003 155,000 275,432.50 $ 55,000 95,031.25
<br /> 2004 160,000 272,867.50 60,000 97,012.50
<br /> and surrounding area is not included), portions of Aitkin County and Crow Wing County, and
<br /> 2005 165,000 269,980.00 65,000 98,650.00
<br /> a very small portion of Koochiching County.
<br /> 2006 170,000 266,790.00 65,000 95,075.00
<br /> 2. The base year is 1995, so that 40% of the growth in commercial-industrial tax base after 2007 175,000 263,232.50 70,000 96,362.50
<br /> 1995 will be shared. The first tax year to be affected was 1997/98. 2008 180,000 259,322.50 75,000 97,281.25
<br /> 2009 185,000 255,105.00 80,000 97,825.00
<br /> 3. Municipalities are not required to share commercial-industrial growth in tax increment 2010 185,000 245,625.00 85,000 98,081.25
<br /> financing (TIF) districts created before May 1, 1996. 2011 190,000 240,905.00 90,000 98,050.00
<br /> 2012 200,000 240,665.00 95,000 97,731.25
<br /> 4. Municipalities that consciously exclude commercial-industrial development are excluded 2013 205,000 234,862.50
<br /> from participation. This will be determined by a joint effort of the Department of Revenue 2014 215,000 233,447.50
<br /> (MnDOR) and the Iron Range Resources and Rehabilitation Board (IRRRB). a 2015 225,000 231,267.50
<br /> Total $2,560,000(d) $3,567,162.50 $740,000(e) $991,837.50
<br /> In September 2000, a lower court declared the Iron Range Fiscal Disparities Act
<br /> unconstitutional. In April 2001, this ruling was overturned by the Minnesota Court of Appeals. (a1 Includes the Bonds at an assumed average annual interest rate of 4.45%
<br /> In July of 2001, the Minnesota Supreme Court agreed to review the Act. What the outcome (6) 69.3%of this debt will be retired within ten years.
<br /> may be or what effect, if any, these court proceedings may have, can not be determined at this (c)
<br /> 84.1/of this debt will be retired within ten years.
<br /> time.
<br /> (d) 67.0%of this debt will be retired within ten years.
<br /> (e) 100.0%of this debt will be retired within ten years.
<br /> III-4
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