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APPENDIX III
<br /> FUNDS ON HAND SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
<br /> As of December 31, 2001 MINNESOTA REAL PROPERTY VALUATION
<br /> (effective through payable 2002)
<br /> Fund Cash and Investments
<br /> Following is a summary of certain statutory provisions effective through 2001 relative to tax levy
<br /> General $ 1,058,579 procedures, tax payment and credit procedures, and the mechanics of real property valuation.
<br /> Special Revenue 198,216 The summary does not purport to be inclusive of all such provisions or of the specific provisions
<br /> HRA Fund 911,437 discussed, and is qualified by reference to the complete text of applicable statutes, rules and
<br /> Capital Equipment (7,980) regulations of the State of Minnesota.
<br /> Debt Service:
<br /> Taxes and Special Assessments 987,328
<br /> Tax Increment 282,809 Property Valuations (Chapter 273, Minnesota Statutes)
<br /> Capital Projects 84,263
<br /> Community Center 36,352 Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by
<br /> Enterprise 6,533,798 statute, be appraised at least once every four years as of January 2 of the year of appraisal.
<br /> Miscellaneous 155,753 With certain exceptions, all property is valued at its market value which is the value the
<br /> assessor determines to be the price the property to be fairly worth, and which is referred to as
<br /> Total $10,240,555 the "Estimated Market Value."
<br /> Limitation of Market Value Increases. Effective through assessment year 2002, the amount of
<br /> increase in market value for all property classified as agricultural homestead or non-homestead,
<br /> INVESTMENTS residential homestead or non-homestead, or non-commercial seasonal recreational residential,
<br /> which is entered by the assessor in the current assessment year, may not exceed the greater of
<br /> (i) 10.0% of the value in the preceding assessment or (ii) 15% of the difference between the
<br /> The City's current investments are in accordance with Minnesota State Statutes compliance current assessment and the preceding assessment.
<br /> requirements sections 118.01, 471.56 and 475.66. In addition, the City has an investment
<br /> policy for Mortgage Backed Securities which does not permit the City to invest in the following Indicated Market Value. Because the Estimated Market Value as determined by
<br />an assessor
<br /> high risk securities (as defined in Minnesota Statutes, Chapter 475.66, Subdivision 5): may not represent the price of real property in the marketplace, the "Indicated
<br />Market Value" is
<br /> generally regarded as more representative of full value. The Indicated Market Value is
<br /> 1. Interest-only or Principal-only backed securities. determined by dividing the Estimated Market Value of a given year by the same year's sales
<br /> ratio determined by the State Department of Revenue. The sales ratio represents the overall
<br /> 2. Any mortgage derivative security that: relationship between the Estimated Market Value of property within the taxing unit and actual
<br /> selling price.
<br /> a. has an expected average life greater than ten years;
<br /> Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied,
<br /> b. has an expected average life which will extend more than four years as the result of extended and collected. The Net Tax Capacity is computed by applying the
<br /> class rate
<br /> an immediate and parallel shift in the yield curve of plus 300 basis; percentages specific to each type of property classification against the Estimated Market Value.
<br /> Class rate percentages vary depending on the type of property as shown on the last page of
<br /> c. has an expected average life which will shorten by more than six years as the result this Appendix. The formulas and class rates for converting Estimated Market Value
<br />to Net Tax
<br /> of an immediate and sustained parallel shift in the yield curve of minus 300 basis Capacity represent a basic element of the State's property tax relief system and are subject
<br />to
<br /> points; annual revisions by the State Legislature.
<br /> d. will have an estimated change in price of more than 17 percent, as the result of an Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity
<br />rate,
<br /> immediate and sustained parallel shift in the yield curve of plus or minus 300 basis expressed as a percentage.
<br /> points.
<br /> Investment firms are required to repurchase any and all securities which do not comply with Property Tax Payments and Delinquencies
<br /> Minnesota State Statutes, Sections 118.01, 471.56 and 475.66, or the City's investment policy (Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes)
<br /> with regard to high risk, at full face value of the purchase price. Ad valorem property taxes levied by local governments in Minnesota are extended and
<br /> collected by the various counties within the State. Each taxing jurisdiction is required to certify
<br /> the annual tax levy to the county auditor within five (5) working days after December 20 of the
<br /> year preceding the collection year. A listing of property taxes due is prepared by the county
<br /> auditor and turned over to the county treasurer on or before the first business day in March.
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