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1 City to Lew $4,770 Less in Taxes in 1989 Than in 19886 <br /> 2 The meeting had been recessed at 8: 23 P.M. and resumed at 8: 31 P.M. when • <br /> 3 the public hearing to consider the proposed 1989 City budget was opened. <br /> 4 Notice of the hearing had been published in the September 14th Bulletin. <br /> 5 Mr. Childs reported the above decrease in the amount to be levied had <br /> 6 been based on the new Tax Capacity Rate formula established by the <br /> 7 State Legislature during their last session. Because the 1988 levy had <br /> 8 been based on mill rates, the City Manager indicated he had been unable <br /> 9 to estimate what the average St. Anthony taxpayer would have to pay in <br /> 10 actual taxes which would depend on the amounts the other governmental <br /> 11 bodies like the counties, school district and taxing agencies levy. Mr. <br /> 12 Childs said further: <br /> 13 *one of the key reasons for the decrease had been the increase in <br /> 14 state aids to local government which, barring state revenue shortfalls <br /> 15 such as occurred in 1981-82 and 1983 , should cover some of the cost <br /> 16 increases the City experienced in 1988; <br /> 17 *most cities consider the year 1990 to be an unknown because that's <br /> 18 the year the legislature would be taking away the Homestead Credit; <br /> 19 *some municipal officials he's talked to expect that not to be, a <br /> 20 problem but he personally has some concerns which won't be erased until <br /> 21 he's seen the actual numbers for state aids and levying limits for 1990; <br /> 22 *the 1989 budget shows the Water and Sewer Funds as at least breaking <br /> 23 even or perhaps even with some minor profits, which would reverse a <br /> 24 multi-year trend of running deficits in those funds in the past. <br /> 25 The City Manager advised the Council that they had until October 20th <br /> 26 to adopt the budget but since no major changes are expected before that <br /> 27 time, there would probably be no reason for putting off that decision. <br /> 28 He added that the Council would be able to make modifications to the <br /> 29 budget in the future but the amount of taxes levied cannot be changed <br /> 30 after October 20th. <br /> 31 Possibility of State Aids Again Being Reduced by Legislature Haunts <br /> 32 Council <br /> 33 Mayor Sundland indicated he perceived a possibility that the Homestead <br /> 34 Credit removal might be reversed during the next session, noting that <br /> 35 most of the candidates running for the legislature had reopened the <br /> 36 issue during their campaigns. Councilmember Ranallo reported the issue <br /> 37 of State Aid to Local Governments and the substitution of Transition Aid <br /> 38 for Homestead Credit for one year had been generating a lot of <br /> 39 conversation during the regional meetings of the League of Minnesota <br /> 40 Cities he had been attending throughout the- state. The Councilmember <br /> 41 said he had gotten the same impression as the Mayor had, that <br /> 42 modification of that legislation was quite possible during the next <br /> 10 • <br />