CC PACKET 11141989 - Laserfiche WebLink

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ain thou ills e - DATE : A P PROVA L - November 9, 1989 TO : City Councilmembers F ROM : Sue VanderHe den Actincr City a I TEM : 1990 CITY BUDGET AND TAX LEVY CERTIFICATION Truth in Taxation requires that the City provide Hennepin and Ramsey Counties with a certified proposed tax levy and proposed 1990 budget. As you are aware, the Minnesota State Legislature during the Special Session, passed a tax bill which transfers a portion of St. Anthony's Local Government Aid to Minnesota School Districts. The City of St. Anthony was scheduled to receive $453 ,337 before the recent bill was passed. Approval of this tax law has resulted in a transfer of $228,755 in Local Government Aid to the School District, leaving the City with a total of $224 ,562 in Local Government Aid. In return for this reduction, the State Legislature is allowing cities to increase their levies by the amount transferred to the school districts, thus St. ' Anthony is increasing its levy by $228,755 for payable 1990 taxes so as to be able to maintain the existing level of service. It should be noted that although school districts are receiving this additional money, the Legislature has not yet put any levy limits on their taxing ability. Therefore, school districts are still capable of increasing their portion of the tax bill , even though the Legislature intended the transfer of Local Government Aid money to decrease the school district portion of the tax bill. The St. Anthony proposed levy and budget result in the following: Levy limit taxes (reflects 30 levy limit increase) $1,193 ,053 LGA loss (transfer to school district $ 228,755 Certificate of Indebtedness (remains outside the levy limit $ 72 .000 Total Proposed Taxes $1,553 ,808 The City portion of residents tax bill on average priced home of $88,000.00 will be $180.00 in 1990. This is a $19.00 increase over the payable 1989 taxes which were $161.00. However, if the Legislature had not transferred the $228,755 to the School District, the City's portion of the 1990 tax bill would have been $137.00 or a decrease of $24.00 from payable 1989 taxes or $43 .00 less than payable 1990 taxes.