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• <br /> MEMORANDUM <br /> DATE: August 24, 2001 <br /> TO: Mike Morrison, City Manager <br /> FROM: Roger Larson,Finance Director <br /> ITEM: PROPOSED PROPERTY TAX LEVY <br /> At their August 14`s meeting,Council reviewed the proposed 2002 budget and tax levy. <br /> Based on those discussions, staff has prepared resolution #01-075 setting the City of St. <br /> Anthony's 2002 proposed tax levy. <br /> This year, the State Legislature made significant and sweeping changes to the property <br /> tax system. Some of the modifications included; restructuring of the class rates; <br /> eliminating HACA aid to cities; phasing out limited market value increases on property <br /> • valuations; and taking over the funding for public education. <br /> The State has calculated that the changes made to the property tax system will provide <br /> property tax relief statewide of approximately $900 million. On the average, it is <br /> anticipated that most property owners should experience a 20% reduction in their overall <br /> taxes. <br /> As we discussed with Council, the sweeping changes made by the Legislature and the <br /> elimination of HACA aid, make it difficult to compare this year's levy to last years levy. <br /> A summary of last years' method and this year's calculation is as follows: <br /> 2001 2002 <br /> Property Tax Levy: $1,763,475 $2,199,967 (Levy Limit)* <br /> LGA $ 147,079 $ 141,352 <br /> HACA 349,289 $ - 0 - <br /> $2,259,843 $2,341,319 <br /> Increase =$81,476 <br /> Percentage= 3.61% <br /> *The State has imposed levy limits for years 2002 and 2003. Included in the levy limit <br /> calculation is a provision for recovering the loss of HACA (the State anticipates cities <br /> • will levy back their loss in HACA). <br />