Agenda - Council - 10/24/1989 - Laserfiche WebLink

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MEMORANDUM DATE: October 24, 1989 TO: Mayor Reimann Councilmember Cich Councilmember DeLuca Councilmember Pearson Councilmember Peterson City Administrator Hartley FROM: Sandra Ashley, Finance Officer RE: 1990 PAYABLE PROPERTY TAX LEVY AND LOCAL GOVERNMENT AID We have received the Department of Revenue's notification under the 1989 Special Session Tax Law. The financial impact to our City is as follows: Payable 1990 Local Government Aid Under the 1989 Special Session Tax Law Prior Law provisions as used for budgeting $305,592 514,948 Revenue Increase (Decrease) ($209,356) Payable 1990 Levy Limit Under the 1989 Special Session Tax Law Prior Law provisions as used for budgeting 1,355,782 1,202,935 152,847 Net Impact to General Fund Budget Revenue ($56,509) In anticipation of a change in the tax law, the Adopted 1990 Budget included an expenditure reserve in the amount of $56,509. Due to this, the decrease in revenue can be offset by a decrease in expenditures and the resulting budget will still be a viable plan for general government operations in 1990. Based upon previous discussions with council, it would appear we will propose to increase the levy to the new level, publish and hold another public hearing and then certify a new tax levy to Anoka County. I have spoken to Bud Miller of the Anoka County Auditor's Office regarding scheduled public hearing dates. As you will recall, counties select meeting dates first, school districts next, and then cities; the county is responsible for coordinating the dates. The County has held public hearings, so it is only the school districts that may affect our public hearing date. Anoka-Hennepin School District %11 has scheduled a public hearing for December 11, 1989. Elk River School District %728 has scheduled a public hearing for December 5, 1989.