Agenda - Council - 08/14/1990 - Laserfiche WebLink

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MEMORANDUM Councilmembers City Administrator FROM: DATE: SUBJECT: Finance Officer Ashley August 6, 1990 PAYABLE 1991 OVERALL LEVY LIMIT The City has received the levy limit calculation notice for payable 1991, and it is as follows: Payable 1990 Adjusted Base Inflation factor % of Increase Inflation Adjusted 1991 Levy Limit Base * Adjustment for growth in population or households - the adjustment equals one-half of the greater of the two ratios: Population 1989 12,717 1988 12,181 Growth Ratio 1.044 1/2 ofthe greater Adjustment for growth Population/Household Adjusted 1991 Levy Limit Base Less: 1990 Aid Reduction 1991 Local Government Aid Payable 1991 Levy Limitation Payable 1990 Levy Limitation 1991/1990 Increase (Decrease)- Dollars/ % $1,661,374 ~3% 49,841 3.7% $1,711,215 Households 3,641 3,422 1.064 1.032 (~3.2% 54,759 4.0% $1,765,974 (25,761) (280,251) $1,459,962 $1,355,782 $104,180 7.7% * Within the seven county metropolitan area, the source for 1988 and 1989 population and household data is Metropolitan council's estimates for April 1, 1988 and April 1, 1989 respectively. The levy limit increase at 7.7% is somewhat misleading as of this total, 4% is due to growth in households and 3.7% is due to the inflation factor used in the calculation. As the City's levy generally represents 15-17% of the total property taxes, the impact to residents' property taxes for a City increase of 7.7% (all else being equal) would be approximately 1%. With the increase in households, the levy dollars are spread across a larger base; therefore, the actual increase will be somewhat less.