Agenda - Council - 07/26/1983 - Laserfiche WebLink

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6. A city that reduced any unreserved or undesignated fund balances for non- I special levy purposes in calendar year 1981, may apply to the Commissioner of Revenue for a levy limit base increase for 1984. Attached is an explana- tion of the procedures involved in obtaining this adjustment. I 7. The initial 1984 levy limit base is the sum of the preceding six items. i8. I I I I I i I The inflation adjustment provides for either the greater of a fixed 5% increase or the percentage increase in the implicit price deflator for government purchases of goods and services for the 12 month period ending June 30, 1983. The implicit price deflator is developed by the Bureau of Economic Analysis of the United States Department of Commerce and is a measure of the change in the purchase price paid by state and local governments for goods and services. Preliminary indications are that this measure should approximate 6%, therefore the inflation adjustment,to be entered on line 8 will probably range between 105% to 106%. The inflation adjusted levy~limit base is the initial levy limit base (line 7) multiplied by the inflatio~/~djustment factor (line 8). 10. An additional growth.adjustment is provided-for the greater of the increase in population or in ~h'e~number. of. hous~holds. For cities within the seven county metropolitan area, the 1982 population and household estimates as well as the 1983 household estimates have been entered. The 1982'population and household estimates for these cities are those made by the Metropolitan Council for April 1, 1982. The 1983 household estimates for these cities are those made by the Metropolitan Council for April 1, 1983. For cities outside of the seven county metropolitan area, the 1982 and 1983 population estimates have been entered. These are the population estimates made by the State Demographer for April 1, 1981 and April 1, 1982 respectively. The Department does not have the 1983 population estimates for the metro cities and the 1982 and 1983 household estimates for the non-metro cities at this time. If you have any preliminary estimates, they can be used to determine the preliminary levy limitation. The 1983 Population estimates for the metro cities will be those made by the Metropolitan Council for April l, 1983. For the non-metro cities, the 1982 and 1983 household estimates will be those made by the State Demographer for April l, 1981 and April 1, 1982 respectively. If your city has had or will have a special federal census taken on or before July 1, 1983, the results of the special federal census should be used if it is the latest population or household count as of the stated date of count or estimate. The larger of the population or household 1983/1982 ratios is to be included on line 10. In no event is the ratio on line 10 to be less than 1.000. I I I I Ill. The population/household adjusted levy limit base is the inflation adjusted levy limit base (line 9) multiplied by the greater of the population or household increase ratio shown on line loc. 12. The levy limit base adjustment for 50% of discontinued special levy M is an adjustment for one-half of the payable 1983 special levy for increased industrial and nonresidential commercial development based on 1979 basic construction permits. The 1979 permits drop out of the special levy formula for the taxes payable year 1984. 13. A permanent levy limit base increase is the increase amount approved at a general or special election which was held between October l, 1982 and September 30, 1983. Attached is an explanation of the procedures involved in obtaining a permanent increase adjustment. -2-