Agenda - Council - 08/11/1987 - Special

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LEVY LIMITS - HISTORY General *(NOT APPLICABLE FOR 1988 ONLY)* - Limits have existed since 1675 in one or more forms. - Three Basic Levy Limit laws currently exist: 1) }.ill Limit 2) Per Capita Limit 3) Percentage Limit - The most restrictive limit applies in all cases: Formally this will be the Percentage Limit. - All three limits allow for certain special purpose levies above the specified limit. - For detailed explanation and calculation of each, obtain Aids for Preparing 1988 Municipal Budgets from the LMC. Dill Limit (M.S. 412.251) - Applies to all Statutory cities, but due to'historically stricter Percentage Limits for cities over 2,500 population, the limitation generally only affects cities under 2,500 population. - From 1875 to 1957 the mill limit was 10 mills for a city with $1,500,000 or more assessed valuation and 11.67 mills for cities with less than $1,500,000 assessed valuation. - In 1957 a percapita inflation factor was added so that for 1987 a city may levy its 10 or 11.67 mills plus 5216.00 Per capita. Per Caoita Limit (M.S. 275.11) - Applies to all cities including home Rule Charter cities. - Established in 1921 for Iron Range cities. - In 1951 a consumer price index (CPI) adjustment factor was added. - In 1957 all cities were included and a base of $54 per capita was established. - prior to the 1981 levy, Bonded Debt was limited to $54 per capita. A 1980 change allows any portion of the total per capita limit to be bonded debt or general purpose levy- in any percentage mix. - Payable 1987, the per capita levy- limnit for General Purpose and Bonded Debt equal a total of 5270.00 per capita ($54 5216.00 .) . The County Auditor is required to enforce this limit. Percentage Levy Limit (M.S. 275.50) - Established in 1971 for all cities (Statutory and "come Rule Charter %/