Agenda - Council - 08/11/1987 - Special

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ADJUSTMENTS FOR 1989 LEVY LIMITS IF THERE ARE NO CHANGES TO THE LAW First, compute the city's levy limit base, which is the sum of: (1) the property tax levied in 1985 for taxes payable in 1986; (2) certified 1986 local government aids; (3) 1986 taconite aid payments; (4) any amount levied as a special assessment to cover the costs of municipal operation and maintenance activities for taxes pay- able in 1986; and (5) the amount of any base adjustment auth- orized by the commissioner of revenue. Second, increase the previously defined levy limit base by: (1) a percentage equal to the percentage growth in the implicit price dtflator, or 3 percent, whichever is less; (2) the percentage growth, if any, in popula- tion or in number of households, whichever is greater, for the most recent 12-month period for which data is available; (3) one-half of any special levy amount for providing new services to new, private industrial and non-residential commercial developments; (4) the amount of any permanent change in the levy limit base approved at a referen- dum; (5) for cities in the seven -county metropolitan area only, any levy amount necessary to pay increased costs of implementing waste reduction and source separation programs and facilities consistent with an applicable county master plan; and (6) the amount, if known, of the decrease in the city's federal revenue sharing allotment from 1986 to 1987— otherwise the amount of the decrease in revenue sharing in 1986 compared to the revenue sharing funds received in 1985, if the levy base for 1985 was not adjusted for a decrease in revenue sharing. Finally, the adjusted levy limit base as calculated in the second step is reduced by the sum of: (1) total 1987 local government aid; (2) a portion of 1987 taconite aids as deter- mined by the commissioner of revenue; (3) 1987 native prairie and wetlands reimburse- ments; and (4) the amount, if any, that supplemental aid distributed in 1986 caused the city to exceed its levy limit base for 1986. This amount can be determined by adding the 1986 certified local government aid and the 1986 actual general levy minus special levies. From this amount, subtract the certified 1986 levy limit base, which includes the 1986 certified local govern- ment aid plus the allowable 1986 levy limit. 1f the result is zero or negative, there is no reduction in the 1987 levy limit. If the result is positive, that amount is an over -levy for 1986 and must be subtracted from the 1967 levy limit. The result of these calculations is the allowable general levy limit for a local unit of government. The final amount levied may equal this levy limit amount plus any special levies as specified in Appendix D. 37