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including those under 2500 population are subject <br /> to levy limits. Like the previous law, the levy <br /> limit is allowed to increase by 8%, with an <br /> adjustment for growth· Unlike the previous law, <br /> the levy limit base is the amount of taxes <br /> actually levied in 1981 rather than the previous <br /> ,. year's levy li~it plus local aid. Also, unlike <br /> the previous law, the growth adjustment is based <br /> on homesteads rather than population. <br /> The 1982 levy limit will be determined as follows: <br />1981 general levy~ 1980 homesteads : levy per homestead <br />Levy per homestead x 1981 homesteads x 1.08 = 1982 levy limit <br /> At this point the number of 1981 homesteads is not <br /> known. For projection purposes, it is assumed <br /> that the number of homesteads will increase in <br /> proportion to population growth. Using the high, <br /> medium and low projection assumptions, the levy <br /> limit has been projected for 1981 to 1986. <br /> The property tax levies not subject to the levy <br /> limit (special levies) are the same as previously, <br /> except that shade tree and enterprise fund levies <br /> are no longer exempt. Levies for bond payments <br /> are still exempt, which is an important feature to <br /> be taken into consideration when developing the <br /> capital improvement program. <br /> The property tax projections assume that the city <br /> does not hold a referendum to allow it to exceed <br /> its levy limit during this projection period, <br /> although that may indeed be necessary, as will be <br /> shown later. <br /> <br /> Local Government Aid ProJeetion~ <br /> Local government aid from the State of Minnesota is the <br /> second largest source of revenue for Ramsey. Compared <br /> to other communities, however, Ramsey's share of this <br /> aid is far less than the average· Figure 4 illu'strates <br /> this comparison· There are several reasons for this <br /> that must be explained by examining how the formula has <br /> worked in previous years· Initially, local aid amounts <br /> were based upon how much the community was receiving <br /> from various forms of specialized aid (e.g., exempt <br /> property reimbursement, sales tax per capita aid, <br /> cigarette and liquor tax aid). Increases after that <br /> have been based on two main factors: the last three <br /> years' average equalized mill rate (AEMR) and <br /> population· The use of the mill rate in te formula was <br /> to provide relatively more aid to communities with high <br /> mill rates, and less to those with low mill rates· The <br /> population factor until 1978 was the 1970 census <br /> <br />-3- <br /> <br /> <br />