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that under fiscal disparities law, forty percent(40%) of the <br />increase in commercial/industrial assessed value will have to be <br />shared wiith the rest of the region. <br /> <br />Summary of Financial Analysis <br />As-a result of the preceding analysis, there are several issues <br />and important considerations for the City of Ramsey in the <br />development of its Capital Improvement Program. <br /> <br /> o The city will have little or no surplus revenue to finance <br /> capital improvements on a pay-as-you-go basis. Indeed, with <br /> the imposition of levy limits, the city is likely to <br /> encounter problems in financing operating expenditures if it <br /> wishes to maintain current levels of service. <br /> o The city's policy of making maximum use of special <br /> assessments is likely to continue except in cases where ther <br /> is citywide benefit. The city's borrowing capacity for <br /> citywide projects is an untapped resource and is the most <br /> likely financing method for such projects. <br /> <br /> o The city should continue its policy of setting up special <br /> funds to provide for such things as landfill restoration, <br /> park improvements and equipment replacement. The source of <br /> revenue for these funds will probably have to be special <br /> fees or outside grants, since the city is not likely to have <br /> surplus revenue to contribute to these funds. <br /> o In encouraging commercial and industrial development, the <br /> city should try to determine in advance the fiscal impact of <br /> this growth. In other words, it should make sure that the <br /> increased cost of providing services to that development is <br /> more than offset by the increase in assessed value, <br /> considering that 40% of that increased value will have to be <br /> shared with the rest of the region under the fiscal <br /> disparities law. <br /> <br />CBO21A <br /> <br />-8- <br /> <br /> <br />