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Levy Limitation
<br />Minnesota's Levy Limitation Law, initiated in 1982, restricted property
<br />tax increases to 6 percent per capita per year. The 1980 legislature
<br />increased this to 8 percent per capita per year. Ramsey has continued
<br />to operate within its authorized levy limitation in 1982.
<br />Fiscal Disparities
<br />In 1971 the legislature enacted a Fiscal Disparities Law which was not
<br />implemented until taxes payable in 1975 due to a constitutional challenge.
<br />The law provides for the pooling of 40 percent of all new commercial /industrial
<br />property valuation or growth in the seven county area to be redistri-
<br />buted to the taxing jurisdictions according to population and valuation
<br />per capita. The mill rate is higher or lower if the municipality in
<br />which the property is located received more or less assessed valuation
<br />from the metropolitan pool than is contributed by the municipality.
<br />Although it is difficult to determine the future impact of the law on
<br />the City, it appears that the City will gain assessed valuation. The
<br />impact on the taxable valuation of the City is as follows:
<br />Year Taxes
<br />Payable
<br />1975
<br />1976
<br />1977
<br />1978
<br />1979
<br />1980
<br />1981
<br />1982
<br />Assessed Value
<br />Contributed to
<br />"Pool"
<br />$ 169,559
<br />524,874
<br />524,874
<br />611,412
<br />1,064,160
<br />1,278,722
<br />1,716,164
<br />2,544,644
<br />$ 630,693
<br />798,177
<br />757,886
<br />990,328
<br />1,343,796
<br />1,680,227
<br />2,433,605
<br />4,056,347
<br />Debt Administration
<br />The City has no bonded debt applicable to the legal - debt margin. The
<br />following is a summary of the bonded debt for fiscal year 1982.
<br />Gross Bonded Debt Outstanding, January 1, 1982
<br />Add: Bonds Issued in Fiscal Year 1982
<br />Deduct: Bonds Redeemed in Fiscal Year 1982
<br />-x-
<br />Assessed Value Net Received
<br />Received from or
<br />"Pool" (Contributed)
<br />$ 461,134
<br />273,303
<br />233,012
<br />378,916
<br />279,636
<br />401,505
<br />717,441
<br />1,511,703
<br />$3,240,000
<br />565,000
<br />( 225,000)
<br />Gross Bonded Debt Outstanding, December 31, 1982 $3,580,000
<br />Cash Management
<br />The City of Ramsey subscribes to the "pooled cash" concept of investing
<br />which means that all funds with cash balances (except escrow fund)
<br />participate in an investment pool. This permits some funds to be
<br />temporarily overdrawn and others to show cash balances when in fact the
<br />City has a cash balance. This pooled cash concept provides for investing
<br />greater amounts of money at more favorable rates. Interest earnings
<br />are then periodically allocated to the participating funds. During 1982
<br />the City earned $234,760 interest on investments.
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