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r .r txx9a *r--.., ,-t as ;3' t :ems'- <br /> .., <br /> CITY REVENUES DECLINING . sx <br /> S T3"fib <br /> �y}Gra a <br /> C y4! <br /> The chart below shows the composition of total city revenues actions will exceed $250 million.As the main 2010 , 1� <br /> over the last several decades.The steady decline in total property tax report described,overall city property ;g <br /> per capita city revenues since 2000 and the decrease in values declined in 2010 for the first time since the P... <br /> .44 <br /> intergovernmental revenues (largely state aids and credits) League started doingthe annualpropertytax analysis g ( gY : Y 4 <br /> since a peak in 1980 are particularly dramatic. in the early 1990s. <br /> A recent analysis by the Humphrey Institute at the Over the last couple of years,growth in market value <br /> University of Minnesota revealed that cities overall will of residential property has slowed and finally turned *1 <br /> have a deficit of 35 percent of revenues by 2025 if no negative as a result of the foreclosure crisis and d i <br /> policy changes are enacted and current revenue and bursting of the housing bubble. Now that trend in <br /> expenditure trends continue. For many cities across residential property values is driving down overalls , <br /> the state,however,the crisis has arrived and providing market value. <br /> local services has become extremely difficult given their fag <br /> financial environment. That environment is characterized This means that just as cities are seeing more frequent „,i <br /> reductions to LGA and the MVHC reimbursement, sue;' <br /> by frequent cuts to local government aid (LGA) and toP $>e <br /> market value homestead credit (MVHC) reimbursements <br /> their property tax bases are shrinking.That fact, � # fc' <br /> combined with growing resistance to the property 4;16 <br /> and declining viability of the property tax as a stable ors` <br /> source of revenue. tax amid an extremely slow economic recovery and <br /> high unemployment,means that it is increasingly <br /> From December 2008 through 2010,total losses of city difficult for cities to go to the property tax to fund <br /> aids and credits as a result of unallotment and legislative local services. <br /> City Revenue Sources 1970-2008 <br /> (constant 2008 dollars) <br /> 1600 <br /> 1400 <br /> 1200 <br /> m <br /> ' 1000 <br /> a 800 ® ® ® <br /> 600- it ® ® al al ® ■ <br /> 200 <br /> 0 <br /> 1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 <br /> ❑Other own source III Taxes Intergovernmental revenues <br /> Source:Office of the State Auditor and Bureau of Economic Analysis(inflation adjuster) <br /> m 145 UNIVERSITY AVENUE WEST, Sr PAUL, MN 55103-2044 <br /> PHONE: (651)281-1200 • FAX: (651)281-1299 • TDD: (651) 281-1290 <br /> *AGUE OF WWW.LMC.ORG <br /> MINNESOTA <br /> CITIES <br />