CCP 09-13-1999 - Laserfiche WebLink

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09/04/99 0....-...-1-_. 11:04 FAX 651 266 2022 RMSY CNTY RECORDS 1aJ004 . \ I "Tax Rate Increase" Definition : The statute attempts to calculate a constant spending tax rate that factors in chaMges in market value, class rates, HACA aid (homestead and agricultural credit aid), and "scal disparity distribution dollars, Due to the structure of the formula, a governing body can certify a 0% change in certified levy when compared to the prior year and still have a "tax rate increase" if the governing body receives more HACA aid than they did the year before. A governing body can also have a lower tax rate for payable 2000 taxes than for payable 1999 taxes and still have a "tax rate increase." The formula starts with the certified tax levy for 1999 for the governing body. This number represents the 1999 gross net tax capacity based levy plus any referendum market value based levies (if applicable) less 1999 HACA aid. . The 1999 certified levy is reduced by the portion of the levy pledged for payment of general obligation bonds_ Per definitions supplied by the Minnesota Department of Revenue, General obligation bonds includes regular G.O, bonds as well as G_O_ special assessment and G.O. revenue bonds that rElCluire a property tax le,vy for funding of the bond issue. G.O, bonds do not include: capital notes, certificates of indebtedness, certificates of participation, state armory construction bonds or payments made on bonds of another political subdivision. . The 1999 non-debt levy is further reduced by the payable 2000 fiscal disparity distribution dollars_ It is also reduced for any increases in payable 2000 HACA aid due to class rate or fiScal disparity changes under the HACA formula: The net result of this' calculation is the net levy that will be used by the county a,uditor to determine the tax rate under this statute. This net levy appears on line 9 of the "County Auditor's Determination of a Levy Certification Tax Rate" form. A form for determining a comparable non-debt levy for ;WOO is included in this packet and titled "Payable 2000 Non-debt Levy Determinatiol'1: If line 5 of this form is greater than line 9 ofthe "County Auditor's Determination of a Levy Certification Tall: ~ate" form, the governing body will need to pass'a tax rate inc;rease resolution or reduce the proposed taJ[ levy by the difference between these nuro,bers. The tax rate that will be Clartlfied by October 1 will be determined by dividing the 1999 adjust$ld net levy on line 9 of the county auditor's determination by the most recent payable 2000 net tax capacity (tax base) for the governing body_ Even though the statute requires certification of the tax rate, technically it is not needec! to determine that a tax rate increase will occur under this statute. . 'Public Hearing" Definition . The statute provides that "public hearing" as used here, "includes, but is not limited to, regularly scheduled city Cl?uncil hearings .and county board meetings: The "hearing" can be handled as an agenda item for regulirly scheduled meetings. No published notice is required for the ~earin!il unless it will be covered at a special meeting specifically for that purpose. . A tax rate increase resolution can be sent to the county auditor along with the , . . certification of proposed tax levy for 2000. If you have any questions, please feel free to call me at (651) 266-2041 or'Jeanne LaKosky at (651) 266-2045. . 2 ~