2001-06-27 CC - Laserfiche WebLink

Home Browse Search

Jun 19 2BB1 15:14:17 Via Fax -} 651 429 8629 Administrator Page BB3 Of BIB Revenue administers the tax collections. A shutdown of the Department of Revenue could impact the distribution of these local sales lax revenues, which could in turn affect the ability of some citie~ to make debt pa ymenLs that are supported by these revenue~. According to the Minnesota Tax Handbook, local sales taxes collected exceeded $104 million in 1999, so it appears that a delay in receiving these amounts could have some significant impact on some cities. Police and Fire Aid-Municipal relief associations receive a share of the state tax collections of certain insurance taxes, which are distributed on or around October 1. These payments could be delayed by a protracted shutdown. TIF Grants-The Department of Revenue will be mailing applications for the TIF grant program next week. The grant program provides state assistance to districts that have suffered revenue shortfalls due to the class rate compression enacted in 1997, 1998 and 1999. Although the applications will be mailed out next week, before a potential shutdown, the deadline for completed applications is August 1. Department of Revenue staff would potentially not be available to address questions and process applications during any potential shutdown. Grant recipients are notified oflheir award amounts by November 15 and grants are sent out December 26. Peace officer training reimbursement-The application forms must be submilled by August 1 with payments usually made by mid-September. La~t year, the amount was approximately $375 per officer. If the shutdown delays the reimbursement) cities with large police departments may see a delay in payments of a significant amount. Smaller police departments would also be affected, but since the total dollar amount would be less, there might be a better chance for a city to absorb the cost until payment is made. Cities Holdin2 Local Elections This Fall-The Secretary of State's Office is confident that an appropriate level of staffing will be in place to allow essential voter registration and election administrative activities to continue. The chief election officer for the state has rfjqufjsted thfj Governor to include a~ e~~ntial ~rvices appropriations for the level of staffing necessary in her office to assure that local elections this fall can be conducted in compliance with state law. The Governor has plans to seek a court order to keep essential state government services in place in the event of a state government shutdown. Cities Anticipating Grant A wards or Approvals of LoclIl Housing or Economic Development Activities by Minnesota Housing Finance Ajilellcy and Deportment of Trade & Economic Development-Delays could take place for cities with pending housing or economic development grant agreements. Cities expecting staff review and approval of loans and grants for state-funded programs such as housing, drinking water, wastewater treatment and other community development may also experience delays. Small Cities Community Development Block Grant funds that have been awarded must be drawn down to cover costs of local program act iv ities. In such situations, cities nCfjd to Ix: aware of the impact on local development activities and delivery of ~ervices. It is al~o important for local officials to keep in mind city residenl~ who would be immediately at risk if scheduled rem assistance funds or other regularly scheduled financial support or services are not forthcoming.