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<br /> <br />EHLERS ADVISOR <br /> <br />THE <br /> <br />Leaders in Public Finance Since 1955 <br /> <br /> <br />June 2000 <br /> <br />Legislative Changes Affecting Local Government <br /> <br />The 2000 session of the Minnesota Legislature produced no <br />large, sweeping changes in local government finance. <br />The session resulted in numerous "tweaks" to existing statutes. <br />These changes offer new opportunities and challenges for local <br />government. This summary highlights the 2000 Session from a <br />public finance perspective. A more complete session review <br />can be found at our web site. <br /> <br />Public Improvements <br />Signs, posts and markers related to addressing for <br />enhanced 911 telephone service can be financed as an <br />improvement under Chapter 429. <br />· Facilities for Internet access and other communications <br />purposes can be financed as an improvement under <br />Ch~1pter 429 subject to certain findings about the ability of <br />such improvements to be provided by the private sector <br />· A "reasonable estimate" of the total amount to be assessed <br />and the methodology used to calculate individual <br />assessments must be available at the Improvement <br />Hearing. <br /> <br />Tax Increment Financing <br />· A!,~'lication of qualified housing district is expanded to <br />alll)\\' TIF for single-family hnme ownership projects for <br />"qu~llified purchasers". <br />Mined underground space development is dropped from <br />the TIF district definition. <br />· Redevelopment districts can qualify using one or more of <br />the specified statutory conditions. <br />· The presence of certain tank facilities qualify parcels for a <br />redewlopment district. <br /> <br />· Amends the definition of a housing district to include a <br />project or portion of a project that meets all of the <br />qualifications of a housing district even if the parcels were <br />not established as a housing district. <br />Changes the definition of administrative expense to <br />exclude land acquisition financed through bonds nor <br />issued under 469.178 and developer and relocation <br /> <br />See Legislative Change on Page 5 <br /> <br />No Levy Limits in 2001! <br />The Legislature failed to enact another one year extension of <br />levy limits for cities and counties. The lack of levy limits is the <br />classic two-edged sword. No levy limits creates the <br />opportunity to fund services and improvements curtailed with a <br />limited property tax levy. The use of this ability must be <br />considered carefully. The reaction of cities and counties to this <br />situation may be a factor in the property tax reform debate next <br />year. Planning and creativity will help you to take advantage of <br />this opportunity. Some ideas to consider include: <br /> <br />. Capturing revenue from the termination of TIF districts, <br />particularly the pre-1979 districts expiring in 2001. <br />. Capturing the revenue from growth in overall tax capacity. <br />. Reduction in debt levies that allow a shift to taxes for the <br />General Fund. <br />. Long term funding plans for equipment and improvements. <br /> <br />We would be happy to help you explore possibilities for <br />capturing levy authority without adding to the tax rate. <br /> <br /> <br /> <br />I nside The Advisor . -;': i~.' ." , <br />. .... \. ,..,,, <br /> <br />What's an Abatement <br /> <br />Meet Rebecca Kurtz <br /> <br />Things you should know ::Ibout <br />t::lX ::Ibatement. <br /> <br />Ehlers ::Idds fin::lnci::ll ::Idvisor <br />specializing in development <br />projects ::Ind TIE <br />Page 3 <br /> <br />Page 2 <br /> <br />Tell Your Development Story <br /> <br />A strong ciry wle in development <br /> <br />is essential. <br /> <br />April 1,2001 is a key date for all <br />pre-1979 TIF Districrs.. <br /> <br />Page 4 <br /> <br />Page 4 <br />