2007 Management Letter - Year End 12-31-2007

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I I I I I I I I I I I I I I I I I I I City of Centerville May 29, 2008 Page 21 Future Statute and Accounting Standard Changes 2009 Levy Limits During the 2008 legislative session, Minnesota legislators amended Statutes section 275.71 to enact levy limits for cities over 2,500 in population. This bill is in effect for taxes levied in 2008 through 2010. Annually the levy limit is multiplied by: 1. One plus the lesser of3.9 percent or the percentage growth in the implicit price deflator. 2. One plus a percentage equal to 50 percent of the percentage in crease in the number of households, if any, for the most recent 12-month period for which data is available, and 3. One plus a percentage equal to 50 percent of the percentage increase in the taxable market value of the jurisdiction due to new construction of class 3 property,'as defined in section 273.13, subdivision 4, except for state-assessed utility and railroad property, for the most recent year for which data is available. In addition there are special levies that are currently allowed outside any levy limit. They are listed below: . Debt levies - includes bonds, most certificates of indebtedness and levies to pay the local share of bonds issued by another political subdivision . Voter approved levy increases . To pay federal or state matching fund requirements for programs instituted after 2001 . For costs to prepare for, or recovery from, natural disasters - upon approval by the commission of revenue . To pay amounts related to errors in levy certification in the previous year . To pay for property tax abatements . To pay increases in the employer share ofPERA pension costs since 2001 . To pay operating and maintenance costs of county jails to the extent that the cost is required by the Department of Corrections Rules and Standards. . To pay for a lake improvement district . To repay a federal or state loan issued to help a local government pay the required local share of a federal or state transportation or other capital project . To pay court administration costs during the period in which court costs were being transferred from the counties to the state . To fund required police and firefighters relief funds, to the extent that the costs exceed costs in 2001 . To fund a storm sewer improvement district . To fund an animal protection society 952.835.9090 . Fax 952.835.3261 www.aemcpas.com