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Impact of State Law on Dlunicipal Taxes
<br />Fiscal Disparities
<br />Tlie State Legislature enacted a Fiscal Disparity Law in 1971 wliicli was not
<br />implemented until taxes pa�rable in 1975 due to constitirtional cliallenge.
<br />The la�v provides for the pooling of forty percent of all new commercial and
<br />industrial property valuations in the seven-county metropolitan area. In
<br />turn, valuations from this pool are to be redistributed to taxing jurisdictions
<br />according to specific criteria. Although it is difficult to determine the
<br />future impact of the Fiscal Disparity Law on the City, the Law had the effect
<br />of reducing taxable valuation as follows:
<br />Assessed Value
<br />Real estate
<br />Personal property
<br />Total
<br />Area-ivide Pool
<br />Contributed to pool
<br />Distributed from pool
<br />Net gain (loss)
<br />Net assessed value
<br />1981
<br />$273,886,801
<br />4,965,013
<br />$278,851,814
<br />1980 1979
<br />$216,425,909 �188,783,719
<br />4,743,674 4,514,217
<br />�221,169,583 $193,297,936
<br />$(15,292,014) $(11,659,977) $( 9,078,228)
<br />6,383,496 5,139,181 3,738,698
<br />$( 8,903,518) $( 6,520,796) $( 5,339,539)
<br />$269,948,296 $214,648,787 $187,958,406
<br />Roseville's 1981 mill rate �,ou1d have been 2.90 less without fiscal disparities
<br />Levy Limitation
<br />The Minnesota Levy Limitations Law was implemented in 1972, and restricts property
<br />tax increases to So per capita per year. Since enactment, various amendments to
<br />the law have passed, but the basic principles still apply. The City is operating
<br />within the authorized levy limitations.
<br />Local Government Aid
<br />The 1981 aid �vas reduced 7.7°a, or $72,694 vy the Governor. In DecemUer, 1981,
<br />a special session of the State Legislature passed a law cutting the 1982 aid by
<br />11.08%, or $104,755.
<br />Debt Administration
<br />Net bonded debt per capita, and the percentages of :iet debt to assessed value
<br />and to market value are useful indicators of the City's debt position. Debt
<br />statistics for the City as of December 31, 1981 are as follo�as:
<br />Yet direct debt
<br />Net overlapping debt
<br />1'otal 1931
<br />Total 1980
<br />Percent of Percent of Debt Per
<br />Amotuit Assessed Value Market Value Capita
<br />$ 8,859,861 5.28
<br />12,757,1OG 4.73
<br />j21,616,967 8.01
<br />�18,969,840 8.53
<br />�
<br />.66 Q247.27
<br />.94 356.05
<br />1.60 5603.32
<br />2.05 �538."s8
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