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The Firemen's Relief Association is an independent entity as authorized 6y Minnesota Statute. When property taxes are levied for the Association, the collections received are remitted to the Association. As an independent entity, the Association maintains its own accounts and funds, has an independent audit, and reports its financial affairs separately from the City to the State, (See Note 1 to the financial statements). The City provides a full range of municipal services as authorized by State statute. This includes General Government, Public Safety, Public Works, and Parks and Recreation. Citv Financial Highlights DurinR 1983 1. Standard & Poors assigned a bond rating of AA-1 from A+. Moody's Investors Service bond rating remained at Aa-1. 2. General Improvement Bonds, Series 11 were sold at a net interest rate of 8.41%. 3. A comprehensive electronic data processing study of the City's needs was started to determine how these needs can best be provided over the long-term. Prospects for the Future l. The need for redevelopment has been recognized and the City has responded by adopting an industrial revenue bond policy and by establishing two tax increment financing districts. 2. A Storm Drainage Utiiity Fund has been established by the City Council and wiil begin functioning in 1984. Impact of State Law on Municipal Taxes Fiscal Disparities The State LegisLature enacted a Fiscal Disparity Law in 1971, which was not implemented until taxes payable in 1975 due to constitutional challenge. The law provides for the pooling of forty percent of all new commercial and industrial property valuations in the seven-county metropolitan area. In t�rn, valuations from this pool are to be redistricted to taxing jurisdictions according to specific criteria. Although it is difficult to determine the future impact of the Fiscal Disparity Law on the City, the Law had the effect of reducing taxabLe valuation as follows: - 3-