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Department Approval <br />�� ,�: �� <br />Item Description: <br />BACKGROUND <br />l�'�, <br />Jy <br />REQUEST FOR COUNCIL ACTION <br />Date: 06/15/09 <br />Item No.: 13.b <br />City Manager Approval <br />Discuss 2010 Legislative Impacts and Property Values <br />� / <br />As part of the annual budget process, the City Council has historically held a discussion on legislative <br />impacts and expected trends in citywide property values. The purpose of this discussion is to provide a <br />general sense of any new operational impacts that could influence the Council's eventual budget priorities <br />and spending decisions. <br />A brief overview of each topic is presented below. <br />Legislative Impacts <br />The 2009 Legislative Session featured a number of impasses and vetoes between the Minnesota House, <br />Senate, and Governor's office. However, there are a number of new laws that were enacted and other <br />significant events that took place, that are expected to impact Roseville. They include: <br />❖ Levy Limits <br />❖ Market Value Homestead Credit Reimbursement reduction <br />❖ Tax Increment Financing <br />Each of these items is addressed in greater detail below. There were a number of other laws that were <br />enacted but they are not expected to have any substantive impact on the City with respect to the 2010 <br />Budget. Where applicable, they will be addressed at future Council meetings. The League of MN Cities is <br />in the process of preparing a 2009 Law Summary Handbook which will summarize any legislative changes <br />that were made. We expect the Handbook to be completed later this month, and we will make it available <br />to the Council at that time. <br />Levv Limits <br />Levy limits remain in place for 2010 and 2011. However, the City's 2009 Levy was approximately <br />$950,000 below its levy limit when factoring in allowable exemptions. We expect this limit to increase in <br />2010, but at this time we do not know how much. For what it's worth, the Implicit Price Deflator for State <br />and Local Governments (a component used in calculating the allowable levy limit increase) is trending at <br />about 1% over the past year. <br />Page 1 of 3 <br />