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Department Approval <br />�� ,�: �� <br />Item Description <br />l�'�, <br />Jy <br />REQUEST FOR COUNCIL ACTION <br />Date: 8/17/09 <br />Item No.: 13.b <br />City Manager Approval <br />� / <br />Discussion on the City's 2010 Property Tax Levy Limits <br />BACKGROUND <br />MN Statutes 275.70 to 274.74 outlines the property t� levy limitations for all municipalities that serve a <br />population over 2,500. Most recently, levy limits were enacted for a 3-year period beginning with the fiscal <br />year 2009 and ending in 2011. <br />For 2009, the City of Roseville had a maximum levy limitation of $14,094,950 when all levy exemptions <br />are factored in. The actual Council-approved levy was $13,138,860, or $956,090 below the 2009 limit. <br />For 2010, the City's levy limit is calculated based on last year's levy limit base, a number of inflationary <br />and t� base growth-type factors, as well as some new exemptions including the ability to levy back any <br />unallotted state aid from both 2008 and 2009. Sased on our current estimates, it appears that the City's <br />maximum levy limit for 2010 including all exemptions will be approximately $15,030,000. <br />Sear in mind that a significant portion (55%) of this available levy capacity is restricted to particular uses <br />such as debt service and police and fire wages and benefits. In other words, the City does NOT have <br />unilateral discretion on levying to its m�imum limit. The City does however, have approximately <br />$800,000 in available and unrestricted levy dollars that can be used for any lawful purpose. <br />For information purposes, a levy increase of $800,000 represents a 6% increase and would result in a <br />property t� increase of $5 per month for a typical home. <br />In an effort to facilitate the budget priority-setting process, the Council is asked to provide feedback on <br />their property t� levy target amounts. <br />City Staff will be available at the meeting to provide some general comments and address any Council <br />inquiries. <br />POLICY OBJECTIVE <br />Sy establishing property tax levy target amounts, the City will be better positioned to prioritize the 2010 <br />Sudget. <br />Page 1 of 2 <br />