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1f. Resolution for Participation in Local Levy Transit Option for 1998.CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 MEMORANDUM TO: Mayor and City Council FROM: Don Ashworth, City Manager DATE: June 23, 1997 SUBJ: Approve Resolution for Participation in Local Levy Transit Option for 1998 This item was tabled from the last agenda to obtain additional information from Southwest Metro Transit, i.e. proposed 1998 budget, proposed changes in service, etc. I have met with representatives of Southwest Metro Transit and they have agreed to provide that information to the city. However, it is important to note that tonight's action does not hinder the city council's ability to affect the 1998 budgetary process for Southwest. Tonight's action is solely to set the levy limit that Southwest Metro Transit must live under for truth in taxation purposes. For the first time in more than a decade, local governments will be faced with levy limits for 1998. These levy limits will be the amount that will be included in the truth in taxation notices. Our levy limit will be the most current Inflation Price Indicator (similar to CPI except that the list of items included in the calculation are goods, costs, salaries are those associated with governmental units) plus the increase in household growth. [The best estimate for Chanhass�,a currently is 6 %.] Ironically, the left hand was not watching what the right hand was doing in that the levy limit for opt -out transit authorities is the increase in the tax base. The current estimate is that the tax base increase would be approximately 11 % to 12% which is the number that was included in the resolution submitted two weeks ago. The other part of that legislation was that the decision to set the levy limit for opt -out cities was moved up to ensure that sufficient time existed to allow Metro to make that levy should opt -outs not do it. [Note: It would be a poor idea to have Metro do such as they would then control service levels and the probable effect to taxpayers would be an increase in property taxes with a substantial reduction in service.] During the course of the meeting the cities and representatives of Southwest Metro Transit, a decision was made that Southwest Metro Transit would abide by the same law that governs levy limits for each of the cities, i.e. that the levy limit that they would certify would be reduced to the approximate 6% level. Hopefully we will have received a copy of the detailed calculations by Monday night. Mayor and City Council June 23, 1997 Page 2 RECOMMENDATION Again, it is important to remember that tonight's action is being required by state law and does not affect the city's ability to have input into the budgetary process which both the city and Southwest Metro Transit will be going through between now and mid - December. Approval of the attached resolution is recommended. gAmgr \swmetrolevy.e.doc 06102/1997 14:49 6129498542 SW METRO TRANSIT PAGE 02 SOYTHWSST METRO T1UW*1T MEMORANDUM TO: Todd Gerhardt, Assistant City Manager City of Chanhassen FROM: Kate Garwood, Policy & Administration Coordinator DATE: June 2, 1997 SUBJECT: LOCAL TRANSIT LEVY OPTION At its meeting on May 22, 1997, the Southwest Metro Transit Commission (SMTC) took action to request that Chanhassen, Chaska, and Eden Prairie, participate in the Local Levy Transit Option for 1998. You may recall from last year when this process was initiated that each city and its transit agency must notify the Metropolitan Council and the Commissioner of Revenue each year of its desire to participate via a resolution. That notice must be received by June 30 of the previous year. The adoption of the resolution allows for the City of Chanhassen to directly levy the transit tax for its property owners. If this were not the case, the same amount of transit tax would be levied by the Metropolitan Council, resulting in less transit dollars and service being directly returned to the residents and businesses of this area and eliminating the ability for local control over the agency's budget and funding. Attached is a resolution, similar to last year's, which provides for participation in the Local Levy Transit Option by Chanhassen in 1998. The maximum levy amount is included in Exhibit A of the resolution. Upon passage by Chanhassen and the other two communities, SMTC will take the steps necessary to notify the Metropolitan Council and the Commissioner of Revenue of the intent of the cities and the transit agency to participate in the local option. Also attached is a timetable of actions by various agencies indicating how the Local Levy Transit Option fits into the budget process for 1998. As we discussed, SMTC will be coordinating its budget with Chanhassen's process. Len Simich, our Executive Director, or I, will be available to attend the Council meeting when this item is scheduled. Meanwhile, if you have any questions, please call me at 949 -8546. Attachments 06/18/1997 11:49 6129498542 SW METRO TRAh PAGE 82 CITY OF CHANHASSEN COUNTIES OF CARVER AND HENNEPIN RESOLUTION NO, DECLARING INTENT TO EXERCISE LOCAL TRANSIT LEVY OPTION FOR TAXES IN 1998 WHEREAS, Laws of Minnesota for 1996, Chapter 455, Section 4 (the "Local Levy Option Act"), allows the Cities of Chanhassen, Chaska, and Eden Prairie, to make a local transit tax levy in lieu of receiving assistance from the Metropolitan Council under Minnesota Statutes, Section 473.388, subdivision 4; and, WHEREAS, said local transit levy will replace a similar transit tax levy which would otherwise be made by the Metropolitan Council; and, WHEREAS, in order to effectively exercise the local transit tax levy option, it is necessary that each of the Cities of Chanhassen, Chaska, and Eden Prairie, notify the State Commissioner of Revenue and the Metropolitan Council of its intent to levy the taxes before July 1 of each levy year and to include in the notification the arnount of the City's proposed transit tax for the levy year; and, WHEREAS, it is in the best interest of the City of Chanhassen that it declare its intent to exercise the local transit levy option for taxes payable in 1998. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen as follows: I . The City hereby declares its intent to exercise the local transit tax levy option for taxes payable in 1998 in the maximum amount permitted by Local Levy Option Act and as certified by the State Commissioner of Revenue in accordance therewith. 2. The City Manager is authorized and directed to give the State Commissioner of Revenue and the Metropolitan Council of the City's intent to exercise the local transit tax option for taxes payable in 1908 in accordance with the notice attached hereto as Exhibit A and incorporated herein by reference. ADOPTED by the City Council of the City of Chanhassen this day of June, 1997. ATTEST: Nancy Mancino, Mayor Donald Ashworth, City Manager 06 ?13!1997 11:48 6129498542 SW METRO TRANSIT PAGE E9 EXHIBIT A NOTICE OF INTENT TO EXERCISE LOCAL TRANSIT TAX LEVY OPTION FOR TAXES PAYABLE IN 1998 The State Commissioner of Revenue and the Metropolitan Council are hereby notified that the City of Chanhassen, Minnesota, intends to exercise the local transit tax levy option for taxes levied in 1997 and payable in 1998 pursuant to Laws of Minnesota for 1996, Chapter 455, Section 4. The proposed amount of the City's transit tax for the 1997 levy year is $614,504, or the 1997 levy amount ($549,473) multiplied by the maximum levy limit for the City of Chanhassen, e.g.:. f $549,473 X Implicit Price Deflator + % Growth in # of Households from 1995 to 1996) ) whichever is less, all in accordance with Laws of Minnesota for 1996, Chapter 455, Section 4, for taxes levied by the City in 1997 and payable in 1998, $ order of the City Council of the City of Chanhassen. CITY OF �; CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 Action by City Adminiatrat4r MEMORANDUM Endorsed '/ 7,>�&'j Modified TO: Don Ashworth, City Manager Rejected Date_._ _� -�i 7 FROM: Todd Gerhardt, Assistant City Manager Da Submitted to Ccmmiss1o1 DATE: June 4, 1997 Date submit to Council SUBJ: Local Transit Levy Option Southwest Metro Transit took action at their May 22, 1997 meeting to continue their "Local Levy Transit Option." This action allows Southwest Metro Transit to replace a similar transit tax levy made by the Metropolitan Council and giving that authority to the cities of Chanhassen, Eden Prairie, and Chaska. The attached resolution must be submitted each year to the State Commissioner of Revenue declaring each city's intent to exercise their local transit levy option for taxes payable in 1998. The amount for 1998 will not exceed $614,504. The city council will be reviewing Southwest Metro Transit's 1998 budget as a part of the planning staff budget presentations this summer. By approving this resolution, the council is not approving Southwest Metro's budget, but agreeing to exercise the intent to use the "local transit levy option." RECOMMENDATION Staff would recommend that the city council approve the attached "Resolution Declaring the City of Chanhassen's Intent to Exercise Their Local Transit Levy Option for Taxes Payable in 1998." ATTACHMENTS 1. Letter and Resolution from Kate Garwood, Southwest Metro Transit, dated June 2, 1997. G Aadmin \tg \transitlevy.doc Local Transit Levy Timetable - 1998 ........... ....... ................................. :Agenc y 1. SMTC 11. Department of Revenue 111. SMTC I ­ .......... IV. SMTC ....................................................... V. Department of Revenue ....................................................... VI. CITY of CHANHASSEN ........................... ........ ................. V 11. CITY of CHANHASSEN .................................................................... VIII. Metro Council IX. County Treasurers X. CITY of CHANHASSEN ............................... .................. XI. CITY of CHANHASSEN . 1 ... 9­9.7 M a V ..................................................................................... ......................... ........................................ ; ....................................... 1 998: ........ ............ ....... .... ..................................................................................................... ............................ : ........ ­ ................ n Jul ..:Aug 'Sep Oct " Nov :.Dec `.an : Deadline ::Nov ...... ...................... ........ .............. :Explanation :Explanation ....... ...................................................... ................ ............................................... Way 22, 1997: three cities participation in :local levy for 1998 ::Jun 1, 1997 :Notifies City of transit levy amount :Jun 1, * 1 * 997; : SMTC prepares resolution for each ::Jun 30, 1997 : to participate in local levy ................ ... ... ..... ... .............. . ............. .............. ; ......................... ::Jul 1, 1997 ................ ............................... .... ........................ : SMTC; notifies Commissioner of Revenue :& Metro Council of intent to participate ........................... .............................................................................................................................. ::Aug 1, 1997; ......................................................... .......................... ........... : DOR notifies cities of "transit HACA" ::Sep 1, 1997 land non-transit HACA amounts for '98 ............................................. ...................... ......................................................... : ......................... :Sep I ....... ***": 1, 1997; . ............................................................................................. holds first budget hearings as part ::Sep 15, 1997 :of levy process .......................................... ....... ..................................................................................................................... ::Sep 15, 1997 .............. n ...................................................................................... ::City certifies to County Auditor its :preliminary payable 1998 property :tax and CERTIFIES TRANSIT TAX :SEPARATELY ..................................................................................................................................... ................................................ :: 15, 1997 * ........ * ---------------------------------------------------- ----------- - .. ....... :Certifies to County Auditors which cities are "feathered" D ':Nov 10, 1997; in Taxation Statements are : Nov 22, 1997 ::delivered to property owners ::,Dec 1, 1997; : :City holds final budget hearings as part Dec 29, 1997 :of levy process ...................................... .............................. ....................... ................................................................................................................................................... :Dec 30, 1997 ........... :City certifies to County Auditor its : FINAL payable 1998 property tax and :CERTIFIES TRANSIT TAX SEPARATELY May 30.