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MEMORANDUM
TO:
FROM:
DATE:
SUB J:
Mayor
City Council
Bruce M. DeJong, Finance Director.' ~,]~/,:~.~) D~'X/
August 21, 2002
2003 Preliminary Tax Levy
The City of Chanhassen faces significant stress with its levy this year. The
revenue sources that xve have relied on during the past several years are either
increasing at a slower rate or have stopped growing all together. This leave a
greater reliance on the property tax to finance city services.
General Fund
Our general fund expenditure requests increased by 10%. Those increases are
driven by a large increase in street maintenance costs and adding two additional
employees. These increases comprise approximately 48% of the $813,000
increase in expenditures. The remainder of the costs are driven by increased
cost of contracting with outside agencies, supplies and general salary increases.
We have seen revenues that have dropped in many ways. Our state aid has been
dropping for the last several years, but we finally received an increase for 2003
- one dollar. I am not sure if it is rounding error or an actual increase in the
formula! Anyway, the state is also thinking that our building permit revenues
are too high since they legislature passed a law requiring us to match
expenditures against those fees. In discussions with the community
development director, there is some concern that we may not be able to
maintain the same amount of permit revenue in 2003 if the economic conditions
remain stagnant. There will probably not be any surpluses in that area in the
next year - in fact we probably stand a greater chance of not meeting projected
revenues than we do of exceeding them.
City staff is recommending that any fund balance in excess of the policy amount
be used for one-time transfers to deal with our debt service issues rather than
reducing the tax levy. We believe there is substantial benefit to moderating any
year to year tax levy increases in both the general fund and our debt service
funds. We should begin that process with this budget and any new debt issues
going forward.
Debt Service Funds
We set debt service levies based on a study by Ehlers, the city's financial
advisors. Our debt obligations are updated annually to determine how much tax
levy is necessary to fund our annual payments and bring each debt fund to a zero
balance at the end of its life. For 2003 the ~ncrease is a modest 2.75% or
$63,716.
We have asked Ehters to update that study based on the financial information as
reported in our 2002 Almual Financial Report. The study has not changed
dramatically. I have updated the debt levies for the library bonds sold earlier
this year.
CITY OF CHANHASSEN
2003 BUDGET
Expenditures
GENERAL GOVERNMENT
1110 Legislative
1120 Administration
1130 Finance
1140 Legal
1150 Assessing
1160 MIS
1170 City Hall
1180 Elections
1190 Library Building
TOTAL
Personal Materials & Contractual Capital
Services Supplies Services Outlay
34,20O
326,200
186,700
-
-
137,900
58,600
LAW ENFORCEMENT
1210 Law Enforcement
1220 Fire
1260 CSO
TOTAL
27O
5O0
1,200
26,610
46,200
-
-
PUBLIC WORKS
1310 Engineering
1320 Street Maintenance
1350 Street Lighting
1370 Vehicle Maintenance
TOTAL
119,900
61,200
63,350
110,000
50,100
125,550
275,100
34,000
COMMUNITY DEVELOPMENT
1410 Planning Commission
1420 Planning Administration
1430 Senior Commission
1250 Building Inspection
* TOTAL
2002
Total Total % Incr
- 154,370 172,470 -10.5%
1,000 388,900 406,000 -4.2%
2,500 253,750 262,100 -3.2%
110,000 100,000 10.0%
50,100 70,100 -28.5%
87,220 377,280 329,230 14.6%
500 380,400 293,200 29.7%
- 36,950 -100.0%
- 34,O0O -
PARKS & RECREATION
1510 Park & Rec. Commission
1520 Park Administration
1530 Recreation Center
1540 Lake Ann
1550 Park Maintenance
1560 Senior Center
1600 Recreation Programs
1700 Self-Supporting Programs
TOTAL
743,600 74,780 839,200 91,220
62,800
475,100
38,40O
- 1,072,000
49,700 120,400
4,700 17,900
54,400 1,210,300
576,300
455,300 1,800 541,060 250
592,000 212,800 39,270 2,000
- 1,500 259,800
234,300 78,200 55,500 6,500
1,281,600 294,300 895,630 8,750
100 3,600
295,200 700 24,925
17,180 220 1,050
753,100 12,200 30,600
1,065,480 13,220 60,175
95 700
198 500
11 400
5778O0
37.200
149 480
32 02O
1,102 100
125
1 000
14 850
17 040
113 850
4 55O
15 750
13 885
181 050
617,750
2,100
21 000
4O 5OO
41 000
149.550
11 275
77 275
77 25O
419 950
3,425,255
13,000
13,000
112,970
** TOTAL GENERAL FUND 4,769,080
1,748,800 1,670,050 4.7%
1,134,800 1,010,800 12.3%
645,200 592,390 8.9%
61,000 50,500 20.8%
1,841,000 1,653,690 11.3%
998,410 702,950 42.0%
846,070 779,170 8.6%
261,300 259,100 0.8%
374,500 371,510 0.8%
2,480,280 2,112,730 17.4%
3,700 3,200 15.6%
320,825 319,314 0.5%
18,450 18,100 1.9%
795,900 710,200 12.1%
1,138,875 1,050,814 8.4%
2,225 3,625 -38.6%
117,700 121,900 -3.4%
253,850 248,450 2.2%
69,440 57,690 20.4%
854,200 817,750 4.5%
53,025 44,035 20.4%
242,505 242,170 0.1%
123,155 88,820 38.7%
1,716,100 1,624,440 5.6%
8,925,055 8,t1-1,724 10.0%
MINNESOTA-REVENUE
Payable 2003 Overall Levy Limitation Notice
August 16, 2002
CHANHASSEN CITY OF
CITY ADMINISTRATOR
CITY HALL 7700 MARKET BLVD
BOX 147
CHANHASSEN, MN 553170147
RECEIVED
AUG i 9 2002
CITY OF CHANHASSEN
The payable 2003 overall lex'3' li~nitation for your city is:
$ 7,104,253
The following is a listing of the factors used in determining your city's payable 2003
overall levy limitation. See the enclosed letter for an explanation of these factors and for
additional information concerning your city's overall levy limitation.
1. Adjusted Levy Limit Base for Payable 2002'
2. City Share of Payable 2001 Tree Growth Tax Receipts:
3. City share of Payable 2001 Malmfactured Home HACA'
4. Beginning Levy Limit Base for Payable 2003 (1 + 2 + 3)'
5. hnplicit Price Deflator Adjustment (March 2002/March 2001):
6. Household Growth Adjustment
a. 2000 Households:
b. 2001 Households'
c. Ratio of 2000 to 2001 Households (b/a, but not less than 1.000):
7. Adjustment for Pay' 2002 Market Value of New C/I Construction
a. Payable 2001 Total Taxable Market Value:
b. Payable 2002 Market Value of New C/I Construction:
c. 50% of Line b (Tb x 0.5)'
ct. Adjustment (1 + Ratio of Tc to 7a):
S. Adjusted Lex'>, Limit Base for Payable 2003 ( 4 x 5 x 6c x 7d):
9. New Net Tax Capacity-Based Referendum Levies:
10. 2003 Propelxy Tax Aids
a. 2003 Local Government Aid (LGA):
b. 2003 Estimated Taconite Aids'
c. 2003 Existing Low h~come Housing Aid:
d. 2003 New Construction Lox',, Income Housing Aid'
e. 2003 Transit Property Tax Replacement Aid'
f. Total(a+b+c+d+e)'
11. Adjustment for 2003 Local Tax Rate Excess Tax Increment Taxes'
12. Payable 2003 Overall Levy Limitation (8 + 9 - 10f- 11)'
6,709,476
6,709,476
1.007618
6,914
7,216
1.043679
1,593,928,100
31,102,100
15,551,050
1.009756
7,124,728
20,475
20,475
0
7,104,253
Ib'o?erO, Tax Division
Nlail Station 3340
St. Paul, MN 55146-3340
,.In equal opportuniO' employer
ret.' 651-296-33
?o.,': 651-297-21
Call 711 for Minnesota
MINNESOTA. REVENUE
August 16, 2002
To: Finance Officials of Cities Over 2,500 Population
Re: Payable 2003 Overall Le~,>, Limitation
Enclosed is the Payable 2003 Overall Levy Limitation Notice for your city. The factors
involved in the calculation of your city's payable 2003 overall levy limitation are shown
on the notice. The following is an explanation of the calculation factors.
Line 1 -- Adjusted Levy Limit Base for Payable 2002: This amount is from line 15 of
your city's "Payable 2002 Overall Levy Limitation Notice" that you received in 2001.
Line 2 - City Share of Payable 2001 Tree Growth Tax Receipts: Line 2 is the total
amount of tree growth tax received by the city in 2001. The tree growth tax has been
repealed for the taxes payable year 2003 and subsequent years.
Line 3 - City Share of Payable 2001 Manufactured Home HACA: Line 3 is the total
amount of manufactured home HACA received by the city in 2001. Beginning with the
taxes payable year 2002, cities, towns, school districts, and special taxing districts no
longer receive manufactured home HACA.
Line 4 - Beginning Levy Limit Base for Payable 2003: This is the sum of Line 1,
Line 2, and Line 3.
Line 5 - Implicit Price Deflator Adjustment (March 2002/March 2001): This is the
ratio of the implicit price deflator for govennnent consumption expenditures and gross
investment for state and local govenmaents prepared by the Bureau of Economic Analysis
o£ the United States Department of Commerce for March 2002 compared to March 2001.
Line 6 - Itousehold Growth Adjustment: Line 6a is the April 1, 2000 household count
for 5,our city from the 2000 federal decennial census as certified by the United States
Department of Comlnerce, Bureau of the Census. Line 6b is the April 1, 2001 household
estimate for your city as determined by the State Demographer (for nonmetropolitan
cities) or by the Metropolitan Council (for cities within the seven county metropolitan
area). Line 6c is the ratio of the 2001 household count for your city to the 2000
household estimate for your city. If the calculated ratio for your city is less than
1.000000 it has been changed to 1.000000.
Continued...
Pro?erO' Tax Division
Mail Station 3340
St. Paul, MN 55146-3340
,4u equal OppOrlto~iO' employer
re~.. 651-296-3394
Fax.' 651-297-2166
Call 711 for Minnesota Relay
Line 7 -Adjustment for Pay' 2002 Market Value of New C/I Construction: Line 7a
is the payable 2001 total taxable market value of all property for your city. Line 7b is the
payable 2002 market value of new construction of class 3 commercial and industrial
property for your city. Line 7c is 50% of Line 7b. Line 7d is 1.000000 plus the ratio of
Line 7c to Line 7a.
Line 8 - Adjusted Lex'3' Limit Base for Payable 2003' This is the Beginning Levy
Limit Base for Payable 2003 (Line 4), multiplied by the Implicit Price Deflator
Adjustment (Line 5), multiplied by the Household Growth Adjustment (Line 6'c), and
multiplied by the Adjustment for Pay' 2002 Market Value of New C/I Construction (Line
7dF.
Line 9 - New Net Tax Capacity-Based Referendum Levies: This is the amount of
your city's new net tax capacity-based referendum levies, if any, for payable 2003
including (1) those that were approved by the voters at a referendum held in 1997, 1998,
or 1999, provided that a levy is authorized for the taxes payable year 2003, and (2) those
approved by the voters in 2001 or 2002 that are effective for the taxes payable year 2003.
Under M.S. 275.73 a county or a levy limit city may choose to go to the voters for
approval to levy an additional tax on net tax capacity rather than on market value. In
order to be effective for levy year 2002, taxes payable year 2003, a referendum under this
provision in 2002 would have to be held prior to September 1, 2002. A referendum held
after this date in 2002 could not be levied until levy year 2003, taxes payable year 2004.
If voter approval for the desired tax is required under another general or special law or
the provisions of a city charter, the levy would have to be on market value instead of on
net tax capacity. For example, if the city wants to issue new bonds arid levy a property
tax for them, and the city is required to hold an election on the bonds and property tax
levy under the provisions of M.S. 475.58, any levy for the bonds would have to be on
market value instead of on net tax capacity.
If your city has a lneXv net tax capacity-based referendum levy for payable 2003, it is to be
added to your city's levy limit base since it is an authorized additional levy rather than a
special levy authorized outside ofF'our city's overall levy limitation.
Line 10 - 2003 Property Tax Aids: This is the amount of your city's property tax aids
for calendar year 2003. Line 10a is your city's certified amount of 2003 local
govemlnent aid (LGA). Line 1 Ob is your city's estimated amount of 2003 taconite aids,
if any, under M.S. 298.28 and 298.282. Line 10c is your city's certified amount of 2003
existing low income housing aid, if any, under M.S. 477A.06. Line 10d is your city's
certified amount of 2003 new construction low income housing aid, if any, under M.S.
477A.065. Line 10e is your city's 2003 transit property tax replacement aid, if any.
Line 1 Of is the sum of Lines 10a through 10e. The 2003 property tax aids are to be
deducted fi'om your city's adjusted levy limit base for payable 2003 since your city's
overall levy limitation is to change inversely with the change in your city's property tax
aids.
Line 11 -Adjustment for 2002 Local Tax Rate Excess Tax Increment Taxes: M.S.
469.177, Subd. 9 provides that a tax increment (TIFF district does not get to keep the
portion of tax increments that are based on an increase in the total local tax rate over the
total rate that existed for the year in which the original local tax rates for the TIF district
were certified. These local tax rate excess tax increment taxes are to be distributed to the
county, the city, and the school district (but not special taxing districts) based on their
respective percentages of the total local tax rate increase. This statute further provides
that the amount distributed to the county, the city, or the school district is to be deducted
in determining its levy limitation for the next taxes payable year. The amount shown is
the increase (if any) in your city's local tax rate excess tax increment taxes for payable
2002 over payable 2000. It is presumed that your city's payable 2001 property tax levy
was reduced by its payable 2000 local tax rate excess tax increment taxes.
Line 12 - Payable 2003 Overall Lex,3, Limitation: This is your city's Adjusted Levy
Limit Base for Payable 2003 (Line 8), plus your city's New Net Tax Capacity-Based
Referendum Levies, if any (Line 9), minus your city's 2003 Property Tax Aids (Line
10f), and minus the Adjustment for 2002 Local Tax Rate Excess Tax Increment Taxes, if
any (Line 11). This is the most that your city may levy for the taxes payable year 2003
for all purposes except special levies and special assessments.
If you have an3, questions concerning this letter or the enclosed Payable 2003 Overall
Lex'3, Limitation Notice, please contact me at (651) 296-3394.
Si nccrely,
Sh awn Wink
Research Analysis Specialist
Shawn.wink~state.mn.us
Enclosure
MINNESOTA' REVENUE
2003 LOCAL GOVERNMENT AID NOTICE
July 31, 2002
CHANHASSEN CITY OF
CITY ADMINISTRATOR
CITY HALL 7700 MARKET BLVD
BOX 147
CHANHASSEN, MN 55317 0147
RECEIVED
GIT't' OF' CHANHA$$EN
THE 2003 LOCAL GOVERNMENT AID FOR YOUR CITY IS:
$ 20,475
THE FOLLOWING IS A LISTING OF THE FACTORS USED IN THE CALCULATION OF YOUR CITY'S
2003 LOCAL GOVERNMENT AID. SEE THE ENCLOSED LETTER FOR AN EXPLANATION OF THESE
FACTORS AND FOR ADDITIONAL INFORMATION CONCERNING THE DETERMINATION OF YOUR
CITY'S LOCAL GOVERNMENT AID.
1. PRE-1940 HOUSING UNITS:
2. TOTAL HOUSING UNITS:
3. PRE-1940 HOUSING PERCENTAGE:
219
4,249
5.15
4. 1991
5. 2001
6. POP
POPULATION:
POPULATION:
ULATION DECLINE PERCENTAGE:
12,339
21,100
0.00
7. 2001 TOTAL CLASS 3 REAL PROPERTY MARKET VALUE:
8. 2001 TOTAL REAL AND PERSONAL MARKET VALUE:
9. COMMERCIAL/INDUSTRIAL PERCENTAGE:
278,0t0,233
1,793,598,080
15.50
10. TRANSFORMED POPULATION:
11. CITY REVENUE NEED:
12. PAYABLE 2002 CITY NET LEVY:
13. PAYABLE 2002 CITY NET TAX CAPACITY:
14. TAX EFFORT RATE:
15. NEED INCREASE PERCENTAGE:
823.12
260.31
7,656,067
19,893,679
0.361938
0.478520
16a.
16b.
16c.
16.
17.
18.
CITY AID BASE BEFORE ADJUSTMENTS:
2003 RENTAL HOUSING TAX BASE REPLACEMENT AID:
OTHER AID BASE ADJUSTMENTS:
TOTAL CITY AID BASE FOR 2003 (16a+16b+16c):
CITY FORMULA AID (15x(11x5)-(13x14)):
PRELIMINARY AID (16+17):
S 20,485
S o
$ o
$ 20,485
$ o
$ 20,485
19
20
21
2002 LOCAL GOVERNMENT AID:
2003 MAXIMUM AID ((.1 x 12)+16b+16c+19):
2003 LGA BEFORE REDUCTIONS (LESSER OF 18 OR 20):
$ 20,485
$ 786,092
$ 20,485
22 REDUCTION FOR STATE COSTS:
$ 10
23 FINAL 2003 LOCAL GOVERNMENT AID AFTER REDUCTIONS
(21-22):
S 2O,475
Prc;pc]'(;' T~-,'.v Dirixio]z
%1;~iI Stu, tion 3345
St. Paul, %IN 55146-3345
TTt':
TeL' 651-296-5141
651-297-2166
Call 711 for Minnesota Relay
,,1~ equcd opportzmiO' cmploycr
MINNESOTA' REVENUE
July 31, 2002
TO: CITIES
RE: NOTICE OF 2003 LOCAL GOVERNMENT AID
The amount of your city's 2003 local government aid has been determined and is shown on the
enclosed notice. The notice also lists the factors used to determine your city's 2003 local government
aid. Following is an explanation of these factors.
1. PRE-1940 HOUSING UNITS: This is the total number of housing units in your city that were
constructed before 1940 according to the 1990 Federal Census).
2. TOTAL HOUSING UNITS: This is the total number of all housing units in your city (both
vacant and occupied) according to the 1990 Federal Census.
3. PRE-1940 HOUSING PERCENTAGE: This is the result of dividing the total number of pre-
1940 housing units (line 1) by the total number of housing units (line 2), multiplied by 100.
4. 1991 POPULATION: This is the 1991 population estimate for your city as determined by the
State Demographer (for non-metro cities) or by the Metropolitan Council (for metro cities).
5. 2001 POPULATION: This is the 2001 population estimate for your city as determined by the
State Demographer (for non-metro cities) or by the Metropolitan Council (for metro cities).
6. POPULATION DECLINE PERCENTAGE: If your city's 1991 population (line 4) is greater
than your city's 2001 population (line 5), this is the result of subtracting line 5 from line 4 and
dividing the difference by line 4, multiplied by 100. If your city's 2001 population is greater than your
city's 1991 population, your population decline percentage is zero.
7. 2001 TOTAL CLASS 3 REAL PROPERTY MARKET VALUE: This is the total 2001 (taxes
payable 2002) Class 3 market value of all commercial, industrial, and employment properties in your
city, before any adjustments for fiscal disparities and excluding public utility properties. These
values are not equalized.
8. 2001 TOTAL REAL AND PERSONAL MARKET VALUE: This is the total 2001 (taxes
payable 2002) real and personal market value of your city before any adjustments for fiscal disparities,
but after any limited market value adjustments. These values are not equalized.
9. COMMERCIAL/INDUSTRIAL PERCENTAGE' This is the result of dividing your city's, total
Class 3 market value (line 7) by your city's total real and personal market value (line 8), and
multiplying the result by 100.
10. TRANSFORMED POPULATION: This is the result of multiplying your city's population (line
5), raised to the .3308 power, by 30.5485.
(continued)
l~ropert)' Tar Division
Mail Station 3345
St. Paul, MN 55146-3345
ret: 651-296-5141
651-297-2166
Call 711 for Minnesota Relay
~In equal opportunity employer
11. CITY REVENUE NEED:
If your city's population is less than 2,500, your city's revenue need is the result of:
a) 1.795919 times the pre-1940 housing percentage (line 3),
plus
b) 1.562138 times the commercial/industrial percentage (line 9),
plus
c) 4.177568 times the population decline percentage (line 6),
plus
d) 1.04013 times the transformed population (line 10),
minus
e) 107.475.
If your ci~s population is 2,500 or greater, your city's revenue need is the result of:
a) 3.462312 times the pre-1940 housing percentage (line 3),
plus
b) 2.093826 times the commercial/industrial percentage (line 9),
plus
c) 6.862552 times the population decline percentage (line 6),
plus
d) .00026 times the city population (line 5),
plus
e) 152.0141.
Thc city revenue need is then multiplied by the ratio of the most recent implicit price deflator for state
and local government purchases of goods and services to the 1993 implicit price deflator for state and
local government purchases of good and services. (The March, 2002 and March, 1993 indices were
used to compute this ratio). For determination of 2003 local government aid, this ratio is 1.252776.
12. PAYABLE 2002 CITY NET LEVY: This is your city's payable 2002 levy. If your city is
located in the seven-county metropolitan area or the iron range area, the net levy for your city includes
the fiscal disparities distribution levy.
13. PAYABLE 2002 CITY NET TAX CAPACITY: This is your city's 2001 (payable 2002)
equalized net tax capacity using payable 2003 class rates. The net tax capacity excludes any tax
increment financing (TIF) district value and any power line value. If your city is located in the seven-
county metropolitan area or the iron range area, the net tax capacity excludes any fiscal disparities
contribution value and includes any fiscal disparities distribution value.
14. TAX EFFORT RATE: This is the result of dividing the statewide total payable 2002 net levy
for all cities by the statewide total payable 2002 equalized net tax capacity for all cities. The tax effort
rate is the same for all cities.
15. NEED INCREASE PERCENTAGE: This is the percentage that is needed to increase the total
2003 local government aid for all cities to the amount of local government aid appropriated for cities
in 2003. The need increase percentage is the same for all cities.
16a. CITY AID BASE BEFORE ADJUSTMENTS: This is the total of your city's 1993 local
government aid, 1993 equalization aid, 1993 disparity reduction aid, and 1999 local performance aid.
This amount also includes any aid base adjustments per Minnesota Statutes, Section 477A.011,
subdivision 36.
(continued)
16b. 2003 RENTAL HOUSING TAX BASE REPLACEMENT AID: For those cities that
qualify for Rental Housing Tax Base Replacement Aid in 2003, the amount shown on this line is
is added to your city's aid base. For further information on Rental Housing Tax Base
Replacement Aid, visit the Department ofRevenue's website using the following link:
http;//www,taxes, s~ate.mn,u~/proptax/propinfo/mthml$/rental_h0~sin~.html
16c. OTHER AID BASE ADJUSTMENTS' Any adjustments due to annexations,
consolidations, dissolutions, or special legislation are listed here.
16. TOTAL CITY AID BASE FOR 2003 LGA: This is your city's total city aid base for 2003
LGA (sum of lines 16a, 16b, and 16c).
17. CITY FORMULA AID: This is the result of multiplying the need increase percentage (line 15)
times the difference between a) the city's revenue need (line 11) multiplied by the city's population
(line 5) and b) the city's net tax capacity (line 13) multiplied by the tax effort rate (line 14).
18. PRELIMINARY AID: This is your city's formula aid (line 17) plus your city's city aid base
(line 16).
19. 2002 LOCAL GOVERNMENT AID: This is the total amount of local government aid your
city was certified to receive in calendar year 2002, before the reduction for state costs.
20. 2003 MAXIMUM AID:
For cities of the first class (Minneapolis, St. Paul, and Duluth): The maximum aid is limited to the
city's 2002 local government aid (line 19) multiplied by 1.025, plus the city's 2003 rental housing tax
base replacement aid (line 16b), plus other aid base adjustments (line 16c), if applicable.
For all other cities: The maximum aid is limited to 10 percent of the city's net levy for the taxes
payable year 2002 (line 12), plus the city's 2002 local govenm~ent aid (line 19), plus the city's 2003
rental housing tax base replacement aid (line 16b), plus other aid base adjustments (line 16c), if
applicable.
21. 2003 LOCAL GOVERNMENT AID BEFORE STATE COSTS: This is the lesser of your
city's preliminary aid (line 18) or your city's maximum aid (line 20).
22. REDUCTION FOR STATE COSTS: Minnesota Statutes, Section 477A.014, Subdivision 4
provides for reductions in local government aid to finance certain state costs. All cities receiving local
government aid in 2003 receive a reduction for state costs based on their prorated share of the
following amounts:
Calendar Year 2003
State Demographer $
State Auditor (Government Information Division)
Department of Employee Relations (Pay Equity)
TOTAL $
16,000
217,000
55,000
288,000
23. FINAL 2003 LOCAL GOVERN2¥IENT AID AFTER REDUCTIONS: This is the total
amount of your city's 2003 aid distribution (line 21) minus the reduction for state costs (line 22).
Your city's 2003 local government aid will be paid in two equal installments. The first half
installment will be paid on or before July 20, 2003, and the second half installment will be paid on or
before December 26, 2003.
(continued)
Minnesota Statutes, Section 477A.014 provides that a governmental unit may object to the mount of
aid that the Department of Revenue has determined for it. No objection may be raised later than 60
days at~er receipt of this notice. Such objection should be addressed to Director, Property Tax
Division, Minnesota Department of Revenue, Mail Station 3340, St. Paul, MN 55146-3340.
If you have any questions regarding this letter, please call me at (651) 296-5141.
Sincerely,
Larry L. Bewley
Research Analysis Specialist