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Home My WebLink About6.d. Letter Declining the Payable Year 2000 Transit Tax Levy By the City of Rosemount CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: June 14, 1999 AGENDA ITEM: Letter Declining the Payable Year 2000 AGENDA SECTION: Transit Tax Levy By the City of Rosemount Consent PREPARED BY: Jeff May, Finance Director AGEND �� 6 � ATTACHMENTS: Letter and Worksheet from Department of APPROVED BY: Revenue; Letter from City Declining to Levy for Transit Tax in 1999 Payable Year 2000 / Attached for your review is a letter from the Department of Revenue concerning the transit tax levy with a worksheet that calculates the amount that the City of Rosemount can levy in 1999 for the year 2000. As you may recall, the City had the opportunity to certify a similar amount to be levied for the years 1997 through 1999. We were the only MVTA city that did not levy the tax for 1997, 1998 and 1999. We chose to have the Met Council handle our share of the MVTA costs as it always had in the past without negatively affecting our City's property tax rate. If you will recall, many cities complained about our lack of participation in this new program. Today, staff has had conversations with most of the MVTA cities and we are confident that the decision that we made had no adverse affect on our bus services and did not affect our tax rates either. Based on the information in the attached letter we seem to have two options: (1) Do nothing which will mean that we will not levy a transit tax and continue on the way we always had; or (2) take action to certify the amount included with the worksheet attached for a transit tax levy that will increase the City's overall tax rate. With the reimplimentation of levy limits in 1998, to now levy the transit tax means we would have to reduce services in other areas because the transit tax levy�would be subject to our overall levy limit. This would reduce current services to the citizens to provide the same transit service we are currently getting through the Met Council's levy. It is staff's recommendation that we proceed with option (1) and continue on as we always have. RECOMMENDED ACTION: Authorize staff to send letter to the Minnesota Department of Revenue declining to levy a transit tax in 1999 under the transit services local levy option for the taxes payable year 2000. COUNCIL ACTION: C 1 TY O F RO S E M O U N T 2875 C145th St eet West Rosemount,MN Everything's Coming Up Rosemount!! 55068-4997 :� • Phone:651-423-4411 . Hearing Impaired 651-423•6219 Fax:651-423-5203 June 15, 1999 Richard B. Gardner Research Analyst Supervisor Senior Minnesota Department of Revenue Property Tax Division Mail Station 3340 St. Paul, MN 55146-3340 Dear Mr. Gardner: This letter is to inform you that the City of Rosemount will not be levying a transit tax under the transit services local levy option for the taxes payable year 2000. It is our understanding that by choosing not to levy a transit tax, our transit services will not be reduced in any way,but rather, continue to be funded through the Metropolitan Council as they have in past years. If you have any questions or need additional information please contact me. ` Sincerely, Thomas D. Burt City Administrator cc: Richard P. Johnson, Associate Regional Administrator Metropolitan Council Tim Fleetham, Budget Coordinator Metropolitan Council Beverly Miller, Executive Director Minnesota Valley Transit Authority g"k'. , `�,.�'�'s"°".�'"`" -r- u„2°"'" . "„�" �"'�-..: � 3�,s,.,T'°'�..� - � �"�.°` �, ,`�'"� c�'�. _s � I ,s' ��``( Yj,/�� N � .�. r :s+= �°- � �''-* �� F...�»�,�� ..��..�i�� Al��M��l i'�� 1"��"'��,�� , �i"3��i��`�'�f�*�'�"��'�`�� s � : �.� ._ �e �: ?�-�`�'�� -9�'a'^'�-a`��'"„ `��... J �a��.�. "�� .� :F°�i;'�-. �y�a.�.�� ' �� "�*��' �4 �c �� T�`�+�'�`tx; �' • �" `� r� '� -�f-�'�-s� "�� t�` • "�'�+`�..�'3�+a �. .,,,.^�� }� ��I'a�able��200(}��'r`ansit�erv�ce� Le � ��mY�a�i4 -��-�� -� � � � �� ,,,y � � $ � � � �� ° .�e c �� -F� -5'�'1.��Y�"�. J � � .id.s a,�w R`'�""�'��r'�z�'"�-"`-''"�t� w' �s .� ��' f��°'Sf" -,u�''¢�,x .5*{�^ � �� or ��Operat�ng �osts and �ap��al��en ztur��s��,�: �� -� � x� � �a�� (�.�' � 473 388, �ubc��7�� J�� ,�"z ,. � , . . . ��,�� .��, �� .�.� ��y.��:,�r_:.��.�� , � .,�� :,.� .�.�,-.�� - ��W�._,�.��..�_, .._ .:��;��;�� '�, � 1. Payable 1999 Met. Council Transit Taac Revenues in City a. Net Ta�c Payable(General Spread Levy) $ 356,175 b. Fiscal Disparity Distribution Tax(Non-Debt) 34,054 c. Homestead and Agricultural Credit Aid(HACA) (Non-Debt) 74,116 d. Total(a+b+c) $ 464,345 2. Beginning Levy Limit Base for City(88%of Line 1 d) $ 408,624 3. Payable 1998 Total Taxable Market Value * $ 618,806,600 4. Payable 1999 Total Taxable Market Value * $ 657,779,100 5. Payable 1999/Payable 1998 City Market Value Ratio (4/3) 1.062980 6. Payable 2000 Levy Limit(2 x 5) ** $ 434,359 * Includes tax increment values, fiscal disparity values, and powerline credit values. However,the amounts shown are after(1) limited market value adjustments and•(2) market value exclusions for improvements made to qualifying homestead property ("This Old House" exclusions). ** Before HACA reduction. Prepared by: Minnesota Department of Revenue Property Tax Division May 26, 1999 �lINNESOTA Deparfinent of Revenue Property Tax Division Mail Station 3340 St. Paul, MN 55146-3340 Phone(651)296-3155 Fax(651)297-2166 : � May 26, 1999 Thomas D. Burt, City Administrator �E�.EIVE[3 City of Rosemount 2875 145th Street West MqY 2 7 1999 Rosemount, Minnesota 55068-4997 C�N OF ROSEMOUNT Dear Mr. Burt: The payable 2000 transit services levy limitation for operating costs and capital expenditures for the city of Rosemount has been determined. This levy limitation is determined and certified under M.S. 473.388, Subd. 7. The enclosed table shows the determination of this levy limitation. As in the past,this levy limitation amount is before HACA reduction. The statute requires that a municipality which intends to exercise the transit services local levy option for the taxes payable year 2000 must notify the Department of Revenue and the Metropolitan Council of its intent on or before June 30, 1999. The notification must include the amount of the municipality's proposed transit t�for levy year 1999,taxes payable 2000. If your city intends to levy a transit tax under the transit services local levy option for the taxes payable year 2000, please send us a certification of your city's fntent along with a certification of your city's proposed payable 2000 transit tax on or before June 30, 1999. The amount of the proposed payable 2000 transit tax certified to the Department of Revenue should be the amount before HACA reduction. If the required certification�is not received by the due date, your city may not levy a transit tax for the taxes payable year 2000. After June 30, 1999,your city's decision to levy or not to levy a transit tax for the taxes payable year 2000 is irrevocable. If your city has certified that it intends to levy a transit tax for the taxes payable year 2000, the only change that may be mad�after June 30, 1999 is to reduce the amount of the transit tax: Note: The 1999 Omnibus Tax Bill extends the overall levy limitation for one more year. If your city decides to levy a transit tax for the taxes payable year 2000,this levy will be subject to the city's payable 2000 overall levy limitation. However, if the city decides to levy this tax, the city's payable 1999 adjusted levy limit base used to determine the city's payable 2000 overall levy limitation will be increased by the line 2 amount on the enclosed table under the transfer of function provision of the overall levy limit law(M.S. 275.72, Subd. 3). Continued... An equal opportunity employer 7TY/TDD:(651)215-0069 If you have any questions concerning this letter or the enclosed table, please contact me. Sincerely, . Richard B. Gardner Research Analyst Supervisor Senior Enclosure cc: Richard P. Johnson Tim Fleetham,Budget Coordinator Associate Regional Administrator Metropolitan Council Metropolitan Council