The URL can be used to link to this page

Home My WebLink About8.a. Transit Tax Levy n • CITY OF ROSEMOUNT ' EXECUTIVE SUMMARY FOR ACTiON �I CITY COUNCIL MEETING DATE: June 1 7, 1997 AGENDA ITEM: Discussion on Transit Tax Levy AGENDA SECTION: PREP'ARED BY: Jeff May, Finance Director AGENDA T �� A ATTACHMENTS: Letter and Worksheet from Department of APPROVED BY: Revenue �� 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 for 1998. As you may recall, the City certified a similar amount to be levied for 1997 about this time last year. When we did more research into the matter and discovered the ramifications that that levy would have on the City's portion of property taxes, we rescinded our decision during the budget process last year and did not levy that amount for the transit tax. We were the only MVTA city that did not levy the tax for 1997. 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 finro 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. It is staff's recommendation that we proceed with option (1) and continue on as we always have. If it is the Council's wish to proceed with option (2) we will bring forth a resolution for your approval at the June 17th meeting. RECOMMENDED ACTION: Give staff direction on how to proceed with the 1998 transit tax levy. COUNCIL ACTION: MIl�TNESOTA Department of Revenue Property Tax Division Ma�i sc�t�on 334o St. Paul, MN 55146-3340 Phone(612)296-3155 Fax(612)297-2166 May 22, 1997 Thomas Burt City Administrator City of Rosemount P.O. Box 510 Rosemount, Minnesota 55068-0510 Dear Mr. Burt: The payable 1998 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. The statute requires that a municipality which intends to exercise the transit services local levy option for the taxes payable year 1998 must notify the Department of Revenue and the Metropolitan Council of its intent on or before June 30, 1997. The notification must include the amount of the municipality's proposed transit tax for levy year 1997, taxes payable 1998. If your city intends to levy a transit tax under the transit services local levy option for the taxes payable year 1998, please send us a certification of your city's intent along with a certification of your city's proposed payable 1998 transit tax on or before June 30, 1997. If the required certification is not received by the due date, your city may not levy a transit tax for the taxes payable year 1998. If you have any questions concerning this letter or the enclosed table,please conta.ct me. Sincerely, � � L�� Richard B. Gardner � Research Analyst Supervisor Senior I Enclosure '�5��="'�'�� cc: Richard P. Johnson,Associate Regional Administrator �� :� �q�- Metropolitan Council ��' Tim Fleetham, Budget Coordinator Metropolitan Council An equal opportunity employer TTYlfDD:(612)215-0069 . � ,� � > � �,� �� :r'°� re ,5� �: '�a��,+e.v +�,.��tr a,lw �� - . � � �.. � � � ��I�� O'��,5��(�`lCI'� z: ��` ,�,-��.��r� � <�* �� r �� ' ��!�� ,�, „� "t a ."r� ,�,$°�•�.�i� � ,��,�,#�,a.'� 3s�^�,� �� f �'t �� a��il�-1,99��ansi� ��ices-�.�� '� � �ta�� :g ��, : : a�� zM , i�"' :..Y ��+�''"`3 r v � �� 7 x �,[�q_z�`x` '.. v y� . G ', kv� 4� • =2A � Z'fr ia�ri'� �� .iE�� .wvF S dv 2� �� o��perat� ��o�t�anc�� t��,�� €��ur�� d �fi�� ; � �� ~� �� =�� w� �� a � [� �"� �m +�'s , . S� F�.`:� ¢:k ' � J� �3§ (�k '� 'Sc L 3 -k�� . }�� ,�y� �` �� f'�'�F-��.{J �a�._� � {�i�rs�� •k� `�' �,: �cr..�_,��a:��, b �..,� vM»�_,,. .,A-E'�5:.,��" �.+r.'��"��,.'_.;:,..... . �'�.e.-�,:.�.::. ...>�;a�*a:�*�.fr:",z,�i,',". � . Ff"��,..Y 1. Payable 1997 Met. Council Transit Tax Revenues in City a. Net Tax Payable (Spread Levy) $ 258,201 b. Fiscal Disparity Distribution Tax 30,905 c. Homestead and Agricultural Credit Aid (HACA) 73,129 d. Total (a+b+c) $ 362,235 2. Beginning Levy Limit Base for City (88% of Line ld) $ 318,767 3. Payable 1996 Total Taxable Market Value* $ 522,318,700 4. Payable 1997 Total Taxable Market�lalue* $ 568,608,1OQ 5. Payable 1997/Payable 1996 City Market Value Ratio (4/3) 1.088623 6. Payable 1998 Levy Limit (2 x 5) $ 347,017 * Includes ta�c increment values, fiscal disparity values, and powerline credit values. However, the amounts shown aze after(1) limited market value adjustments and (2) market value exclusions for improvements made to qualifying homestead property ("This Old House" exclusions). Prepared by: Minnesota Department of Revenue Property Tax Division May 22, 1997