HomeMy WebLinkAbout9D - Transit Services Tax Levy
DISCUSSION:
ISSUES:
JUNE 18,2001
9D
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION ESTABLISHING
2002 TRANSIT SERVICES TAX LEVY
The City received the Department of Revenue information relative
to the payable 2002 transit services levy limitation for operating
costs and capital expenditures on May 23, 2001. Minnesota Statutes
473.388 subd. 7 requires that a municipality which intends to
exercise the transit services local levy option for the taxes payable
2002 must notify the Department of Revenue of its intent on or
before June 30, 2001.
Current Circumstances
This year the transit services levy limitation for Prior Lake has
increased to an amount of $526,347, which is 381'2% or
approximately $146,000 higher than the $379,950 amount that the
City has since levied for transit services.
Outlined below is a history of the transit levies, which the City of
Prior Lake has levied over the past five years:
Payable Year
1997
1998
1999
2000
2001
2002
Levy Amount
$301,171.00
$301,171.00
$379,950.00
$379,950.00
$379,950.00
$379,950.00 proposed
The latest information from the League of Minnesota Cities (LMC)
indicates that the Metro transit operating property tax levy may be
eliminated by the Legislature and replaced with a minimum
dedication 20.5% of the motor vehicle sales tax as its financing
source. By removing the transit levy from the city's tota11evy it will
lower the city portion of the property tax. However the process for
obtaining the operating funds for our proposed local transit
operation has yet to be determined.
Because the final details have not yet been worked out we have to
continue with the current statutory provision, which require the City
to make a transit levy detern1ination for payable 2002. Since we
have not yet approved bids for the Pl:oposed City operated transit
H: \AGENDA \ Transitlevy .DOC
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
i -:
i
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
Attachments:
H: \AGENDA \Transitlevy. DOC
service for next year the City Council may wish to levy an amount
equal to the current year amount of $379,950.00 since that is
consistent with the City Council's 200 I objective that the staff
develop a transit system for 2002 which provides equivalent or
better service at the same or lesser cost.
The following alternatives are available to the City Council:
1. Defer the transit levy authority to the Metropolitan Council by
not exercising the transit services local levy option for the taxes
payable year 2002. (Such action could result in an increased levy.)
2. Approve a transit property tax levy in the same amount of
$379,950.00 as in 2001.
3. Approve a transit property tax levy somewhere between this
year's levy of $379,950 and the maximum allowable levy of
$526,347.
If the Council is comfortable with the fact that local transit service is
to be maintained at the cunent funding rate, then Alternative #2 is
recommended and a r olution is attached for that purpose.
o -XX stablishing 2002 Transit Services Tax Levy
2 Transit Services Levy Limitation Notice
'61
RESOLUTION 01-~
A RESOLUTION CONFIRMING THE CITY OF PRIOR LAKE'S
DESIRE TO EXERCISE THE LOCAL LEVY OPTION
PURSUANT TO M.S. 473.388 SUBD.7 FOR PAYABLE 2002 TRANSIT TAX LEVY.
MOTION BY:
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
~f
~p
SECOND BY:
Minnesota Statutes Section 473.388 Subdiv. 7 allows Minnesota Transit
Demonstration Program Cities ("Opt Out") to locally levy transit property taxes or
operating purposes; and
Since 1997 the City of Prior Lake has locally levied for transit services; and
Because of the local levy option the City has minimized the annual transit property
tax levy amount; and
Pursuant to State levy guidelines, the City's maximum allowable transit levy is
$526,347.00; and.
The City desires to provide transit at a cost equivalent to or less than the service cost
currently expended.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE THAT:
1. The recitals set forth above are incorporated herein.
2. A transit tax levy not to exceed $379,950.00 for payable 2002 is authorized.
FURTHER, the City Manager is hereby authorized to convey this infom1ation to the State of Minnesota
Department of Revenue in accordance with state law.
Passed and adopted this 18th day of June, 2001.
{Seal}
Mader
Ericson
Gundlach
Petersen
Zieska
NO
Mader
Ericson
Gundlach
Petersen
Zieska
City Manager
City of Prior Lake
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
H\Rcsolution\RestransilOl-xx.doc AN EQUAL OPPORTUNITY EMPLOYER
I r
1. Payable 2001 Levy Limit * $ 463,739
2. Payable 2000 Total Taxable Market Value ** $ 828,746,300
3. Payable 2001 Total Taxable Market Value ** $ 940,633,700
4. Payable 200l/Payable 2000 City Market Value Ratio (3/2) 1.135008
5. Payable 2002 Levy Limit (1 x 4) * $ 526,347
* Before HACA reduction.
** 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).
Prepared by: Minnesota Department of Revenue
Property Tax Division
May 18,2001