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Home My WebLink AboutLGA Notice NENNESOTA Department,,, Revenue Property Tax Division Mail Station 3340 St. Paul, MN 55146 -3340 Phone (612) 296 -5141 Fax (612) 297 -2166 July 21, 1995 199'5 ...J TO: CITIES CITY OF RE: NOTICE OF 1996 LOCAL GOVERNMENT Alli OAK PARK HEIGHTS The amount of your city's 1996 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 1996 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. 1984 POPULATION: This is the April 1, 1984 population estimate for your city as determined by the State Demographer. 5. 1994 POPULATION: This is the April 1, 1994 population 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). 6. POPULATION DECLINE PERCENTAGE: If your city's 1984 population (line 4) is greater than your city's 1994 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 1994 population is greater than your city's 1984 population, your population decline percentage is zero. 7. 1994 TOTAL CLASS 3 REAL PROPERTY MARKET VALUE: This is the total 1994 (taxes payable 1995) 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. 1994 TOTAL REAL AND PERSONAL MARKET VALUE: This is the total 1994 (taxes payable 1995) 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. COMMERCIALANDUSTRIAL 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. continued.... An equal opportunity employer TDD: (612) 215 -0069 10. TRANSFORMED POPULATION: This is the result of multiplying your city's population (line 5), raised to the .3308 power, by 30.5485. 11. CITY REVENUE NEED: If your city's population is less than 2500 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 city's '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. The 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, 1995 and March, 1993 indices were used to compute this ratio). For determination of 1996 local government aid, this ratio is 1.060082. 12. PAYABLE 1995 CITY NET LEVY: This is your city's payable 1995 levy excluding your city's 1995 homestead and agricultural credit aid (HACA). If your city is located in the seven - county metropolitan area, the net levy for your city includes the fiscal disparities distribution levy. 13. PAYABLE 1995 CITY NET TAX CAPACITY: This is your city's 1994 (payable 1995) equalized net tax capacity. 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, the net tax capacity excludes any fiscal disparities contribution value and includes any fiscal disparities distribution value. For cities that receive a TIF aid reduction, this value is adjusted by the amount of the city's payable 1994 qualified captured net tax capacity (see line 23 below). 14. TAX EFFORT RATE: This is the result of dividing the statewide total payable 1995 net levy for all cities by the statewide total payable 1995 equalized net tax capacity for all cities. The tax effort rate is the same for all cities. 2 n f 15. NEED INCREASE PERCENTAGE: This is the percentage that is needed to increase the total 1996 aid for all cities to the amount of aid appropriated for cities in 1996. The need increase percentage is the same for all cities. 16. CITY AID BASE: This is the total of your city's 1993 local government aid, 1993 equalization aid, and 1993 disparity reduction aid. Cities which received a need increase percentage adjustment for the calculation of their 1995 local government aid, due to a transfer of governmental funds to their sewer and/or water funds in 1992 or 1993, receive a city aid base adjustment for 1996 equal to one -half the difference between their 1995 city aid base and their 1995 local government aid before state costs. 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. 1995 LOCAL GOVERNMENT AID: This is the total amount of local government aid your city was certified to receive in calendar year 1995, before the reduction for state costs. 20. MAXIMUM AID: For citi of the first class (Minneapolis St. Pau and Duluth) The maximum aid is limited to the city's 1995 local government aid (line 19) increased by the aggregate percentage increase in aid for all cities from 1995 to 1996. For 1996, this increase is equal to approximately three percent. For all other cities: The maximum aid is limited to 10 percent of the city's net levy for the taxes payable year 1995 (line 12) plus the city's 1995 local government aid (line 19). 21. 1996 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 and towns receiving local government aid in 1996 receive a reduction for state costs based on their prorated share of the following amounts: Calen Ye ar 1996 State Demographer $ 16,000 State Auditor (Government Information Division) 217,000 Department of Administration (IISAC) 205,800 Department of Employee Relations (Pay Equity) 55.000 TOTAL $ 493,800 3 23. AID REDUCTION RESULTING FROM THE ESTABLISHMENT OF A TIF DISTRICT: Minnesota Statutes, Section 273.1399 requires that a reduction be made to local government aid (and, if necessary, to homestead and agricultural credit aid) if a reduction in aid results from the establishment of a tax increment financing district. If this provision applies to your city, the amount of the reduction is listed here. 24. FINAL 1996 LOCAL GOVERNMENT AID AFTER REDUCTIONS: This is the total amount of your city's 1996 aid distribution (line 21) minus the reduction for state costs (line 22) and minus the reduction resulting from the establishment of a TIF district (line 23). NOTE: As of this date, any reductions to local government aid due to the establishment of a tax increment financing district (line 23 above) have not yet been determined. When these reduction amounts have been determined, our office will be sending out revised local government aid certifications to those cities to which this reduction applies. Your city's 1996 local government aid will be paid in two equal installments. The first half installment will be paid on or before July 20, 1996, and the second half installment will be paid on or before December 26, 1996. Minnesota Statutes, Section 477A.014 provides that a governmental unit may object to the amount of aid that the Department of Revenue has determined for it. No objection may be raised later than 60 days after receipt of this notice. Such objection should be addressed to Michael P. Wandmacher, 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 (612) 296 -5141. Sincerely, V Lar � "L l. . w le rY Y Research Analysis Specialist Enclosure 4 n n M NN SOTA Departmen, of Revenue Property Tax Division Mail Station 3340 St. Paul, MN 55146 -3340 Phone (612) 296 -5141 Fax (612) 297 -2166 1996 LOCAL GOVERNMENT AID NOTICE- JULY 21, 1995 OAK PARK HEIGHTS CITY OF j CLERK- TREASURER 41995 CITY HALL P.O. BOX 2007 OAK PARK OF STILLWATER, MN 55082 THE 1996 LOCAL GOVERNMENT AID FOR YOUR CITY IS: $ 0 THE FOLLOWING IS A LISTING OF THE FACTORS USED IN THE CALCULATION OF YOUR CITY'S 1996 LOCAL GOVERNMENT AID. Si=c THE ENCLOSED LET T ER 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: 130 2. TOTAL HOUSING UNITS: 1,398 3. PRE -1940 HOUSING PERCENTAGE: 9.30 % 4. 1984 POPULATION: 3,190 5. 1994 POPULATION: 3,721 6. POPULATION DECLINE PERCENTAGE: 0.00 % 7. 1994 TOTAL CLASS 3 REAL PROPERTY MARKET VALUE: $ 33,636,647 8. 1994 TOTAL REAL AND PERSONAL MARKET VALUE: $ 208,651,053 9. COMM ERCIAUINDUSTRIAL PERCENTAGE: 16.12 % 10. TRANSFORMED POPULATION: 463.62 11. CITY REVENUE NEED: $ 232.08 12. PAYABLE 1995 CITY NET LEVY: $ 1,353,031 13. PAYABLE 1995 CITY NET TAX CAPACITY: $ 5,966,602 14. TAX EFFORT RATE: 0.246961 15. NEED INCREASE PERCENTAGE: 0.051474 % 16. CITY AID BASE: $ - 17. CITY FORMULA AID (15x(1 1x5)- (13x14)): $ 0 18. PRELIMINARY AID (16 +17): $ 0 19. 1995 LOCAL GOVERNMENT AID: $ 0 20. MAXIMUM AID: $ 135,303 21. 1996 LGA BEFORE REDUCTIONS (LESSER OF 18 OR 20): $ 0 22. REDUCTION FOR STATE COSTS: $ 0 23. REDUCTION FOR ESTABLISHMENT OF TIF DISTRICT: $ 0 24. FINAL 1996 LOCAL GOVERNMENT AID AFTER REDUCTIONS (21- 22 -23): $ 0 An equal opportunity employer TDD: (612) 215 -0069