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Legislature reduced the tax rates for all major classifications of real <br /> property. The new rates lower the taxable value of property in <br /> Monticello. The table below compares current rates with the changes for <br /> 110 1998: <br /> Classification Tier Current Law Change for Pay 1998 <br /> Residential Less than$72,000 1.0% 1.0% <br /> Homestead $72,000 to$75,000 2.0% 1.0% <br /> Class 1 A Greater than$75,000 2.0% 1.85% <br /> Residential Less than$75,000 2.3% 1.9% <br /> Non-Homestead Greater than$75,000 2.3% 2.1% <br /> (single unit) <br /> Class 4bb <br /> Residential 2.3% 2.1% <br /> Non-Homestead <br /> (duplex/triplex) <br /> Class 4b <br /> Apartments Regular 3.4% 2.9% <br /> (market rate) Small Cities 2.3% 2.3% <br /> Class 4a <br /> Low Income 2.0%to 2.5% 1.9%- 1998 <br /> Housing 1.0%- 1999 for <br /> Class 4d qualifying <br /> • property only <br /> Commercial Less than$100,000 3.0% 2.7% <br /> Industrial $100,000 to$150,000 4.6% 2.7% <br /> Class 3a Greater than$150,000 4.6% 4.0% <br /> The Legislature not only made immediate changes in class rates, but <br /> also set a process for achieving future targeted reductions. Among the <br /> targeted reductions are the 2nd tier for commercial-industrial from 4.0% <br /> to 3.5% and market rate apartments from 2.9% to 2.5%. <br /> Another tax system change on the horizon is the potential reduction or <br /> elimination of taxes on personal property of utilities. This action would <br /> reduce the tax base contributed by NSP's power plant. <br /> Through HRA's and EDA's, cities have broad powers to facilitate the revital- Commercial Rehabilitation <br /> ization of existing buildings. There is also specific statutory authority for Loans and Grants <br /> loans by cities. The City may establish a program to make loans to finance the <br /> rehabilitation of small and medium sized commercial buildings (M.S. Section <br /> 469.184). The program can be funded through the issuance of bonds. Other <br /> revenues of the City (i.e., tax increment) could be used to assist the program. <br /> The creation of a loan/grant program will focus more on uses and funding <br /> than on the underlying authority. <br /> A New Bridge <br /> Revltal zing Montlalo's Downtown and Rlvedront - <br /> Page 4:19 <br />