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<br />request. Final adjustments to all levies must be made by the Department of Revenue on or <br />before December 10th. <br /> <br />Debt Limitations <br /> <br />All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory <br />"net debt" limitations under the provisions of Minnesota Statutes, Section 475.53..Net debt is <br />defined as the amount remaining after deducting from gross debt the amount of current <br />rev,enues which are applicable within the current fiscal year to the payment of any debt and the <br />aggregate of the principal of the following: <br /> <br />1. Obligations issued for improvements which are payable wholly or partially from the <br />proceeds of special assessments levied upon benefited property. <br /> <br />2. Warrants or orders having no definite or fixed maturity. <br /> <br />3. Obligations payable wholly from the income from revenue producing conveniences. <br /> <br />4. Obligations issued to create or maintain a permanent improvement revolving fund. <br /> <br />5. Obligations issued for the acquisition and betterment of public waterworks systems, and <br />public lighting, heating or power systems, and any combination thereof, or for any other <br />public convenience from which revenue is or may be derived. <br /> <br />6. Certain debt service loans and capital loans made to school districts. <br /> <br />7. Certain obligations to repay loans. <br /> <br />8. Obligations specifically excluded under the provisions of law authorizing their issuance. <br /> <br />9. Certain obligations to pay pension fund liabilities. <br /> <br />10. Debt service funds for the payment of principal and interest on obligations other than those <br />described above. <br /> <br />Levies for General Obligation Debt <br />(Sections 475.61 and 475.74, Minnesota Statutes) <br /> <br />Any municipality which issues general obligation debt must, at the time of issuance, certify <br />levies to the county auditor of the county(ies) within which the municipality is situated. Such <br />levies shall be in an amount that if collected in full will, together with estimates of other <br />revenues pledged for payment of the obligations, produce at least five percent in excess of the <br />amount needed to pay principal and interest when due. Notwithstanding any other limitations <br />upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior <br />levies for payment of general obligation indebtedness is without limitation as to rate or amount. <br /> <br />Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) <br />"Fiscal Disparities Law" <br /> <br />The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as <br />"Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the <br />increase in commercial-industrial (including public utility and railroad) net tax capacity valuation <br />since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan <br />area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, <br />excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax <br />base. A distribution index, based on the factors of population and real property market value <br />per capita, is employed in determining what proportion of the net tax capacity value in the area- <br />wide tax base shall be distributed back to each assessment district. <br /> <br />111-3 <br />