Laserfiche WebLink
<br />Legislative Changes <br />In 2009 the Legislature changed the truth in taxation process repealing most of the prior <br />truth in taxation requirements and setting new requirements. The new requirements are: <br /> <br /> <br />? <br />The Council must announce at the meeting when the proposed levy is adopted <br />the future times and dates of the regularly scheduled meetings at which the <br />budget and levy will be discussed and public testimony will be taken. <br /> <br />? <br />The meetings must include an opportunity for public input. <br /> <br />? <br />The meetings cannot start before 6:00 p.m. <br /> <br />? <br />The County must be notified of the meeting dates and times when the proposed <br />levy is certified to the County Auditor by September 15. <br /> <br />? <br />The final budget may not be approved until after November 24. <br /> <br />? <br />The final tax levy must be certified to the County Auditor by December 28. <br /> <br />As you can see, this eliminates the need for a formal truth in taxation public hearing and <br />instead requires that, in lieu of the formal public hearing, the public be able to speak at each <br />of the regularly scheduled meetings at which time the budget or tax levy is discussed. This <br />requires that the Council set the dates of proposed meetings prior to certifying the tax levy <br />on September 15. <br /> <br />Other Legislative changes include changes to the levy limit and authorized special levies. <br />Cities may levy to make up for local government aid (LGA) and market value homestead <br />credit (MVHC) aids cuts. The timing of the special levy depends upon when the cuts were <br />made. The City may levy for the 2009 unallotments for taxes payable 2010, but may only <br />levy for the 2010 losses for taxes payable 2011. If additional 2009 unallotments are made <br />after September 1, the Council could recertify the levy for taxes payable 2010 or include the <br />losses as a special levy for 2011. Although, even though cities may levy for those losses, it is <br />unlikely that most cities will because of the significant tax increase this shift from state <br />funding to local funding would cause. <br /> <br />Proposed Timeline <br />In order to comply with the new truth in taxation requirements, the following schedule is <br />proposed for future budget and tax levy meetings: <br /> <br /> <br />? <br />August 10 – budget work session to discuss budget and tax levy. <br /> <br />? <br />September 8 – approve proposed tax levy and set future meeting <br />schedule for budget discussions. <br /> <br />? <br />November 9 – continue budget and tax levy discussion based on updated <br />estimated net tax capacity information; take public input on budget. <br /> <br />? <br />December 7 – present final budget including adjustments made based on <br />public input received on November 9; take additional public input; adopt <br />final budget and tax levy. <br /> <br />Affect of Unallotments on 2009 and 2010 Budgets <br />The City receives states aids in the form of LGA and MVHC. These aids were reduced in <br />2008 and will be reduced in 2009 and 2010. LGA is reduced first with any additional <br /> <br />