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MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Mayor and Council <br /> <br />Lori Johnson, Finance Director <br /> <br />September I 0, 2001 <br /> <br />SUBJECT: 2002 Tax Levy and Budget Issues <br /> <br />**Item 3.3.** <br /> <br />On September 4 the Council approved the city's maximum property tax levy for taxes <br />payable in 2002. Attached are resolutions to approve the Housing and Redevelopment <br />Authority and Economic Development Authority tax levies for taxes payable in 2002. Both <br />the EDA and HRA levy the maximum amount allowed by law. <br /> <br />Also attached is a list of the debt service levy adjustments for taxes payable 2002. Some <br />bond documents indicate that a tax levy is required due to an estimated revenue shortfall <br />based on special assessment or tax increment income projections at the time the bond is <br />issued. This typically happens because the revenue stream is based on very conservative <br />estimates that exclude anticipated special assessment prepayments or increased tax increment <br />revenue. These levies are subsequently cancelled each year if adequate funds are available to <br />meet debt service obligations. The levies being adjusted for taxes payable in 2002 include <br />the 1992 G. O. Improvement Bond, the 1993B Permanent Improvement Revolving Bond, <br />and all tax increment bonds. <br /> <br />Action Requested <br /> <br />The City Council is asked to consider the resolutions approving the Housing and <br />Redevelopment Authority and Elk River Economic Development Authority tax levies for <br />taxes payable in 2002 and approve a motion amending the city's debt service levies as <br />outlined in the attachment. <br /> <br />S/Council/02taxlevy <br /> <br /> <br />