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/ <br />City Spending and Levy Limits <br />Levy limits undermine the credibility and accountability of local <br />officials who are closest to citizens and in the best position to make <br />responsible decisions about spending and services in their <br />communities. <br />Cities are responsible stewards of their taxpayers* dollars and <br />reimposing levy limits was a mistake. In many cases, levy limits <br />force cities to delay maintenance projects or to increase their use of <br />debt financing. Levy limits also erode cities* ability to meet new <br />state and federal mandates. Levy limits are a one-size-fits-all <br />answer that ignores differences in local circumstances. <br />Levy limits are not property tax reform. Four years ago, the <br />Legislature recognized that levy limits were counterproductive and <br />eliminated them. Reimposing limits is a quick fix and the easiest <br />political solution to property tax reform. <br />The current law only affects cities with populations of more than <br />2,500 and is supposed to sunset in two years. But many city leaders <br />and decision-makers believe levy limits may not be removed in two <br />years and may be extended to all cities. The League believes levy <br />limits are unacceptable and poor fiscal policy, and will call for <br />their repeal. <br />Prepared by the League of Minnesota Cities November 1997 <br />--i.irMVM'