06-10-1991 Council Packet - Laserfiche WebLink

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:: -v ’ l' V C abins 1st S72K market value more than $72K 2.3 percent 2.0 percent 2.0 percent 2.5 percent 2.5 percent VACA.NT LAM> 4.95 percent 4.75 percent highest and best use per zoning m. Aid cuts/levy limits 1991,1992 As earUer mentioned, the total LGAmACA cuts exceeding the culs ttoady passed is $70 million - $35 million in December 1991 and $35 million in 1992. The Lvenue Department indicated that the December 1991 aid cut is 1.6 percent of base, or about 80 percent of the July 1991 cut. {hlOTE: this is a preliminary figure.) Aid cuts m 1991 are temporary. Thus, the pre-cut 1991 certiHed levy base is restored flnuLlQ calculating aid reductions and levy for 1992. Aid cuts for 1992 wiU be $86 million; $35 million new and $51 million contained in the 1990 tax bill. These cuts are permanent and, according to the Revenue Department, amount to about 4 percent of the restored 1991 revenue base. Levy limits are very strict. By the end of the session it was clear that everyone, including the governor, wanted only single-digit overall increases. The good news is that cities and counties may levy to recover the loss of revenue due to the permanent $86 million LGA/HACA cuts for 1992. The bad news is the 3 percent inflauon for growth is The net effect of aid cuts and levy limits is that a city's levy base, aid plus levy, or total for 1992 is the same as was certified for 1991. The only difference is that the aid portion of the ’92 base will be less and the general levy portion will be more. The following chart illustrates the interaction of aid cuts and levying authority; .2.,—1.,^ -------------------