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LI <br />IMPACT OF NOT APPROVING THE WCAL OPTION SALES TAX <br />If a county government or city councils representing a majority <br />of the population within a county do not approve the additional <br />one-half cent local option sales tax, the county and all cities <br />and special taxing jurisdictions within that county will lose all <br />of the following state aids: LGA, HACA, equalization aid, and <br />disparity reduction aid. An estimate of the amount of state aid <br />that would be lost by cities in 1992 if the local option sales <br />tax is not approved is listed in the first column. (This amount <br />does not include county and special taxing jurisdiction aid that <br />would also be lost.) <br />Local governments will have the option of levying to replace aid <br />that was lost by not approving the local option sales tax. The <br />second and third colximns list the estimated 1992 city and total <br />tax rate increases needed to replace all aid that would be lost <br />by not approving the local option sales tax. <br />EXAMPLE: CRYSTAL <br />If the local option sales tax was not adopted in Hennepin County, <br />the City of Crystal would lose an estimated $2,663,226 in state <br />aid (from column one). In addition, the city tax rate in Crystal <br />would Increase by an estimated 26.210 (from column two) and the <br />total tax rate in Crystal would increase by an estimated 30.168 <br />(from column three). For example, if we assume that Crystal's <br />city tax rate was 21.000 before the loss of any state aid, the <br />city rate would have to increase to 47.210 (21.000 + 26.210 ) <br />after tlie loss of state aid in order to maintain the same amount <br />of revenue. Similarly, if the total tax rate in Crystal was <br />120.000 before the loss of state aid, the total rate would have <br />to increase to 150.163 (120.000 + 30.168 ) after the loss of <br />state aid in order to maintain the same amount of revenue. <br />Estimated increase in tax <br />I Estimated rates that would occur <br />r 1 state aid |local option sales tax <br />■; <br />1 to city that |is not approved <br />1 is lost if 1 <br />1 local option City Total <br />1 sales tax is |Tax Rate Tax Rate <br />A.M.M. Cities 1 not approved |Increase Increase <br />ANOKA 1 $1,667,947 1 19.922 29.437 <br />[APPLE VALLEY 1 $2,401,085 1 10.410 15.352 <br />S-r ARDEN HILLS 1 $^7,463 1 0.224 4.540 <br />• <br />1 BAYPORT 1 $x. *. !.2 1 5.079 10.659 <br />U <br />r BLAINE 1 $2,466,5^'- 1 15.445 25.512 <br />\BLOOMINGTON 1•$2,915,821 (3.086 7.482 <br />1 BROOKLYN CENTER 1 $2,837,809 1 14.175 18.340 <br />i BROOKLYN PARK 1 $3,914,437 1 12.790 16.766 <br />r <br />>BURNSVILLE 1 $2,777,645 |5.949 11.044 <br />CHAMPLIN 1 $1,186,248 1 15.540 19.241 <br />?•CHANHASSEN 1 $725,860 1 7.911 18.463 <br />r <br />K CHA5KA 1 $504,868 1 7.982 18.159 <br />CIRCLE PINES 1 $424,391 1 22.882 32.325 <br />COLUMBIA HEIGHTS 1 $2,815,726 1 35.279 44.820 <br />f COON RAPIDS 1 $4,208,764 i 18.691 28.653 <br />i .COTTAGE GROVE 1 $2,053,815 18.842 24.533 <br />CRYSTAL 1 $2,663,226 |26.210 30.168