06-25-1990 Council Packet - Laserfiche WebLink

Home Browse Search

Management Plan Page Four The third concern with the management structure relates to financing. The plan states that the LMCD will have new powers to essentially create a new taxing district. The new taxing district will he based upon a two-tiered approach. The first tier will tax ail fourteen lakeshore communities to a maximum of one mill. Because the "mill” concept was changed during the 1989 legislative session, it is uncertain how the LMCD will accordingly alter its proposal. Since the current legislation allows the LMCD to levy the equivalent of no more than one mill, the new authority could sub^^'ar.tially increase its budget. Apparently, existing limitat , (20% of the budget) would continue to apply so the City . Minnetonka's contribution would be capped. In addition to the tax on the lakeshore communities, a second tier, including all of Hennepin County, would also be taxed. Again, this amount would be dependent on the LMCD's annual budget. It is unclear if the second tier overlaps the first. Because of the first tier levy being applied to all of Minnetonka, a homeowner residing on Ford Road would pay the same proportionate share as one residing in the Gray's Bay area. If the second tier levy also includes Minnetonka, which is probable, then residents of Plymouth who may live close to the lake would pay less than ri;sidents in parts of Minnetonka who are farther away. Another problematic aspect of the financing plan is that the LMCD will have the same authority that cities have to issue special assessment bonds for certain activities. It is uncertain if debt service will be outside the LMCD tax levy is the case with cities. It should also be noted that LMCD obtains bonding authority, it will be virtually to eliminate it or radically alter its structure if ever desired. The bond covenants requiring taxes to bonds would most likely take legal precedence over limit as once the impossible that were retire the such attempts. Because the mCD is seeking authority to issue improvement bonds under the same statute that permits cities to incur debt for streets, sewer and water, etc., it is presumed that the same statutory regulations would apply. This means that assessments would probably be required in addition to tax levy to repay debt. Depending on the circumstances, a referendum may or not be required. It should also be noted that it is not immediately clear if creation of a special taxing jurisdiction is really the intent. For example. Management Objective 4 (page 77) says that the LMCD tax levy should be outside the statutory limitations of other \V