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REDUCED PROPERTY TAX BASE GROWTH FOR MINNESOTA CITIES <br />During the 1980s, as Minnesota cities have become forced to rely more heavily <br />on their local property tax base, that base has either been declining for many com- <br />munities or growing at a dramatically reduced rate. <br />Between Payable 1986 and Payable 1987, 208 cities --or about one out of every <br />four of Minnesota's 855 cities experienced declines in their assessed property values. <br />Cities experiencing the largest declines were predominantly small cities with taxable <br />wealth of less than $3 million. <br />For those cities which have been gaining taxable wealth, growth rates have <br />dropped precipitously in recent years. As described in Chart 6 below, between 1979 <br />and 1983, total taxable values for cities grew at an average annual rate of 12.8 per- <br />cent. But in the more recent 1983-1987 period, cities' taxable values grew at an <br />average 3.7 percent annual rate, less than one-third the previous pace. Dampened <br />growth in tax bases coupled with declining federal and state aid have placed financial <br />pressure on many cities. Neither their taxable wealth nor state or federal aid have <br />kept pace with the rising costs of the services they deliver. <br />AVERAGE <br />ANNUAL <br />PERCENT <br />INOREASE <br />SEF <br />TW <br />EILC <br />Assr <br />INSET AA <br />DECLINING GROWTH IN TL Lt V. UES FOR NINNESDTA CITIES <br />1979-R7 <br />to - <br />