11-26-1984 Council Packet - Laserfiche WebLink

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'.o allow cities the ability to at least stay even with service provisions for the varying population needs. THE AMM SUPPORTS CONTINUED USE OF THE: CURRENT LEVY BASE ADJUSTMENT FACTORS AS A MINIMUM FOR FUTURE LEVY YEARS IF THE LEGISLATURE FINDS IT PHILOSOPHICALLY NECESSARY TO CONTINUE LFVY LIMITS FOR CITIES OVER 5000 POPULATION. B-2 COMMERCIAL/INDUSTRIAL LEVY BASE GROWTH. :he current levy limit law recognizes that increased houses and reopie require increased revenues to provide services. The law also recognizes that new commercial industrial expansion causes !.e» city costs and therefore, provides a special levy for three :ears equal to the amount of revenue raised by applying the general mill levy to the increased value and provides one-half the special levy as a base increase at the end of three years. Without some growth factor, all services for new commercial and industrial property would have to be provided from existing revenue, thus reducing service to the remainder of the community. Without additional revenue to provide this service, considering netrop,,litan fiscal disparities, a very real disincentive exists allowing any type of new or expanded commercial/industrial trcwt"%. Unfortunately, with only half the growth factor after fiscal disparities added to the base, city residents are subsidizing services to commercial/industrial projects. 'herefore, ':HE AMM URGES THE LEGISLATURE: TO PROVIDE A 100% LEVY BASE INCR17ASE FOR NEW AND EXPANDED COMMERCIAL AND INDUSTRIAL GROWTH SO THAT SERVICES MAY BE PROVIDED WITHOUT DECREASING SERVICE TO THE EXISTING RESIDENTS OF ThE CITY. B REVERSE REFERENDUM :he 1981 legislature eliminated the Reverse Referendum procedure which allowed &:local governing body to increase its levy oase.0y. up to 10% it.::iet aras at 8% or more of the levy limit the previous: year. The law restricted use to a one time 10% increase or _p to 10% in multiple steps and public he&ring procedures. The Increase was subject to a referendum if a petition was presented containing signatures equal to 5% of the numbe: of persons voting at the previous general election. If no petition. .as received, the increase becomes effective. This provision provided a measure of flexibility for cities, and counties that needed base increases for various reasons. THE AMM REQUESTS THE LEGISLATURE RE-ENACT THE REVERSE REFERENDUM PROVISION TO ADD FLEXIBILITY FOR LOCAL UNITS. H-4 MANDATED STATE: ANU FFI)FHA. PRCGRAM: