01-049-O
ORDINANCE NO. __________

AN ORDINANCE DETERMINING THE SUM TO BE RAISED BY TAXATION FOR THE SPECIAL TAXING DISTRICT, DULUTH TRANSIT AUTHORITY FOR THE YEAR 2002.

BY COUNCILOR HOGG:

The city of Duluth does ordain:

        Section 1.     The sum to be raised by taxation for the year 2002 for Duluth transit authority special taxing district's operations is hereby determined to be the sum of $272,300 which sum is levied against the taxable property of the city of Duluth and appropriated to the various accounts as set forth in the following section, viz:

        Section 2.     That pursuant to Minnesota Statutes, Section 458A.31, Subd. 1, there will be levied for transit operations the sum of $272,300.

        Section 3.     That this ordinance shall take effect January 1, 2002.



STATEMENT OF PURPOSE:  This ordinance sets the proposed property tax levy for the year 2002 for the special taxing district, Duluth transit authority. Beginning in 2002, the transit authority will be treated as a "special taxing district" per Minnesota Statute 275.066. The DTA operating levy will no longer be part of the city of Duluth's levy. The city will continue to include the amount to cover the cost of debt service on transit bonds issued by the city in its own operating levy. This amount totals $382,200 for 2002, and is included in the City's property tax proposal.

In addition to the above, the state legislature created a new transit replacement aid which reduces the amount of local property tax support required for transit operations. In the case of the Duluth transit authority, the amount certified totaled $1,222,600. When subtracted from the 2001 combined transit operating and transit bond levies of $1,877,100, the remainder of $654,500 continues to represent the local funding need. Of that, $382,200 is proposed to be levied to cover the DTA's debt service, with the remainder, $272,300 proposed in this ordinance for operations.