04-0609R


RESOLUTION PROPOSING THE SUM TO BE RAISED BY TAXATION FOR THE SPECIAL TAXING DISTRICT, DULUTH TRANSIT AUTHORITY, FOR THE YEAR 2005.

 

BY COUNCILOR NESS:

     RESOLVED, that pursuant to Minnesota Statutes, Sec. 275.065, the city council adopts the following proposed tax levy.

     Section 1. The sum to be raised by taxation for the year 2005 for duluth transit authority special taxing district’s operations is hereby determined to be the sum of $1,316,900 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, Sec. 458A.31, Subd. 1, there will be levied for transit operations the sum of $1,316,900.


STATEMENT OF PURPOSE:  This resolution sets the proposed property tax levy for the year 2005 for the special taxing district, Duluth Transit Authority. Although the transit authority is a “special taxing district” per Minnesota Statute 275.066, the City is obligated through council resolution to levy on their behalf.

 

The levy increase requested for 2005 is one half of the amount allowed by law in Minnesota State Statute 458A.31 of .07253 percent of market value. The full levy allowable is $3,102,200 offset by $1,373,700 in motor vehicle sales tax from the State and the debt service on transit bonds in the amount of $157,800 for a total possible levy request of $1,507,700. The increase could have amounted to $507,600 over 2004. Instead the Duluth Transit Authority is requesting one half of that amount, or $253,800, which is 23.9% over 2004.

 

The increase is necessitated by the ongoing need for numerous capital projects, and in particular, the need for periodic replacement of rolling stock and associated equipment. The DTA plans to utilize property tax levy dollars as the local match to finance these capital projects.