City-related provisions in the enacted tax bill, Airport Runway Bids, And State Tax Forecasts
City-related provisions in the enacted tax bill
The tax bill that Gov. Dayton signed into law, Chapter 294, will impact the 2013 Local Government Aid (LGA) distribution to cities. Cities with populations of 5,000 or more will have their LGA frozen at the 2012 distribution level. For cities under 5,000 in population, each city will receive the greater of either their 2012 LGA or their 2013 formula LGA. (In other words Montevideo will get the same LGA in 2013 that they received in 2012.
Airport Runway Bids
Bids were opened bids this week on the airport runway rehabilitation project. Bids were quite competitive with the low bid from Duininck, Inc. out of Prinsburg, MN in the amount of $1,596,258.61 (engineers estimate for the project was $1,824,250). The three other bids were; $1.7 Million, $2 Million, and $2.1 Million. With engineering our total cost for the project will be about $1.75 Million. The FAA will for 90% of the project, and the state about 5%. The city and county will split the remaining, or about $50,000 each.
Minnesota Revenue Collections Exceed Forecast Levels
The Minnesota Management and Budget (MMB) Office released information last week summarizing the state’s revenue collections for the month of April.
The state’s net general fund revenues totaled $1.476 billion in April, which is $10 million, or 0.7 percent, more than forecast in February. For the entire 2012 fiscal year, which began on July 1, 2011, revenues are now $116 million more than the updated projections in the February forecast.
The table below summarizes the tax collections for the month of April by source. The largest increases were in corporate income tax collections (+23.9 percent) followed by individual income tax collections (+0.8 percent). Sales tax revenues were actually off by 2.3 percent from the February state budget forecast levels.