4.__Income growth factor.__The income growth factor applicable to fiscal years following the effective date of this section is the base growth factor, which for purposes of this section means the average real personal income growth rate as defined in Title 5, section 1665, subsection 1, which rate may not exceed 2.75%.__ For fiscal years commencing after such time as the state tax burden ranks in the middle 1/3 of all states, the growth factor must become the personal income growth factor as defined in Title 5, section 1664.__For purposes of this section, "state tax burden" has the same meaning as set forth in Title 5, section 1664.__For any fiscal year thereafter, if the State Tax Assessor determines pursuant to Title 5, section 1664 that the state tax burden has increased to the highest 1/3 of all states, the growth factor for the following fiscal year must be the base growth factor.__In all other fiscal years when the state tax burden ranks in the middle 1/3 of all states, the growth factor must be the personal income growth factor.

5.__Adjustment for new state funding.__If the State provides net new funds to a municipality for existing services funded in whole or in part by property taxes, other than required state mandate funds pursuant to section 5685 that do not displace current property tax expenditures, the municipality shall lower its property tax levy limit in that year in an amount equal to the net new funds.__For purposes of this subsection, "net new funds" means the amount of funds received by the municipality from the State in that fiscal year, with respect to services funded in whole or in part by property taxes, less the following product:__the amount of such funds received in the prior fiscal year multiplied by an adjustment factor.__The adjustment factor equals: one plus the income growth factor set forth in subsection 4 plus the municipality's annual property growth factor as defined in subsection 1.__If a municipality receives net new funds in any fiscal year for which its levy limit has not been adjusted as provided in this subsection, the municipality shall adjust its levy limit in the following year in an amount equal to the net new funds.

6.__Extraordinary event.__Upon the affirmative vote of its legislative body, a municipality may exceed its property tax levy limit in an amount necessary to comply with a court order or decree or to respond to an extraordinary event.__"Extraordinary event" includes any catastrophic event outside the control of the legislative body, such as natural disasters, severe weather