08-10054r
RESOLUTION NO.1 0054
RESOLUTION IN SUPPORT OF LEGISLATION THAT WOULD
REVISE MINNESOTA STATUES RELATING TO LOCAL GOVERNMENT AID
WHEREAS, the current formula for the distribution of Local Government Aid (LGA)
distributes less than 5% of the total to metropolitan area suburbs; and
WHEREAS, the current formula for the distribution of LGA provides for a per capita
distribution that generates $213 for the residents of Minneapolis and St. Paul, $210 for the
residents of Greater Minnesota cities, and $10.90 for the suburban residents of the seven-
county metropolitan area; and
WHEREAS, the population of these suburbs is 41 % of the total population of
Minnesota; and
WHEREAS, the residents and businesses of the suburban portions of the seven-
county metropolitan area generate 67% of Minnesota's income and sales tax collections;
and
WHEREAS, the current LGA distribution bears little resemblance to the growing
costs of local government in Minnesota cities; and
WHEREAS, the 2003 amendments to these statutes established a definition of local
government need that is based on a complex set of statistical calculations that must be
recalculated annually for all Minnesota cities; and
WHEREAS, the 2003 amendments have created aid distribution numbers to cities
that are certified late in each city's budget cycle and subject to considerable volatility; and
WHEREAS, the complexity created by the 2003 amendments has created law that
is very difficult to understand and interpret; and
WHEREAS, many suburban cities in the Minneapolis/St. Paul metropolitan area
have been forced by the 2003 amendments to raise property taxes by more than 50% to
accommodate lost LGA revenue; and
WHEREAS, property taxes are the most regressive form of taxation.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Richfield requests that the Governor and the Legislature for the State of Minnesota
approve legislation that changes the State's Local Government Aid distribution formula by
substituting local government expenditures, subject to a 5% annual cap, for the five-part
needs formula currently used for this distribution; and
BE IT FURTHER RESOLVED, that the City Council of the City of Richfield requests
the Governor and the Legislature of the State of Minnesota provide funding for this revised
distribution, subject to the condition that no Minnesota city receive less allocation that 90%
of the amount certified to it for fiscal year 2007.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF RICHFIELD,
MINNESOTA THIS 12TH DAY OF FEBRUARY 2008. Q.~ ~
Debbie Goettel, ayor
ATTEST: 0 I .
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Theresa Schyma, Deputy City Clerk