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HF 2033

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to local government aid; amending the city
formula; providing for a dedication of a portion of
the money; adjusting the appropriation for city aid;
amending Minnesota Statutes 2004, section 477A.013,
subdivisions 8, 9, by adding a subdivision; repealing
Minnesota Statutes 2004, section 477A.03, subdivision
2a.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 477A.013,
subdivision 8, is amended to read:


Subd. 8.

City formula aid.

In calendar year deleted text begin 2004 deleted text end new text begin 2006
new text end and subsequent years, the formula aid for a city is equal to deleted text begin the
need increase percentage multiplied by
deleted text end the difference between
(1) the city's revenue need multiplied by its population, and
(2) the sum of the city's net tax capacity multiplied by the tax
effort rate, and the taconite aids under sections 298.28 and
298.282, multiplied by the following percentages:

(i) zero percent for aids payable in 2004;

(ii) 25 percent for aids payable in 2005;

(iii) 50 percent for aids payable in 2006;

(iv) 75 percent for aids payable in 2007; and

(v) 100 percent for aids payable in 2008 and thereafter.

No city may have a formula aid amount less than zero. deleted text begin The need
increase percentage must be the same for all cities.
deleted text end

deleted text begin The applicable need increase percentage must be calculated
by the Department of Revenue so that the total of the aid under
subdivision 9 equals the total amount available for aid under
section 477A.03 after the subtraction under section 477A.014,
subdivisions 4 and 5.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids
payable in 2006 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 477A.013,
subdivision 9, is amended to read:


Subd. 9.

City aid distribution.

(a) In calendar year
2002 and thereafter, each city shall receive an aid distribution
equal to the sum of (1) the city formula aid under subdivision
8, and (2) its city aid base.

(b) The aid for a city in calendar year 2004 shall not
exceed the amount of its aid in calendar year 2003 after the
reductions under Laws 2003, First Special Session chapter 21,
article 5.

(c) deleted text begin For aids payable in 2005 and thereafter, the total aid
for any city shall not exceed the sum of (1) ten percent of the
city's net levy for the year prior to the aid distribution plus
(2) its total aid in the previous year.
deleted text end For aids payable in
2005 and thereafter, the total aid for any city with a
population of 2,500 or more may not decrease from its total aid
under this section in the previous year by an amount greater
than ten percent of its net levy in the year prior to the aid
distribution.

(d) For aids payable in 2004 only, the total aid for a city
with a population less than 2,500 may not be less than the
amount it was certified to receive in 2003 minus the greater of
(1) the reduction to this aid payment in 2003 under Laws 2003,
First Special Session chapter 21, article 5, or (2) five percent
of its 2003 aid amount. For aids payable in 2005 and
thereafter, the total aid for a city with a population less than
2,500 must not be less than the amount it was certified to
receive in the previous year minus five percent of its 2003
certified aid amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids
payable in 2006 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2004, section 477A.013, is
amended by adding a subdivision to read:


new text begin Subd. 10.new text end

new text begin Use of revenues.new text end

new text begin Beginning with aids payable
in 2006, the city must use any aid it receives under this
section, in excess of the amount it received under this section
for aids payable in 2005, to increase spending on public safety
initiatives and police personnel above the level funded by the
city in calendar year 2006. If the city provides police
services out of more than one location or precinct within the
city, the additional funds must be spent in providing increased
public safety services in the precinct, or the ten percent of
the city precincts with the highest level of part I crimes in
the city in the most recent calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids
payable in 2005 and thereafter.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 477A.03, subdivision 2a,
is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids
payable in 2005 and thereafter.
new text end