Minnesota Legislature
HF 3510
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to local government aids; changing the definition of small city for aid
purposes; amending Minnesota Statutes 2006, sections 477A.011, subdivision
34; 477A.013, subdivision 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to
read:
Subd. 34.
City revenue need.
(a) For a city with a population equal to or greater
than deleted text begin 2,500deleted text end new text begin 5,000new text end , "city revenue need" is the sum of (1) 5.0734098 times the pre-1940
housing percentage; plus (2) 19.141678 times the population decline percentage; plus (3)
2504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the metropolitan
area factor; minus (6) 49.10638 times the household size.
(b) For a city with a population less than deleted text begin 2,500deleted text end new text begin 5,000new text end , "city revenue need" is the sum
of (1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial
industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4)
1.206 times the transformed population; minus (5) 62.772.
(c) new text begin Beginning with aids payable in 2010, new text end for a city with a population of deleted text begin 2,500deleted text end new text begin 5,000new text end
or more and a population in one of the most recently available five years that was less
than deleted text begin 2,500deleted text end new text begin 5,000new text end , "city revenue need" is the sum of (1) its city revenue need calculated
under paragraph (a) multiplied by its transition factor; plus (2) its city revenue need
calculated under the formula in paragraph (b) multiplied by the difference between one
and its transition factor. For purposes of this paragraph, a city's "transition factor" is equal
to 0.2 multiplied by the number of years that the city's population estimate has been deleted text begin 2,500deleted text end new text begin
5,000new text end or more. This provision only applies for aids payable in calendar years deleted text begin 2006 to 2008deleted text end new text begin
2010 to 2013new text end to cities with a deleted text begin 2002deleted text end new text begin 2007new text end population of less than deleted text begin 2,500deleted text end new text begin 5,000new text end . It applies
to any city for aids payable in deleted text begin 2009deleted text end new text begin 2014 new text end and thereafter.
(d) The city revenue need cannot be less than zero.
(e) For calendar year 2005 and subsequent years, the city revenue need for a city,
as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit
price deflator for government consumption expenditures and gross investment for state
and local governments as prepared by the United States Department of Commerce, for
the most recently available year to the 2003 implicit price deflator for state and local
government purchases.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2009 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2006, 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) 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. For aids payable in deleted text begin 2005deleted text end new text begin 2009new text end and thereafter, the
total aid for any city with a population of deleted text begin 2,500deleted text end new text begin 5,000new text end 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.
(c) deleted text begin 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.deleted text end For aids payable
in deleted text begin 2005deleted text end new text begin 2009new text end and thereafter, the total aid for a city with a population less than deleted text begin 2,500deleted text end new text begin 5,000new text end
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.
(d) If a city's net tax capacity used in calculating aid under this section has decreased
in any year by more than 25 percent from its net tax capacity in the previous year due to
property becoming tax-exempt Indian land, the city's maximum allowed aid increase
under paragraph (b) shall be increased by an amount equal to (1) the city's tax rate in the
year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
resulting from the property becoming tax exempt.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2008 and thereafter.
new text end