HF 835

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

A bill for an act
relating to local government aids; changing the aid
formula for certain cities; amending Minnesota
Statutes 2004, section 477A.011, subdivision 34.

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

Section 1.

Minnesota Statutes 2004, 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 2,500, "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 2,500, "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 For a city with a population of 2,500 or more and a
population in one of the most recently available five years that
was less than 2,500, "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 2,500 or more. This provision only applies
for aids payable in calendar years 2006 to 2008 to cities with a
2002 population of less than 2,500. It applies to any city for
aids payable in 2009 and thereafter.
new text end

new text begin (d) new text end The city revenue need cannot be less than zero.

deleted text begin (d) deleted text end new text begin (e) new text end For calendar year 2005 and subsequent years, the
city revenue need for a city, as determined in paragraphs (a)
to deleted text begin (c) deleted text end new text begin (d) new text end , 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 beginning with
aids payable in 2006.
new text end