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SF 3756

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; adjusting the need measure and increasing
the appropriation; amending Minnesota Statutes 2004, section 477A.013,
subdivision 9; Minnesota Statutes 2005 Supplement, sections 477A.011,
subdivision 34; 477A.03, subdivision 2a.

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

Section 1.

Minnesota Statutes 2005 Supplement, 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) 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.

(d) The city revenue need cannot be less than zero.

(e) For calendar year deleted text begin 2005deleted text end new text begin 2007new text end 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 deleted text begin 2003deleted text end new text begin 2000new text end 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 2007.
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 deleted text begin 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
deleted text end new text begin 2007 shall not be less than the amount of aid it would have received in calendar
year 2007 if the changes in sections 1 and 3 had not taken effect
new text end .

(c) 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 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 beginning with aids payable in 2007.
new text end

Sec. 3.

Minnesota Statutes 2005 Supplement, section 477A.03, subdivision 2a, is
amended to read:


Subd. 2a.

Cities.

For aids payable in 2004, the total aids paid under section
477A.013, subdivision 9, are limited to $429,000,000. For aids payable in 2005, the total
aids paid under section 477A.013, subdivision 9, are limited to $437,052,000. For aids
payable in 2006 deleted text begin and thereafterdeleted text end , the total aids paid under section 477A.013, subdivision 9,
is limited to $485,052,000.new text begin For aids payable in 2007 and thereafter, the total aids paid
under section 477A.013, subdivision 9, is limited to $495,052,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2007.
new text end