Minnesota Legislature
SF 813
as introduced - 90th Legislature (2017 - 2018) Posted on 02/10/2017 09:24am
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A bill for an act
relating to local government aid; modifying the transition between city need
formulas; amending the formula; amending Minnesota Statutes 2016, sections
477A.011, subdivision 34; 477A.013, subdivisions 8, 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, 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
10,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing
percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus
(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664.
(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city
revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing
percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population
decline.
(c) For a city with a population less than 2,500, "city revenue need" is the sum of 410
plus 0.367 times the city's population over 100. The city revenue need under this paragraph
shall not exceed 630.
(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue
need" equals (1) the transition factor times the city's revenue need calculated in paragraph
(b); plus (2) 630 times the difference between one and the transition factor. For a city with
a population of at least 10,000 but less than deleted text begin 10,500deleted text end new text begin 11,000new text end , the "city revenue need" equals
(1) the transition factor times the city's revenue need calculated in paragraph (a); plus (2)
the city's revenue need calculated under the formula in paragraph (b) times the difference
between one and the transition factor. For purposes of new text begin the first sentence of new text end this paragraphnew text begin ,new text end
"transition factor" is 0.2 percent times the amount that the city's population exceeds the
minimum threshold deleted text begin in either of the first two sentencesdeleted text end .new text begin For purposes of the second sentence
of this paragraph, "transition factor" is 0.1 percent times the amount that the city's population
exceeds the minimum threshold.
new text end
(e) The city revenue need cannot be less than zero.
(f) For calendar year 2015 and subsequent years, the city revenue need for a city, as
determined in paragraphs (a) to (e), 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 2013 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 2018
and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:
Subd. 8.
City formula aid.
(a) For aids payable in deleted text begin 2015deleted text end new text begin 2018new text end and thereafter, the formula
aid for a city is equal to deleted text begin the sum of (1) its formula aid in the previous year and (2)deleted text end the product
of (i) the difference between its unmet need and its deleted text begin formuladeleted text end new text begin certifiednew text end aid in the previous
yearnew text begin and before any aid adjustment under subdivision 13new text end , and (ii) the aid gap percentage.
deleted text begin
(b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13,
its formula aid is adjusted to equal its unmet need.
deleted text end
deleted text begin
(c) No city may have a formula aid amount less than zero. The aid gap percentage must
be the same for all cities subject to paragraph (a).
deleted text end
deleted text begin (d)deleted text end new text begin (b)new text end The applicable aid gap 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. Data used in calculating aids to cities under sections 477A.011
to 477A.013 shall be the most recently available data as of January 1 in the year in which
the aid is calculated.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2017
and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:
Subd. 9.
City aid distribution.
(a) In calendar year deleted text begin 2014deleted text end new text begin 2018new text end and thereafter, deleted text begin each citydeleted text end new text begin
if a city's certified aid before any aid adjustment under subdivision 13 for the previous year
is less than its current unmet need, the citynew text end shall receive an aid distribution equal to the sum
of (1) new text begin its certified aid in the previous year before any aid adjustment under subdivision 13,
(2) new text end the city formula aid under subdivision 8, and deleted text begin (2)deleted text end new text begin (3)new text end its aid adjustment under subdivision
13.
(b) For aids payable in deleted text begin 2015deleted text end new text begin 2018new text end and thereafter, new text begin if a city's certified aid before any aid
adjustment under subdivision 13 for the previous year is equal to or greater than its current
unmet need, new text end the total aid for a city deleted text begin must not be less thandeleted text end new text begin is equal to the greater of (1) its
unmet need plus any aid adjustment under subdivision 13, or (2)new text end the amount it was certified
to receive in the previous year minus the lesser of $10 multiplied by its population, or five
percent of its net levy in the year prior to the aid distribution.new text begin No city may have a total aid
amount less than zero.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2018
and thereafter.
new text end