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Minnesota Legislature

Office of the Revisor of Statutes

SF 1305

as introduced - 91st Legislature (2019 - 2020) Posted on 02/14/2019 04:15pm

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; modifying the city formula; increasing the
appropriation; amending Minnesota Statutes 2018, sections 477A.011, subdivision
34; 477A.03, subdivision 2a, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, 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) deleted text begin4.59deleted text endnew text begin 4.948new text end times the pre-1940
housing percentage; plus (2) deleted text begin0.622deleted text endnew text begin 0.671new text end times the percent of housing built between 1940
and 1970; plus (3) deleted text begin169.415deleted text endnew text begin 182.629new text end times the jobs per capita; plus (4) the sparsity adjustment;
plus (5) deleted text begin307.664deleted text endnew text begin 331.662new text end.

(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) deleted text begin572.62deleted text endnew text begin 617.284new text end; plus (2) deleted text begin5.026deleted text endnew text begin 5.418new text end times the
pre-1940 housing percentage; minus (3) deleted text begin53.768deleted text endnew text begin 57.962new text end times household size; plus (4) deleted text begin14.022deleted text endnew text begin
15.116
new text end times peak population decline; plus (5) the sparsity adjustment.

(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
deleted text begin 410deleted text endnew text begin 562.129new text end; plus (2) deleted text begin0.367deleted text endnew text begin 0.13new text end times the city's population deleted text beginover 100deleted text end; plus (3) the sparsity
adjustment. The city revenue need for a city under this paragraph shall not exceed deleted text begin630deleted text endnew text begin 632new text end
plus the city's sparsity adjustment.

(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) deleted text begin630deleted text endnew text begin 632new text end times the difference between one and the transition factor. For a city
with a population of at least 10,000 but less than 11,000, 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 the first sentence of this paragraph
"transition factor" is 0.2 percent times the amount that the city's population exceeds the
minimum threshold. 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.

(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 2020
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2018, section 477A.03, subdivision 2a, is amended to read:


Subd. 2a.

Cities.

deleted text beginFor aids payable in 2016 and 2017, the total aid paid under section
477A.013, subdivision 9, is $519,398,012.
deleted text end For aids payable in 2018 and deleted text beginthereafterdeleted text endnew text begin 2019new text end,
the total aid paid under section 477A.013, subdivision 9, is $534,398,012.new text begin For aids payable
in 2020, the total aid paid under section 477A.013, subdivision 9, is $564,982,145. For aids
payable in 2021 and thereafter, the total aid paid under section 477A.013, subdivision 9, is
equal to the aid certified to be paid under that section in the previous year multiplied by the
inflation adjustment under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2020
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2018, section 477A.03, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Inflation adjustment. new text end

new text begin Beginning with aids payable in 2021 and thereafter, the
inflation adjustment for aids payable under subdivision 2a is equal to one plus the sum of
(1) the percentage increase in the implicit price deflator for government purchases and gross
investment for state and local governments purchases as prepared by the United States
Department of Commerce for the 12-month period ending March 31 of the previous calendar
year, and (2) the percentage increase in total city population for the most recently available
year, as of January 15 in the year in which the aid is certified. The inflation adjustment in
this subdivision shall not be less than 1.025 or greater than 1.05.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2020
and thereafter.
new text end