1.1                          A bill for an act 
  1.2             relating to taxes; local government aid to cities; 
  1.3             reducing the city aid base as aid appropriations 
  1.4             increase; amending Minnesota Statutes 1998, sections 
  1.5             477A.011, subdivision 37; and 477A.013, subdivision 9. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 477A.011, 
  1.8   subdivision 37, is amended to read: 
  1.9      Subd. 37.  [BASE REDUCTION ~~PERCENTAGE~~ RATIO.] "Base 
  1.10  reduction ~~percentage~~ ratio" is (1) the difference between the 
  1.11  amount available for city aid under section 477A.03 for the year 
  1.12  for which aid is being calculated and the amount available for 
  1.13  city aid under section 477A.03 for calendar year ~~1994~~ 1999, (2) 
  1.14  divided by the sum of the city aid base for all cities ~~and (3)~~ 
  1.15  ~~multiplied by 100~~.  The reduction ~~percentage~~ ratio for any year 
  1.16  may not be less than the reduction ~~percentage~~ ratio from the 
  1.17  previous year.  ~~For aid paid in calendar year 1994, the~~ 
  1.18  ~~reduction percentage is zero.~~  The reduction ~~percentage~~ ratio 
  1.19  may not be more than ~~100 percent~~ one. 
  1.20     Sec. 2.  Minnesota Statutes 1998, section 477A.013, 
  1.21  subdivision 9, is amended to read: 
  1.22     Subd. 9.  [CITY AID DISTRIBUTION.] (a) In calendar year 
  1.23  ~~1994~~ 2000 and thereafter, each city shall receive an aid 
  1.24  distribution equal to the sum of (1) the city formula aid under 
  1.25  subdivision 8, and (2) its city aid base multiplied by the 
  2.1   difference between one and the base reduction ratio. 
  2.2      (b) The percentage increase for a first class city in 
  2.3   calendar year 1995 and thereafter shall not exceed the 
  2.4   percentage increase in the sum of the aid to all cities under 
  2.5   this section in the current calendar year compared to the sum of 
  2.6   the aid to all cities in the previous year. 
  2.7      (c) The total aid for any city, except a first class city, 
  2.8   shall not exceed the sum of (1) ten percent of the city's net 
  2.9   levy for the year prior to the aid distribution plus (2) its 
  2.10  total aid in the previous year before any increases or decreases 
  2.11  under sections 16A.711, subdivision 5, and 477A.0132. 
  2.12     ~~(d) Notwithstanding paragraph (c), in 1995 only, for cities~~ 
  2.13  ~~which in 1992 or 1993 transferred an amount from governmental~~ 
  2.14  ~~funds to their sewer and water fund in an amount greater than~~ 
  2.15  ~~their net levy for taxes payable in the year in which the~~ 
  2.16  ~~transfer occurred, the total aid shall not exceed the sum of (1)~~ 
  2.17  ~~20 percent of the city's net levy for the year prior to the aid~~ 
  2.18  ~~distribution plus (2) its total aid in the previous year before~~ 
  2.19  ~~any increases or decreases under sections 16A.711, subdivision~~ 
  2.20  ~~5, and 477A.0132.~~ 
  2.21     Sec. 3.  [EFFECTIVE DATE.] 
  2.22     Sections 1 and 2 are effective for aid payable in calendar 
  2.23  year 2000 and thereafter.