1.1                          A bill for an act 
  1.2             relating to city local government aid; eliminating 
  1.3             limits on aid increases; amending Minnesota Statutes 
  1.4             2002, section 477A.013, subdivision 9. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 477A.013, 
  1.7   subdivision 9, is amended to read: 
  1.8      Subd. 9.  [CITY AID DISTRIBUTION.] (a) In calendar year 
  1.9   2002 2004 and thereafter, each city shall receive an aid 
  1.10  distribution equal to the sum of (1) the city formula aid under 
  1.11  subdivision 8, and (2) its city aid base. 
  1.12     (b) The percentage increase for a first class city in 
  1.13  calendar year 1995 and thereafter, except for 2002, shall not 
  1.14  exceed the percentage increase in the sum of the aid to all 
  1.15  cities under this section in the current calendar year compared 
  1.16  to the sum of the aid to all cities in the previous year.  For 
  1.17  aids payable in 2002 only, the amount of the aid paid to a first 
  1.18  class city shall not exceed the sum of its aid amount for 
  1.19  calendar year 2001 under this section and its aid payment in 
  1.20  calendar year 2001 under section 273.1398, subdivision 2, by 
  1.21  more than 2.5 percent. 
  1.22     (c) For aids payable in all years except 2002, the total 
  1.23  aid for any city, except a first class city, shall not exceed 
  1.24  the sum of (1) ten percent of the city's net levy for the year 
  1.25  prior to the aid distribution plus (2) its total aid in the 
  2.1   previous year.  For aids payable in 2002 only, the total aid for 
  2.2   any city, except a first class city, shall not exceed the sum of 
  2.3   (1) 40 percent of the city's net levy for taxes payable in the 
  2.4   year prior to the aid distribution plus (2) 40 percent of its 
  2.5   total aid in the previous year under section 273.1398, 
  2.6   subdivision 2, plus (3) its total aid in the previous year under 
  2.7   this section. 
  2.8      <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  2.9   payable in 2004 and thereafter.