2005 Minnesota Statutes

     477A.013 Municipal government distributions. 

    Subdivision 1.    Towns.  In 2002, no town is eligible 
 for a distribution under this subdivision.  

    Subd. 2. Repealed, 1993 c 375 art 4 s 21 

    Subd. 3. Repealed, 1993 c 375 art 4 s 21 

    Subd. 4.  Repealed, 1Sp1989 c 1 art 4 s 15 

    Subd. 5. Repealed, 1993 c 375 art 4 s 21 

    Subd. 6. Repealed, 1996 c 310 s 1 

    Subd. 7. Repealed, 1991 c 291 art 3 s 15 

    Subd. 8.    City formula aid.  In calendar year 2004 and 
 subsequent years, the formula aid for a city is equal to the 
 need increase percentage multiplied by the difference between 
 (1) the city's revenue need multiplied by its population, and 
 (2) the sum of the city's net tax capacity multiplied by the tax 
 effort rate; the taconite aids under sections 298.28 and 298.282 
 to any city except a city directly impacted by a taconite mine 
 or plant, multiplied by the following percentages: 

    (i) zero percent for aids payable in 2004; 

    (ii) 25 percent for aids payable in 2005; 

    (iii) 50 percent for aids payable in 2006; 

    (iv) 75 percent for aids payable in 2007; and 

    (v) 100 percent for aids payable in 2008 and thereafter.  

    For purposes of this subdivision, "a city directly impacted 
 by a taconite mine or plant" means:  (1) Babbit, (2) Eveleth, 
 (3) Hibbing, (4) Keewatin, (5) Mountain Iron, (6) Silver Bay, or 
 (7) Virginia. 

 No city may have a formula aid amount less than zero.  The need 
 increase percentage must be the same for all cities.  

    The applicable need increase 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 after the subtraction under section 477A.014, 
 subdivisions 4 and 5. 

    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 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.  

    (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. 

    Subd. 10.    Levy adjustments for aid decreases.  
 Notwithstanding any local ordinance or charter provision, a city 
 whose certified aid under subdivision 9 is less than the amount 
 it received in the previous year under the same subdivision may 
 increase its levy payable in the same year as the certified aid 
 is paid by an amount equal to the aid decrease for that year. 

    HIST: 1Sp1981 c 1 art 6 s 3; 1983 c 342 art 5 s 11; 1984 c 502 
 art 4 s 3,4; 1Sp1985 c 14 art 6 s 8; 1Sp1986 c 1 art 6 s 4; 1987 
 c 268 art 5 s 11; 1988 c 719 art 5 s 76-79,84; 1989 c 277 art 2 
 s 67; 1Sp1989 c 1 art 2 s 11; art 4 s 9-12; 1990 c 480 art 7 s 
 31; 1990 c 604 art 3 s 43; art 4 s 12-14; 1991 c 2 art 8 s 6,7; 
 1991 c 291 art 3 s 9,10; 1992 c 511 art 1 s 15-17; 1993 c 375 
 art 3 s 45; art 4 s 18,19; 1Sp1993 c 6 s 32; 1994 c 416 art 1 s 
 59; 1994 c 587 art 3 s 14-16; 1Sp2001 c 5 art 3 s 76,77; 2002 c 
 377 art 10 s 27; 1Sp2003 c 21 art 5 s 7,8; 2005 c 152 art 1 s 
 32; 1Sp2005 c 3 art 2 s 2