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flexibility in making financial decisions <br />through new Constitutional amendments. <br />FF-4. Funding Local Government <br />Aid <br />Issue: Local government aid (LGA) is an <br />important component in the state's property <br />tax relief system. To avoid undue pressure <br />on the property tax, funding for LGA must <br />keep pace with inflationary pressures. For <br />the 2003 distribution, the legislature <br />originally set the LGA appropriation at <br />$586.8 million. By 2011, the LGA <br />appropriation had been reduced to $425.3 <br />million, a reduction of $161 million from the <br />original 2003 appropriation. <br />In 2013 and 2014, the legislature restored a <br />total of $90 million in funding for LGA and <br />updated the formula to reflect recent fiscal <br />and demographic data. However, the <br />legislature did not include an annual <br />inflationary adjustment for the LGA <br />appropriation. <br />Response: In order to reduce pressure on <br />the property tax, and to equalize property <br />tax bases, the League of Minnesota Cities <br />continues to support an increase in the <br />LGA appropriation to at least the level <br />that would have been provided prior to <br />the 2003 cuts, including the restoration of <br />the annual inflation adjustment. <br />FF-5. State Charges for <br />Administrative Services <br />Issue: Currently, some state agencies have <br />wide discretion in setting the fees for special <br />services they provide to local governments. <br />Response: State agencies should be <br />required to justify their service fees or for <br />increases in existing service fees and not <br />charge more than what is fair, reasonable, <br />and proportionate to the cost of service. <br />League of Minnesota Cities <br />2015 City Policies <br />Agencies should give adequate notice of <br />increases to allow local governments to <br />budget for the increases. State agencies <br />should set administrative service fees as <br />close as possible to the marginal cost of <br />providing the service. Local government <br />should be given the option to self- <br />administer or contract with the private <br />sector for the service if the state cannot <br />provide the service at a reasonable cost. <br />FF-6. Reporting Requirements <br />Issue: Budget and financial reporting <br />requirements imposed on cities by the state <br />often result in duplication and additional <br />costs. In addition to the state mandated <br />annual audits under Minn. Stat. § 471.697- <br />.698, cities are required to prepare and <br />submit or publish numerous other budget <br />and financial reports including but not <br />limited to: <br />a) Summary budget reports (Minn. Stat. § <br />6.745); <br />b) Treasurers report to the city clerk (Minn. <br />Stat. § 412.141); <br />c) Statement of tax collections and other <br />income by clerk to the city council <br />(Minn. Stat. § 471.69); <br />d) Report on outstanding obligations and <br />the purpose for each issue filed with the <br />county auditor (Minn. Stat. § 471.70); <br />e) Publication of summary budget <br />statement (Minn. Stat. § 471.6965); <br />f) Publication of statement of liquor store <br />operations (Minn. Stat. § 477A.017); <br />Liquor store audited financial statements <br />(Minn. Stat. § 471.6985); <br />h) TIF district plan and amendments (Minn. <br />Stat. § 469.175, subd. 4a); <br />i) TIF district annual disclosure (Minn. <br />Stat. § 469.175, subd. 5); <br />TIF district annual financial report <br />(Minn. Stat. § 469.175, subd. 6); <br />k) Business subsidy reporting (Minn. Stat. <br />§ 116J.993 through 116J.995); <br />g) <br />j) <br />Page 96 <br />