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I <br />I <br />I <br /> <br />I <br /> <br />! <br />I <br /> <br />I <br />I <br />I <br />I <br />I <br />! <br />I <br />I <br />I <br />I <br /> <br /> 3. I am informed that one of the legislative purposes of the <br />local government aid (LGA) law is "to provide property tax relief <br />to local units of government" (Minnesota Laws 1983, Chapter 342, <br />Article 5, Section 14). <br /> <br /> I am also informed that the LGA law was designed to carry <br />out the following additional purposes: <br /> <br /> a. To eliminate reliance on outdated population estimates. <br /> <br /> b. To relate state aid distribution more strongly to a <br /> <br /> community's "fiscal capacity" as measured by tax base wealth <br /> c. To eliminate inequities due to the county by county <br /> <br /> distribution system. <br /> <br /> d. To eliminate any "reward" for cities which increase their tax <br /> and to eliminate any "penalty" for communities which cut <br /> their spending. <br /> <br /> e. To adopt maximum limitations on the amount of increase in <br /> <br /> state aid any one jurisdiction can receive annually. <br /> <br /> f. To relate state aid allocations to a community's need for <br /> local revenue to finance basic municipal services, as <br /> measured by each community's levy limit base. <br /> <br /> g. To treat cities.and towns under 2500 population separately in <br /> order to simplify aid formula calculations for smaller <br /> municipalities and to eliminate problems with data <br /> inaccuracies and inadequacies for small jurisdictions. <br /> <br />h. To relate future growth in state aid to changes in <br /> population~ inflation, and tax base capacity. <br /> <br />- 3 - <br /> <br /> <br />