Agenda - Council - 12/20/1983 - Laserfiche WebLink

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I I I The 1979 formula eliminated the county pot system used for the previous eight years and adopted a state-wide distribution system. It also discontinued reliance on 1970 census data by permitting the use of current population estimates in the calculation of individual cities' aid. The new formula did, however, retain the "grandfather" principle that no city would receive less aid than it had in the previous year. The 1979 formula also provided two separate methods for determining local government aid depending on whether or not a city was exempt from the levy limitations found in Minn. Stat. ~§ 275.50-.56.5/ Under the 1979 version, a non-levy l~imit city would receive the amount of its preceding year's aid, plus an additional per capita amount. The per capita rate was determined by the city's average equalized mill rate.6/ For example, for the 1980 aid year a city with an average equalized mill rate of 10 mills or less qualified for a $1 per capita increase. Over 10 mills but not greater than 20 mills qualified for a $3 per capita increase; over 20 mills qualified for a $5 increase. Minn. Stat. 6 477A.01, subd. 4 (1980). Simply stated, levy limitations establish formula-based ceilings on the amount of tax revenues ~ertain local government units can raise each year. The City of Ramsey was exempt from the levy limitations during all aid years through 1981. The mill rate is the amount of property tax that must be paid for each dollar of taxable assessed value. One mill equals one tenth of one cent ($.001). The average equalized mill rate was the city's three-year average mill rate times its sales ratio. -7-