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

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I I I ! I i i I I I I I I ! I I I Distributions for levy limit cities used a different formula. Central to this formula was a city's local revenue base~/ and its adjusted assessed value.~/ A "preliminary state aid factor" (PSAF) was calculated for each levy limit city using these two central elements. The PSAF was a city's local revenue base minus the product of 10 mills times its adjusted assessed value. Minn. Stat. § 477A.01, subd. 4(a)(3)(ii) and (b)(2)(ii) (1980). A minimum state aid factor was also calculated by adding a city's local government aid for the previous year to a per capita increase.~/ A maximum state aid factor was calculated by adding a city's local government aid for the previous year to a percentage increase that was dependent on the level of local government aid per capita for 10/ the preceding year. 7/ A city's local revenue base for 1980 equalled its 1979 levy limitation plus its 1979 local government aid. Minn. Stat. § 477A.01, subd. 4(a)(3)(i) (1980). For aid years 1981 and 1982, the local revenue base was increased by a variety of additional factors. Minn. Stat. § 477A.01, subd.4(b)(2)(i) (1980). The assessed valuation is, of course, the value of the property within the city on which property taxes can be levied. This figure is developed by the local assessor of each city and is adjusted by the city's sales ratio in order to take into account differences in the degree to which various cities' property may be valued at or below actual market level. Minn. Stat. § 477A.01, subd. 4(a) (3)(ii) (1980).' 9/ The amount of the per capita increase was determined by a city's average equalized mill rate in the same manner as the per capita aid increase for a non-levy limit city. See p. 7, . Minn. Stat. § ~77A.01, subd. 4(a)(3)(iii) and (b) (1) ). 10/ The previous year's per capita aid amount determined which of three percentage increase categories - 12, 17, or 20% - would apply. Minn. Stat. & 477A.01, subd. 4(a)(3)(iv) (1980). -8-