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

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I I I I I I I I I I Like the 1979 version, the new formula is generally intended to compute 1) the revenue needs of the city; and 2) the city's ability to raise the needed revenue. With these figures it is possible to calculate the needed state aid. Once that is accomplished the actual aid can be granted to the extent appropriations allow and to the extent consistent with limits on the amount by which aid for any city may increase or decrease from year to year. , The first step is the determination of a city's beginning local revenue base. 1983 Act § 7. For the 1984 aid year, it was calculated- as follows. If a city had a local revenue base in 1981 determined under the 1979 formula, that revenue base is updated using adjustments for inflation and population change. Non-levy limit cities, such as Ramsey, did not have revenue bases calculated under the 1979 formula. For these cities, a local revenue base is created by combining the city's 1983 local government aid with its payable 1983 non-debt levy.11/ The beginning local revenue base for all cities also includes an additional amount to compensate for two specialized aids that have been discontinued.12/ 1!./ 12,/ The 1984 aid determination process for the City of Ramsey is illustrated in Exhibit 3 to the Gardner Affidavit. The calculation of Ramsey's 1984 beginning local revenue base is shown on lines 9-11. Ramsey's beginning 1984 local revenue base was $917,949. They are: attached machinery aid and reduced assessment cre(!it. For Ramsey, the ~rnount added was $1,982. See Ex. 3, lines 12-14.