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

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! I C$ The Preliminary State Aid Factor Re~resents A Logical Determination Of Cities' Relative Aid Requirements. The fiscal need and capacity figures are used to determine I I I a city's preliminary state aid factor by subtracting the latter from the former. Thus, the formula takes an amount reasonably estimated as the city's property tax revenue needs and deducts from that an amount rationally calculated to be the amount of revenue the city could raise by a 10 mill levy. The result is plainly a rational I I measure of the amount of property tax relief due a city in a particular year. There can be no question that these fundamental aspects of the local government aid formula satisfy the requirements of equal protection. D. Maximum And Minimum Aid Level Adjustments Are Rational Means Of Di. stributin9 ,~ Limited Appropriation While ~v°iding Sudden Substantial Shifts I~ A C~.%y's Aid. Plaintiffs will undoubtedly point out that the amount of aid actually received by each city is not proportional to its fiscal need and capacity as expressed in its preliminary aid factor. They are correct. The calculation of the amount of local government aid received by a city does not stop with the preliminary aid factor. The statute also prescribes a maximum percentage by which a city's aid can be increased in any particular year. In addition, the I I ! establishes a formula for the determination of a minimum amount of aid that a city can receive thereby limiting the amount by which a city's aid can be decreased from one aid year to the next. A city's maximum aid amount is, essentially, 106 percent of the local government aid received in the previous aid year. A city's minimum -22-