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

Home

! I I I I I I I I I I aid amount is calculated by subtracting the product of .75 mills times the adjusted assessed value from the local government aid received by the city in the previous year. If the city's preliminary local government aid figure is greater than its maximum aid amount, its final aid factor is the maximum amount. If its preliminary aid factor is below the minimum, the minimum becomes the final aid factor. If the preliminary aid figure falls between the maximum and the minimum, the preliminary becomes the final figure .28/ The imposition of these maximum and minimum levels on the aid received by each city does distort the relationship between the aid actually received and the measures of need and fiscal capacity contained in the formula. Indeed, plaintiffs can probably identify cities of roughly equivalent population, fiscal need, and fiscal capacity that received disparate amounts of local government aid. The disparity between the aid received and the preliminary aid factor does not, however, render the formula unconstitutional, because the maximum and minimum levels are themselves rationally related to legitimate legislative purposes. 2s/ There are additional adjustments in this process that need not be detailed for the purposes of this motion because they did not affect the City of Ramsey. These further refinements relate to additional adjustments that may be required if the sum of all of the final aid figures exceeds the total appropriation set by the legislature. An additional adjustment is necessary if the amount of money necessary to increase all cities to their minimum level exceeds a specific portion of the total appropriation for local government aid that is designated for such "grandfathering." See notes 20 and 21, supra. -23-