Agenda - Council - 07/23/1979 - Laserfiche WebLink

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LOCAL GOVERNMENT AID FORMUL~ 1980-1981 Total Aid Distribution $64 X 1970 federal census population for 1980. $70 X 1970 federal census population for~ 1981. County Governments 1979 aid amount plus $1 per capita for 1980 and $2 per capita for 198%. The increase is based on the 1970 federal census of the coqnty. Hennepin, Ramsey and St. Louis Counties will continue'to receive no Local Government Aid. cities and Towns Two separate groups are established for aid determination purposes: 1) those cities and towns exempt from the-6% levy limitation; and 2) those cities and towns that are subject to the 6% levy limitation (the levy limit cities and towns). Exempt Cities and Towns: The cities andtowns exempt from. the 6% levy limitation will receive in 1980 the amount of their 1979 Local Government Aid plus $1 (cities only) $3 or $5 per capita, depending upon their "average equalized mill rate". The population used is the city or town's current population (established by the same methods used for the 6% levy limitation) even if it is less than the 1970 federal census population.' Under this new aid formula, the current population is not averaged with the 1970 federal census population. "Average equalized mill rate" for the 1980 aids is the sum of the payabl~ 1977, 1978 and 1979 mill rates for the city or town, divided by-three and multiplied times the 1978 aggregate sales ratio. If the average equalized mill rate is 10 or less, the aid increase is $1 per capita (cities only). If it is more than 10 but less than or equal to 20, the aid increase is $3 per capita (cities and towns). If it.is more than 20 mills, the aid increase'is $5 per capita. For 1981, the exempt cities and towns will receive the amount of their 1980 Local Government ~Aid plus $1 (cities 0nly), $4, or $6 per capita, depending on their average equalized mill rates. The average equalized mill rates will be based on the payable 1978, 1979 and 1980 mill rates of the cities and towns and their 1979 aggregate sales ratios. All other provisions of the formula remain the same. ~evy Limit Cities and Towns: For 1980, a "local revenue base" is established, which is the sum of the city or town's 1978 payable 1979 levy limitation plus its 1979 Local Government Aid. (For the city of St Paul, it is its 1979 Local Government Aid plus 85% of its 1978 payable 1979 levy limitation. For the city of' Minneapolis, the formula does not apply to it for 1980 since it will receive the same amount as it received in 1979). A "preliminary state aid factor" is then established by subtracting from its local revenue base an amount equal to 10 mills times the city or town's 1979 adjusted assessed value. The preliminary state aid. factor is then adjusted to comply with the initial minimum and maximum aid provisions. The minimum aid for a levy limit city or town depends upon its average equalized mill rate. If it is 10 or less, the minimum aid 'for the city or town is its 1979 aid plus $1 per capita. If it is more than 10 but less than or equal to 20, the minimum aid for the city or town is its 1979 aid plus $3 per capita. If it is more