Agenda - Council - 09/23/1980 - Special

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September 15, 1980 TO: All City Mayors, Administrators, Managers and Clerks FROM: Donald A. Slater, Executive Director ~RE: Delays in Payment and Reductions of Local Government Aid Clyde Allen, today announced Governor Quie's fina~ decisons Con~nissioner of Revenu~ aid and deferral of payments to local governments Despite is going · mestead credit payments..And the regarding cuts in state the November cash flow crunch · overnment aid and ho. . ts to local government . the state's intention to borrow $100 million, re uire delays in bo~h.local ~95 million is resu!~!?:l~ ~me away with the following ~o q ro ected deficit o~ $ . issioner A~,=- ..... ~urrently P 3 smut with C~n~n ~aids. League staff.mem~[ ~,,+~ and delays. . ~nformation concerning ~n: ~. 980 Local Governmen~ 1. Sept. 15 - payment being made on time and in full. 2. Nov. 15 - payment will be deferred until December 31, at which time payment will in full. Payment ma_~y_be made prior to December 31, cash flow permitting. be made not be made any later than December 31. It will Note to cities using cash-flow accounting system: Commissioner Allen was willing to try to accomodate cash-basis cities to assure that the December 31 payment is actually received by that date. Cut in March 15, 1981 pa~t The currently scheduled March 15 payment will be cut by 30.755%. (lhis reflects the 8.3% cut in the state's current fiscal year, and is the only cut expected during the state's current fiscal year.) Credit (Note: no cuts, just deferral) ~ayment of Reu__~Ho~est~ad payment.) 1. 52.9% of the November 15, 1980 Homestead Credit payment will be paid. (To determine the amount to expect, calculate 52.9% of the July, 1980 2. On December 15, 1980 the remainder of the Homestead Credit will be paid. (OVER) 300 hanover building, 4BO cedar street, saint paul. minnesota 55101 (612) 222-28E