Resolution - #83-003 - 01/11/1983

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Councilmember Reimann introduced the following resolution and moved for its adoption: RESOLUTION #83-3 RESOLUTION IN SUPPORT OF CHANGES IN STATE AID FORMULA WHEREAS, Minnesota state local government aid to cities was originally distributed on a per capita basis; and Wt{EREAS, the current state aid distribution is not equitable in that some cities receive as much as $122.95 per capita, and other cities receive as little as $11.61 per capita; and ~f~IEREAS, the State Revenue Department report indicates that "90 percent of the inequities are caused by the grandfather clause, and the present formula fails to achieve the purpose of equity"; and ~REAS, the following revenue sharing mechanisms, which may be dupli- cative of state aid, are also available and assist in achieving equity; a) Gas tax for cities over 5,000 population b) Fiscal disparities c) Metropolitan Transit Commission d) Federal aid entitlement e) Special local taxes NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, CITY OF RA~ISEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: 1) That the City of Savage strongly requests and supports changes in the state aid formula. BE IT FURTHER RESOLVED, as follows: 1) That the City of Ramsey specifically supports and requests changes that will accomplish the following: a) Provide for equitable fund distribution b) Include no grandfather clause c) Provide for periodic review and adjustment to assure the goal of equity d) Include no incentive for spending e) Provide for distribution on a per capita basis, with cities receiving a lessor disbursement (as the result of a change in state aid formula) given the option/authority to raise a one percent (1%) sales tax The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Van Wagner and upon vote being taken thereon, the following voted in favor thereof: Mayor Gamec, Councilmembers Reimann, Van Wagner, Sorteberg and Schlueter and the following voted against the same:~ None Page 1 of 2