HomeMy WebLinkAbout7315 - ADMIN Resolution - City Council - 1983/01/10RESOLUTION NO. 7315
RESOLUTION SUPPORTING CHANGES TO
THE LOCAL GOVERNMENT AID SYSTEM
WHEREAS, the intent of Local Government Aid is to provide property tax
relief for all property taxpayers;
WHEREAS, the present formula used to distribute Local Government Aid monies
is not sensitive to change and maintains inequities between cities, thereby
compromising the intent of this aid; and
WHEREAS, the effects of the present formula coupled with inadequate State
funding for the Local Government Aid program warrant revisions to the cur-
rent local government aid system; " '
THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park
that the following principles be used to guide the development of an alter-
native Local Government Aid formula:
* Since the primary purpose of Local Government Aid is property tax
relief, funds should be distributed according to each city's pop-
ulation, tax effort and local revenue -raising ability.
* The annual Local Government Aid appropriation should increase or
decrease in accordance with increases or decreases in the State's
General Fund revenues. Cities can then regard Local Government Aid
as a more predictable and reliable revenue source.
* State aid payments, including Local Government Aid and homestead
payments, should not be reduced from budgeted amounts after
September 1 of the year preceding the affected fiscal year.
* Any Local Government Aid increase or decrease to an individual city
resulting from a new formula should be phased in.
* Any city which suffers a reduction in Local Government Aid payments
as a result of a new formula must be allowed to offset that revenue
loss by increasing the local property tax levy.
* No individual city should be able to manipulate the formula by
increasing spending.
* Local Government Aid payments should be distributed to cities
monthly, but not less than quarterly.
Adopted by the City Council January 10, 1983
Attest:
Reviewed for administration
4,,,,f. IB
City Manager
Pre i;i ent Pro Tem
IA) )Jek_il
Approved as to form and legality
City attorney