01-10-2007 Council Agenda - Laserfiche WebLink

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Way of SICCZ (°anaea MAYOR Bill Blesener COUNCIL, Jim LaValle Rick Montour Barbara Allan John Keis 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson www.ci.little-canada.mn.us MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: January 5, 2007 RE: North Metro Mayor's Association — LGA Reform Team Attached is information on the need for Local Government Aid (LGA) reform that has been prepared by the North Metro Mayors' Association. As you know, Little Canada has not received any LGA for a few years now. This group is seeking to "tweak" the formula to provide additional LGA that would benefit inner ring suburban communities. Under a couple of their scenarios, Little Canada would see LGA restored in the range of 218,551 to 362,877 if they are successful in securing legislative changes. The issue of LGA reform is extremely complicated due to formula issues and varying needs of impacted communities (Inner Cities, Inner Ring Suburbs, Growing Suburbs, and Outstate communities). While this "tweaking" could generate Little Canada some dollars, it may also exacerbate an already inequitable situation created by grandfathering provisions and "needs" determinations in the current formula. The Mayor and I have discussed this issue and our involvement with this group. We feel it is important to pay attention to this issue. (Our involvement would cost us $468 per their billing formula.) While we may see some LGA money in the future (or possible an increase in market value homestead credit), the bigger issue seems to be the need to stay involve and see if we can affect an overhaul of the LGA system to remove the current inequities. To that end, the Mayor and I recommend we authorize the expenditure of $468 for membership in the North Metro Mayors' Association LGA Reform Team. 1