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01-10-2007 Council Agenda
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01-10-2007 Council Agenda
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DRAFT LCA One Page Document <br />Increasing disparities in the distribution of LGA between greater MN <br />and the metro area raise questions of fairness and equity, and <br />challenge the original purpose of LGA in assuring all Minnesotans <br />have access to basic government services <br />In 2001 LGA was distributed 56% to greater MN, 44% to the <br />metro area <br />2007 LGA is distributed 66% to greater MN, 34% to the <br />metro area <br />* *Include figures of LGA cuts in total dollars to cities <br />(FD metro, Mpls /St Paul, Other Metro and greater MN) flesh out <br />Metro property taxpayers pay 1.77% of personal income <br />in property taxes; taxpayers in greater MN pay 1.32% <br />**Per capita set asides - -S60 for Regional Centers, $35 metro <br />factor (flesh out) <br />In particular, fully developed metro area cities face unique <br />circumstances and overburdens that are not adequately reflected in <br />the LGA formula and distribution: <br />• Aging infrastructure <br />• An aging and more ethnically diverse population <br />• Outdated housing stock <br />• Restricted use of redevelopment tools such as tax increment <br />financing and eminent domain <br />• Increasing rates of poverty and crime <br />• Diminished city revenue bases <br />Fully developed metro cities are often caught in the "blind spot" of <br />public policy discussions about LGA <br />We are working on a proposal to modify the LGA formula and <br />increase LGA funding to address these disparities <br />3 <br />P Nauman <br />C <br />
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