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EHLERS AND ASSOCIATES, INC. FINANCIAL SPECIALISTS FIRST NATIONAL-S00 LINE CONCOURSE 507 MARQUETTE AVE. MINNEAPOLIS. MINNESOTA 55402 339-8291 (AREA CODE 612) June 1, 1981 MEMORANDUM TO: Mayors, Managers and Administrators FROM: City of Shakopee RE: Fiscal Disparities - Litigation and Funding At a preliminary meeting of city administrators on March 26, 1981, we reviewed the history and progress of "fiscal disparities." Additionally, we renewed Shakopee's request for financial assistance in the legal contest and secondly, for consideration of filing briefs supporting Shakopee's appeal to the Supreme Court. Attached is the Supreme Court's decision to hear the City's appeal, which we believe is very positive. Costs of the Litigation The total expenses incurred to date for legal costs, special consultants and direct expenses related to the litigation are $ 23,511 Not included are salaries of City staff during the period that several cities were also experiencing similar expenses. We estimate that an additional $ 11,000 will be required to finish the Supreme Court appeal for a total estimated cost of $ 34,511 During the Burnsville challenge of 71/75, approximately 12 cities contributed to the common cause, based on a lump sum payment. It would therefore seem that at least 12, and possibly 18, communities would gain from a victory. It is not our intent to have everybody else pay the bill for Shakopee, but only share in the expense. We would suggest a contribution of $ 1,500 each from supporting cities. Strategy Meetin On Thursday, June 12, 1981, following the Mayors' Luncheon and Managers' Luncheon du to e league of Minnesota Cities Convention in St. Paul. The City has only 60 days from May 20, 1981 to provide briefs for�ie appeal, so it is imperative all interest parties duscuss the matter on June 12. Yours truly, William E. Fahey John K. Anderson Former City Administrator City Administrator 4