03-11-1981 Council Agenda - Laserfiche WebLink

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league of minnesota cities February 27, 1981 To: Mayors in League of Minnesota Cities Member Cities The Board of Directors of the Minnesota League of Small Cities (MLOSC) has voted to drop their affiliation with the League of Minnesota Cities (LMC). The resolution was passed on February 23, 1981, effective immediately, and has been accepted by the LMC Board of Directors. Members of the MLOSC Board of Directors present were Matt Kapsch, Mayor, Babbitt, President MLOSC; Willard Vetter, Mayor, Skyline; Mel Kaasa, Mayor, Lake Crystal; Milt Arneson, Mayor, Roseau; Lois Johnson, former Mayor of Badger; and Joyce Griebel, City Clerk- Treasurer, Eagle Lake. All voted in favor of the resolution to sever affiliation with LMC. The decision by MLOSC to drop their affiliation stems from their intention to pursue legislative changes in the local government aid formula. LMC's official policy, adopted by the annual meeting in Duluth last June and reaffirmed by the LMC Board of Directors, is that the LMC will oppose any change in the formula unless that change has been ap- proved through the LMC's policy development process. Guidelines for affiliated organi- zations prohibit such organizations from lobbying for positions contrary to LMC policy, In November 1980, a special League committee on Local Government Aid (LGA) asked MLOSC for suggestions on proposals for the state aid formula as it applies to cities under 2,500 only. In January, MLOSC presented to the committee a formula which would apply to all cities. MLOSC's proposed formula would allocate state aid to each city in pro- portion to that city's population multiplied by its mill rate. Where this formula results in an allocation less than a city currently receives, that city's aid would be frozen at the current level. When this proposed formula was presented to the LMC Local Government Aids committee, the committee members saw several problems with it. A computer run of the proposed formula's results showed that 339 cities would have their aids frozen,; 273, or eight - five percent (85 %) of those cities are under 2,500 population. Cities under 2,500 population as a group would get a smaller share of aids than they do presently. Cities in the Twin City metro area as a group would get a larger share of aids than they do at present. It was also pointed out that since the higher a city's mill rate, the higher the aids, the formula would be perceived as an encouragement to cities to raise their taxes. (This was one of the major objections to the formula used prior to 1979.) uQ OVER 00 hanover building. 460 cedar street, saint paul, minnesota 55101 C612) 222 -2861