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RESOLUTION NO. <br />RESOLUTION IN SUPPORT OF CHANGES IN STATE AID FORMULA <br />WHEREAS, Minnesota state local government aid to cities was originally <br />distributed on a per capita basis; and <br />WHEREAS, the current state aid distribution is not equitable in that <br />some cities receive as much as $122.95 per capita, and other cities <br />receive as little as $11.61 per capita; and <br />WHEREAS, the State Revenue Department report indicates that "90 percent <br />of the inequities are caused by the grandfather clause, and the present <br />formula fails to achieve the purpose of equity;' and <br />WHEREAS, the following revenue sharing mechanisms, which may be <br />duplicative of state aid, are also available and assist in achieving <br />equity: <br />(a) Gas tax for cities over 5000 population; <br />(b) Fiscal disparities; <br />(c) Metropolitan Transit Commission; <br />(d) Federal aid entitlements; <br />(e) Special local taxes. <br />NOW THEREFORE, BE IT RESOLVED that the City of <br />strongly <br />requests and supports changes in the state aid ormu a. <br />specifically <br />BE IT FURTHER RESOLVED that the City of ish the o spspeifi: <br />supports /requests changes that will accomp <br />(a) Provide for equitable fund distribution; <br />(b) Include no grandfather clause; <br />(c) Provide for periodic review and adjustment to <br />assure the goal of equity; <br />(d) Include no incentive for spending;` Pita basis, <br />(e) Provide for distribution on a per <br />with cities receiving a lessor disbursement (as <br />ven <br />the result of a change in state aid formula)(gi) <br />the option /authority to raise a one percent <br />tax. <br />Adopted by the Mayor and Council of the City of <br />this <br />day of <br />6 <br />