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Iwo <br />IMMO <br />YEAR & <br />STATUTE <br />REFERENCE <br />CITY OF LINO LAKES. MINNESOTA <br />STATE LEGISLATIVE ACTION <br />Appendix A <br />Page 10 of 12 <br />INITIAL YEAR <br />ESTIMATED <br />IMPACT <br />1989 <br />MS 273.1398 <br />Subd. 2 <br />#7 Transition Aid re- termed to Homestead and <br />Agricultural Credit Aid (HACA). The formula for <br />distribution was modified from the 1988 Transition Aid <br />formula for Unique Taxing Jurisdictions (UTJ) as follows: <br />Payable 1989 gross taxes of UTJ less [Payable 1989 local <br />tax rate X payable 1990 net tax capacity X .9767) <br />As with the original Transition Aid the above HACA to be <br />distributed to local governments based on the percent of local <br />government levy to total UTJ levies. HACA was subject to <br />additional reductions if the level of local government aid was <br />insufficient to absorb the education aid shift and other cuts. <br />The education shift and the subsequent cuts were first taken <br />from LGA, then from Equalization Aid, then from HACA <br />and finally from Disparity Reduction Aid. <br />Statewide HACA <br />reductions totaled <br />$1.9 million . City <br />of Lino Lakes - no <br />HACA cut because <br />LGA was sufficient <br />to absorb entire cut. <br />1989 <br />MS 273.1398 <br />Subd. 2 <br />#6 LGA initially increased for 1990 by approximately $30 <br />million from the 1989 level. Funding transfer to school <br />districts subsequently approved. The aid transfer to school <br />districts is a method of increasing the State financial support <br />for education while decreasing financial support for cities. <br />The aid transfer for a city is an amount equal to 3.4% of its <br />adjusted net tax capacity. Cities received increased property <br />tax levy authority to replace the aid transfer. <br />Statewide 1990 <br />decrease in LGA <br />$44.6 million. City <br />of Lino Lakes <br />decrease related to <br />the transfer to <br />schools of $148,175 <br />See #13 for <br />additional LGA <br />reduction. <br />1989 #5 LGA formula revised to reduce household guarantee <br />MS 477A.013 factor from 1.08 in 1989 to 1.04 in 1990 to reduce the <br />Subd. 3 expenditure/unlimited ratio factor by 50%. A 15% ceiling <br />increase over prior year LGA factor was also added. <br />Aid increases were <br />subsequently entirely <br />wiped out by shift <br />to school districts. <br />Initial aid increase <br />for 1990 was $30 <br />million Statewide. <br />City of Lino Lakes <br />increase of $6,625. <br />Prepared by Tautges, Redpath & Co., Ltd. <br />April 30, 1992 <br />