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REQUEST FOR COUNCIL CONSIDERATION Agenda Section: 2. <br /> STAFF REPORT Report Number: 92-419WS <br /> EUe AGENDA SESSION DATE December 7, 1992 Report Date: 12-3-92 <br /> DISPOSITION <br /> Item Description: <br /> LOCAL GOVERNMENT AID PAYMENT INCREASE <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> SUMMARY; <br /> The attached memorandum from the League of Minnesota Cities (LMC) indicates that the City can <br /> expect a one time increase in its 1992 Local Government Aid payments. This amount will be added to <br /> the December 26, 1992 payment. Official notification from the Department of Revenue will be sent with <br /> the December 26 payment. The LMC was advised by the Department of Revenue that the increase <br /> would be approximately 8.5% of the total amount of LGA and Equalization Aid each city was certified to <br /> receive in 1992. Upon the basis of that information I estimate that the City can expect to receive an <br /> additional $47,700.in LGA this year. <br /> The LMC has suggested three possible ways for cities to respond to the increased payment of LGA: <br /> • Use the expected LGA increase to reduce 1993 property taxes <br /> • Use the actual LGA increase on needed special projects or maintenance which <br /> has been deferred <br /> • Use the actual LGA increase to reduce 1994 property taxes. <br /> I will calculate the impact of using the expected LGA increase to reduce 1993 property taxes and I will <br /> bring that information to the December 7 Council Work Session. Staff will be prepared to discuss this <br /> matter further with Council at the Work Session. <br /> RECOMMENDATION; Donald Brager, Finance ector <br />