Agenda Packets - 1984/05/29 - Laserfiche WebLink

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Local Government Aid Policy (Proposed) Page 2 4 construction and density of buildings, crime rates, elderly population, school age population, climate, geographic size, population density, poverty levels, crime rates, seasonal or daily influx of people, need to construct or replace capital facilities, and a myriad of other factors may cause similar sized cities' needs to differ.) Clearly, a formula cannot attempt to incorporate measures of all of these factors; the result would necessarily be complicated and to some extent arbitrary. Rather, the formula should rely on the judgment made by the persons in the best position cc evaluate a city's need: that city's council. The local city council's judgment as to the expenditures required in order to provide the type and level of service needed by its citizens should be reflected in the formula. no formula should reflect all expenditures for basic municipal services. "Basic municipal services" include public safety, streets, sanitation, libraries, redevelopment, and general government and related purposes. This definition is intended as a limit, to assure that a city will not receive additional local government aid as a result of its discretionary spending on nor. -essential services.' So far as possible, the formula should not be affected by the city's choice among tax levies, special assessments, or user fees to finance basic municipal services. To the attempt to measure need by the tax levy, or by past LGA, or by a combination of those factors is not acceptable. The past LGA distribution is the result of several formula changes accompanied by grandfather provisions, minimum increase guarantees, etc. The resulting distribution pattern is at least somewhat arbitrary. And to focus on past aids and levies or levy limits ignores the other revenues which cities' citizens contribute so that the city can meat their service needs. A formula developed in accordance with this policy would likely result in a substantially different distribution of funds. The transition must be handled in an orderly fashion, avoiding drastic year-to-year increases or decreases in aid. Increases and decreases should be phased in, to avoid the need for sudden "shock" property tax increases on one hand, and the tempcation to view increased aid as a windfall on the other. 1This explanatory sentence was added after the task force's last meeting, at l ` the suggestion of a member who was unable to attend that meeting because of illness; the addition of this sentence was approved by an overwhelming majority of the task force and by the LMC Board.