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4 <br />1^ MEMO TO: MAYOR AND CITY COUNCIL <br />FROM: CLERK -ADMINISTRATOR <br />DATE: MAY 31, 1984 <br />SUBJECT: LEAGUE OF MINNESOTA CITIES PROPOSED LOCAL GOVERNMENT <br />AID POLICY <br />Attached; to this memorandum please find a photocopy of a <br />memorandum from Peter Tritz and Don Slater of the League of <br />Minnesota Cities reporting on the activities of the League of <br />Minnesota Cities Local Government Aid Task Policy Task Force <br />and a copy of the proposed Local Government Aid Policy which <br />will be considered by the delegates to the League's convention <br />in the middle of June which Councilmember Doty and I will be <br />attending. <br />As I indicated in my most recent Administrative Newsletter the <br />Municipal Legislative Commission Operating Committee is reviewing <br />the proposed policy in detail and will be recommending a position <br />that, member cities take at the League Convention which will allow <br />for unified lobbying on this policy and hopefully accomplish those <br />changes we feel are necessary. <br />There are two basic concerns that were identified at the initial <br />Operating Committee Meeting on this proposed policy. They are <br />as follows: <br />1) In the second paragraph under the Statement and <br />Rationale section the policy states, "An acceptable <br />aid formula should provide proportionally more aid to <br />cities with less taxable assessed value, other things <br />being equal." The concern with this section is that <br />the policy does not provide for adjustments as allowed <br />for under current local government aid formula for <br />balancing of assessed values when the values are less <br />than 100 percent of the actual market value of the <br />property as is usually the case in outstate cities. <br />The Committee has already agreed that this section <br />should be clarified to encourage continuation of the <br />current local government aid formula provisions that <br />allow for equilization of differences in assessed <br />valuations among cities. <br />2) In the first full paragraph on page 2 of the proposed <br />policy an effort is made to define local effort by <br />defining what is meant as basic municipal services <br />which is stated in the policy to include public safety, <br />streets, sanitation, libraries, redevelopment, and <br />general government and related purposes. As has been <br />the long-standing position in the City of Mounds View <br />and many other cities with respect to the Local <br />