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RS-5. Local Government Aid (LGA) (g) <br />local government aid is a major source of revenue which complements cities' <br />other significant revenue source, the property tax. As such, LGA must be <br />distributed among cities in a way which alleviates the problems inherent with <br />reliance on the property tax. Cities vary markedly in their ability to raise <br />money from property taxes. There are also wide variations among cities in their <br />citizens' reeds for services and the costs of providing those services. A <br />complementary revenue source for cities is necessary precisely because a city's <br />ability to raise revenue fLom the property tax does not necessarily coincide <br />with the cost of the services which that city must provide its citizens. <br />Therefore, the LGA formula should reflect both the individual city's need and <br />its local revenue raising capacity. <br />-53- <br />