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second policy issue is -the rate of contribution. . The AMM feels t?Yav '40% ' is too great especiallly if the base against ' which it ' is• applied is expended . Each variable factor has a major impact on a certain subset of cities and- thus changes must be done carefully. , I THE AMM MEMBERSHIP ' SUPPORTS MODIFICATION OF THE FISCAL DISPARITIES • FORMULA ,THROUGH INCLUSION OF SEVERAL FACTORS AS A WHOLE. - ANY CHANGES OTHER THAN -THOSE REFERENCED IN AMM GENERAL FISCAL DISPARITIES POLICIES OR SPECIFIED HEREIN OR ANY DELETION OR SIGNIFICANT MODIFICATION OF A SPECIFIC FACTOR LISTED HEREIN WILL, RESULT IN THE AMM OPPOSING ANY FISCAL DISPARTIY LEGISLATION UNLESS OTHERWISE AUTHORIZED BY THE BOARD OF DIRECTORS. FORMULA FACTORS: -PHASE IN 1971 BASE' VALUE AT 5% PER YEAR FOR 20 YEARS FOR CONTRIBUTION PURPOSES. ' THE' BASE VALUE FOR SOUTH ST. PAUL SHOULD BE THE-'CURRENT VALUE. EXEMPT ALL VACANT LAND FROM CONTRIBUTION. -CONTRIBUTION VALUES SHOULD BE EQUALIZED TO 85% BY INCREASING THE PREVIOUS YEARS RATIO BY UP TO 3% OR THE CURRENT RATIO WHICHEVER IS GREATER. -THE SALES RATIO FACTOR SHOULD BE BASED ON A SAMPLE WHICH IS STATISTICALLY SOUND TO REFLECT ACCURATELY THE REALISTIC LEVEL OF -ASSESSMENT. THIS- MAY INCLUDE USING A COUNTY WIDE AVERAGE IF AN APPROPRIATE ' NUMBER OF SALES HAS NOT OCCURRED LOCALLY. USE OF THE MEDIAN RATHER THAN AGGREGATRE RATIO SHOULD BE ADOPTED SINCE THIS MEASURE IS GENERALLY MORE REFLECTIVE OF LOCAL ASSESSING PRACTICES AND • IS LESS SUBJECT TO WIDE VARIATIONS OF SALES. REDUCE THE CONTRIBUTION RATE BY 2% PER YEAR FOR 5 YEARS UNTIL 30% HAS BEEN REACHED. ALL CONTRIBUTIONS THEREAFTER WILL BE AT THE RATE OF 30%. -THE FISCAL CAPACITY FACTOR SHOULD BE MODIFIED TO INCLUDE MANUFACTURED HOUSING AND UTILITY VALUE. -THE POPULATION AND TIMES TWO MULTIPLIER SHOULD BE REMOVED FROM THE DISTRIBUTION FORMULA AS MINIMUM DISTRIBUTION FACTORS. -THE TWO DIFFERENT POPULATION YEARS USED TO CALCULATE THE PER CAPITA MARKET VALUE AND DISTRIBUTION SHOULD REMAIN_ AS THEY ARE CURRENTLY WITHIN THE FORMULA. -EXISTING VALUE IN PRE 1979 TIF DISTRICTS SHOULD REMAIN EXEMPT FROM FISCAL DISPARITY CONTRIBUTION UNTIL EXISTING DEBT HAS BEEN RETIRED. NEW VALUE CREATED WITHIN THESE DISTRICTS IN CONJUNCTION WITH NEW DEBT ISSUED SHALL BE SUBJECT TO FISCAL DISPARITIES CONTRIBUTION. G-4 TOTAL' DISTRIBUTION There has been some suggestions made to utilize the fiscal disparity formula as a ,mechanism to create a separate transportation or development fund -by only distributing 90% of the tax dollars raised . • This would be a hidden property tax. -THE AMM STRONGLY OPPOSES USE OF FISCAL DISPARITIES TO CREATE A METROPOLITAN TRANSPORTAITON, HIGHWAY, OR DEVELOPMENT FUND.