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HomeMy WebLinkAboutResolution No. 184-03 , RESOLUTION WHEREAS, the State of Minnesota faces a $4.23 billion budget deficit; and, WHEREAS, State payments to local governments for property tax relief must be used to help solve the budget deficit; and, WHEREAS, Local Government Aid is an important source of property tax relief for taxpayers and business owners in Rochester and cities with lower property wealth; and, WHEREAS, Representative Dan Dorman (R. Albert Lea — H.F. 1502) and Senator Keith Langseth (DFL, Glyndon — S.F. 1421) have introduced legislation that will reduce state funding for Local Government Aid and the Market Value Credit Program by a reasonable amount (14%) that does not cause excessive cuts in local government services or unduly increase local property taxes; and, WHEREAS, the legislation provides for reductions in state payments to local governments that are similar to the amounts proposed by Governor Tim Pawlenty but provides them in a manner that requires the fair participation of taxpayers in all cities; and, • WHEREAS, state government cannot afford to offer the extra property tax relief that was enacted in 2001 as Transit Relief for bus programs; and, WHEREAS, it is more important to fund Local Government Aid, distributed on the basis of community need, than it is to fund untargeted property tax relief through the additional 2001 State Transit Relief for bus systems; and, WHEREAS, the formula for distributing Local Government Aid to cities must be reformed in a manner that distributes state aid on the basis of city need and tax capacity and not on the basis of"grandfathered" spending levels. NOW, THEREFORE, BE IT RESOLVED by the City of Rochester that it supports H.F. 1502 and S.F. 1421. BE IT FURTHER RESOLVED that the City of Rochester supports repeal of the 2001 State Transit Relief. BE IT FURTHER RESOLVED that the City of Rochester supports a new Local Government Aid distribution formula that is based on a city's need and its tax capacity, rather than on a "grandfather" clause that awards state aid according to historical spending levels. • PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS DAY OF , 2003. PRESIDENT OF SAID COMMON COUNCIL ATTEST: TY CLERK APPROVED THIS abl DAY OF P , 2003. MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) Res2000\ResoluS u pport.B it l l •