06-23-1997 Council Packet - Laserfiche WebLink

Home Browse Search

MINNESOTA Department of RevenueProperty Tax DivisionJune 5,1997 Mail Station 3340 St. Paul, MN 55146-3340Phone (612)RBGS’4AED Fax (612) 297-2166JUN 0 6 W9/ (^,11 Or OROMv.^ i TO: ALL CITY CLERKS, ADMINISTRATORS, MANAGERS, AND FINANCE DIRECTORS RE: CHANGES IN THE CERTIFICATION OF LOCAL PERFORMANCE MEASURES FOR LOCAL PERFORMANCE AID PAYABLE IN 1998 Laws 1997, Chapter 231, Article 11, Section 7 provides for changes to the local performance aid (LPA) statute (Minnesota Statutes, Section 477A.05). In order to qualify for LPA in 1998, a city must affirm that (1) the aid will result in a reduction in property taxes at least equal to the amount of aid received, and (2) the city will spend the aid on programs for which it has developed a system of performance measures and that these measures will allow for the measurement of continuous improvement and will be regularly compiled and presented to the city council at least once a year. The city must identify the program or programs that are to be funded with the aid. The city is eligible for aid if it affirms that it is in the process of developing and implementing a system of performance measures for the program or programs for which the aid is being sought. However, the aid may not be spent on the program or programs until the performance measurement system has been instituted, unless die aid is being used to establish the performance measurement system. Local performance aid will be determined as follows for calendar year 1998: Laws 1997. Chapter 231, Article 11, Section 7 provides for $440,000 in addition to $4,107,673 (the amount paid in 1997) plus an inflation adjustment based on the implicit price deflator. A per capita aid amount will be determined by dividing the total aid available by the total population of all cities that qualify for the aid. Each qualifying city then receives an aid amount based on its population times the per capita aid amount. Distribution of LPA is based on yearly certifications for each qualifying city. Cities are required to submit an annual certification in order to receive LPA payable in calendar year 1998 and subsequent years. LPA will be paid in two equal installments on July 20 and December 26 of 1998. Qualifying cities will receive a certification of their 1998 LPA by July 31,1997. As mentioned above, your city may qualify for LPA by (1) affirming that this aid will result in a reduction in property taxes equal to the amount of aid received and that (2) your city will spend the aid on programs for which it has developed a system of performance measures and that these measures will allow for the measurement of continuous improvement and will be regularly compiled and presented to the city council at least once each year. (continued) An equal opportuni^ employer TDD: (612)215-0069