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Mli'CNESOTA Department of Revenue <br />Property Tax Division Mail Station 3340 <br />Phone (612) 296-5141 <br />St. Paul, MN 55146-3340 <br />Fax (612) 297-2166 <br />April 22, 1996 <br />APR ? 3 1993 <br />TO: ALL CITY CLERKS, ADMINISTRATORS, MANAGERS, AND <br />FINANCE DIRECTORS • •• « » <br />RE: CERTIFICATION OF LOCAL PERFORNLANCE MEASURES <br />FOR LOCAL PERFORMANCE AID PAYABLE IN 1997 <br />Laws 1996, Chapter 471, Article 3, Section 48 provides for a new state aid for all <br />qualifying counties and cities beginning in calendar year 1997. This new aid is called <br />Local Performance Aid (LPA). <br />?n order to qualify for this new aid. your city must have a system of performance <br />measures for serv ices provided by the city, and must reguli-ly compile and present these <br />measures to the city council at least once per year. If there is currently no system of <br />performance measures in place, your city may still qualify for this aid if it is in the <br />process of developing and implementing a system of performance measures. However, <br />eligibility' based upon being in the process of development may not be used for more than <br />two consecutive years. <br />For the purpose of the enclosed certification form, “in the process” may include having <br />the subject of performance measures on the agenda of the city council. The city should <br />then use the time period between this year’s certification and next year’s certification to <br />develop basic measures such as “workload,’’ unless it has already moved beyond this <br />stage. The second year of “in the process” must be used to move to a higher level of <br />performance measurement, such as measuring efficiency and effectiveness. <br />AH cities should be able to qualify to receive LP.A in the first year of the aid <br />program. <br />This new aid will be determined as follows for calendar year 1997: The total amount of <br />aid available for cities is $441,735 plus SI times the most recent population of each <br />qualifying city. A per capita aid amount is then determined by dividing the total aid <br />available by the total population of all cities that qualify for the aid. Each qualifying city <br />would then receive an aid amount based on its population times the per capita aid <br />amount. It should be noted that the $441,735 is appropriated from the general fund, and <br />the additional amount ($1 times the most recent population of each city) is a permanent <br />reduction in each city’s homestead and agricultural credit aid (H.ACA). The HACA <br />reduction applies whether or not the city is eligible to receive LPA. <br />Distribution of this new aid will be based on yearly certifications for each qualifying city. <br />Cities will be required to submit an annual certification in order to receive LPA payable <br />in calendar year 1997 and subsequent years. <br />LPA will be paid in two equal installments on July 20 and December 26 of each year, <br />beginninc in 1997. Qualifving cities will receive a certification of their 1997 LPA by <br />Julv31,l996. <br />(continued) <br />An equal opportunity employer TDD (612)215-0069