HomeMy WebLinkAboutResolution 2535City of ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 2535
A RESOLUTION CALLING F
MINNESOTA'S PROPERTY TAX AND MSTATE NAID ELOOK T
M SYSTEMS
WHEREAS, the 1988 Omnibus Tax Bill significantly changed
the mechanics of property tax administration and implemented new
formulas for the distribution of Local Government Aid (LGA); but,
did not resolve any existing property tax and LGA inequities, and
ax
WHEREAS, the laxri r didii t a hievelfy anythe majoro goalsof
system administratively
property tax relief, and
WHEREAS, the Act significantly aggravated the
�r metro/outstate shift of state aid dollars and dramatically
reduced future property tax relief targeting capabilities, and
WHEREAS, LGA and property tax provisions of the 1988
Omnibus Tax Bill continues to have a devisive effect on local
governmental units, pitting communities against one another, and
WHEREAS, the framework for the present LGA, property tax
system, and levy li�ibofta°ns majorwas
createby restructuringthe
of 7state/local
1 Minnesota
Legislature as par
fiscal relations, and
WHEREAS, this 1971 reform, The Minnesota Miracle, was
intended to make the state aids system more cognizant of the
differences in "need" among local governments, and
WHEREAS, the Legislature arbitrarily determined city and
townships payable 1971 tax levies and state aid amounts were to
be the foundation of the new property tax system, and
inequities in tax levying capabilities
WHEREAS, gross neq
and high disparities in LGA amounts caused successive
Legislatures to increase LGA funding and to modify or implement
I new LGA distribution formulas, and.
WHEREAS, each consecutive LGA formula change included
provisions that grandfathered, established minimums and maximums,
and cachets thereby negating the impact of any real change and
perpetuating 1971 levy and aid distribution disparities, and
WHEREAS, property tax reform in the 1988 Omnibus Tax
Bill did not address system inequities, but rather overhauled the
property tax structure to base taxes on fixed percentages of a
property's market value.
NOW, THEREFORE, BE IT RESOLVED, the Minnesota
Legislature be requested to take a comprehensive look at
reforming the property tax and state aid system to identify
municipal fiscal need and fiscal capacity and establish state aid
distribution formulas which encourage efficiency in the delivery
of municipal services.
BE IT FURTHER RESOLVED that municipal spending be a
major focus of this study.
Adopted by the City Council of the City of Orono,
Minnesota at a regular meeing held the 10th day of October, 1988.