2008-019CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2008-019
RESOLUTION IN SUPPORT OF LEGISLATION THAT WOULD
REVISE MINNESOTA STATUTES RELATING TO LOCAL GOVERNMENT AID
WHEREAS, the current formula for the distribution of Local Government Aid distributes
less than 5% of the total to metropolitan area suburbs; and
WHEREAS, the current formula for the distribution of Local Government Aid provides for a
per capita distribution that generates $213 for the residents of Minneapolis and St. Paul, $210 for
the residents of Greater Minnesota cities, and $10.90 for the suburban residents of the seven-
county metropolitan area.
WHEREAS, the population of these suburbs is 41 % of the total population of Minnesota; and
WHEREAS, the residents and businesses of the suburban portions of the seven-county
metropolitan area generate 67% of Minnesota's income and sales tax collections; and
WHEREAS, the current LGA distribution bears little resemblance to the growing costs of
local government in Minnesota cities; and
WHEREAS, the 2003 amendments have created aid distribution numbers to cities that are
certified late in each city's budget cycle and subject to considerable volatility; and
WHEREAS, the complexity created by the 2003 amendments has created law that is very
difficult to understand and interpret; and
WHEREAS, many suburban cities in the Minneapolis/St. Paul metropolitan area have been
forced by the 2003 amendments to raise property taxes by more than 50 % to accommodate
lost LGA revenue; and
WHEREAS, property taxes are the most regressive form of taxation.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hopkins
requests that the Governor and the Legislature for the State of Minnesota approve legislation that
changes the State's Local Government Aid distribution formula by substituting local government
expenditures, subject to a S% annual cap, for the five-part= needs formula currently used for this
distribution; and
BE IT FURTHER RESOLVED, that the City Council of the City of Hopkins requests that
the Governor and the Legislature of the State of Minnesota provide funding for this revised
distribution, subject to the condition that no Minnesota City receive less allocation than 90% of
the amount certified to it for fiscal year 2007.
PASSED AND ADOPED BY THE CITY COUNCIL OF THE CITY OF HOPKINS, MINNESOTA,
THIS ~A~ ~E FEBRUARY 19, 2008
_ _~ ~
Eug e xwell, Mayor
ATTES L~~~~
erry Ober per, City Clerk