1.1                          A bill for an act 
  1.2             relating to city local government aid; changing the 
  1.3             aid formula; amending Minnesota Statutes 2002, section 
  1.4             477A.013, subdivision 8. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 477A.013, 
  1.7   subdivision 8, is amended to read: 
  1.8      Subd. 8.  [CITY FORMULA AID.] In calendar year 1994 2004 
  1.9   and subsequent years, the formula aid for a city is equal to the 
  1.10  need increase percentage multiplied by the difference between 
  1.11  (1) the city's revenue need multiplied by its population, and 
  1.12  (2) the city's net tax capacity multiplied by 75 percent of the 
  1.13  tax effort rate.  No city may have a formula aid amount less 
  1.14  than zero.  The need increase percentage must be the same for 
  1.15  all cities.  
  1.16     Notwithstanding the prior sentence, in 1995 only, the need 
  1.17  increase percentage for a city shall be twice the need increase 
  1.18  percentage applicable to other cities if:  
  1.19     (1) the city, in 1992 or 1993, transferred an amount from 
  1.20  governmental funds to their sewer and water fund, and 
  1.21     (2) the amount transferred exceeded their net levy for 
  1.22  taxes payable in the year in which the transfer occurred. 
  1.23     The applicable need increase percentage or percentages must 
  1.24  be calculated by the department of revenue so that the total of 
  1.25  the aid under subdivision 9 equals the total amount available 
  2.1   for aid under section 477A.03.  
  2.2      <b>[EFFECTIVE DATE.]</b> This section is effective for aids 
  2.3   payable in 2004 and thereafter.