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Home My WebLink About6.d. Resolutuion Acknowledging Local Performance Aid legislation -' CITY OF ROSEMOUNT � EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: June 17, 1997 AGENDA ITEM: Resolution Acknowledging Local AGENDA SECTION: Performance Aid Legislation Consent PREPARED BY: Jeff May, Finance Director AGENDA�� - � � ATTACHMENTS: Resolution, Certification of Local APPROVED BY: Performance Measures Form, Letter from Minnesota Dept. Of Revenue In the 1996 legislative session, the state enacted a new aid program called �ocal Performance Aid (or LPA for short). In the 1997 legislative session, the state made changes to this program. The letter from the Department of Revenue explains how the new aid will work and what you will have to do to receive the aid. A brief summary of this legislation is that under the new law, our Homestead and Agricultural Credit Aid (HACA) is going to be reduced by $1 times the most recent population of the City and that in order to retain those funds our city, as all others, will have to certify that we will begin to measure locaf Performance. For 1997, no city has to have a Performance measurement system in place, just certify that they will be in the process of implementing such a system and that those PerFormance measurements will be discussed annually by the City Council. The first year that we would have to look at Performance measurements we would be looking at such items as number of fire calls, number of police calls, number of pounds of recyclable materials collected, etc. These are considered "workload" measurements and thought to be the first step in a growing system of ineasuring performances ' throughout the unit of government. Under the new law for 1998, cities must now acknowledge that the LPA will result in a reduction of property taxes at least equal to the amount of LPA received in addition to developing a system of performance measurements. We also must identify some of the programs ', that could be funded by the LPA. For 1998, staff is listing the D.A.R.E. program and the school liaison ', program. Even though the school pays us for a portion of these programs, we more than cover ' additional costs for the programs that will make up the approximate $15,000 that we can expect to ' receive in LPA for 1998. I At this point, this program would seem to be short term in nature although we must proceed as if the '�, program will continue to exist permanently. If true tax reform does ever occur, more than likely this I program will be eliminated, as will LGA and HACA. But, if tax reform does not occur, and this program I does grow, the implication is that this will become an unfunded mandate of the state that will cost local �i governments extra tax dollars to comply with the intentions of this legislation. RECOMMENDED ACTION: Motion to adopfiA RESOLUTION ACKNOWLEDGING LOCAL PERFORMANCE AID LEGISLATION and to file the necessary certification with the Minnesota Department of Revenue to receive our Local Performance Aid for 1998. COUNCIL ACTION: � _ ---- CiTY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1997 - A RESOLUTION ACKNOWLEDGING LOCAL PERFORMANCE AID LEGISLATION WHEREAS, the City Council of the City of Rosemount, Minnesota, does hereby acknowledge legislation enacted in the 1996 session that creates a new state aid for all qualifying counties and cities beginning in the calendar year of 1997 that is called Local Performance Aid (LPA); and WHEREAS, the City recognizes that this aid will be received only if certain performance measurements are made by the City annually, all of which are unfunded by the State of Minnesota, and that this aid will be basically an equal substitute for Homestead and Agricultural Aid (HACA) that is being permanently taken from all counties and cities of the State. ' NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount, ', Minnesota, that the City of Rosemount will take the necessary steps in order to apply ' for the Local PerFormance Aid (LPA) and to continue to receive this aid as long as the program is in place. ADOPTED this 17th day of June, 1997. Cathy Busho, Mayor ATf EST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted Against: Form LPA -CI EVI ED � Certification of Local Performance Measures for Local Performance Aid Payable in 1998 Complete and return to:Minnesota�)epartment of Revenue.Property Tax Division.Mail Station 3340.St.Paul,Minnesota 55146-3340 Phone:(612)296-5141 Name and mailing address of govemmental unit Name of person fitling out form City of Rosemount Jeffrey A. May, Finance Director Telephone 2875 145th Street West ( 612 )423-4411 County of location Rosemount, MN 55068 Dakota 1. Does your city aKrm that Iocal perform�nce aid will result in a reduction in property taxes at least equal to the amount of local pe;formance aid received? YES X X NO 2. Does your city affirm that the local perf��rmance aid will be spent on the program or programs for which it has developed a system o.f 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? YES X X NO 3. If the answer to questions 1 &2 is yes,what program or programs will be funded by local D. A . R.E . P r o g r a m performance aid, or what program or programs will the local performance aid be used to establish performance measurement s��stem(s)for? S c h o o I L i a i s o n P r o g r a m This form must be returned to the Minnesota Department of Revenue, Property Tax Division,by June 30, 1997 in order for your city to be eligible to receive Local Perto�manc��Aid payable in 1998. , 4a+44f:� '<'�"' s.w,'S4C5�w:>.�< x ':s::'.� � ..r<., j � Note: City ce�tifications must be signed by the Mayor n�by the Chair of the City Council. We do hereby ceAiry that,to the best of our knovdedge and belief,the facts presented in this certification are true and correct. 6-17-97 Signature ot Mayor Signature of Chair of City Councif Date , ' l��IINNESOTA Departrnent of Revenue Property Tax Division Ma�l s�t�on 334o St. Paul, MN 55146.-3340 Phone(612)296-�141 Fax(612)297-21b6 June 5, 1997 TO: ALL CITY CLERKS,ADMINISTR.ATORS, 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 1 l, Section 7 provides for changes to the local periormance aid(LPA) statute (Minnesota Statutes, Section 477A.05). In order to qualify for LPA in 1998, a city must�rm 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 yeaz. 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 the 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 1 l, 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 aze 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)�rming 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 equa!opportunity employer TDD: (6/2j 21.i-0069 Page 2 ,I Enclosed is a new certification for 1998 LPA. This certification replaces the certification which was enclosed with the letter dated March 25, 1997. This new I certification must be signed by the mayor and the chair of tbe city council, and it must be returned to our ot�ice by June 30, 1997. NOTE: If our office does not receive a certificadon from your city by June 30,1997,your city will not be eligible to receive this aid in calendar year 1998. If you have any questions regazding the completion of this form,please feel free to call me at(612) 296-�141. Sincerely, � .D� � �� U�: L L.�ewle � azTY Y Research Analysis Specialist Property Tax Division Enclosure