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. . .e . . . . . . .. . . . . . . . .e . ARDEN HILLS CITY COUNCIL - JUNE 24.1996 6 B. Resolution #96-42, Approving Local Performance Aid Mr. Fritsinger explained that during the 1996 Legislative Session, the State adopted a law which provides for a new state aid for all cities beginning in calendar year 1997. The proposed resolution states the City is in the process of developing a system of performance measures acceptable by the State of Minnesota under this new law. It will also allow the City to qualify for LPA should it be available in 1997. Currently, the Arden Hills' aid is estimated at approximately $10,577. Mayor Probst questioned the deadline for submission of the performance standards. Mr. Fritsinger advised there is currently no deadline date but he assumes it will be around July 1, 1997. Councilmember Hicks asked if the $10,000 of aid is an annual payment. Mr. Fritsinger answered affirmatively. Councilmember Hicks questioned the amount of staff time involved to create performance standards. Mr. Fritsinger stated he has not prepared a calculation but it may not be very time consuming since, typically, the work is tied with the budget process where goals are identified. Councilmember Hicks stated he generally supports this recommendation as long as staff time involvement does not exceed the benefit. Councilmember Aplikowski concurred and questioned the value if the data must be changed every two years. Mr. Fritsinger explained that this new aid may be an attempt by the State of Minnesota to phase out HACA and LGA over time. Councilmember Malone stated the City already has performance measures and abides by a budget to operate in a healthy manner. He expressed concern with the Legislature's implication that Arden Hills does not already have these "performance measures" but noted it appears these measures must be established to apply for the $10,000 aid. Mayor Probst concurred and inquired whether the third "WHEREAS" of the proposed resolution should be removed. Instead, Councilmember Malone suggested the second "WHEREAS" be revised to state: "WHEREAS, in order to qualify for this new aid, the City must develop a system of performance measures in compliancc with the Law of 1996. Chapter 471. Article 3. Section 48." He noted this removes the inference that Arden Hills does not already have established performance standards. Council agreed. MOTION: Malone moved and Hicks seconded a motion to adopt Resolution #96-42, Approving the Local Performance Aid, as amended. The motion carried unanimously (4-0).