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, League of Minnesota Cities Cities promoting excellence 145 University Avenue West, St. Paul, MN 55103-2044 Phone: (651) 281-1200 (800) 925-1122 Fax: (651) 281-1299 TDD (651) 281-1290 November 16,2001 League of Minnesota Cities Members: Over the last few weeks, the League has been working to help city officials explain the complex property tax changes made during the last legislative session. We spent the month of October travelling to cities around the state for our annual Regional Meetings and a major topic has been property tax reform and how city budgets are impacted by the state aid changes. As you know, cities across the state are affected differently: while some cities are gaining state aid, many cities are losing state aid. Whether your city will lose or gain state aid, nothing is certain, and local officials still face difficult decisions about local budgets and explaining those decisions to the community. In an effort to help explain the property tax reform to your residents, the League has compiled a small information packet that may be helpful for citizens at an upcoming budget hearing or to use on your web site or in a newsletter. It includes Frequently Asked Questions about the 2001 Tax Bill, a City Budgeting Basics guide, and draft letters to the editor. All of the information attempts to outline in clear, simple language the major changes in education funding and how state aids to local governments are affected. I hope you find it useful. Please feel free to give me or Gary Carlson at the League a call if you have any questions about these tax changes or how the League is helping member cities in this communications effort. Sincerely, g~ -IfY/~ Jim Miller Executive Director AN EQUAL OPPORTUNlTY/AFF1RMATIVE ACTION EMPLOYER