2004-07-28 WS & CC Meeting - Laserfiche WebLink

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,-- LMC League of Minnesota Cities 145 University Avenue West, 5t Paul, MN 55103-2044 (651) 281-1200 . (800) 925-1122 Fax: (651) 281-1299 . TOD: (661) 281-1290 www.lmnc.org LmgIUf" Minnes~a CifiQJI Citiu"r'OIIWtitrg~cs July 23,2004 Dear Mayor: As you likely have heard, Governor Tim Pawlenty announced at a press conference yesterday that he has agreed to certify the 2005 Local Government Aid (LGA) distribution based on legislative intent. He had one stipulation - that the League of Minnesota Cities (LMC) and other groups that represent cities in Minnesota agree to urge our members not to take legal action against the state to dispute this legislative intent interpretation of the law. Yesterday afternoon, the LMC Executive Committee acted on behalf of the LMC Board of Directors and responded affmnatively to the Governor's request_ We know that we cannot make commitments on behalf of your city, but for the common good of the city community, we urge all cities to support legislative intent. We will also be pressing legislators to address the technical issue that created this situation as soon as possible in the 2005 session. The Executive Committee took this action in keeping with the LMC Board's unanimous decision in June to urge the Governor to distribute the 2005 LGA dollars based on legislative intent. The Board took this position understanding that a letter-of-the-law interpretation would have redistributed LGA dollars to the advantage of some municipalities and to the disadvantage of others. The Board weighed this difference in impact within the League membership vel)' carefully. They determined that many statements and actions by legislators made it clear that the law as it stands does not represent what was intended - a technical error was made. The Board also felt that while some cities would have potentially received an unexpected, likely one-time, windfall from a letter-of-the-law interpretation, there was a slim chance that this extra aid would ever materialize. On the other hand, those cities that stood to lose a great deal of aid under a letter-of-the-law interpretation would have a harder time budgeting and setting levies based on legislators' promises to fix the issue next session. The Board believed that there was a need for both advantaged and disadvantaged cities to have greater certainty during their budget process in regard to the 2005 LGA distribution. In closing, we want to encourage you to consider thanking Governor Pawlenty for resolving this issue in the short-term and eliminating the confusion and complications it raised for this fall's city budgeting processes. If you have any questions or concerns about this issue, please contact Executive Director Jim MiJler GmiJIer@lmnc.org or 651.281.1205) or Intergovernmental Relations Director Gary Carlson (gcarlson@lmnc.orgor651.281.1255). While they will be on the road at our Regional Meetings, they wiJI be sure to follow up with you. Sincerely, 4~ 4/-/ Mark V oxland Mayor, City of Moorhead President AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER