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MINNESOTA Department of Revenue Property Tax Division Mail Station 3340 St. Paul, MN 55146 -3340 Phone (612) 296 -5141 Fax (612) 297 -2166 March 26, 1997 MAR 271gq? TO: ALL CITY CLERKS, ADMINISTRATORS, MANAGERS, AND FINANCE DIRECTORS RE: CERTIFICATION OF LOCAL PERFORMANCE MEASURES FOR LOCAL PERFORMANCE AID PAYABLE IN 1998 Minnesota Statutes, Section 477A.05 provides for Local Performance Aid (LPA). In order to qualify for LPA, your city must have a system of performance measures for services provided by the city, and must regularly compile and present these measures to the city council at least once per year. If there is currently no system of performance measures in place, your city may still qualify for this aid if it is in the process of developing and implementing a system of performance measures. However, eligibility based upon being in the process of development may not be used for more than two consecutive years. For the purpose of the enclosed certification form, "in the process" may include having the subject of performance measures on the agenda of the city council. The city should then use the time period between this year's certification and next year's certification to develop basic measures such as "workload," unless it has already moved beyond this stage. The second year of "in the process" must be used to move to a higher level of performance measurement, such as measuring efficiency and effectiveness. Local performance aid will be determined as follows for calendar year 1998: The total amount of aid available for cities in 1998 is $4,107,673, 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 are required to submit an annual certification in order to receive LPA payable in calendar year 1998 and subsequent years. Note: The State Legislature is currently looking at LPA, and there could be changes which affect LPA. Your city will be notified if there are changes which affect your 1998 Certification of Local Performance Measures or your 1998 LPA. 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. (continued) An equal opporruninv employer TDD: (612) 215 -0069