HF 1115

Subd. 9.

City aid distribution.

(a) In calendar year deleted text begin 2002 and thereafterdeleted text end new text begin 2008new text end , each
city shall receive an aid distribution equal to the sum of (1) the city formula aid under
subdivision 8, deleted text begin anddeleted text end (2) its city aid basenew text begin , and (3) one-half of the difference between its total
aid in the previous year under this section and its city aid base in the previous year. For aids
payable in 2009 and thereafter, each city shall receive an aid distribution equal to the sum
of (1) the city formula aid under subdivision 8, (2) its city aid base, and (3) its formula aid
under subdivision 8 in the previous year, prior to any adjustments under this subdivisionnew text end .

(b) For aids payable in 2005 and thereafter, the total aid for any city shall not exceed
the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
plus (2) its total aid in the previous year. For aids payable in deleted text begin 2005deleted text end new text begin 2008new text end and thereafter,
the total aid for any city with a population of 2,500 or more may not deleted text begin decrease fromdeleted text end new text begin be
less than new text end its total aid under this section in the previous year deleted text begin by an amount greater thandeleted text end
new text begin minus the lesser of (1) $15 multiplied by its population, or (2) new text end ten percent of its net levy in
the year prior to the aid distribution.

(c) deleted text begin For aids payable in 2004 only, the total aid for a city with a population less than
2,500 may not be less than the amount it was certified to receive in 2003 minus the greater
of (1) the reduction to this aid payment in 2003 under Laws 2003, First Special Session
chapter 21, article 5, or (2) five percent of its 2003 aid amount.deleted text end For aids payable in deleted text begin 2005deleted text end
new text begin 2008 new text end and thereafter, the total aid for a city with a population less than 2,500 must not be
less than the amount it was certified to receive in the previous year minus new text begin the lesser of (1)
$15 multiplied by its population, or (2) new text end five percent of its 2003 certified aid amount.

(d) If a city's net tax capacity used in calculating aid under this section has decreased
in any year by more than 25 percent from its net tax capacity in the previous year due to
property becoming tax-exempt Indian land, the city's maximum allowed aid increase
under paragraph (b) shall be increased by an amount equal to (1) the city's tax rate in the
year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
resulting from the property becoming tax exempt.