Politics & Government

Richfield Mayor Goettel Joins Other Mayors in Celebrating New LGA Formula

KARE11's report focused on Richfield.

Richfield is getting more money through Minnesota's new Local Government Aid formulas, and Richfield Mayor Debbie Goettel served on Governor Dayton’s Mayors Tax Reform Advisory Group on Local Government Aid, which held a press conference Wednesday. 

In a press release before the event, the Revenue Department offered this description: 

Revenue Commissioner Myron Frans and members of Governor Dayton’s Mayors Tax Reform Advisory Group on Local Government Aid, including co-chair Minneapolis Mayor R.T. Rybak and St. Paul Mayor Chris Coleman, will hold a press conference to discuss Governor Dayton’s budget that invests $80 million in Local Government Aid (LGA), $40 million in County Program Aid and $10 million in township aid. The group will also discuss the new LGA formula designed by mayors and leaders from cities around the state.    

KARE 11's report focused on Richfield: 

A look at the city's books show what kind of an overall effect the LGA cuts have had. In 2001, Richfield received more than $3.7 million in LGA money from the state. 39 percent of the city's revenue came from LGA while 38 percent of it was derived from taxes. In 2013, LGA money supplied 7 percent of the city's revenue, while taxes contributed 70 percent of Richfield's revenue. The tax levy went up around 6.5 percent annually over that period.

Mayor Goettel says that based on the increase in aid, the city may be able to hold the line by keeping the tax levy flat. "It's a very big deal," Devich concluded.

For the full report, visit kare11.com

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