Bigfork and Bovey Receive their Local Government Aid
In the only tax bill of the session made into law, Senator Tom Saxhaug was able to pass special legislation for the cities of Bigfork and Bovey. As a result of the two bills Senator Saxhaug introduced, they will get $80,363 and $251,002 respectively. These were the amounts the two cities would have received were it not for unforeseen circumstances in submitting their paperwork to the State Auditor. Both cities have now successfully turned in the required statements and will not lose their state aid payment.
During the session, a new graduated penalty scale was discussed for cities in this situation. Currently, the penalty is the loss of an entire payment even if the paperwork is one day late. While this change didn’t make it into law, a number of cities have been forgiven their penalty if their paperwork is submitted by June 30th of this year.
LGA is an important state program that helps local cities pay for police and firefighters, street maintenance and highways, and economic development. It was designed to help cities that have greater needs than what they could reasonably cover in property taxes. These dollars are critical to ensure that no matter where you happen to live in Minnesota, the quality of services will remain basically constant.
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