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| SPONSOR: | Whitaker | DATE TYPED: | 03/06/99 | HB | 10 | ||
| SHORT TITLE: | Amend Small Cities Assistance Act | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| N/A | $ 1,194.0 | $ 1,194.0 | Recurring | Muni GF |
| N/A | $ (1,194.0) | $ (1,194.0) | Recurring | General Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill:
The legislation would amend the Small Cities Assistance Act by categorizing cities into 2 two classes: less than 5000 persons; and 5001-10000 persons.
Cities less than 5,000 persons would be eligible to receive a minimum of $30,000 and a maximum of $50,000 from the assistance fund.
Cities with populations between 5,001 and 10,000 would be eligible to receive a minimum of $20,000 and a maximum of $35,000 from the assistance fund.
Presently, all cities with populations less than 10,000 persons are eligible to receive the same minimum and maximum of $15,000 and $30,000 respectively.
FISCAL IMPLICATIONS
The Small Cities Assistance distribution from the Assistance Fund is financed from 10% of the Compensating Tax receipts. Amounts not distributed revert to the general fund. TRD estimates a recurring negative impact on the general fund in the amount of approximately $1.2 million (Reversions) and a recurring positive impact on the Municipal General Funds for the same amount.
Attached is a table provided by TRD, detailing the affected municipalities and the estimated effect of this proposed legislation.
CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP
SB102, HB72
JBE/gm
Attachment