Now Available: Updated LMC Budget Guide for Cities

July 26, 2021

The budget guide covers a number of legislative changes affecting cities.

The League’s Budget Guide for Cities Information Memo has been updated to reflect the changes made during the Legislature’s 2021 regular and first special sessions. The guide covers the omnibus tax bill which contains a number of changes for cities, including:

  • A new, one-time exception to the use of the Minnesota Investment Fund, allowing cities to use 80% of uncommitted funds for general purpose aid.
  • A sales tax exemption for building, remodeling, or otherwise improving public safety facilities (read more about the new sales tax exemption for public safety facility construction expenses).
  • A mechanism to allow cities to work together to create special taxing districts for the purposes of providing fire protection in addition to emergency medical services.
  • A one-time exception to the way unobligated tax increment financing may be used for 2022.
  • Supplemental, one-time aid for cities that would have faced a reduction in their local government aid in 2022.
  • Funding for improved ballot drop box procedures.
  • Property tax refunds for some counties flowing from the Enbridge court decision.

One upcoming change to make note of is that in 2022 cities will need to provide additional summary budget information to the country auditor on, or before, the adoption of the city’s proposed levy.

As always, the budget guide also includes information about League of Minnesota Cities Insurance Trust coverage premiums; League membership dues; and cost adjustments.

View the League’s Budget Guide for Cities Information Memo (pdf)

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