EGF to ask MN lawmakers to fix LGA funding formula

It’s already been identified as a top legislative priority this session and now East Grand Forks is readying a resolution in support of maintaining Local Government Aid levels.

The city’s LGA payment from the state of Minnesota has slipped over the years -while neighboring communities have seen increases.   Officials say each $45,000 reduction results in a one-percent increase in the tax levy for property owners.

Mayor Steve Gander says LGA payments are based on 19 set criteria – and they do not favor East Grand Forks.  Gander says the city is penalized because it lost a lot of starter homes during the 1997 flood.

Gander says shortly after the 97’ flood the legislature made an adjustment for East Grand Forks – but that has since fallen off the books.  East Grand Forks is projected to receive around $2.2 million dollars in LGA funding in 2021.  The council is expected to formally adopt the resolution next week.