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If your city was affected by the recent flooding, the state wants you to know that you have the option to receive your December local government aid payment early.
(Published Aug 8, 2012)
If your city was hit by a natural disaster—such as the recent floods some cities experienced—or is having cash flow problems, your city may be eligible for early payment of its December local government aid (LGA).
The June flooding and storm events triggered a little-used statute that allows the early distribution of the December LGA payment. Under Minnesota law, a city may receive its second-half LGA payment early if the Department of Public Safety determines it has suffered financial hardship due to a natural disaster (Minnesota Statutes, section 477A.015).
The Department of Public Safety has notified the Department of Revenue that the 29 cities listed below qualify for this early LGA payment due to damages caused by the severe storms and flooding of June 14-21, 2012. The League has also made contact with most of the cities listed here to ensure they received the notice from the Department of Revenue.
The 29 cities that can apply for early LGA due to the flooding damage are:
Aitkin, Barnum, Beaver Bay, Brookston, Cannon Falls, Carlton, Cloquet, Cromwell, Denham, Duluth, Floodwood, Grove City, Henderson, Hermantown, Kettle River, Moose Lake, Northfield, Proctor, Red Wing, Rutledge, Sandstone, Scanlon, Silver Bay, Sturgeon Lake, Thomson, Two Harbors, Willow River, Wrenshall, and Wright.
According to the Department of Revenue, as of Aug. 6, only 12 cities have contacted the Department to request the early distribution: Aitkin, Barnum, Cloquet, Duluth, Hermantown, Kettle River, Moose Lake, Northfield, Red Wing, Sturgeon Lake, Thomson, and Willow River. The Department of Revenue had imposed an Aug. 7 deadline to assure that qualifying cities would receive the second-half LGA distribution by Aug. 10. Qualifying cities can still make a request for early distribution after Aug. 7. However, distribution of payments from later requests may be delayed.
Cities with cash flow issues
Under the same statute, any city can also request early distribution of the December LGA payment any time after August 15 when it is necessary for meeting cash flow needs—regardless of whether the cash flow need is related to a natural disaster. The city must submit information to the Department of Revenue demonstrating the cash flow need.
Cities interested in early LGA payments for damages from a natural disaster or with a cash flow need should contact Jason Nord in the Department of Revenue (see right).
Contact Gary Carlson
(651) 281-1255 or (800) 925-1122
Contact Heather Cederholm
(651) 281-1256 or (800) 925-1122
If you would like to submit a request to receive your LGA December payment early:
Contact Jason Nord
Department of Revenue