LGA Funding Increases

LGA Funding

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AUSTIN, MN — Cities around Minnesota could be facing a good problem when it comes to Local Government Aid.

A recent change in the program will mean cities, including Austin, are getting more funding.

For example, Austin might see a 700,000 dollar increase in LGA.

The money may be used for short-term projects, such as transitioning the Austin Police Department to a different radio frequency.

“It’s a change over,” Austin Mayor Tom Stiehm said. “It should have been done years ago. We didn’t have the money; we’ll do it now with this money. It’s going to be several hundred thousand dollars. It’s done. Then, you don’t have to do it again next year or the year after. So, those are the type of things we are looking at right now.”

Mayor Stiehm says any longer-term projects could present financial risk to the city and taxpayers because the local government aid money can change year to year.

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