IMPACT OF CHANGING TOWN-VILLAGE STRUCTURE

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Consolidation for Towns and Villages
JAMES A. COON LOCAL GOVERNMENT TECHNICAL SERIES

VILLAGE DISSOLVES --TOWN REMAINS

FEDERAL AID
Federal revenue sharing aid after merger less than sum of the aid being received by each separate government before merger.

STATE AID
A. Total per capita aid will eventually be less than aid received when village existed.
B. A five-year phase-out of aid after village dissolves
Town gets 100% of village aid in first year after dissolution;
P 80% in second year;
P 60% in third year;
P 40% in fourth year;
P 20% in fifth year; and none thereafter.