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HomeMy WebLinkAbout9.a. 2006 Legislative PoliciesAGENDA ITEM: 2006 Legislative Policies AGENDA SECTION: Discussion PREPARED BY: Jamie Verbrugge, City Administrator AGENDA NO. 0 \j. ATTACHMENTS: 2006 Legislative Policies APPROVED BY RECOMMENDED ACTION: Approve the City of Rosemount 2006 Legislative Priorities ROSEMOUNT CITY COUNCIL City Council Regular Meeting: January 11, 2005 EXECUTIVE SUMMARY BACKGROUND The 2006 Legislative Session begins on Wednesday, March 1. As in the past, it is important for the Council to review key legislative issues and identify any particular issues for which specific positions should be taken and communicated to our legislative delegation. ISSUE The most significant issue at the Capitol this year that will affect Rosemount is proposed action to restrict eminent domain. Beyond eminent domain, there are a number of other issues that are likely to be of interest to the City such as the bonding bill and the 2006 transportation funding referendum. Also worth watching is how statewide property tax increases shape discussion on items such the taxpayers bill of rights (TABOR) referendum proposals, local government aid (LGA) and market value homestead credit (MITFIC), and levy limits. Finally, having been selected by the Greater Metropolitan Area Foreign Trade Zone (GMAFTZ) to be the host community for the proposed International Economic Development Zone and Regional Distribution Center (IEDZ and RDC), legislation pursued by GMAFTZ will be of significant interest to the City. SUMMARY i The 2006 Legislative Policies are an important statement of the City Council's priorities for governance and constituent service at the local, regional, state, and national levels CITY OF ROSEMOUNT 2006 LEGISLATIVE PRIORITIES The Rosemount City Council has a sincere interest in the outcomes of the Minnesota Legislature. The impact of legislative policies on cities in Minnesota can be, and has been, dramatic For example, sweeping property tax reform was accomplished in 2001 with a takeover of school funding by the State of Minnesota and reduction of business class tax rates at the local level (augmented by a new State business tax rate to cover school funding) In 2003, substantial State budgeting shortfalls were made up, in part, by restructuring local government aid and the market value homestead credit (MVHC) The challenge to local government has been great In 2006, the City of Rosemount observes an economic climate at the State that seems to suggest fiscal health is being restored as evidenced by projected budget surpluses The 2006 legislative session is primarily focused on producing a bonding bill however a number of important issues locally, statewide, and regionally are also likely to be addressed As the 2006 session begins, the Rosemount City Council adopts the attached Legislative Policies based on the following three pnnciples I. The Rosemount City Council believes strongly in the notion of local control Locally elected officials represent the closest and most approachable level of government to our constituents As such, the decisions on public policy that impact local communities should primarily be made at the local level 2. The State of Minnesota has a fiduciary responsibility to ensure the economic security of all Minnesotans The Rosemount City Council supports action by the Minnesota Legislature that will preserve the financial health and economic climate of the State The City Council further believes that local governments have made a significant contribution to ensuring the health of Minnesota's economy in recent years and should be held harmless in 2006 budgeting decisions 3 The Rosemount City Council recognizes our community's place in the greater metropolitan region and is committed to supporting projects and actions that have regional benefit, encourage collaboration, and facilitate high quality services and amenities while providing the fairest and best value possible to the general public The intent of the City Council in adopting these policies is to share with our State elected officials, as well as our representatives at the Metropolitan Council and Dakota County, a commitment to working with other governmental entities to further the interests of our residents and businesses in Rosemount. The City of Rosemount's priorities are listed in the following manner: PRIORITY A These priorities consist of: Legislation that is an initiative of the City of Rosemount and /or an initiative of Rosemount and other governmental entities Legislation that has significant and immediate impacts to the City. PRIORITY B These priorities consist of: Rosemount's support of specific adopted positions of the League of Minnesota Cities and the Association of Metropolitan Municipalities Support of continuation /expansion /funding of existing programs that impact the City of Rosemount, other municipalities /entities in the metro area, and the state. PRIORITY C These priorities consist of. General quality of life issues that merit legislative consideration and action. -2- PRIORITY A INITIATIVES Al. AIR CARGO REGIONAL DISTRIBUTION CENIER The Minnesota Legislature authorized the establishment of an International Economic Development Zone and Regional Distribution Center (IEDZ and RDC) during the lst Special Session of 2005 and provided for certain tax incentives to facilitate the project The Greater Metropolitan Area Foreign Trade Zone (GMAFTZ), a joint powers organization, is the responsible governmental unit for the purpose of overseeing the IEDZ and RDC development In February 2006, the City of Rosemount was selected by GMAFTZ to be the host community for the IEDZ and RDC The 2005 legislation required GMAFTZ to conduct a business plan to determine the market and financial feasibility of the RDC. The legislation also required that the IEDZ would be officially established no later than June 30, 2006 The deadline imposed in statute does not provide GMAFTZ the necessary time to fairly and fully evaluate the complex business plan for the project. GMAFTZ will be seeking legislative extensions to the IEDZ establishment deadline Additionally, it is uncertain if the incentives provided for by the Legislature will have the intended affect of encouraging specific users to occupy the facility. GMAFTZ will be studying the incentives, both in terms of their legal application and within the parameters of the business plan analysis, to determine if technical adjustments will be necessary POSITION: The State of Minnesota should amend the IEDZ/RDC legislation to extend the establishment deadline date to June 30, 2007, at the earliest. A2. EMINENT DOMAIN REFORM In June 2005, the United States Supreme Court reaffirmed the authority of local governments to utilize eminent domain for the purpose of economic development in Kelo v. City of New London, Connecticut The decision has created a broad public policy examination of eminent domain nationwide. Draft legislation that is expected to be introduced when the 2006 Minnesota Legislature convenes would severely restrict the ability of local governments to utilize this important tool for redevelopment. The League of Minnesota Cities, the Association of Metropolitan Municipalities, and other organizations advocating on behalf of local governments are expected to offer legislation that is responsive to the concerns of Kelo and provides for responsible reform. POSITION: Support legislation that provides reasonable and responsible reform to eminent domain including greater protections for residential property owners, more openness in the public process, increased minimum relocation compensation to qualifying businesses, and eliminating eminent domain for strictly economic development purposes. -3- PRIORITY B SUPPORTIVE BI. DAKOTA COUNTY LEGISLATIVE PLATFORM CAPITAL INVESTMENT ITEMS Dakota County has adopted a legislative platform that includes a number of capital investment items of interest to the Rosemount Community POSTION: The City of Rosemount supports the County's Capital Investment Legislative Platform with particular and specific support given to the following County initiatives: Multi- jurisdictional Communications and Public Safety Support Center Cedar Avenue Transitway, Phase 1 Lebanon Hills Regional Park Watershed Management Vermillion River Regional Park and Empireview Wildlife Management Area Additionally, the City of Rosemount supports Dakota County in its support of other capital insestment projects, including: Robert Street /TH 52 Transit Study Minnesota Zoo B2. SALES TAX EXEMPTION FOR LOCAL GOVERNMENTS Local governments are currently required to pay sales tax on purchases This tax provides a healthy revenue to the State of Minnesota, however it is essentially double taxation in that citizens for local government bear that burden as part of the budgeted property tax levy POSITION: The Legislature should reinstate the sales tax exemption for all local government purchases without requiring a reduction in other aids. -4- PRIORITY C MONITOR CI. AGGREGATE MINING FEE In order to provide an incentive for the extraction of local aggregate resources prior to urbanized development and in order to help offset the negative impacts of aggregate mining on local communities, the state should authorize cities and townships to collect a host community fee with the fee proceeds to be deposited in the municipality's general fund C2. IMPAIRED WATERS The City of Rosemount supports continued development of the Metropolitan Area in a manger that is responsive to the market, but is cognizant of the need to protect the water resources of the State and Metro Area Insufficient resources for impaired water assessments, total maximum daily load (TMDL) analysis, and capital projects threaten the Metro Area's ability to respond to market demands for development and redevelopment. Consequently, the City of Rosemount supports the goals of the proposed Clean Water Legacy Act and a financing mechanism that is equitable, efficient and proportional. C3. TAX ISSUES The State of Minnesota is experiencing a return to economic stability with forecasted surpluses However, concerns at the State level continue to exist around the issue of property taxes with various schemes likely to surface that would supercede local control or place artificial controls on local budgets. RESPONSE: City councils are elected to make decisions about local budgets and meeting community needs. It is inappropriate for the Legislature to undermine local decision making and accountability. The City of Rosemount strongly opposes State intervention in local decisions through mechanisms such as levy limits, reverse referendum, or constitutional amendments that would restrain spending. C4. TELECOMMUNICATIONS A federal rewrite of telecommunications laws have been in the works for a number of years. The telecommunications landscape is shifting rapidly Regulatory changes must be deliberate and with great care to not create unintended consequences in terms of national and local policy implications RESPONSE: The Rosemount City Council supports continued local authority to require cable franchises and to collect fees from franchisees. -5-