HomeMy WebLinkAbout2.c 2005 Legislative PoliciesCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
City Council Work Session Date January 12, 2005
AGENDA ITEM: LEGISLATIVE POLICIES
AGENDA SECTION:
DISCUSSION
PREPARED BY: JAMIE VERBRUGGE, CITY
ADMINISTRATOR
AGE
ATTACHMENTS: 2004 Legislative Policies
[Separate packet for LMC policies, AMM
APPROVED BY:
policies, and selected Dakota County
ositrons
RECOMMENDED ACTION: Give staff further direction on legislative policies
ISSUE
The City has previously adopted positions on pending and potential legislative issues Staff
is looking for direction on positions for the 2005 Session of the Minnesota Legislature
Special Note State Representative Dennis Ozment will be attending the meeting Senator
Chris Gerlach is invited and has the meeting on his calendar Staff has asked that they
provide a quick overview of the upcoming session and share their pnontles for 2005
BACKGROUND
The 2005 Session of the Minnesota Legislature convened this past week As Council is
aware, many legislative issues were left unfinished in the 2004 Session Among the issues of
greatest concern to our community is the International Economic Development Zone and
Regional Distribution Center for air cargo City staff concentrated most of its energy at the
Capitol on this issue last year The bill will be back before the Legislature in 2005 and staff
anticipates a significant amount of time monitoring the progression of the bill through the
various committees However, there area number of other issues that will or could affect
how the City operates and provides services
Staff requests that the City Council review the 2004 policies to see if there are any suggested
changes Staff also requests that Council review the separate packet of information
containing the adopted policy documents from the League of Minnesota Cities, Association of
Metropolitan Municipalities, and Dakota County
Regarding the LMC policies, City staff has reviewed the policies and identified the ones of
greatest interest to their respective operations or the City's interests They are summarized
below
2005 Legislative Policies
Page 2 of 2
Administration
LE -12 Cable Franchising Authority, LE -18 Tax Increment Financing (TIF)
Engineenng/Pubhc Works
SD -1 Unfunded Mandates, SD -3 Responsibility for Locating Private Underground
Facilities
LE -4 Public Infrastructure Utilities, LD -26 Adequate Funding for Transportation,
LE -26 Turnbacks of County and State Roads
Finance
SD -1 Unfunded Mandates, SD -8 Fees for Services, SD -11 City Enterprise
Operations, SD -24 Administrative Fines
FF -8 Reporting Requirements, FF -11 Sales Tax on Local Government Purchases,
FF -14 Levy Controls, FF -16 Truth in Taxation Process
Human Resources
HR -1 Personnel Mandates on Cities, HR -6 Re- employment Benefits, HR -9 State
Paid Police and Fire Medical Insurance, HR -15 Drug and Alcohol Rehabilitation
FED -3 Flexible Spending Accounts
Parks Recreation
SD -35 On -Sale Liquor or Wine Licenses to Cultural Centers, SD -44 Park and
Library Land Tax Break
FF -22 Impact Fees
Police
SD -20 800 MHz Radio System, SD -21 CnMNet; SD -24 Administrative Fines
Staff is interested in soliciting Council direction to prioritize issues that will be given the most
attention and effort at the Legislature Staff also encourages discussion of items that may not
be addressed in either of the attached documents
SUMMARY
Following direction from the Council, it is staff's intent to have legislative priorities on the
January 18 City Council agenda for formal adoption These policies will be communicated to
our elected officials in the Minnesota Legislature and Dakota County, and our district
representative at the Metropolitan Council
CITY OF ROSEMOUNT
2004 LEGISLATIVE PRIORITIES
The Rosemount City Council has a sincere interest in the outcomes of the Minnesota Legislature
The impacts 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 coy er school funding) In 2003, substantial State
budgeting shortfalls were made up, in part, b% restructuring local government aid and the market
value homestead credit The challenge to local goverment has been great
In 2004, the City of Rosemount observes an economic climate in the State that suggests State
budget shortfalls, although not as significant in 2003, still exist The 2004 legislatiN e session is
primarily focused on producing a bonding bill, howex er a number of important issues locally,
statewide, and regionally are likely to produce a flurry of activity in new legislation
As the 2004 session begins, the Rosemount City Council adopts the attached Legislative Policies
based on the following three principles
1 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 Munnesotans 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 haN e made a significant contribution
to ensuring the health of Minnesota's economy in recent years and should be held
harmless in 2004 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
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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 imtiatrve 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/fundmg 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 ment legislative consideration and action
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PRIORITY A— INITIATIVES
AI AIR CARGO REGIONAL DISTRIBUTION CENTER
Representatives of the Metropolitan Airports Commission (MAC) and the Greater
Metropolitan Area Foreign Trade Zone (GMAFTZ) are pursuing legislative authorization
of tax incentives similar to the 2003 JOBZones legislation for the purposes of creating an
international air cargo regional distribution center (RDC) and surrounding
business/industrial park
The Rosemount Port Authority and Rosemount City Council have indicated their support
of this project and are actively engaging MAC and GMAFTZ for the express purpose of
locating the proposed RDC in east Rosemount.
The air cargo RDC is intended to stop the outflow of international cargo and its
associated businesses to locations that have greater access to international markets, such
as Chicago. due to the number of direct and dedicated international flight routes
originating from those locations The creation of a RDC is anticipated to have
tremendous economic benefit to the State of Minnesota and the greater region The RDC
will also have direct local benefit as a result of potentially thousands of new jobs and
significant tax base expansion
RESPONSE: The Minnesota Legislature should authorize the creation of a 12 -year
tax increment financing district for the express purpose of developing an
international air cargo regional distribution center and surrounding
business /industrial park to be administered by the Greater Metropolitan Area
Foreign Trade Zone, and further that the legislation should include tax incentives
similar to the 2003 JOBZones legislation as a means to encourage business and
industry that produce goods and services for the international market to invest in
the regional distribution center project area.
PRIORITY B SUPPORTIVE
BI PARK AND LIBRARYLAND TAXBREAK
As the price for land increases, it is becoming more difficult for cities and other local
units of government to compete with de\ elopers to save and secure land and easements
that are deemed appropriate for park, library, trail and green spaces Specifically, the
City has taken an interest in participating in the Dakota County Natural Area and
Farmland Preservation program and is currently working to acquire land for a Dakota
County branch library in Rosemount
POSTION: The State of Minnesota should amend the tax laws to provide tax
incentives for property owners who sell land and easements to local units of
government when the land is to used for park, library, trail or green space purposes.
B2. FIREARMS ON CITY PROPERTIES
The Minnesota Citizens Personal Protection Act of 2003 removes authority from polices
chiefs to issue permits to carry handguns and mandates sheriffs to issue permits to all
applicants over age 21 who have not been convicted or a serious crime The act, also
known as '`conceal and carry," prohibits guns on most school properties and gives private
entities the right to prohibit guns in their establishments, but preseri es the long standing
law forbidding local units of government from restricting permit holders from bringing
loaded firearms to local public places The inconsistencies in the law's treatment of
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different kinds of properties have caused confusion about how the law applies to multi-
use facilities, such as municipal ice arenas used for school- sponsored programs
POSITION: The City supports the League of Minnesota Cities' request for an
amendment to the Citizens Personal Protection Act that would allow cities to
prohibit handguns in city -owned buildings, facilities, and parks. This position is not
seeking a repeal of the Personal Protection Act nor authority to prohibit legal
weapons in parking lots or on city streets and sidewalks.
B3 TAX INCREMENT FINANCING
Until the State identifies and implements additional development tools, TIF remains the
most viable tool available to fund community remx estment efforts despite the significant
impacts of the 2001 property tax reform package Cities and development authorities will
be required to devote considerable efforts in order to understand and address the impacts
of the 2001 property tax reform package on existing TIF districts and potential future
projects
POSITION: So as to not further complicate this process, the Legislature should not
enact future TIF law restrictions during the next legislative session. In order to
allow TIF to maintain the effectiveness that remains in the wake of the 2001
property tax reform package, the Legislature should consider:
Authorizing any tax increment districts approved after April 1, 1990, to pool
increments in the same manner as districts certified prior to April 1, 1990,
for affordable housing and pollution remediation.
Expanding the use of TIF to assist in the development of technological
infrastructure, biotechnology and transit oriented development, the
restoration of designated historic structures, for non retail commercial
projects, and in non- wetland areas where unstable /non buildable soils exist.
Modifying various provisions in order to better facilitate redevelopment
activ ities.
Modifying the housing district income qualification level requirements to
allow the levels to vary according to those specific to individual communities.
B4 LEVYLIMTS
As a part of the 2003 omnibus tax bill, the Legislature extended levy limits for titres of
2.500 population through 2005 and terminated levy limits in 2005 The 2004 levy limits
will only permit cities over 2,500 population to replace 60 percent of the total 2005 LGA
and MVHC cut through increased property tax levies The new formula also eliminates
the Ion,--standing levy limit growth adjustments for inflation, household growth and
commercial /industrial growth, and eliminates unused levy authority cities carried over
from previous years
Levy limits replace local accountability with a state judgment about the appropriate level
of local taxation and ultimately local services Additionally, levy limits can have a
negative effect on a city's bond rating due to the restriction on revenue flexibility
Two of the stated goals of advocates of the 2001 tax bill were to make the property tax
more of a local tax and to increase local accountability for the property tax Levy limits,
however, clearly violate these goals by involving the state in local budget decisions
RESPONSE: City councils are elected to make decisions about local budgets and
meeting community needs. It is inappropriate for the Legislature to undermine
ME
local decision making and accountability through the continued imposition of levy
limits. Levy limits undermine local accountability and should not be reimposed.
B5 REVERSE REFERENDUM
Proposals to impose a reverse referendum requirement on municipal property tax
increases would diminish the ability of local elected officials to respond to the needs of
then communities In addition, the reverse referendum proposals that have been recently
offered would disrupt the local budget process by potentially requiring a public
referendum in late January, nearly one month into the city's fiscal year
RESPONSE: The Rosemount City Council supports the League of Minnesota
Cities' principle of representative democracy and opposes reverse referendum
requirements.
B6 MINNESOTA ZOO BONDING REQUEST
The Minnesota Zoo first opened its doors in Apple Valley in 1978, and recently celebrated
its 25` birthday Tlus institution brings in approximately one million people each year and
has an estimated state -v ide economic impact in excess of $60 million
In recent years the Minnesota Zoo has faced some sigmficant financial challenges As
State budget cuts became the norm, the quality of the zoo's infrastructure and visitor
attractions began to decline Today the zoo has over $30 million in repair and
rehabilitation needs Various zoo exhibits have been closed, some seasonally and some
permanently
In an attempt to address this concern, the Minnesota Zoo developed a long range Master
Plan which calls for expanding the visitor attractions at the zoo, as well as aggressively
addressing the zoo's severe deferred maintenance needs
To help support the cost of implementing the zoo's adopted Master Plan, the Mumesota
Zoo Board of Directors submitted a request to the state for S58 million in financial
assistance ($48 million for new facilities and $10 million for asset preservation) On
Monday, January 12 Governor Tim Pawlenty visited the Minnesota Zoo and announced
his support for a $34 2 million financial package ($25 million in state bonding and $9 2
million in debt relief) Further deliberations on the subject will now begin in the Minnesota
Legislature when they convene early next month
Cities within Dakota County have been asked to show their support for the zoo's financial
request
RESPONSE: The Rosemount City Council supports the Minnesota Zoo's request
for capital funding in the 2004 bonding bill.
PRIORITY C MONITOR
Cd 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
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host community fee of not less than 30 cents per ton from the operators of aggregate
mines, with the fee proceeds to be deposited in the municipality's general fund
C2 TRANSPORTATION FUNDING
The City of Rosemount strongly supports the position of the Association of Metropolitan
Municipalities for increased funding foi transit and high" a s, both of which are a critical
need in the metropolitan area In addition, funding for mass transit, including transit
ways, light rail or heavy rail in existing corridors, should be dedicated in a manner
consistent with current highway funding Funds allocated to the metropolitan area should
be flexible so that the most efficient and cost effective transportation solution may be
chosen and the main metropolitan problem (congestion relief) can be addressed
The City of Rosemount supports the AMM position that a constitutional amendment
dedicating the motor vehicle sales tax and /or other revenue source to a new Surface
Transportation Multimodal Fund from which an appropriate amount is allocated to the
Highway User Tax Distribution Fund to replace the auto license tab fee reduction of
2000, and the remaining amount to be used for transit and /or highway needs as priority
dictates
The City of Rosemount supports the AMM position favoring gas tax indexing and
adequate funding for transit Furthermore, all non transportation programs should be
funded from sources other than currently dedicated transportation funds
C3 POSTAL FACILITY RELOCATION
Although it is not subject to any likely or specific legislate e action by the State of
Minnesota, the City of Rosemount reaffirms its interest in pursuing the United States
Postal Service distribution facility that is likely to relocate or consolidate existing
facilities currently located in downtown St Paul and the metropolitan area
C4 LIVABLE COMMUNITIES
The Le able Communities Act (LCA) program operated by the Metropolitan Council
provides a -voluntary, incentive -based approach to affordable housing development,
brownfield clean-up and mixed -use, transit- friendly development/redevelopment The
City of Rosemount strongly supports the continuation of this approach, which has been
widely accepted and is fully utilized by local communities
Currently the LCA program is primarily funded via a Metropolitan Council property tax
levy, which is subject to levy limits The City of Rosemount, supporting the AMM
position, supports the loosening or removal of these levy limits as well as the
appropriation of additional state funds for this program in order to allow it to more fully
meet the demonstrated need that currently exists in the metropolitan area
The 2004 Minnesota Legislature should enact and fund a public infrastructure grant
program as part of the Livable Communities Act (LCA) The public infrastructure grant
program should be based on the objectives of the LCA
Use of interest earnings from LCA funds should be limited to covering the costs of
administering the program Remaining interest earnings not used for program
administration should be considered part of the LCA funds and used to fund grant
requests fro the established LCA accounts, according to the established funding criteria
The Metropolitan Council, in cooperation with the LCA participants, should develop a
benchmark to measure a city's efforts in regards to affordable housing The benchmark
should replace the Affordable Life -Cycle Housing Opportunity Amount (ALHOA)
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