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HomeMy WebLinkAbout9.a. 2004 Legislative PoliciesCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: FEBRUARY 3, 2004 The City Council has previously discussed adoption of a legislative policies statement for the City of Rosemount. The intent of the legislative policies statement is to identify local, regional and statewide issues of significance to the City and to craft policies reflecting the City's position on these issues. Attached for your review is the 2004 Legislative Policies packet. This information will be shared with our elected representatives at the County and State level. 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 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. The challenge to local government 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 legislative session is primarily focused on producing a bonding bill, however 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 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 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. -1- The City of Rosemount's priorities are listed in the following manner: PRIORITY A These priorities consist o£ • 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 A1. 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 BL PARK AND LIBRARY LAND TAX BREAK As the price for land increases, it is becoming more difficult for cities and other local units of government to compete with developers 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 CITYPROPERTIES 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 preserves 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 -3- 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 reinvestment 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 activities. ➢ 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 cities 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 long- 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 El 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 their 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. This institution brings in approximately one million people each year and has an estimated state -wide economic impact in excess of $60 million. In recent years the Minnesota Zoo has faced some significant 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 Minnesota Zoo Board of Directors submitted a request to the state for $58 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 C1. 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 -5- 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 for transit and highways, 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 legislative 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 Livable 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).