HomeMy WebLinkAbout10. Legislative UpdateCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: MAY 6, 2003
AGENDA: LEGISLATIVE UPDATE
AGENDA SECTION:
LEGISLATIVE /INTERGOV' T
PREPARED BY: JAMIE VERBRUGGE, CITY ADMINISTRATOR
AGEND
ATTACHMENTS: House Omnibus Tax Bill, Article 5, Section 8 -9;
APPROVED BY:
LGA Formula proposal;
STA letter to legislative conferees;
There are a number of legislative and intergovernmental issues of interest to the City. Staff will provide a more
detailed presentation of these issues as part of this agenda item.
Power Plant Proposal
The City Council approved a resolution of support on April 3, 2003, for legislation authored by Sen. David
Knutson and Rep. Dennis Ozment that would grant a personal property tax exemption for a proposed
intermediate natural gas- burning power plant to be located in east Rosemount. Great River Energy (GRE) is the
plant developer seeking the legislative exemption. As part of the City Council resolution, Staff was to bring
back to the Council by April 30, 2003, a Host Agreement with GRE for Council consideration. If a Host
Agreement was not substantially ready for consideration, the Council needs to determine that positive progress
is being made toward negotiation of a Host Agreement.
The Dakota County Board of Commissioners recently adopted a resolution of support for the legislative
exemption. Both bills have proceeded through committees in the respective chambers. The House Omnibus
Tax Bill has been released. The GRE exemption is included in Article 5, Section 9. Section 8 of that Article
includes a similar exemption for a proposal in Mankato. However, the language for that exemption is not site -
specific, does not include host agreement language, and is written such that it may apply to other proposals. The
Senate Omnibus Tax Bill has not yet been released.
Staff has met with GRE on several occasions to discuss parameters of an agreement. Dakota County will also
be seeking an agreement. Staff has discussed with GRE and the County the possibility of negotiating a single
agreement that would jointly incorporate the concerns and commitments of all three parties.
Because a draft Host Agreement has not approached the point of being ready for consideration, and because of
concern that legislative negotiations in the final days may preclude the host agreement language from final
authorization of the facility exemption, Staff has discussed with GRE the possibility of an interim, binding
agreement that GRE will enter into a Host Agreement with or without the legislative requirement. Staff intends
to have such an interim document for Council review at the meeting.
Governor's LGA Proposal
Governor Pawlenty has released a new LGA formula. Under the proposal, as anticipated, the City of
Legislative /Intergovernmental
May 6, 2003
Page 2
Rosemount would lose all $402,339 LGA in 2004 under the current law formula. The League of Minnesota
Cities Board has adopted an interim position on aid cuts and levy limits. Both the Governor's proposal
worksheet for Rosemount and the LMC Board position is attached for your review.
Mayor signature of support for STA legislative position
The Suburban Transit Association (STA) has drafted a letter to legislators expressing opposition to House
Omnibus Transportation Finance Bill. The bill would negatively impact opt -outs. Mayor Droste can provide
additional information specific to this item at the meeting.
RECOMMENDED ACTION: NO SPECIFIC ACTION IS REQUESTED. ANY DIRECTION
COUNCIL DEEMS NECESSARY WOULD BE APPROPRIATE AT
THIS TIME.
COUNCIL ACTION:
Article 5: Property Taxes
Overview
Establishes a process for an owner of a residential parcel, located
in two school districts, to petition the county to unite the parcel
into a single school district.
Exempts the attached machinery and other personal property of
proposed generation facilities and extends the dates for a few
facilities that were authorized in previous years.
Requires governmental entities to compensate taxing jurisdictions
for lost tax base when property that is acquired is taxable and will
subsequently be exempted (11/2 to 2 years of property tax).
Effective July 1, 2005.
Requires the department of revenue to prepare a handbook for
local boards of appeal and equalization; local boards must meet
certain requirements if they want to continue holding local boards
(otherwise powers are transferred to county).
Eliminates the education reserve account in the general fund which
currently will receive growth in the statewide general property tax
levy.
Sets the metropolitan council's levy amounts for its general levy,
highway right of way, and livable communities levy for payable
2004 and 2005. Indexes those amounts thereafter by the implicit
price deflator, rather than the market value growth.
Expands the mosquito control district to all of Carver County.
Permits the city of Medford to establish a special taxing area to
finance improvements to city's wastewater treatment facility.
8 Electric generation facility personal property. (a) Exempts attached machinery and other
personal property which is part of a combined -cycle combustion - turbine electric generation
facility that exceeds 550 megawatts of installed capacity and that meets the following
criteria at the time of construction:
(1) is designed to utilize natural gas as a primary fuel;
(2) is not owned by a public utility as defined in section 216B.02, subdivision 4;
(3) is located within five miles of an existing natural gas pipeline and within four miles
of an existing electrical transmission substation;
(4) is located outside the seven - county metro area; and
(5) is designed to provide energy and ancillary services and has received a certificate
of need under section 216B.243.
The proposed generating facility is to be built by Calpine in the City of Mankato, Blue Earth
County.
(b) Construction of the facility must be commenced after January 1, 2004, and before
January 1, 2007. Property eligible for this exemption does not include electric transmission
lines and interconnections or gas pipelines and interconnections appurtenant to the property
or the facility.
Effective date. Effective for assessment year 2005, taxes payable in 2006, and thereafter.
9 Electric generation facility personal property. (a) Exempts attached machinery and other
personal property which is part of a combined -cycle combustion - turbine electric generation
facility that exceeds 150 megawatts of installed capacity and that meets the following
criteria at the time of construction:
(1) utilizes natural gas as a primary fuel;
(2) is owned by an electric generation and transmission cooperative;
(3) is located within ten miles of parallel existing 24 -inch and 30 -inch natural gas
pipelines and a 345- kilovolt high - voltage electric transmission line;
(4) is designed to provided intermediate energy and ancillary services, and has
received a certificate of need under section 216B.243, demonstrating demand for
its capacity; and
(5) has received local approval from the county and city in which the site is located.
The proposed generating facility is to be built in the city of Rosemount, Dakota county, by
Great River Energy Cooperative for Dakota Electric, one of its member co -ops.
(b) Construction of the facility must be commenced after January 1, 2004, and before
January 1, 2009. Property eligible for this exemption does not include electric transmission
lines and interconnections or gas pipelines and interconnections appurtenant to the property
or the facility.
(c) Provides that the exemption under this section will take effect only if the owner of the
facility enters into agreements with the governing bodies of the county and the city where
the facility is located. The agreements may include a requirement that the facility must pay a
host fee to compensate the county and the city for hosting the facility.
Effective date. Effective for taxes payable in 2006 and thereafter.
Iga- old - new.xls
April 28, 2003
Cy2004 City LGA Comparison
Governor's
Proposal vs Current Law (based on current law appropriation
level of $608M)
(Formula
Distribution Analysis)
Source: Minnesota Department of Revenue
City Aid Per Ca
ita
Current Law
Current Law
Current Law Projwsed s
Current Law
Current Law
Proposed
2001
2004 LGA
2004 LGA
2004 LGA 2004 LGA
2004 LGA
2004 LGA
2004 LGA
Population
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City Name
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TOTALS
3,995,004
366,737,698
608,143,082 60$ fi43,Q82
152.2
152.2
152.,
gsm
ROSCOE CITY OF
107
I
4,313;
17,292
32,047 28,912:
161.6
299.5
270.;
gsm
ROSE CREEK CITY OF
353
55,3431
78,539
54,372 71,01';
222.5
154.0
201
gsb
ROSEAU CITY OF
2,754
235,0311
561,649
765,614 r� =704 030`
203.9
278.0
255.1
mhg
ROSEMOUNT CITY OF
15,270
402,339;
402,339
0 0
26.3
0.0
0.:
mdv
ROSEVILLE CITY OF
33,949
92,393:
92,393
0 -0'
2.7
0.0
0.1
gsm
ROTHSAY CITY OF
500
51,045:
105,167
126,866 152,816,;
210.3
253.7
305.1
gsm
ROUND LAKE CITY OF
424
28,388;
82,811
129,909 148;4$2
195.3
306.4
350
ges
ROYALTON CITY OF
841
",013
194,307 247,591'
X 1,129103 "
150.9
231.0
294.
gmg
RUSH CITY CITY OF
2,177
194,139
468,164
1,030,224
215.1
473.2
518:
gmg
RUSHFORD CITY OF
1,728
182,230;
460,550
652,401 fiik 721,828
266.5
377.5
417:
ges
RUSHFORD VILLAGE C11
726
26,377:
61,132
81,468 122!249:
84.2
112.2
168:
gsm
RUSHMORE CITY OF
373
44,7081
87,326
99,899 ,= 116,673=
234.1
267.8
312.!
gsm
RUSSELL CITY OF
367
81,772:
116,903
82,348 93,131
318.5
224.4
253.1
gsm
RUTHTON CITY OF
281
45,614
82,845
87,271 90,853,;
294.8
310.6
323.:
gsm
RUTLEDGE CITY OF
195
640
640
0 5,118''
3.3
0.0
26.1
gsm
SABIN CITY OF
416
24,595;
68,371
102,613 "(01,$57„
164.4
246.7
244.1
ges
SACRED HEART CITY OF
543
146,2271
228,759
193,459 203,214',
421.3
356.3
374.:
msm
SAINT ANTHONY (JT) C11
8,012
251,712:
251,712
0 0'
31.4
0.0
0.1
mhg
SAINT BONIFACIUS CITY
1,998
7,561:
133,769
295,839 `g32;$30'
67.0
148.1
216.!
mdv
SAINT LOUIS PARK CITY
44,576
2,317,5101
2,317,510
0 0,
52.0
0.0
0.(
gsm
SANBORN CITY OF
428
62,557:
118,752
137,037 ; `!¢2,629
277.5
320.2
356.1
gmg
SANDSTONE CITY OF
2,410
250,796;
643,285
1,063,600 x x,529,425'
266.9
441.3
1,091.(
gsm
SARGEANT CITY OF
79
3,613:
6,220
6,110 = 14,032'
78.7
77.3
177.E
guf
SARTELL CITY OF
10,333
235,5401
326,282
212,706 x = 275834;
31.6
20.6
26.1
gmg
SAUK CENTRE CITY OF
3,937
713,794:
1,223,693
1,195,238 1,337,519`
310.8
303.6
339.1
ghi
SAUK RAPIDS CITY OF
10,826
1,294,8431
2,070,950
1,819,246 „2,099,871';
191.3
168.0
194.(
mhg
SAVAGE CITY OF REG Ll
22,622
70,0271
70,027
0 0'.
3.1
0.0
0.(
ges
SCANLON CITY OF
834
201,019:
262,812
144,846 172;797.
315.1
173.7
207.:
gsm
SEAFORTH CITY OF
74
13,061;
19,936
16,219 17199
269.4
219.2
232.4
ges
SEBEKA CITY OF
701
157,2671
243,896
203,063 233;356'
347.9
289.7
332.E
gsm
SEDAN CITY OF
65
1,139:
4,799
8,580 13 952-
73.8
132.0
214.E
gsm
SHAFER CITY OF
458
14,8271
48,581
79,122 174,877
106.1
172.8
381.4
mhg
SHAKOPEE CITY REG LE
22,192
165,768;
165,768
0 0
7.5
0.0
O.0
gsm
SHELLY CITY OF
272
42,000;
65,633
74,510 9 7211
241.3
273.9
337.1
ges
SHERBURN CITY OF
1,076
211,5511
369,194
369,526 „'394A75
343.1
343.4
366.E
gsm
SHEVLIN CITY OF
162
7,2741
16,155
20,818 33,821,:
99.7
128.5
208.E
mol
SHOREVIEW CITY OF
26,374
31,9411
31,941
0 w Q
1.2
0.0
O.0
mhi
SHOREWOOD CITY OF
7,540
8,4221
8,422
0 O<
1.1
0.0
O.0
ges
SILVER BAY CITY OF
2,065
262,4961
563,198
704,866 209 9Q5'
272.7
341.3
101.E
ges
SILVER LAKE CITY OF
773
122,966:
190,361
157,978 197,126
246.3
204.4
255A
gsm
SKYLINE CITY OF
327
3,791:
3,791
0 " 0,
11.6
0.0
0.0
ges
SLAYTON CITY OF
2,073
499,850:
857,745
939,878 964,845'
413.8
453.4
465.4
ges
SLEEPY EYE CITY OF
3,513
752,2351
1,302,026
1,354,207 1,736,943:
370.6
385.5
494.4
gsm
SOBIESKI CITY OF
197
1,9931
2,911
2,153 5,418'
14.8
10,9
78.3
gsm
SOLWAY CITY OF
70
3,1951
7,620
10,372 1'6,233^
108.9
148.2
231.9
gsm
SOUTH HAVEN CITY OF
207
22,2701
35,558
31,148 45;$46,;
171.8
150.5
221.5
mol
SOUTH ST PAUL CITY OF
20,174
2,412,6631
3,461,979
2,459,666 2,933,9021,
171.6
121.9
145.4
gsb
SPICER CITY OF
1,122
90,986;
146,670
130,526
130.7
116.3
163.0
ges
SPRING GROVE CITY OF
1,307
261,0641
456,162
,182,869?
457,322 - ;501,137,
349.0
349.9
383.4
gsm
SPRING HILL CITY OF
57
2,182
4,588
5,639 6,559'
80.5
98.9
115.1
msm
SPRING LAKE PARK (JT)
6,777
260,7751
260,775
0 U:
38.5
0.0
0.0
msm
SPRING PARK CITY OF
1,720
52,8131
90,661
88,719 170,534',
52.7
51.6
99.2
ges
SPRING VALLEY CITY OF
2,546
477,4741
842,251
855,061
330.8
335.8
402.6
ges
SPRINGFIELD CITY OF
2,206
343,871:
822,736
fi 1,025035
1,162,302 s 193 400 j
373.0
526.9
541.0
gsm
SQUAW LAKE CITY OF
99
3,0401
10,347
22,839 23,132,
104.5
230.7
233.7
gsm
ST ANTHONY CITY OF
87
5981
5,191
17,936 22,785'
59.7
206.2
261.9
ghi
ST AUGUSTA CITY OF
2,637
2,751:
202,760
836,933 333 675;
76.9
317.4
126.5
gmg
ST CHARLES CITY OF
3,351
292,9171
629,541
789,069 915 $90
187.9
235.5
273.3
gmg
ST CLAIR CITY OF
833
59,5191
142,441
194,374 228,113;
171.0
233.3
273.8
gmi
ST CLOUD CITY OF
60,269
8,464,0051
13,497,657
11,799,214 1 I,U07 749'
224.0
195.8
182.6
mhg
ST FRANCIS CITY OF
5,330
237,1531
245,925
20,561 •'! O'
46.1
3.9
0.0
gsm
ST HILAIRE CITY OF
272
19,5791
46,393
62,853 '16,663,
170.6
231.1
281.9
ges
ST JAMES CITY OF
4,701
731,9741
1,329,883
1,732,771 1,811,096';
282.9
368.6
385.3
gmg
ST JOSEPH CITY OF
4,912
384,9941
818,158
1,015,366 $ 43,228'
166.6
206.7
131.0
gsm
ST LEO CITY OF
104
8,9871
13,552
11,110 ? 16,09$`
130.3
106.8
154.8
gsm
ST MARTIN CITY OF
280
15,132
21,567
15,084 ',86;661
77.0
53.9
130.9
Iga- old - new.xls
April 29, 2003
Dear Transportation Finance Conferee:
RE: House Omnibus Transportation Finance Bill Concerns
The Suburban Transit Association (STA) strongly opposes three provisions of the House Omnibus
Transportation Finance Bill that would harm the opt -outs and make it more difficult to meet the demands
for express transit service. (Actual language is attached.)
• Oppose eliminating the 20.5% MVET dedication for transit operations in the metro area:
➢ 2001 property tax reform shifted transit operating funds to MVET, which was to provide
a dedicated, potentially growing funding source.
➢ It has not even been a full year since transit funding was moved from the property tax to
MVET.
➢ Funding transit through the general fund will likely not provide adequate funding or the
growth necessary to meet demand for express service.
➢ No major metropolitan area in the country funds transit solely out of a general fund
appropriation.
• Oppose dedicating 50% of CMAQ (congestion mitigation and air quality) funds to highway
projects.
➢ The current TAB process is competitive among all transportation projects and works
effectively.
➢ CMAQ and Met Council regional bonding are the only sources for opt -out capital such as
buses, park- and - rides, hubs, etc.
➢ CMAQ funding only comprises about $15 million of the more than $400 million in
federal highway funding.
• Oppose eliminating eminent domain authority for the Met Council.
➢ Without this authority, the process of siting a bus garage, hub or park-and-ride lot will be
tremendously more complicated and time consuming.
For these reasons, we respectfully request that you remove these provisions from consideration in the
conference committee bill.
Sincerely,
Mayor Nancy Tyra- Lukens, Eden Prairie
Chair, Suburban Transit Association
Mayor Mary Hamann- Roland, Apple Valley
Mayor Elizabeth Kautz, Burnsville
Mayor Pat Geagan, Eagan
Mayor Bill Droste, Rosemount
Mayor Tom Brennan, Savage
Mayor Gary Van Eyll, Chaska
Mayor Tom Furlong, Chanhassen
Mayor Bill Mars, Shakopee
Mayor Judy Johnson, Plymouth
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