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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 $608M) (Formula Distribution Analysis) Source: Minnesota Department of Revenue City Aid Per Ca ita Current Law Current Law Current Law Projwsed s Current Law Current Law Proposed 2001 2004 LGA 2004 LGA 2004 LGA 2004 LGA 2004 LGA 2004 LGA 2004 LGA Population Grandtathered twun granar.m.r inn gnnammer) '(n ,r 4r u,cr} ; tweh grunarnn - ) pm gr.narnwnr> p,n sr.aar.fl-) Cluster City Name Aid (with caps) no caps) ,,;t@� ntl,C4yaj," (with caps) (no ca ps) P) (no caps) TOTALS 3,995,004 366,737,698 608,143,082 60$ 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 -2-