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Home My WebLink About7.a. Constitutional Amendment - Taxpayer Trust FundCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DA E: October 6, 1992 AGENDA ITEM: Constitutional Amendment AGENDA SECTION: Property Taxpayers Trust Fund Administrators Report PREPARED BY: Stephan Jilk, City Administrator AGENDA -un % ATTACHMENTS: Resolution, Letter from St. Paul APPROVED BY: Councilmember Bob Long 4— v In order to assure the maintenance of the 2t trust fund set up, by the state legislature last year there is being proposed a constitutional amendment to keep it in place. St. Paul city Councilmember Bob Long is leading this effort at this time. Please see the attached letter from Councilmember Long.' I would totally support this effort in that unless the state Legislature acts to protect this fund for property tax relief it will surely fall to the wayside as the state wrestles with its own financial woes. In that regard we have attached a resolution of support in this matter and recommend your consideration for its adoption. RECOMMENDED ACTION: Motion to adopt Resolution # 1992- , a resolution Concerning a Constitutional Amendment to create a New Property Tax - Payers Trust Fund In Minnesota. COUNCIL ACTION: CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1992 - 78 A RESOLUTIO CONCERNING A CONSTITUTIONAL AMENDMENT TO CREATE A NEW PROPERTY TAXPAYERS' TRUST FUND IN MINNESOTA WHEREAS, the State of Minnesota enacted a 3o State sales tax in 1967 with the promise to voters that the money would be returned to them in the form of lower property tax relief for property tax payers; and WHEREAS, in 1991 the Governor and State Legislature approved the addition of a one-half percent increase in the State sales tax, raising`it.from 6% to 6�4% with 2 cents dedicated to fund the Local Government Trust Fund which was created to continue the State's commitment to local property tax relief; and WHEREAS, in 1992, 1 6'a sales tax to lc continued property Fund; and WHEREAS, each year continued attempts dedicated to local such as Local Govei ;he Governor and State Legislature extended the >cal government purchases with the promise of tax relief through the Local Government Trust local governments are forced to combat to reduce the levels of State revenue property tax relief through cuts in programs 7nment Aid; and WHEREAS, it is ant cipated that the State will face another budget deficit in 993, making cuts in local property tax relief programs tempting ays to solve the State's budget problems; and WHEREAS, Governor will concentrate o programs during th WHEREAS, the Leagu Metropolitan Munic constitutional ame collected from the Fund if such dedic NOW, THEREFORE, BE upon the State Leg dedicating two cen sales tax to a new continued property Trust Fund; and rlson has already publicly announced that he eliminating local property tax relief upcoming legislative session; and of Minnesota Cities and the Association of palities have taken positions supporting a dment dedicating two cents of each 6;4 cents State sales tax to the Local Government Trust tion cannot be assured statutorily; IT RESOLVED, that the City of Rosemount calls .slature to support a constitutional amendment :s of each 6% cents collected by the State Property Taxpayers' Trust Fund, to guarantee tax relief from the current Local Government CITY OF ROSEMOUNT RESOLUTION 1992 - BE IT FURTHER RESOLVED, that the City of Rosemount strongly urges that the League of Minnesota Cities and the Association of Metropolitan Municipalities make one of their 1993 priorities support for a constitutional amendment dedicating two cents of each 634 cents collected by the State sales tax to a new Property Taxpayers' Trust Fund; and BE IT FURTHER RESOLVED, that the City of Rosemount requests that the League of Minnesota Cities begin coordinating a series of state-wide "Truth in Taxation" meetings with property taxpayers, to be held this fall, to educate the public and candidates for State elected offices on the issues regarding the need for a constitutional amendment dedicating two cents of each six and one-half cents collected by the State sales tax a new Property Taxpayers' Trust Fund to protect local property tax relief funds from budget cuts during the 1993 Legislative Session. Adopted this 6th day of October, 1992. ATTEST: Susan M. Walsh, City Clerk Motion by: Voted in favor: Voted against: Seconded by: E E. B. McMenomy, Mayor CITY OF SAINT PAUL moi' OFFICE OF THE CITY COUNCIL BOB LONG Counciimember August 31, 1992 Dear Mayor: As a local elected officia. responsible for delivering essential services to your constituents, I am sure you are concerned about the continuing attacks on the property tax relief funds in the Local Government Trust Fund. These attacks threaten to force local governments to either drastically cutservices or dramatically increase property taxes. If your constituents are anything like mine you will agree that neither of these options will be acceptable. We need to act now to protect the Local Government Trust Fund from the reductions or elimination that will be proposed in the 1993 legislative session. The most effective way to do this is through a constitutional amendment dedicating 2 cents of the sales tax to property tax relief. These funds would be used to create a new Property Taxpayers' Trust Fund which would guarantee that the property tax relief funds originally sent to the Local Government Trust Fund would be used for property tax relief as was originally promised by the Governor and the Legislature. With the 1992 legislative campaigns getting into full swing and candidates from both parties looking for support, this is the year to get legislative commitments for a Constitutional Amendment. I am enclosing a sample resolution similar to one passed recently by the Saint Paul City Council and several other city councils around the state. The resolution calls for a Constitutional Amendment dedicating funding to a new Property Taxpayers' Trust Fund and requesting the League Df Minnesota Cities to make such an Amendment one of their priorities in 1993. I am -asking that your City Council consider passing a similar Resolution during the next month so that we can begin talking with legislators. In addition to sending a copy of your Resolution to the League, please also send me a copy so we can keep track of which cities have acted. Cities need a stable source of revenue not dependent on the property tax and not subject to the political debate between the Governor and the Legislature that seems to go on every year. Now that the sales tax has been raised to 6 1/2 percent and that sales tax is now applied to local government purchases all in the name of saving property tax relief programs, we must act to ensure that such property tax relief does in fact come to property taxpayers from a new P operty Taxpayers' Trust Fund. CITY HALL SEVEN FLOOR SAINT PAUL, MINNESOTA 55102 612/298-4473 Sep 46 Printed on Recycled Papa In addition, I am enclosing three other items for your use and information: 1) a petition for the Minnesota Property Taxpayers' Association (please get signatures and return to me); 2) a list of cities who have passed the resolution; and 3) a list of legislators who authored bills supporting a constitutional amendment during the 1992 Legislative Session. Thank you for your consideration of the Resolution. If you have any questions, please call me at 298-4473. Best regards, BOD LONT lJ Councilmember CITIES ADOPTING DEDICATING 2 CEI CITY (population) August 28, 1992 tESOLUTION SUPPORTING CONSTITUTIONAL AMENDMENT TS OF STATE SALES TAX FOR PROPERTY TAX RELIEF BUHL (915) CRYSTAL (23,788) FAIRFAX (1,276) FAIRMONT (11,265) FALCON HEIGHTS (!,380) GRAND MARAIS (1, 71) KEEWATIN (1,118) MANKATO (31,477 MINNEAPOLIS- IGR cmte. unanimously (368,383) recommended Resolution MOORHEAD (32,295 NORTH SAINT PAUL 12,376) SAINT CLOUD (48,8L2) SAINT PAUL (272,Z35) TWO HARBORS (3,651) WINNEBAGO -(1,565 WINONA (25,399) DATE OF ADOPTION July 7, 1992 July 21, 1992 July 7, 1992 Aug. 8, 1992 Aug. 12, 1992 Aug. 12, 1992 July 8, 1992 July 27, 1992 Res. scheduled to be heard before full Council July 20, 1992 August 3, 1992 July 20, 1992 May 26, 1992 August 24, 1992 Aug. 12, 1992 July 20, 1992 July 27, 1992 Total Population Represented .................851,083 STATE LEGISLATORS WHO AUTHORED BILLS SUPPORTING CONSTITUTIONAL AMENDMENTS DURING THE 1992 LEGISLATIVE SESSION Legislative Ledslator Bill District Hometown Anderson, Iry HF 2289 HD 3A International Falls Bauerly, Jerry HF 2290 HD 18B Sauk Rapids Beard, Pat HF 2241 HD 56B Cottage Grove Bertram, Jeff HF 2405 HD 16B Paynesville Bettermann, Hilda HF 2241 HD 11B Brandon Bodahl, Larry HF 2292 HD 35B Waconia Brown, Cluck HF 2291 HD 11A Appleton Dauner, Marvin HF 2291 HD 9B Hawley Frederickson, D.J. SF 2519 SD 20 Murdock Garcia, Edwina HF 2290 HD 40A Richfield Hasskamp, Kris HF 2241 HD 13A Crosby Jacobs, Joel HF 2291 HD 49B Coon Rapids Johnson, Bob HF 2290 HD 4A Bemidji Kalis, Henry HF 2405 HD 29B Walters Kelso, Becky HF 2292 HD 36A Shakopee Kinkel, Tony HF 2291 HD 4B Park Rapids Lasley, Harold HF 2292 HD 19A Cambridge Lessard, Bob SF 2519 SD 3 International Falls Marian, Carlos HF 2241 HD 65B St. Paul Milbert, Robert HF 2289 HD 39B South St. Paul Nelson, Syd HF 2291 HD 12A S .beka Ogren, Paul HF 2289 HD 14A Aiken Olson, Katy HF 2405 HD 28B Sherburn Olson, Edgar HF 2289 HD 2B Fosston Ostrom, Don HF 2292 HD 23B St. Peter Rest, Ann HF 2289 HD 46A New Hope Segal, Gloria HF 2626 HD 44B St. Louis Park Solberg, Loren HF 2405 HD 3B Bovey Sparby, Wally HF 2290 HD 1B Thief River Falls Steensma, Andy HF 2292 HD 27B Luverne Thompson, Loren HF 2241 HD 10A Waubun Wenzel, Steve HF 2290 HD 13A Little Falls Winter, Ted HF 2405 HD 28A Fulda I I . Pr fc cc Pr 1. 2. 3. 4. 5. 6. 7. 8. 9, 1( THE MINNESOTA The Minnesota organization residential and preserving the been funded Minnesota Property Constitutional tax collected Fund to guarantee Minnesota's We the undersigned operty Taxpayers' r a Constitutional llected by the otect our property NAME(signature) Prope comm9 comp stat since Amex by tb properl Asso Ams state ta: PROPERTY TAXPAYERS' ASSOCIATION rty Taxpayers' Association is a non-profit .tted to protecting the interests of aercial property taxpayers in Minnesota and :'s property tax relief programs which have 1967 with state sales tax revenue. The Taxpayers Association supports a state Ament to dedicate 24 of each 6 o of sales e state to a new Property Taxpayers' Trust future property tax relief payments to .y taxpayers. do hereby become a member of the Minnesota -iation and indicate our individual support ndment dedicating 2(, of each 6%(,' sales tax to a Property Taxpayers' Trust Fund to relief payments in the future. 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