The URL can be used to link to this page

Home My WebLink About9.a. 1992 Legislative Summaryr CITY OF ROSEKOUNT EXECUTIVE SU19FARY FOR ACTION CITY COUNCIL MEETING DATE: MAY 19, 1992 AGENDA ITEM: 1992 LEGISLATIVE SUMMARY AGENDA SECTION: ADMINISTRATOR'S REPORT PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR AGENDAXn- �T CC 1 ATTACHNETTS: ASSOCIATION OF METROPOLITAN APP OVE BY: MUNICIPALITIES REPORT r f�-- The Association of Metropolitan Municipalities (AMM) has provided a summary of 1992 Legislative Actions and how those actions affect cities. This summary is attached for your review. I will present a few comments on this report for discussion and information purposes. RECOMMENDED ACTION: None. COUNCIL ACTION: t as ociation of metropolitan municipalities May 12, 1992 TO: Mayors and Managers/Administrators and Legislative Contact Persons. FROM: Vern Peterson, Executive Director Roger Peterson, Director, Legislative Affairs SUBJECT: FINAL SUMMARY OF MANOR AMM ISSUES AND BILIS Enclosed is the final summary of major AMM issues and bills impacting policy, including a slightly modified previously distributed tax bill summary. Also attached is a status graph of all AMM policies. Of the 65 AMM action policies, 38 were passed or upheld fully (58 percent),. 5 were partially accomplished (8 percent), 13 were not discussed this session, and 9 failed. As you can see, approximately two-thirds of all AMM policy was either fully or partially accomplished in the 1992 session. DISTRIBUTION NOTE: This mailing is being sent to managers/administrators, and AMM contact persons. Managers/administrators are asked to please make other council persons and interested staff. -1- 183 university avenue east, st. paul, minnesota 55101 (612) 227-4008 mayors, copies for SUMMARY OF 1992 AMM LEGISLATIVE POLICY AND ACTS OF INTEREST TO AMM CITIES A. Tax Issues - Omnibus Bill (Laws 1992, Chapter 511) (page 3) 1. No Levy Limits - Reporting requirements 2. Presidential Primary Reimbursed 3. Sales Tax on Non School Local Government 4. 1992 LGA and HACA 5. Local Government Trust Fund - Now and the Future 6. Financial Reporting Study 7. Tax Increment Financing 8. Truth in Taxation Changes 9. Local Sales Taxes Authorized 10. Estimated 1992 Sales Tax shortfall and cuts B. Major Policy Issues Not Tax Related (page 7) 1. Waste Management Act Amendments (Laws 1992, Chapter 593) 2. Metropolitan Water Supply (HF 1977/SF 1958). C. Other Policy Issues Passed in 1992 (page 9) 1. Regional Parks O and M Funding (Laws 1992, Chapter 513) 2. Regional Parks Capital Funding (Laws 1992, Chapter 558) 3. Large Trucks - Triple Trailers (Federal Laws. ISTEA) D. Other Issues Of Interest (Policy And Non Policy) (page 10) 1. Uniform Land Use Planning (HF 1983/SF 1828) 2. Metro Council Role and Authority (HF 1531/SF 1323) 3. Metro Sewer Extension Funding Restricted (HF 1778/SF 1656) 4. Transportation Issues 5. Oppose Reduction of Local Control 6. City Fund Balances 7. Public Employee Retirement Health Benefits (Laws 1992, Chapter 488) -2- A. 1992 Omnibus Tax Bill - (Laws 1992, Chapter 511) LEVY LIMITS REPEALED - TRUST FUND PROTECTED 1. NO LEVY LIMITS: For the first time in over two decades there are no general levy limits for cities or counties. Not only are the restrictive Chapter 275.50 levy limits gone but so are the older per capita and general -rate limits that mainly impacted smaller cities. LEVY REPORTING: Cities over 2,500 population, Towns over 5,000, and Counties must report their annual levy no later than January 30 of the effective year or face an LGA or CSSA reduction of 5%. Items that must be reported are: debt levy, social service levy, library levy, and all other levy. 2. PRESIDENTIAL PRIMARY REIMBURSED: The legislature allocated $2.5 million (2.2 for cities, .3 for counties) from the General Fund not local government trust fund to reimburse local . government for costs related to the April 7 Presidential Primary. Although the total amount is small, it represents a moral victory for cities since in the original tax bills, the House reimbursement reduced LGA out of the trust fund and the Senate made no reimbursement at all. 3. SALES TAX ON NON SCHOOL LOCAL GOVERNMENT: All local units of government including special districts but excluding schools will have to pay the 6.5% sales tax starting June 1, 1992 on purchases of materials and goods that are subject to sales tax paid by individuals. Purchases made by local government operated hospitals, nursing homes, and library service material are exempt. This tax raises $68 million and replaces the original Governor's proposal to cut $66 million of LGA from the 1992 aid distributions. Although bad public policy, it is fairer in that all non school local units participate rather than only some cities. Since the state's year is from July thru June of 1993 the cost to cities is cut in half for 1992 and spread between general fund and special funds. With no levy limits in 1993, the future sales tax cost may be recovered through increased levy at the local units discretion. MVET: Sales tax on vehicles was not changed. Public safety vehicles remain exempt of MVET. No new sales tax is imposed on other public vehicles currently paying MVET. 4. 1992 LGA and HACA: Imposition of the sales tax on local government replaced a raid on the Local Government Trust Fund distribution for cities fiscal year 1992. However, the last formal revenues forecast by the state projected a sales tax -3- shortfall of $6.7 million from the 1992 distribution. Based on the original intent that cities would gain or lose per sales tax revenue, there is a projected $6.7 million LGA/HACA cut for the December payment. The next official forecast is in November. If sales tax continues to come in above current forecast, there might be no December cut. of course, it could go the other way and create a larger cut. PROJECTED $6.7M SHORTFALL: Attached is a list of AMM cities estimated December aid cuts. Because of a drafting irregularity the base used is 1991 instead of 1992. The total city cut is $3.3 million of which $2.0 million is metro. This run supercedes earlier AMM runs dated 4/15. It reflects slightly higher cuts. (see page 6). 5. LOCAL GOVERNMENT TRUST FUND - NOW AND THE FUTURE: The LGTF integrity was basically maintained for 1992 and the next biennium understanding that some adjustment had to be made in the amount remaining for 1993/94 LGA because of the disagreement between the governor and legislature at the end of the last session. The LGTF revenue is increased by 2 cents of the 6.5 cent sales tax on local government. All of the non property tax relief programs such as interest and income maintenance are removed while several property tax relief programs such as homeowners (circuit breaker) relief and Mobile Home HACA, etc. are inserted. The spending is thusly adjusted so that the final LGA increase for 1993 is 3% with no forecasted increase for 1994. HACA buy downs for high valued home and C/I rate reduction as well as normal growth was protected. LGA, Equalization Aid and Disparity Reduction Aid was protected and provided some growth. Unlike the administration proposal whereby new or excess growth returned to the general fund, this bill provides that growth be allocated to increasing LGA, equalization aid, CSSA, and corrections aid. The Trust Fund Integrity was maintained, barely. The future is shaky at best, but the LGTF framework does provide a powerful disincentive for cutting. 6. FINANCIAL REPORTING STUDY. Nearly $3.0 million over the next three years was -allocated to development of a new local government financial reporting system. The legislature wants more comparable data and computer access to data on a timely basis. 7. TAX INCREMENT FINANCING. No new general TIF provisions were adopted. TIF for pollution abatement was provided for two specific projects, one in St. Louis Park and one in St. Paul. Richfield is allowed to change the TIF Fiscal Disparity payment from project to city. -4- 8. TRUTH IN TAXATION CHANGES: The name has been changed to `Proposed and Final Tax Notice'. A number of dates change. Aid certification by the state changes from October 1 to September 1. The proposed levy must be certified to the County Auditor by September 15 instead of September 1. Overlapping jurisdiction certification changes from September 5 to September 20. Notice date changes from November 10 to between the 10th. and the 24th. All counties now must send parcel specific notices to each property and clearly show the market value and whether the property is homestead or not. Publication notices are changed to eliminate the need to specify a continuation hearing, and to delete the quarter page requirement. The advertisement will merely be a hearing notice including date, time, place, etc. Counties must hold their hearing the first Tuesday of December. Schools and Cities are allowed to set their own date between November 29 and December 20. 9. LOCAL SALES TAXES AUTHORIZED: Minneapolis is authorized to create `Neighborhood early learning centers' and a governing board in conjunction with the School District. The city is allowed to appropriate proceeds of convention center sales tax up to an amount equal to revenue generated by refunding the current bonds for the board operation. Duluth sales tax cannot be repealed by referendum until bonds issued prior to January 1, 1993 or bonds issued to refund those bonds are repaid. Rochester is allowed a one half cent general sales tax and $20 local excise tax on motor vehicles (MVET) to build a fire station, city hall and public library facilities ($28.76M max.). The following four require a referendum: Roseville, 2% Hotel Motel Tax for Multiuse speed skating and band facility; Brooklyn Center, 1% Food and Beverage for housing rehabilitation for primarily low income people; Ely, 1% general sales plus $20 local MVET for Ely Wilderness Gateway Project convention/interpretive center ($20M max); and Thief River Falls, 1/2% general sales plus $20 local MVET on autos and farm equipment for area tourism convention facility ($15M max.). -5- rAAxxx OF METROPOLITAN MUNICIPALITIES ESTIMATED 1992 Assuming a AID REDUCTIONS UNDER THE $6.7 million cut spread CONFERENCE COMMITTEE COMPROMISE against the aids counties, and special taxing of cities, districts. Est. 1992 Revenue Aid Cut as % of Cut as % of ------------------------------------------------------------------------- Total Aid Base Cut Total Aid Rev. Base ANOKA 1684297 3977924 11990 0.7% 0.3% APPLE VALLEY 2538728 8508514 26162 1.0% 0.3% ARDEN HILLS 28230 1529678 4664 16.5% 0.3% ItAYPORT 152636 986123 2683 1.8% 0.3% I'LAINE 2552701 6591757 18875 0.7% 0.3% BLOOMINGTON 2942579 24143612 71285 2.4% 0.3% BROOKLYN CENTER 2837420 7774391 23102 0.8% 0.3% BROOKLYN PARK 3942646 11618189 35547 0.9% 0.3% BURNSVILLE 2922211 12266315 37787 1.3% 0.3% CHAMPLIN 1233866 3086190 9436 0.8% 0.3% CHANHASSEN 775674 3240900 9531 1.2% 0.3% CHASKA CIRCLE PINES 514809 430827 1472042 908838 4634 2833 0.9% 0.7% 0.3% 0.3% COLUMBIA HEIGHTS 2820169 5232083 15925 0.6% 0.3% COON RAPIDS 4355665 9519865 28905 0.7% 0.3% COTTAGE GROVE 2139636 5649455 16849 0.8% 0.3% CRYSTAL 2668736 5713512 17112 0.6% 0.3% DAYTON 198624 751097 2252 1.1% 0.3% DEF.PHAVEN 128137 950272 2899 2.3% 0.3% PAGAN 1320473 10401369 31033 2.4% 0.3% EDEN PRAIRIE 81002 12887800 38745 47.8% 0.3% EDINA 274437 10456761 31672 11.5% 0.3% FALCON HEIGHTS 321099 810184 2471 0.8% 0.3% FRIDLEY 2442641 6230425 19762 0.8% 0.3% GOLDEN VALLEY 1553607 7224974 22218 1.4% 0.3% HASTINGS 2036816 4725575 14497 0.7% 0.3% HOPKINS 1594556 5421779 16757 1.1% 0.3% INVER GROVE HEIGHTS 1193261 5073803 14985 1.3% 0.3% LAUDERDALE 102916 443638 1353 1.3% 0.3% MAHTOMEDI 364389 1273663 3696 1.0% 0.3% MAPLE GROVE 1941496 8288562 24201 1.2% 0.3% MAPLEWOOD 2041467 7820273 24104 1.2% - 0.3% MENDOTA HEIGHTS 303073 2509328 7220 2.4% 0.3% MINNEAPOLIS 85872388 182774398 566904 0.7% 0.3% MINNETONKA 1518688 13094988 40169 2.6% 0.3% MOUND 711890 1971477 6029 0.8% 0.3% MOUNDS VIEW 891513 2158409 6278 0.7% 0.3% NEW BRIGHTON 1397886 3776640 11234 0.8% 0.3% NEW HOPE 1778929 5255716 15371 0.9% 0.3% NORTH ST PAUL 894929 1831275 5512 0.60, 0.3% OAKDALE 1401699 3782461 10741 0.8% 0.3% ORONO 94423 1961381 5227 5.5% 0.3% OSSEO 177271 502497 1510 0.9% 0.3% PLYMOUTH 1413712 10240735 30413 2.2% 0.3% PRIOR LAKE 765679 2830859 8343 1.1% 0.3% RICHFIELD 4771615 9864139 30077 0.6% 0.3% ROBBINSDALE 2302600 3950992 12051 0.5% 0.3% ROSEMOUNT 818614 3035972 8856 1.1% 0.3% ROSEVILLE 1604197 6939544 21015 1.3% 0.3% SAINT ANTHONY 425944 1726000 5397 1.3% 0.3% SAINT FRANCIS 107958 507136 1547 1.4% 0.3% SAINT LOUIS PARK 4450676 12574684 40180 0.9% 0.3% SAINT PAUL 56673970 122415018 379777 0.7% 0.3% SAINT PAUL PARK 611583 1097478 3397 0.6% 0.3% SAVAGE 485420 2331452 6756 1.4% 0.3% SHAKOPEE 516254 2757938 8244 1.6% 0.3% SHOREVIEW 846141 4272892 13042 1.5% 0.3% SHOREWOOD 267008 1864577 5664 2.1% 0.3% SOUTH ST PAUL 3356807 6327919 19511 0.6% 0.3% SPRING PARK 86214 531521 1522 1.8% 0.3% STILLWATER 1607648 4227782 13250 0.8% 0.3% WAYZATA 154012 1597700 • 4868 3.2% 0.3% WEST ST PAUL 1947531 4945873 15214 0.8% 0.3% WHITE BEAR LAKE 1505608 3901593 12066 0.8% 0.3% WOODBURY 1076501 4891432 14953 1.4% 0.3% WOODLAND 12422 143349 414 3.3% 0.3% Association of Metropolitan Municipalities 4./20/92 -- Van Wychen - B. Major Policy Issues Not Tax Related 1. Waste Management Act Amendments (Laws 1992, Chapter 593). Makes a number of changes to the Metropolitan Waste Management requirements but only a few changes directly impact cities. a. Requires that state agencies, when feasible, shall purchase recycled materials when the price of recycled materials does not exceed the price of non recycled materials by more than 10 percent. b. Requires that all public entities, whenever technically feasible, shall purchase and use degradeable loose foaming packing material manufactured from vegetable starches or other renewable resources, unless the cost of the packing materials is more than 10% greater than the cost of packing materials made from nonrenewable resources. c. Authorizes the Director of the Pollution Control Agency, after consultation with the Metropolitan Council, local government units and the Commissioner of Administration to adopt rules to establish uniform methods for collecting and reporting waste reduction, generation, collection, transportation, storage, recycling, processing, and disposal statistics necessary for proper waste management and for reporting required by law. Rules adopted under this provision apply to all persons and units of government in the state for the purpose of collecting and reporting waste related statistics requested under or required by law. d. Establishes a state goal of reducing the amount of packaging material used per capita by 25% by the end of 1995. Sets up a process to establish the baseline for this reduction and to measure the amount of reduction achieved on a yearly basis. 1. Clarifies that solid waste hauler licensing authorities (cities, counties, towns) shall require licenses to impose charges for collection of mixed municipal solid waste that increase with the volume or weight of the waste collected (effective 8/1/92). 2. Further mandates that licensing authorities that require a pricing system based on volume instead of weight to determine a base unit size for an average small quantity household generator and establish a multiple unit pricing system that ensures that amounts of waste generated in excess of the base unit amount are priced higher than the base unit price (effective 1/1/94). 3. Imposes the same (above) requirements on local government units that collect charges for solid waste hauling directly from waste generators. (effective 1/1/94) . -7- f. TELEPHONE DIRECTORY DISPOSAL: 1. Telephone directories may not be disposed of in mixed municipal solid waste by any person (effective 8/1/93). 2. Requires publishers or distributors of telephone directories to provide for the collection and delivery to a recycler of waste telephone directories and inform recipients of directories of the collection system. g. VARIOUS WASTE DISPOSAL STUDIES: 1. Directs the Legislative Commission on Waste Management to study the existing system for managing automobile - related wastes and if necessary, recommend appropriate legislation for consideration during the 1993 legislative session to ensure that materials from automobiles that cause damage to the environment are properly removed and managed during maintenance and prior to recycling or disposal of the automobile and to ensure that automobile hulks are properly recycled or disposed. 2. Directs the director of the office of waste management to make a preliminary assessment of the need for additional regional solid waste management capacity in the state, including the metropolitan area by July 15, 1993. The assessment shall include input by the Chair of the Metropolitan Council and shall be submitted to the Legislative Commission on Waste Management. 3. By October 9, 1994, the MPCA Commissioner must inspect all solid waste disposal facilities (landfill) and portions of facilities that have stopped accepting waste by October 1993 to determine the status of closure activities and to evaluate the environmental and public health threats posed by the facility. The commissioner must establish a priority list of the evaluated facilities based on the relative risk of danger to public health or welfare or the environment, taking into consideration to the extent possible the population at risk, the hazardous potential of substance at this facility, the potential for contamination of drinking water supplies, etc. h. REGIONAL HAZARDOUS MATERIALS RESPONSE TEAM: The Public Safety Commissioner after consultation with appropriate parties and various state department commissioners must adopt rules to implement a statewide hazardous materials incident response plan. The plan must -8- include: -the locations of up to five regional hazardous materials response teams. -the number and qualifications of members on each team. -the responsibilities of each team. -procedures for soliciting and contracting with local governments or nonpublic persons to establish vigorous hazardous materials response teams. -procedures for dispatching teams at the request of local governments. -fee schedule for reimbursing local governments responding to an incident. -during operations authorized under the state response plan, members of a regional hazardous materials response team operating out of their geographic jurisdiction are `employees of the state' for liability and workers compensation purposes. Various effective dates. Most provisions effective August 1, 1992. 2. Metropolitan Water Supply (HF 1977/SF 1958). This bill as introduced was a compromise between the AMM and the Metropolitan Council. The council had originally proposed that water supply become the fifth Metropolitan System and have the same status as Transportation, Sewers, Airports and Parks and Open Space. The bill as introduced did not make water supply a system but did require that cities prepare a local water supply plan that was subject to review and comment by the Metropolitan Council. The bill did not pass and is likely to be reintroduced early in the 1993 session by the Council. C. Other Policy Issues Passed in 1992 1. Operations and Maintenance Funding for Regional Parks (Laws 1992, Chapter 513). The regional parks in the Metropolitan Area which are operated by cities and counties serve the same function as state parks in Outstate Minnesota. Since the state pays 100 percent of the costs of operating state parks, AMM policy calls for the state to provide supplemental funding to the metro cities and counties which operate regional parks. $2.356 million was provided for the second year of the biennium in this bill. $2.7 million was provided in 1991 for the first year of the biennium. 2. Capital and Acquisition Funding for Regional Parks (Laws 1992, Chapter 558). This act provides $4,550,000 for Capital and Acquisition =S needs for the regional parks which are owned and operated by cities and counties in the Metropolitan Area. This amount was far less than requested but keeps `alive' the concept that since these regional parks serve the same purpose as state parks in rural Minnesota, the state has some financial obligation for these parks. 3. Large Trucks - Triple Trailers. (1991 Federal Intermodel Surface Transportation Efficiency Act - ISTEA). AMM policy for several years has opposed allowing longer trucks or triple trailer truck combinations into Minnesota based on highway modification costs and safety factors. We have succeeded in holding off action in Minnesota long enough. The 1991 Federal Act (ISTEA) prohibits the extension of long trucks or triple trailers into any states beyond those which currently allow them. Thus, the Minnesota legislature is now prohibited from acting in the affirmative for longer trucks. D. Other Issues of Interest (Policy and Non Policy) 1. Uniform Land Use Planning (HF 1983/SF 1828). After five years of continued effort on the part of the AMM and a special task force chaired by Mark Bernhardson, a compromise uniform state land use planning bill acceptable to the AMM was introduced in the 1992 session. The AMM had successfully held off passage of earlier versions not acceptable to the AMM in each session since 1987. The bill as introduced did not reduce local flexibility or local control and eliminated the conflicts between it and the Metropolitan Land Planning Act. Unfortunately the bill was introduced late in the session and time ran out before it could be heard due to the early committee deadlines. The bill did pass out of the Senate Local Government Committee and is expected to be reintroduced in the 1993 session. 2. Metropolitan Council role and authority (HF 1531/SF 1323). This bill as introduced made a number of changes in the relationship between the Metropolitan Council and the regional agencies such as the RTB, MWCC, etc. It generally strengthened the oversight authority that the Council has with respect to the agencies. One provision of the bill would have also expanded the council's authority with respect to local comprehensive plans. Currently, the Council can only require local plan modifications when the local plan would have a substantial negative impact on one of the four metropolitan systems. This has been interpreted to mean a physical impact on a system. This bill would have expanded the authority to mean just a substantial impact on a plan itself. The bill did not pass. 0-01M 3. Metro Sewer Extension Funding Restricted (HF 1778/SF 1656). The bill as introduced and later amended would have prohibited regional financing for sewer interceptors and treatment plants outside of the "developed area" as defined by the Metropolitan Council. The bill would have re-established sewer service -districts to fund expansion of interceptors and treatment plants on a sub -regional basis. The AMM led and organized the opposition to this bill and kept it from passing in its intended form. A provision was put in Laws 1992, Chapter 601 to set up a study to be conducted by the Humphrey Institute at the University of Minnesota. The study is intended to identify the impacts and consequences of financing the metropolitan sewer system on a sub -regional basis as described in the original bill. 4. Transportation - Highway and Transit Funding, etc. This was to have been a big year for Transit and Highway funding because of the need to provide additional dollars for matching the Federal Transportation Bill (ISTEA) `Pork' projects. However, something happened on the way to passage called Ego and Politics. Transit money needs statewide, but specially metro, are becoming critical in the eyes of many legislators as well as the traditional users/providers/promoters. Thus, some legislators decided early that in order to pass an increased gas tax, there needed to be a corresponding transit funding provision. The House chose a constitutionally questionable sales tax on gas at the wholesale level. The senate chose an unpopular sales tax on auto repair service. The House Transportation Committee chair refused to hear any transportation tax bills until the Governor had specifically and publicly endorsed a tax increase. This did not happen until very late and therefore there were no hearings in the House until the last two weeks. The Senate Transportation Finance chair insisted that all Transportation related issues be wrapped into one Omnibus bill, basically as a ploy to insure that transit funding stayed in. Because of these decisions, they ran out of time before meaningful compromise could even be started. Besides the loss of Transit and Highway funding, provisions for the Transportation Service Fund (Policy V -G), adding a metro person to the MSA screening committee (Policy V -M), and increasing the MSA mileage limit (Policy VI -K) were also lost. Next year must be better or a real problem will develop in -11- matching the ISTEA `pork' projects list in Minnesota. Many of the specifically funded matched projects are of significant priority. 5. Oppose Reduction of Authority or Local Control. This is a reactive policy opposing issues of intrusion on local government and therefore has no bill or chapter numbers when successful. This year, two issues are worth reporting. Both were defeated in last minute conference committee action and only after significant lobbying. One provision would have prohibited public employee personal use of a public vehicle. This would have impacted vehicles used by city managers, administrators, department heads, public works directors, police and fire chiefs, etc. as well as county and school persons. The second provision would have required all cities to hold their Truth in Taxation hearing on the first Wednesday of December. Besides being flagrant micro managing, this day normally falls during the National League of Cities Convention as it does this year. The provision was changed to allow local choice in conjunction with the county and schools between November 29 and December 20. 6. City Fund Balances. Once again the legislature did not do anything to city fund balances or attempt to utilize them. However, there was significant discussion in Tax and Local Government Committees dealing with outdated (1990) data that showed some cities with significant cash balances. The legislature did fund an activity to develop uniform accounting and on line access to current data for cities (see tax bill description item 6). There was some talk, although not serious, of changing city fiscal years to match the legislature thus eliminating the need for cash flow between January 1 and June 15. As time goes on and state funds continue to be short and LGA exists it appears that greater attention is being paid to city fund balances, especially unencumbered fund balances. 7. Public Employee Retirement Health Benefits (HF 1873, Laws 1992, Chapter 488). In essence this bill will require public sector employers to permit retiring employees to continue in the group hospital, medical, and dental plan applicable to active employees. The retired employee may carry the same coverage carried prior to retirement or reduce coverage from family to single. The retired employee may be required to pay the entire premium. The retired employee to age 65 is included as part of the group for rate calculation, but may continue coverage until any age. The act is effective at -12- the time of the next employee contract review or hospitalization plan renewal. For additional information refer to the LMC Cities Bulletin Number 13 dated May 8, 1992. -13- AMM POLICY SUCCESS IN THE 1992 LEGISLATURE Policy Policy Description Priority Policy Action Chapter Comment Number The Board of Directors took action on bills that contained issues not covered * ctly by AMM policy, BOD -1 Local Government Passed Laws 1992; The omnibus tax bill basically maintains the Trust Fund Chapter 511 integrity of the LGTF. Some exchanges were Distribution made for non -property tax relief items. The down side is that the next biennium growth for LGA was reduced significantly from the passed/vetoed 1991 version. BOD -2 Uniform Accounting Partially passed Laws 1991; Nearly $3 million over the next three years for Cities Chapter 511 was provided to develop and implement a uniform accounting system with quick access capability. BOD -3 Surface Water Upheld The AMM opposed the Metropolitan Management Council's attempt to expand the definition of the wastewater treatment (sewer) policy plan to include surface water runoff in the Minnesota River Valley as part of the system plan. A compromise was struck in that cities will be asked to comply with some "good management practices" pertaining to storm water runoff quality. BOD4 Transit Facilities Partially passed Laws 1992; $62 million bonding over three years was Initiatives; Transit Chapter 579 approved for capital expenses to implement Vision the RTB/Met Council programs. However, no operational funds were provided. BOD -5 MWCC/Met Council Upheld Laws 1992; The bill as introduced would have prohibited Sewer Extension Chapter 601 regional financing for metro sewer expansion Funding Prohibited outside of the developed area as defined by the Metropolitan Council. The AMM was successful in leading the charge against this bill. The bill was ultimately amended to be only a study which will be conducted by the Humphrey Institute and completed before the 1993 legislative session. BOD -6 Sales Tax on Local Passed Laws 1992; AMM reluctantly and conditionally supported Government - Chapter 511 6.5 -cent sales tax on non -school local reluctant support government, noting that this was bad tax policy but the least costly of two evils. Conditions for no 1992 aid cuts, levy limits repealed; LGTF integrity and LGA growth were basically met. Only a sales tax sunset was not included. The alternative provision to consider LGA and HACA across-the-board cuts was unacceptable politically. Policy Ideals with fiscal matters I -A Levy Limits Repeal A Passed Laws 1992; The omnibus tax bill deleted all references to Chapter 511 the three levy limit provisions in previous law. I -B Mandated State and B Passed Laws 1992; The presidential primary mandated in 1991 Federal Programs Chapter 511 was funded from the state's General Fund ` ($2.5 million). I -C Local Government A Passed Laws 1992; LGA was maintained as per current law with a Aid Chapter 511 3 percent 1993 proportionate increase. New formula discussion was delayed until 1993. I -D-1 Homestead Class C -A Passed Laws 1992 The third tier homestead and reduced C/I rates Rates Chapter 511 were allowed to go down per 1991 law, and funded through HACA. I -D-2,3 Tax Exempt Property D No action I -D4 Property Tax Reform C -A Passed Laws 1992; The long-range changes started in 1991 were Chapter 511 continued in 1992 per AMM policy. I -E-1 Fiscal Note C Upheld Fiscal notes are continued per AMM policy. Continuation I -E-2 Funding Shifts C Passed Laws 1992; Funding for HACA buy -downs was continued Cha ter 511 per AMM policy as highest priority funding. I -E-3 State Revenue D Passed Laws 1992; A portion of the state budget reserve was used Stability Chapter 511 to balance the shortfall while LGA/HACA were not cut. I -F Sales Tax Dedication A Passed Laws 1992; Omnibus tax bill maintained the LGTF as per Guarantee Chapter 511 AMM policy and even added revenue based on new local government 6.5 -cent sales tax. Policy II issues concern matters that directly affect local government. PERLA, pensions, licensure, to name a few. II -A Labor Relations B No action Issues ERLA II -B Tort Liability D Upheld No legislative changes were made to limits. II -C Data Practices D No Action II -D Police/Fire Pension C Upheld No changes were made to police and fire Provisions amortization aid, and the 13th check was not adopted. II -E Opposition to C -A Upheld A last-minute attempt to prohibit personal use Reduced Local of public vehicles was soundly defeated. An Control attempt to force all cities to hold Truth in Taxation hearings on the same day (first Wednesday in December) was beat back. lI-F Contractor D No Action Performance Bond II -G Police Officer D No Action Standards and Training II -H State Agency Rule- D No Action Makin II -I Shade Tree Disease D Upheld Program's continued funding allowed. Control Program II -J Concurrent D No Action Detachment & Annexation Policy III concerns housing and economic develo ment. III Al -2 Non -legislative No Action III A-3 Mandating Land Use C -A Upheld No additional intrusion into local land use Standards control. III A4 State and Regional B Partially Passed Laws 1992; This policy calls for the development of a Housing Policies Chapter 528 state housing policy and consolidation of and state funding for the Housing Trust Fund. $1 million was appropriated to the Housing Trust fund. Also $750,000 was provided for blighted housing grants and $2 million for neighborhood land trusts. III A-5 Federal Housing D No Action Policy III A-6 Local Housing B Partially Passed Laws 1992; Levy limits removed as called for by this Polic Chapter 511 policy III A-7 Housing in the B Failed AMM policy called for establishment of a Metropolitan Area metropolitan housing fund and more coordinated regional -local housing planning. HF2741/SF2489 died in respective Tax Committees. III A-8 Neighborhood B No Action Liveability III A-9 State Licensed B Policy Upheld AMM policy is basically a defensive policy to Residential Facilities examine proposals that others may put forth (Group Homes with regard to group homes. III B-1 State Economic C -A Failed This policy calls for a state economic Development Policy development policy and determination of the role of cities in such policy. III B-2 Equal Treatment of C Policy Upheld This policy asks for equal treatment for all Cities cities with respect to economic development tools and programs. III B-3 Tax Increment A Failed This policy called for the repeal of several of Financing (TIF) the harsh TIF amendments passed in 1990. relief These provisions were contained in M07I/SF2291, which passed the House and Senate Economic Development Committees, but died in the respective Tax Committees and the Tax Conference Committee. III B-4 Local Option for C -A Upheld AMM policy called for the status quo or the Redevelopment development of a single local development Organization organization at local option. Structure III B-5 County Economic C Upheld AMM policy opposed granting EDA authority Development to metropolitan counties except under certain Authorities conditions. No authority was granted to counties. III C Land Use Planning B Upheld. AMM AMM policy opposed changes which would satisfied with infringe on local control and flexibility. The current law, but AMM was successful in developing a also satisfied compromise bill which was introduced in the with 1992 session, but did not pass compromise (HF1983/SF1828). bill. Poky IV covers Metro olila Agencies. IV A, IV Non -Legislative N/A None Required These policies contain guidelines for B, IV C-1 Philosophical examining legislative bills which would Statements increase the authority of the metropolitan governance system. IV C-2 Funding for C Upheld AMM policy supports the status quo and Regionally Provided opposes the imposition of a single revenue Services source to replace the multiple sources. IV C-3 Regional Tax Rates C Upheld AMM policy states that user fees for the and User Fees Regional Agencies should be determined by the region and not set by the Legislature. IV D Comprehensive C Upheld AMM policy opposes the designation of other Planning - Local and Met Council policies as systems. The Council Regional Interface proposed designating three additional systems. IV E Combined Sewer Cc Upheld Laws 1992; Provides $13 million for 1993 for the three Overflow Chapter 558 cities to continue sewer separation. IV F-1-3 Non Legislative N/A None Required This policy is directed toward the Metropolitan Council and suggests ways for the Council to improve its budget process. Most of AMM suggestions have been incorporated by the Council. IV G-1 O&M Finding for D Upheld Laws 1992; Appropriated $2.356 million for operation and Regional Parks Chapter 513 maintenance expenses for the implementing agencies. The governor line -item vetoed this appropriation last year. IV G-2 Funding of Regional D Upheld Laws 1992 AMM policy calls for the Met Council to Parks Chapter 558 obtain state funding for capital and acquisition needs for metro parks. $4.55 million contained in state bonding bill. AMM policy asks the Legislature not to alter the park funding priorities established by the Met Council. IV -H Water Management C -A Upheld Laws 1992; AMM policy requests that additional changes in Metropolitan Area Chapter 511 not be made in the metro area surface water management act and that costs to implement should be excluded from levy limits. No change was made to MS103B.201-25, and local costs are no longer restricted by levy limits. IV- I Water Supply in A Partially AMM successfully opposed designating local Metropolitan Area Upheld water supply plans as a metro system. The AMM policy did support adding water supply plan element to local comp plans. HF1977/SF1958 which contained that requirement did not pass. IV -1 Waste Stream A Upheld Laws 1992; Local packaging ordinances or the authority to Management Chapter 593 pass such ordinances was not pre-empted. Requires state agencies to purchase recycled materials when the price of recycled materials does not exceed the price of non -recycled materials by more than 10 percent. Sets a statewide packaging reduction goal of 25 percent per capita by 1995. Requires that licensing authorities (cities) for solid waste haulers that require a pricing system based on volume instead of weight must establish a unit pricing system that ensures that amounts of waste generated in excess of the base unit amount are priced higher than the base unit amount. Policy V issues cover transportation and transit quesfiWons. V-A Street/Highway B Failed See comments at V -D General Funding V -B Metro Transit B Failed See comments at V -D System General Funding V -C Transportation C Failed See comments at V -D Services Fund V -D Transportation B Failed Transportation funding was most political this Funding Alternatives year. House and Senate leaders and - Gas Tax, Transit committees tied gas tax increase for highways Tax to transit funding. The House waited until the governor proposed. The Senate tied all transportation issues into one bill. House wanted sales tax at wholesale level for transit. Senate wanted sales tax on auto repairs for transit. No agreements could be reached and everything was tubed. V -E Highway and Transit B Upheld The trend in metro planning is increased inter- Intbgration agency integration. The Met Council Transit Facilities Initiatives plan is a prime example. V -F Highway D No Action Jurisdictional Reassignment V -G Transportation D Failed The issue was discussed in both houses in Utility 1991 and during the interim, but failed to gather enough support for passage in 1992. V -H 'W" Transportation C Upheld AMM policy maintained. Planning Process V -I Large Trucks C Passed Federal law Federal law prohibits expansion of large truck combination in new states. This includes triple trailer trucks. V -J City Speed Limits C Upheld A bill providing differential speed limits did not pass. V -K Seat Betts B No Action V -L Regional Transit B Upheld Laws 1992; Plan includes all AMM policy System Chapter 579 recommendations. Capital funding to initiate the plan was provided in the bonding bill. V -M MSA Screening B Failed Although non -controversial, the Senate forced Committee all transportation issues into one omnibus bill that failed. V -N Metropolitan Tax B Upheld No new tax was passed, although funding for LRT was considered. V-0 Airport Policy C Upheld The two track process is continuing, costs are being considered, and the Met Council has recommended compacting the time frame. V -P Bikeway Grants D No Action V opt -out D No Action At the request of other organizations, primarily the LMC, the AMM also took positions on matters that ha Pe a bearing on AMM member cities, but are not n cessarily included in AMM policy. VI -A Truth in Taxation D Partially passed Laws 1992; The title was changed to "Proposed and Final Chapter 511 Tax Notice," parcel specific notice is extended to all counties, and newspaper notice requirements are reduced. VI -B City Fund Balances D Upheld Some legislators discussed fund balances, but no action was taken. VI -C MVET on city sales D Failed MVET still required as is new sales tax on other purchases. VI -D State Administrative D Failed The state continues to charge from LGA for Costs administration. VI -E Comparable Worth D Passed Laws 1992; No program changes. Elimination of levy Chapter 511 limits makes pay increases recoverable through levy. VI -F Liquor Issues D Upheld Wine and/or beer sales were not extended to grocery stores. VI -G Towing Warrants D No Action VI -H EDAs D No Action VI -I Municipal Service D No Action Districts VI -J Road Access Charge D No Action VI -K MSA Mileage Limit D Failed Was part of the omnibus transportation bill that did not pass. VI -L Market Value D Failed The law creating market value referenda was Referenda I I I I clarified but not repealed.