HomeMy WebLinkAbout6.h. Resolution in Support of Infrastructure Fee Legislation
EXECUTIVE SUMMARY
City Council Regular Meeting: February 16, 2021
AGENDA ITEM: Consider Resolution of Support for
Legislation regarding Infrastructure
Development Fees
AGENDA SECTION:
Consent
PREPARED BY: Logan Martin, City Administrator AGENDA NO. 6.h.
ATTACHMENTS: Proposed Resolution APPROVED BY: LJM
RECOMMENDED ACTION: Motion approving Resolution 2021 – XX supporting legislation
that would authorize cities to collect infrastructure development fees connected to growth.
BACKGROUND
Our partners at the League of Minnesota Cities, Metro Cities, and the Municipal Legislative Commission
have been in contact with staff to make us aware of active legislation being considered during the current
session that would allow cities to better fund infrastructure needs caused by the region’s growth.
Recent court decisions in Minnesota have eliminated cities’ previously available avenues to fund
infrastructure costs for roadways and streets that are required to support new development. By removing
this authority, the costs to develop roads or expand existing roads due to demand created by new growth are
now carried by existing residents and businesses. New developments are still required to pay for and
construct internal streets and utilities, but the roadway systems outside the development that are necessary
to support that growth are funded via the Municipal State Aid funds or tax dollars, which are increasingly
difficult avenues for funding to rely on.
In fast growing cities such as Rosemount, it will continue to be challenging to annually fund the needed
infrastructure to support the growth pattern. As such, any legislation improving this conundrum would be
an improvement to the current situation.
RECOMMENDATION
Staff recommends the City Council approve a resolution supporting legislation that would authorize cities to
collect infrastructure development fees connected to growth.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2021 – XX
A RESOLUTION SUPPORTING
INFRASTRUCTURE ACCOUNTABILITY
WHEREAS, the City Council of the City of Rosemount is the official governing body of the
City of Rosemount, Minnesota ("City"); and
WHEREAS, populations in Minnesota cities are growing statewide; and
WHEREAS, the development and construction associated with that growth are driving the
need for road improvements, street oversizing, street redesign, and street reconstruction; and
WHEREAS, municipal statutory authority appropriately exists for fees to support added
need for parks, sewer, and water; and
WHEREAS, this municipal authority does not exist for infrastructure development fees; and
WHEREAS, city streets are one of the four major types of infrastructure local government
is responsible to provide to protect public safety and health, and city streets represent a
separate but integral piece of the network of roads supporting movement of people and
goods; and
WHEREAS, existing funding mechanisms, such as Municipal State Aid (MSA), property
taxes, and special assessments have limited applications, leaving cities under-equipped to
address growing needs; and
WHEREAS, neighborhood streets are constructed according to city standards by developers;
and
WHEREAS, funding sources for larger streets and intersections to support new
developments have historically come from infrastructure development fees; and
WHEREAS, the Minnesota Supreme Court found in Harstad v. City of Woodbury that no
statutory authority existed for these infrastructure development fees; and
WHEREAS, cities should not be forced to make current residents and businesses pay for
costs of growth through local taxes but rather by those that are responsible for the growth;
and
WHEREAS, cities are finding it difficult to develop adequate funding systems to support
needed infrastructure development related to growth while complying with existing state
statutes; and
WHEREAS, cities need flexible policies and greater resources in order to meet growing
demands for street improvements.
THEREFORE, BE IT RESOLVED that the City of Rosemount City Council supports
legislation that would authorize cities to collect infrastructure development fees to fund
municipal street improvements as a necessary component of growth.
ADOPTED this 16th day of February by the City Council of the City of Rosemount.
William H. Droste, Mayor
ATTEST:
Erin Fasbender, City Clerk