90-1158 � V
�0 R� G1 N�L ' Council File # �"�i��
• , , Green Sheet � /�y� 3
RESOLUTION '~�
CITY OF SAI T PAUL, MINNESOTA �
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Presented By
�/Referred To 71i1J Comc�it e: Date �--�� ��'J�
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1 �
2 WHEREAS, the property t� rate and the conesponding ne b den for Saint Paul property
3 owners is higher than most cities in the Twin Cities Metropo f�n ea; and
4
5 WHEREAS, two of the primary factors which cause this unde ' able condition in Saint Paul are the
6 large numbers of older, low valued homes and the large o t of tax exempt property; and
7
8 WHEREAS, the City of Saint Paul provides many va�a 1 services to taac-exempt properties which
9 have estimated market values totaling more than $2� 0,000; and
10
11 WHEREAS, many of these tax-exempt properti u as the City's hospitals, colleges, and special
12 facilities like the Como Zoo, Conservatory and h innesota Science Museum, and the many state
13 and federal office buildings serve both the gr at etropolitan and Minnesota area; and
14
15 WHEREAS, the Ramsey County Assesso ' r o ds indicate that tax-exempt property in Saint Paul
16 accounts for at least one-fourth of the est' te market value of all property within the corporate
17 city limits; and
18
19 WHEREAS, while some other M' o a t 'ng jurisdictions may also have high tax-exempt values,
20 a great share of their values comes o en space and forest lands which require relatively low
21 cost city services; and
22 •
23 WHEREAS, the City of Saint Paul�,o not possess a large inventory of vacant, low priced land to
24 compete with the suburban cities in t ongoing efforts to strengthen and expand each city's
25 property tax base; and "�
26 ��•'
27 WHEREAS, the property tax bur en study conducted by the Briggs and Morgan Law Firm for the
28 joint study group representing the coalition of Greater Minnesota cities, the City of Minneapolis
29 and the City of Saint Paul found the least amount of property tax rate disparity existed for
30 Minnesota's school districts an counties, and found that the greatest amount of tax rate disparity
31 existed for Minnesota's cities; us indicating that the state's distribution of local government aid to
32 Minnesota's cities does not p duce equalized property tu� burden like the school aid formula does;
33 and
34
35 WHEREAS, the Minneso Legislature has begun to address tax base disparities during the last few
36 legislative sessions by res cturing the homestead credit/aid program and establishing a disparity
37 reduction aid formula; a d while their efforts have benefited Saint Paul property taxpayers, they
38 have not addressed the ver-burden caused by tax-exempt properties; and
39
40 WHEREAS, the 1990 gislature has requested the Governor to conduct a study of state mandates
41 and aid formulas for innesota's cities, towns, schools and counties because future state revenues
42 are projected to be ess than what is needed to finance recently enacted property tax reforms; now,
43 therefore,
44
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1 BE IT RESOLVED;that the Council of the City of Saint request that the City Budge,� Office �
2 develop Loca1 Government Aid (LGA) formula proposals wluch would incorporate adjustment
3 factor for r�dYStributing state aid to cities with w tax-exempt properties wluch re ire costly city
4 services so that unfair property tax burdens can be reduced, and that said LG formula proposals
5 should be presented to the Governor's study committee; and
6
7 BE IT ALSO RESOLVED, that the the Intergovernmental Relations 'ce start lobbying the
8 League of Minnesota Cities and the Association of Metropolitan M 'cipalities to obtain their
9 support for reform of the existing local government aid formula s that the distribution of existing
10 state money to Minnesota's cities can address the need to offse he unfair property tax burden
11 given to cities with a disproportionate share of ta�c-exempt pr erties; and
12
13 BE IT FINALLY RESOLVED, that the City Atto s ffice draft state legislation which would
14 require that all of Minnesota's county assessors up eir estimates of the market value of ta�c-
15 exempt properties by usage class by a reasonable t t date, so that any proposed LGA formula
16 using an adjustment for tax-exempt properties wo�all e able to use accurate valuations for
17 addressing tax burden inequities. t�
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Yeas Navs Absent Requested by Department of:
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Form Approved by City Attorney
Adopted by Council: Date
Adoption Certified by Council Secretary By:
BY� Approved by Mayor for Submission to
Council
Approved by Mayor: Date
By:
BY=
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DEPARTMENT/OFFICE/COUNCIL DATE INITIATED "
.t . � _ _ GREEN SHEET N° _10403
INITIAL/DATE INITIAL/DATE
CONTACT PE SON&PHO E �DEPARTMENT DIRECTOR �CITY COUNCIL
Wi 11 iam Wl l SOIl ASSIGN �CITY ATfORNEY �CITY CLERK
MU3T BE ON COUNCIL AOENDA BY(DATE) NUNBER FOR ❑BUDGET DIRECTOR �FIN.8 MOT.SERVICES DIR.
ROUTING
7-3-90 ORDER �MAYOR(OR ASSISTANT) �
TOTAL#OF SIGNATURE PACES 2 (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION RE�UESTED:
Approval of a resolution di,recting city staff to begin lobbying for changes in state law
and the LGA formula to address the unfair tax burden for cities with tax-exemnt properties
RECOMMENDATIONS:Approve(A)or ReJect(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOILOWING�UESTIONS:
_PLANNING COMMISSION _CIVIL 8ERVICE COMMISSION 1. Has this person/firm ever worked under a contract for this department?
_CIB COMMITTEE _ YES NO
2. Has this person/firm ever been a city employee?
_STAFF — YES NO
_DISTRICT COUR7 _ 3. Does this personlfirm possess a skill not normall
y possessed by any current city employee?
SUPPORTS WHICH COUNCIL OBJECTIVE? YES NO
Explaln all yea answers on ssperats shset and attach to gresn sheet
INITIATINO PROBLEM,13SUE,OPPORTUNITY(Who,Whet,When,Where,Why):
Cities with large amounts of property exempt from local property taxes must place an unfai
share of the costs for services on remaining properties. An adjustment in the LGA formula
could provide some assistance in correcting this dis*�arity.
ADVANTA(iE3 IF APPROVED:
The city may begin lobbying efforts and propose state legislation to help correct the
disparity city property tax payers face due to the larue ar.iount of tax exempt property
in Saint Paul.
DISADVANTAOES IFAPPROVED:
None.
DISADVANTAOES IF NOT APPROVED:
Discussion may not be intitiated and legislation may not be introduced.
RE�EIVED CoLnr,i1 Res���-�#� ��#��-
,1�12g19A0 !us� � � ���u
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TOTAL AMOUNT OF TRANSACTION S -�- CO3T/REVENUE BUDGETEp(CIRCLE ONE) YES NO
FUNDIN(3 SOURCE • ACTIVITY NUMBER
FINANCIAL INFORMATION:(EXPLAIN) ��
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�/�/9�
5) 11/21/89 GS - 55 Resolution - Section 5.02 of the St. Paul City
CF - 892054 Charter authorizes the City to retain special
council in the event of special or unusual
circumstances. Intergovernmental Relations and
Public Safety Committee Agenda for August 12,
1992.
WITHDRAWN 3-0
6) 11/30/89 GS - 56 Ordinance - Amending Chapter 24 of the St. Paul
CF - 88623 Administrative code pertaining to a code of
ethics for city employees and officials.
{No material attached}
NO ACTION
7) 12/21/89 GS - 54 Resolution - Supporting legislation requiring
CF - 892242 that for-profit tenants in facilities which are
tax exempt continue to pay taxes. '
WITHDRAWN 3-0.
J 8) 4/24/90 GS - 8899 Resolution - St. Paul Relief Association has had
Cj CF - 90683 legislation (HF 2275) introduced which would
��.� grant additional benefits to certain members who
retired prior to 6/1/71.
WITHDRAWN 3-0.
9) (�7/10/90 GS - 10403 Resolution - Approval of a resolution directing
� CF - 901158 City staff to begin lobbying for changes in
�' State law and the LGA formula to address unfair
tax burden for cities with tax.
WITHDRAWN 3-0.
J10) �8/21/90 GS - 10955 Resolution - Approval of a resolution supporting
,� CF - 901450 and affirming position taken by Minnesota
� Legislature in rejecting reinstatement of death
penalty in State of Minnesota.
WITHDRAWN 3-0.
J 11) y12/11/90 GS - 10950 Resolution - Stating if a metropolitan tax is
��, CF - 902013 considered by the 1991 legislature, the City
' prefers a payroll tax to a sales tax and listing
conditions under which the City would support a
metropolitan tax.
WITHDRAWN 3-0.
✓12) /12/11/90 GS - 3367 Resolution - Supporting State legislation which
tl ay CF - 902024 removes replacement housing requirements which
� are in conflict with other laws, burdensome to
cities and interfere with development, and do
not apply to all cities.
WITHDRAWN 3-0.
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