89-186 WNITE - GITV CLERK 1
PINK - FINANCE COUIICII �//�, A�//
CANARV -DEPARTMENT � \ G GITY �' AINT PAUL File NO. • �(( �✓
BLUE - MAVOR ` \
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Presented By � •
Referred To Committee: D e
Out of Committee By D te
WHEREAS , the etropolitan Tax Base Sharing Act (Fiscal
Disparities La ) was enacted in 1971 to enable communities
within the metropolitan area to share commercial and
industrial gro th; and
WHEREAS , fiscalll disparities is designed to reduce the tax
disparities an' other adverse impacts of competition for
commercial and industrial development within the metropolitan
area; and .
WHEREAS , resea ch indicates that the program has successfully
equalized tax urdens on commercial and industrial property
within these communities ; and
WHEREAS , the C ' ty of Saint Paul has contributed a major
portion of its commercial and industrial growth to the fiscal
disparities po 1 over the span of the program; and
WHEREAS , the C ' ty of Saint Paul has received fiscal assistance
from this progfiam;
THEREFORE, BE T RESOLVED THAT the City of Saint Paul supports
continuance of this program in a form which will enhance the
City financial y and result in equalizing commercial and
industrial tax burdens among communities.
COUNCIL MEMBERS
Yeas Nays Requested by Department of:
Dimond
�-�- In Favor
Goswitz
Rettman
Scheibel � Against BY
�fieaaen. '
Wilson
FE� - 2 1989 Form Approved by City Attorney
Adopted by Council: Date n� /
Certified P ss Council S ar By ���' •�_' ����" �~Z����
By ,
Approv y Mayor: Date Appro d by Mayor for Sub i Council
By B
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. ` � , lil;. E}?I'�G PAFER : �lEfi}20POLIT��N T��l P��SE S}�:'1PItiG_
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The �fetro�> litan Tax Base Sliaring Law ( i:he Fiscal DispariL- ies
Law) was f �!r. st enacted in 1971 bv the Minnesota State
Legislatur . Undei• this law, 40% of the increase in
commc.rci.al i_nd�ist.rial assessed value over the 1971 level in
cach metro1'olitan comm��nity is contril�uted b�' each communi_ty
to a met;ro ol it��ri areawide pool . Fach munici.palii:v is
al.located portion of L-his pool , based upon the population of
the munici alit,y, and the ratio between L-Yie average areawide
fiscal cap�ci_t�� and the municipalit��' s own fiscal capacity.
Each taxin tinit; ' s Lax i�ase consists of the value of the
actual pro erty within its borders, adjusted by its net
gain/loss lirough the fiscal disparities contribution and
distributi n formulas. In this way, certain property ta1
revenues a e redistributed without the political problems of
trying to ivide a large "pot" and without creating a new _
layer of g vernment.
STATUS
�
During the 1988 legislative session, the Association of
Metropolit n Municipalities pushed for passage of a bill that
would make the following major and damaging changes to the
fiscal dis arities law: phased out pre-71 exempted
commercial industrial base and added it to the fiscal
disparitie pool over a 20-year period; decreased the
contributi n rate from 40% to 30% over a five-year period;
added Sout Saint Paul to the pool over 20 years; and added
new debt o pre-79 tax increment distributes to the fiscal
disparitie pool .
THE SAINT AUL POSITION
The City o Saint Paul supports continuance of the fiscal
disparitie program in a form which will enhance the City
financiall and result in equalizing commercial and industrial
tax burden among communities .
� ' � G/
� Q� b r!
0
i
WHEREAS , the Metropolitan Tax Base Sharing Act ( Fiscal
Disparitie,s Law} was enacted in 1971 to enable communities
within the metropolitan area to share commercial and
industrial growth; and
WHEREAS, fiscal disparities is designed to reduce the tax '
disparities and other adverse impacts of competition for
commerciali and industrial development within the metrogolitan
area; and '
WHEREAS, research indicates that the program has successfully
equalized tax burdens on commercial and industrial property
within these communities; and
WHEREAS, the City of Saint Paul has contributed a major
portion ofl its commercial and industrial growth to the fiscal
� disparities pool over the span of the program; and
kTHEREAS , the City of Saint Paul has received fiscal assistance
from this program;
THEREFORE, BE IT RESOLVED THAT the City of Saint Paul supports
continuancle of this program in a form which will enhance the
City fina cially and result in equalizing commercial and
industrial tax burdens among communities.
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COMMITTEE REPORT -ICity Council Legislation Committee
Page Two
January 23, 1989 i
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Recommenda ions of the Governor's Commission on Affordable Housing
COMMITTEE ECOMMENDED APPROVAL
Interest R duction Program
COMMITTEE ECOMMENDED APPROVAL
Mortgage R�egistry and Deed Tax
COMMITTEE �RECOMMENDED APPROVAL
arities
Cf�ii�T , OMNIEND�D AP'P`R�0'VAI�
Category: Er�vironment and Quality of Life
Regional $ark Operation and Maintenance Funding
COMMITTEEiRECOMMENDED APPROVAL
Regional �ark Capital Improvement Funding
COMMITTEEIRECOMMENDED APPROVAL
CSO Fundi g
COMMITTEE RECOMMENDED APPROVAL
Solid Was�e
COMMITTEE� RECOMMENDED APPROVAL
Water Rat�s
COMMITTEEiRECOMMENDED APPROVAL
Category: Tr�ansportation
-T
Airport I nd-Banking
COMMITTE�RECO�A�ENDED APPROVAL, AS AMENDED
Transpor ation, Transit and Light Rail Transit Funding
COMMITTE RECOMMENDED APPROVAL, AS AMENDED (4-1 vote)
Category: M'scellaneous
Saint Pa 1 School Board
COMMITTE� RECOMMENDED APPROVAL
Comparab e Worth
COMMITTE RECOMMENDED APPROVAL
Fingerpr nting of Firefighters
COMMITTE RECOMMENDED APPROVAL
THE FOLLOWING MA TERS LISTED FOR CONSIDERATION AT THE MEETING WERE LAID OVER
AND WILL BE DISC SSED AT THE FEBRUARY 6, 1989, MEETING OF THE COMMITTEE:
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