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89-186 WNITE - GITV CLERK 1 PINK - FINANCE COUIICII �//�, A�// CANARV -DEPARTMENT � \ G GITY �' AINT PAUL File NO. • �(( �✓ BLUE - MAVOR ` \ e.� �.f�o,v - e 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 pG��,��^".!tRl 1 Q !:ii,�s w., � _ 1,�8 . ` � , lil;. E}?I'�G PAFER : �lEfi}20POLIT��N T��l P��SE S}�:'1PItiG_ --- --- �-I_:CSC�'�L DI SPAR.I'Ti_F..S_ L_'1td)_ � I4b - � g - �, �acrcr,.ou�n Gr 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. � _ . �'/�� � � COMMITTEE REPORT -ICity Council Legislation Committee Page Two January 23, 1989 i � 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: �