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99-17ORIGINAL Presented By Referred To Council File # 1��, 1 Green Sheet # �/�� `� RESOLUTION CITY OF SAINT PAUL, MINNESOTA m Committee: Date i WHEREAS, the League of Miimesota Cities, which represents 811 of Miunesota's 856 cities, z as well as 10 urban towns and special districts, has led the coordina#ion of inember cities in the a development of the 1999 City Policies for Legislative and Aduiinistrative Action which identifies issues 4 as priorifies for action during the 19991egislative session; and 6 WHEREAS, the City of Saint Paul was an acfive participant in this coordinated effort and the � City approves generally of these priorities; now therefore be it 9 NOW THEREFORE, BE IT RESOLVED, that the City Council of Saint Paul does hereby io recommend for consideration by the Minnesota State Legislature, 1999 City Policies for Legislative and ii Administrative action, submitted by the League of Minnesota Cities and does hereby requests that these iz issues be addressed by the Legislature during the 1999 session. Requested by Department of: �`�� By: Form Approved by City Attorney By: 1 \ _ �- . � �r�..o.�a--�— Approved by Mayor: Date � 2 ��1�/� By: 1L- Adopted by Council: Date ( �`'i�5 Adoption Certi£ied by Council Secretary . By: � —3a �Sr qq-\? DEPARTMENT/OFFICFJCOUNCIL OATE WRIpTED a or� Office 12l29/98 GREEN SHEET No 62'714 COMACT PERSON 8 PHONE MnWloafe InR1aIlDate Bill Huepenbecker 6-8517 � �,�� MUST BE ON CIXINCIL AGENDA BY (DAT� .Tanuary 6, 1999 '�s'�" �, NuYBStrox arvwnoelEY arrcLFrtic ROIRING � ❑rilfi�KJCLtFAV�CCFiGR HlatICNLEERY/M1CRC � II�YOR1��8.RRANi) � ❑ TOTAL # OF SIGNATURE PAGES (CUP ALL LOCATIONS FOR SIGNATURE) CTION REQUESTm City Council approval of the League of Minnesota Cities 1999 City Policies for Legislative and Administrative Action. RECOMMENDATION Approve (A) w eject (R PEIt50NAL SERVICE CONiRACfS MUSTANSWER iXE FOLLOWING QUESiIONS: 1. Has this persoNfirm e+er worked under a contraG for this tlepartment� PLANNINGCOMMISSION YES NO CIB COMMR'i'EE 2. Has this persaVfrtm ever been a city empbyee7 CIVILSERVICECOMMISSION YES NO 3. Does th� persoNfirm possess a sidll n� na�maltypossessed by any curterR city employee? YES NO 4. Is Ni8 V�Mrtn a tarpeted ventlaYl YES NO F�lain a0 yes answeis an separate sAeM and attach to green shee[ INITIATING PROBLEM ISSUE, OPPORTUNITV (Who, What, When, Where, Why) Saint Paul is an active member of the League of Cities and a participant in the effort to develop the League's legislative policies. ADVANTAGESIFAPPROVED The City shows support for the League of Minnesota.Cities, an association we work closely with on many issues at the legislature and throughout the year. DISADVANTAGES IF APPROVED None. DISADVANTAGES IF NOT APPROVED TOTAL AMOUNT OF TRANSACTION S COST/REVQlUE 9UDGETEG (CIRCLE ONEj YES NO FUNOING SOURCE ACTIYITY NUMBER FiruNCw�rc�otn�unow�owwM �s�i�' �.,�: ;"`S?.`,^.�rr�°; 4n.�-a;n§o� ��1998 � ' q�-�'7 � � � i f , , � � ---- i r - � — t �� — ; y j� , � � r ; ; ` ( i--� i !-- i ' : � �lII �i� :ii i�. i Ii �'"—'fiii , t , �� --- -(! f`- � i �l�i(� ' � C ;�,ti� r;��;. ;,I� �;}�� {;i, ; I,ii I� ,� ;,E I�; ��;;- ! Fi�fl �;�� f i;:�ll '`� � � i{ tl j�Ii� i�l (� ��I��t (! � f il:�l �i�l�i (E�E�� !i'341 ��i�� i��}If I�:� �Ei� i�j�'i �� i i(' . I�i :: f i. �'l� .�'ft�*!I � i__f i� 4' i� li I 4{ � '•I�.�_. 1 � t� �� 'i'__ i j�: I :!I �;f: Et{ � (j I � I j ` ^i � t � i:_ � � `ij` :ii �I �! I � _'._. l._.__. ! { �� . . 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' � � ' ' � � � ' - — . ___. � __ www.linnc.org' ` — — I a � � SJ �I � _� ' i � � � � CONTENTS 9 °t - �? League Staff .................................................................. iii Legislative Policy Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv Policy DevelopmentProcess ..................................................... vii 1999 CITY POLICIES GeneralPolicy Statement ....................................................... 1 Improving Community Life CL-1. Livable Communities .................................................. 2 Improving Fiscal Futures FF- ] . FF-2. FF-3. FF-4. FF-S. FF-6. FF-7. FF-8. FF-9. FF-10. FF-11. FF-12. FF-13. FF-14. FF-I5. FF-16. FF-17. FF-18. FF-19. State-Local Fiscal Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State Shared Revenues ................................................. TaYation of Municipal Bond Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City Fisca] Year ...................................................... Sates Tas on Local Government Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Delinquent Property Tax Penalties and Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PaymentsforServicesto Tax-Exem ptPropeRy ............................. Truth-in-Taxation ..................................................... State Administrative Deductions from State Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reporting Requirements ................................................ FederalBudgetCutbacks ................................................ LocalPerformance Aid ................................................. Price of Government ................................................... CapitalImprovement�ees ............................................... Deferred Assessmentsfor Roads .......................................... Taxation of Electronic Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Local Option Sales Tax ................................................ Limited Market Value ................................................. State Charges for Administrative Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Improving Local Economies LE- I . LE-2. LE-3. LE-4. LE-5. LE-6. LE-7, LE-8. LE-9. LE- ] 0. LE-11. TaxIncrementFinancing ............................................... TIF Recodification .................................................... TIF Reform .................................... ...................... Impacts of Property Tax Reform on Existing TIF Districts . . . . . . . . . . . . . . . . . . . . . Corporate Subsidy Reform . ......................................... .... Economic DevetopmentPrograms ........................................ Redevzlopme�tPro�rams ............................................... Property Tas Abatement Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brownfizlds ......................................................... Gro��th �IanaQement and Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State an�'or County Licensed Residential Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 5 5 5 6 6 6 6 6 6 7 7 7 8 8 8 9 9 10 10 10 11 11 ]2 12 12 13 13 14 � 1999 Citr' Policies ol q -1'1 LE-12. LE-13. LE-14. LE-I5. LE-1 b. LE-17. LE-18. LE-19. LE-20. LE-21. LE-22. LE-23. LE-24. LE-25. LE-26. Housing Economic Viability ............................................ Housing Presen�ation .................................................. City Role in Telecommunications . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . .. . .. . . . . .. Adequate Funding for Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State Aid for L3rban Road Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tumbacks of County and State Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Road Funding for Cities Under 5,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Railroad-Related Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access Management and Plat Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rightof Way Management ............................................. Effective Telecommunications Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Local Zoning Regulation of Telecommunications Facilities . . . . . . . . . . . . . . . . . . . . Workforce Readiness ................................................... Platting Law Recodification ............................................. Economic Development Authorities . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . . . . . is 15 16 16 17 17 17 18 18 19 19 19 19 20 20 Improving Service Delivery SD-1. SD-2. SD-3. SD-4. SD-5. SD-6. SD-7. SD-8. SD-9. SD-10. SD-I1. SD-12. SD-13. SD-14. SD-15. SD-16. SD-17. SD-18. SD-19. SD-2Q. SD-21. SD-22. SD-23. Redesigning and Reinventing Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unfunded Mandates ................................................... Civil Liability of Local Governments .. . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . Environmental Protection . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E{ectionIssues ....................................................... LocalElection Authority ................................................ City Costs for Enforcing State and Local Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access to Information Technology and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Design -Build ......................................................... Mobile Home Park Oversight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Providing Information to Citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Creating a Minnesota GIS Program ....................................... State Regulation of Massage Therapists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Private Propecty Rights and Takings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statewide Building Code ............................................... Building Code Department Special Revenue Accounts . . . . . . . . . . . . . . . . . . . . . . . . Municipal Administative Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reforestation ......................................................... Board of Firefighter Training ............................................ Witness Fees ......................................................... State Appropriation for Government Training Service (GTS) . . . . . . . . . . . . . . . . . . . Year20001ssues ...................................................... New Public Safety Spectrum Needs . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 20 21 22 22 23 23 24 24 24 25 25 26 26 26 27 27 28 28 28 29 29 29 30 Electric Deregulation ......................................................... 31 Personnel,Pensions,and Labor Relations ........................................ 34 ii League of Minnesota Cities � � � � LEAGUE STAFF WORHING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications aq ..t� � Gary Carlson, Airector of Intergovernmental Relations General revenue sources for cities including aid to cities and the property tax system, fiscai administration of cities, economic development and � � � � ` ! redevelopment, personnel, transportation Kevin Frazell, Director of Member Services Government ►nnovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, telecommunications Ann Higgins, Intergovernmental Relations Representative Telecommunications, housing, elections and ethics, utility service districts, transportation Andrea Stearns, Intergovernmental Relations Representative � Tax increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing, public safety, general municipa! � � governance Remi Stone, Intergovernmental Relations Representative Growth management and land use, environmental protection, personnel Eric Willette, Intergovernmental Relations Representative � General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, pensions � � 1999 Cit� Policies iii �� Legislative Policy Committee Members Improving Community Life Cathy Busho, Chair, Mayor, Rosemount Laurie Ahrens, Ciry Clerk, Piymouth Rosemary Given Amble, Councilmember, Bemidji Bill Barnhart, Inter�ovemmental Relations, Minneapolis Kevin Satchelder, City Administrator, Mendota Heights Merry Beckman, Assn of Minnesota Counties, St. Paul Sohn Blahna, Mayor, Landfall Kathleen Carmody, Counciimember, Brooklyn Center Peter Connor, Mayor, Owatonna Lorenzo Davis, Voluntzer Coordinator, Childrens Home Society, St. Paui Colleen Dirkswager, COS Coordinator, Maplewood Mike Ericson, Assistant to Ciry Manager, Map(ewood Sharon Feess, CounciVmember, Brookiyn Park Walter Fehst, City Manager, Columbia Heights Evelyn Fox, Councilmember, Breckenridge Sue Gehn, Mayor, Falcon Hei�hts Hazlan Gorath, Councilmember, Fairmont Arly Gunderman, Councilmember, New Brighton Vivian Hart, West St. Paul Sue Henry, Administrative Aide, St. Cloud Fran Hesch, Councilmember, Hop{:ins Donna Holstine, Mayor, Fairmont James Hurm, City Administrator, Shorewood Greg Isaacksoa, Clerrk/Administrator(Treassurer, Cottonwood Julianne Manship, Lake Elmo Marcia Marcoux, Councilmember, Rochester Sandy Masin, Councifinember, Eagan Jaznes L. Mladek, Mayor, Montgomery Ed Mlynar, Mayor, Lester Prairie Joan Mo3enaar, Councilmember, Champlin Deborah Moran, Councilmember, Burnsville Judd Mowry, Councilmember, Tonka Bay Larry Nicholson, Councilmem6er, Moorhead Bev O'Connor, MSBA Board, Golden Valley Isobel Rapaich, Councilmember, Duluth Chip Robinson, City Administrator, Forest Lake Paul Robinson, Clerk-Treasurer, Medina Char Samuelson, Councilmember, New Brighton Barbara Sanderson, Councilmember, Grand Rapids Setty Sindt, Councilmember, Lakeville Dawn Weitzel, Communications Specialist, Richfield Jeff Weldon, City Administrator, Redwood Falls Denny Wilde, City Administrator, Paynesville Patrick Wussow, Administrator/Clerk, Tonka Bay Duane Zaun, Mayor, Lakeville Improving Fiscal Futures Dan Vogc, Chair, City Administrator, Brainerd Terri Heaton, Vice Chair, Chief Fi�ancial Officer, Bloomington Richard Abraham, Ciry Administrator, Lake City Karen Anderson, Mayor, Minnetonka Tom Burt, Ciry Administrator, Rosemount Gino Businaro, Finance Director, Mound Jane Chambers, Assistant Ciry Manager, Brooklyn Center Tom Cran, Budget Office, St. Paul John Erar, Ciry Administrator, Farmington Jerry Faust, Councilmember, St. Anthony Bob Fiison, Ciry Administrator, Worthington Roger Fraser, City Manager, Blaine Mary Gover, Councilmember, St. Peter John Gretz, City Adminis[rator, Apple Valley Jeff Haubrich, Assistant Councii Administrator, Red Wing Steve Helget, City Administrator, Ea�le Lake Pat Hentges, City Manager, Manl:ato Bill Huepenbecker, Intergovernmental Relations Director, St. Paul Greg Isaackson, Clerk-Administrator, Cottonwood Joel Jamnik, Campbell Knutson, Eagan Larry Juhl, Mayor, New London E(izabeth Kautz, Mayor, Bumsville James Keinath, City Administrator, Circle Pines Dennis Krafr, City Manager, Robbinsdale Bob Larson, Ciry Administrator, Deephaven Joe Lynch, City Administrator, Long Lake Tom Melena, City Administrator, Oak Park Hts Steve Mietke, City Manager, Hopkins Ed Mlynar, Mayor, Lester Prairie 7ohn Moir, Finance Director, Minneapolis Gary Neumann, Assistant Administrator, Rochster Cote O'Donne!(, City Adminisvatoc, Renville Steve O'Malley, Deputy Manager, Bumsville (altemate) Steve Okins, Finance Director, Wilfmar Douglas Reeder, City Administrator, So. St. Paul Ryan Schroeder, City Administrator, Cottage Grove Alfred Schumann, Mayor, Eyota 7ennifer Schwinn, Finance Director, Big Lake Jim Smith, Councilmember, Independence Geraid Sorenson, Administrative Services Director, Moorhead Pete Stolley, PubLc Works Department, Northfie]d Ioy Tiemey, Mayor, Plymouth David Mark Urbia, Ciry Administrator, Blue Eaah Gene VanOverbeke, Finance Director, Eagan iv League ofMinnesota Cities � � Jeff VanWychen,lnter�ovemmental Relations, � Minneapolis (altemate) Chuck Whitin„ City Administrazor, Mounds View 7im Willis, Ciry Administrator, Inver Grove Hts Rick Wolfstetler, City Administrator, Monticello � � � . _ � � � � � � � � � � Improving Local Economies Duane Zauq Chair, Mayor, Lakeville Leo W. Eldred, Vice-Chair, Councilmember, Moorhead Kirsten Barsness, Economic DeveloQment Director, Cottage Grove David Beaudet, Councilmember, Oak Park Hu Bob Benke, Mayor, New Bri�hton Steve Bjork, City PlannerlCoordinator, St. Francis Carolyn Bloni�an, City Clerk, Avon Curt Bo�aney, City Manager, Brooklyn Park Jerry Bohnsack, City Administrator, New Ptague Lavonne Sowman, Councilmember, Fairmont Gerafd Brever, Ciry Administrator, Staples Kevin Carroli, Councilmember, Rosemount David Childs, City Mana�er, Minnetonka Bonniz Cumberland, Mayor, Brainerd Grant Femelius, Housing Coordinator, Fridley Keith Ford, Community Devetopment Agency, Minneapolis Matt Fulton, City Manager, New Brighton Richard Fursman, City Administrator, Andover Tom Goodwiq Councilmember, App(e Valley Robert Haeussinger, City Administrator, Dod�e Center Tom Hansen, Depury Manager Administrative Entecprises, Bumsviile Tom Harmenin�, Communiry Development Director, St. Louis Park Pat Heldt, Councilmember, Alexandria Jon Hohenstein, Ciry Administrator, Mahtomedi Susan Hoyt, Ciry Administrator, Falcon Heights Sill Huepenbecker, Intergovemmental Relations Director, St. Paul Curtis Jacobseq City Administrator, Bi� Lake Marvin Johnson, Mayor, Independence Brenda Johnson, Counci(member, Chatfield Andrea Hart Kajer, Intergovemmental Re]ations Director, Minneapolis (altemate) Randy Kolb, Councilmember, Blaine Sandra Krzhsbach, Councilmember, Mendota Hei�hts Larry Lee, Community Deveiopment Director, B(oomin�ton vlarcia Marcoux, Councilmember, Rochzster �tichael McGuire. Ciry Mana�er, Maplewood :��Iark hase!. Cirv �tanaoer, Anoka Dennis \eison, City Admtnis[rator, Windom Ro�e: Peterson, A.Vi�.Vi, St_ Paul 1999 City Policies �[9-�7 Bruce Peterson, Director Plannin� & Development Services, Willmar Gene Ranieri, AMM, Executive Director, St. Paul Mike Reardon, Cab(e Administrator, Bumsville Dan Ro�ness, Community Development Director, Rosemaunt Joe Rudber„ Administrator, Becker Nancy Rys-Nico(, Management Assistant, Shoreview Mark Sather, Ciry Manager, White Bear Lake Terry Schneider, Counciimembzr, Minnetonka Daniel Tempel, Housin� Coordinator, Maple Grove Robert Therres, Ciry Adminisuator, Sartell Ann Thies, Councilmember, Medina Craig Waldron, City Administrator, Oakdaie Jeff Weidon, Ciry Administrator, Redwood FaUs Julia VJhalen, Councilmember, Champlin Denny Wilde, City Administrator, Paynesville Betty Zachmann, C(zrk-Treasurer, Winsted Improving Service Delivery Glenda Spiotta, Chair, Ciry Administrator, Carver and Sunfish Lake Mark Karnowski, Vice Chair, City Administrator, Lindstrom Pac Crawford, Clerk-Tceasurer, Motley Ierry Dulear, City Manager, Crystal Theresa Goble, Finance Direc[or, Brainerd 3oe1 Hanson, Administrator, Little Canada Kay Kuhlmann, Council Administrator, Red Wing Ed Mfynar, Mayor, Lester Prairie Judd Mowry, Counci(member, Tonka Bay Susan Olesen, Clerk, Bumsville Sandra Colvin Roy, Counciimember, Minneapolis David Senjem, Councilmember, Rochester Chad Shryock, City Administrator, Wabasha Joyce Twistol, ClerklPersonnel Director, Btaine Karen Low'ery Wagner, Inter�ovemmenial Rela[ions, Minneapolis (altemate) Rena Weber, CIerWCoordinator, Cold Spring Phil Zie[low, Councilmem6er, Medina Efectric Deregutation Task Force Kathleen Sheran, Chair, Councilmembe�, Mankato Bryan Adams, Utility Superintzndent, E!k River Jim Asplund, Flaherty & Koebele, St. Paul Larry Bakken, Counciimember, Golden Valley Mike Bash, Councilmember, Lon� Lake David Bero, RW Beck, Minneapolis Troy Bonkowske, Public Works_ Caledonia Jim Brim:}er, Counciimzmbzr, S. Louis Park Chuck Canfizld. Mayor, Rochz>te; Al Crowse;, Utilities Genzral ,4tanagec, Alexandria Robert Filson, Ciry Administrator. Warthington v q`�r� Paul Grabitske, City Administrator, Janesviile James Gromberg, Cicy Administrator, Isanti Delvin Haa„ Councilmember, Buffalo Ken Hartun„ Ciry Administrator, Ba}•port 7effrey Haubrich, Asst. To Council Administrator, Red Win� Sue Hess, Councilmember, St. Cloud Steven Jones, Ciry Manager, Montevideo Elizabeth Kaut2, Mayor, Bumsville Mark Larson, Clerk-Administrator, Glencoe Charles Merteasotto, Mayor, Mendota Heighu Mary So Murray, Policy Analysis Director, Minnesota Municipai Utilities Associa[ion Robert Museus, City Administrator, Hu�o Mark Na�el, Ciry Manager, Anoka Paul Ostrow, Councilmember, Minneapotis John Remkus, Finance Director, West St. Paul Joe Rudberg, City Administator, Becker Brad Scott, City Administrator, Sandstone Jerry Splinter, City Manager, Coon Rapids Jim Willis, City Administrator, Inver Grove Heights Wally Wysopal, City Manager-Clerk, North SC Paul Personnel Services Committee Joyce Twistol, Chair, CIerIJPersonnel Dic, Blaine Geralyn Barone, Asst. City Manager, Minnetonka Patricia Crawford, Cterk, Motley Holly Duffy, AssL To Mana�er, Eagan Jerry Du]�ar, City Manager, Crystal Christina Frankenfield, City Administrator, Howard Lake Jean Gramling, City Administrator, Savage Terry Haltiner, Risk Analyst, St. Paul Ken Hartung, City Administrator, Bayport Kay Kuhlmann, Council Administrator, Red Wing Karen Kurt, Personnel Manager, Roseville Ed Larson, Ciry Manager, Morris Kay McAloney, Personnel Director, Anoka Tim Madigaq Ciry Administrator, Faribault Ceil Smith, Asst. To Mana�er, Edina Jerry Splinter, City Manager, Coon Rapids Elizabeth Wheeler, Human Resources/Risk Manager, Northfield Harold Windschitl, Counci(member, Sleepy Eye vi League of Minnesota Cities ; � � � i�__1 � � �_-i aa - �� League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past six months. The process began with a member survey of priority issues facing city officials. The process will not end with the Policy Adoption Conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop alternative sotutions, and discuss strategies to implement the League's policies. Listed below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. April/May June The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. The League President accepts applications for committees and appoints policy committee members. The policy committees are: lmpcoving Fiscal Futures Improving Local Economies Improving Service Delivery Personnel Services Electric Deregulation In addition, the Improving Community Life Committee meets on a regular basis to � discuss issues affecting ]ivable communities and to develop the Improving Community Life policy guideline. � Tuly Committees meet to discuss issues raised in the member sucvey. Commitees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. � � :�_ �-1 �� August Committees and task forces meet to discuss issues and problems, accept through testimony and develop policy statements. September October The Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the five policy committees. November January through 14fav Policy Adoption Conference. Members have the opportunity to discuss the drafr po(icies, propose changes, and suggest additional policies for member consideration. Leeisla�ive session. Durin� the session, the policy committees and task forces will continue to meet on issues and scrate�ies. h4embers can assist the Lzague's le;isiative effotts by volunceering ce contacc legisiators on a varizry of issues of in�erest to our ci[ies. � 1999 CitS� Policies vii qq-i� 1999 City Policies � � � � � � � �� r�q-�'7 General Policy Statement The League of Minnesota Cities serves as a forum for cities to define common problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 816 of Minnesota s 853 cities as well as 12 urban towns and 25 special districts. All sizes of communities are represented among the League's members (the largest nonmember city has a population of 170) and all regions of the state aze represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies: 1. There is a need for a governmental system that allo�vs flexibility and authority for cities � to meet the challenges of goveming and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and, 2. The financial and technical requirements for governing and providin� services necessitate a continuing and strengthened partnership with federal, state, and local govemments. This partnership, particularly in the areas of finance, development, housing, environment and transportation, is critical for the successful operation of Minnesota's cities and the well-being of residents. 1949 Ciri� qq-1�1 � IMPROVING COMMUNITY LIFE CL-1. Livabte Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local govemments to work together in partnership to make every community "livable." ISSUE: Cities in Minnesota aze at various stages in meeting the goal of being "livable communities." RESPONSE: The definition of a"livable community" belo�v will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota citeis to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable coramunities. A LIVABLE COMMUNITY IS: WHERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: * safe * a sense of belonging * welcome • engage in life-long leaming activities that: * prepare them for responsible citizenship * enhance the enj oyment of life * prepaze them for changing j ob mazkets • participate in the decision-making process of community leaders • celebrate community • want to make thefr home • have accessto: * goodpayingjobs * adequate and affordable housing * choice of efficient transportation systems including transit, pedestrians, and bicycles � � 2 League of Minnesota Cities � 0 � � � �� C� � I� J L.� ■�.� � �q-l� * gathering places * desired information * choice of cultural and recreational activities * affordable goods and services, including health caze • aze involved in the nurturing of youth • caze about their homes, community, and the environment • get to know each other • have the benefit of strong family support and nurturing adults WHERE LOCAL GOVERNMENT • is responsive to the needs of its citizens • is actively supported by enthusiastic volunteers • is open and user friendly • encourages and implements cooperation and collaboration • provides and maintains an adequate physical infrastructure and promotes social infrastructure to meetlocalneeds s educates citizens of all ages on local, regional, and state issues and govemment processes • informs and communicates with citizens to foster participation in public policy decision- making • participates in youth development � 1999 City Policies 3 �tq -�� IMPROVING FISCAL FUT"URES FF-1. State-Local �'iscal Relations Issue: Minnesota's state and local government finance system is complex and intertwined. Cities rely on their partnership with the state to provide local services. On the other hand, the needs and desires of Minnesota's communities are many and wide-ran�ing. While the state's revenue- sharing system has been regatded as innovative and helpful, there exists a growing need for local elected officials, those closest to the electorate, to be responsive to the service needs ofthe local citizenry. To that end, cities need discretion and flexibility in determining local revenues. The 1997 and 1998 legislatures made changes to Minnesota's property tax system that will impact the ability of local governments to fund necessary services. The reimposition of le�ry limits, significant class rate compression, and chan�es in state funding of schoois all may have unintended consequences. Respo�:se: As the Legislature considers additional property tax changes, it should: � Carefully analyze the combined impacts of the 1997 and 1998 tax bills and chanbing economic circumstances on the taxpayer and on local governments so that policy makers can better understand where the system may need further changes; • Diversify available city revenue sources by generally authorizing cities to impose a local option sales tax with voter approval; and • Reduce the property tax burden for all classes of propert} by increasing the state share of school funding. Any increase in the state share of school funding must guarantee a permanent reducfion in the local property tax burden. The League supports paying for the increased state costs through income and sales tases. The Legislature should not: • Extend le�ry limits, which are inefficient, ineffective, interfere with local accountability, and ignore local circumstances; • Replace all or part of LGA or HACA with state-mandated categorical aid programs, or local option taxing authority; • S�vitch from the classification system to a market value based system, which would cause tremendous shifts of tax burden behveen classes of property. The League aiso opposes applying all future levy increases to market value because this would further complicate the property tax system; • Expand the limited market value la�v; • Interfere in local decision-making regarding service delivery; • Impose a state-levied property tas; nor • Cut LGA or HACA to finance an increased state role in school finance. FF State Shared Revenues Issue: State revenue sharing programs address at least three problems with a stand- alone local govemment finance system. First, the property tax base available to communities can vary dramatically. These � 4 League of Minnesota Cities � � � � L� _! Y�' �� C _f �_l 1 :_I �� programs use state resources to equalize the ability of communities to provide essential services without undue property tax burdens for local residents. Second, nonresidents can take advantage of local services or create additional demands for services without contributing to the taxes that support these services. LGA and HACA help address the free rider problem where nonpayin� individuals consume services without contributing to the local tax base. Third, allowing local units of govemment in Minnesota to only levy the property tax has created an over-reliance on the property tax. LGA and HACA can reduce the overall reliance of local governments on the property tax. Response: LGA and HACA, or similar replacement revenues, must be continued and additional state resources greater than the rate of inflation must be ailocated to prevent rapid future property tax increases. In addition, the HACA household growth factor for cities should be reinstated. FF-3. Taxation of Municipal Bond Interest Issue: The state law that grants a tax exemption for municipal bond interest is being reviewed and couid be repealed. A repeal of this exemption will raise bonowing costs for cities. Respor:se: The state should maintain the tas exemption for municipa( 6ond interest income. ��-�'1 FF-4. City Fiscal Year Issue: The fiscal yeazs for the state and cities aze offset by six months. The state fiscal yeaz begins on July 1 while the city fiscal yeaz begins on January 1. Lawmakers have proposed chan�ing the city fiscal yeaz to coincide with the state. Such a change, while providing questionable benefits for cities, would not correspond with the current property tax cycle, «�ould impair historical comparisons of data, would force cities to retool accounting systems, would adversely impact city credit ratin�s, and could result in state funding gaps. Response: The state should maintain current la�v and not change the city fiscal year to coincide with the state fiscal year. FF-5. Sales Tax on Local Government Purchases Issue: In 1992 when the state was experiencing a bud�et shortfall, the Legislature repealed the sales tax exemption for local govemment purchases. Local governments no�v pa}� state sales tax on purchases like road maintenance supplies and equipment, wastewater treatment facilities, and buildine materials for affordable housing. This action currently costs local govemments an estimated $78.3 million annually. Because no additional state aids were added to offset the additional cost, this repeal has effectively increased local property taxes to finance state operations. Respor:se: The state shouid reinstate the sales tax esemption for all local government purchases. The exemption must not be coupled �tiith cuts in LGA or H�CA. � 1999 City Policies g a� -�� FF-6. Delinquent Property Tax Penalties and Tnteresf Issue: Although city finances aze affected by property tax delinquencies, cities do not receive any associated penalties and interest on these delinquencies. Penalties budget for unforeseen needs that arise afrer September 15. Response: Cities should have the authority to increase the final levy from the preliminary levy to meet unforeseen and uncontroilable needs. � L�l � and interest are split evenly between counties and schoois. Response: Cities and counties should receive a pro-rata distribution of 50 percent of the penalties and interest collected on delinquent property taxes with the remaining 50 percent to be distributed to schools. FF-7. Payments for Services to Tax-Exempt Property Issue: Taxable property in many cities is being acquired by nonprofit and government entities. Converting the property to tax- exempt status can lead to a serious tax base erosion without any cottesponding reduction in the service needs created by the property. Response: Cities should be allowed to collect special assessments or other payments in lieu of property taxes (or special assessments) from statutorily exempt property owners to cover costs of service. FF-8. Truth-in-Taxation Issue: Cities must set a preliminary levy by September 15 which, by law, becomes the maximum that cities can levy for the following year. In recent years, cities have not received complete tax base and aid information in a timely manner. As a result, cities often either set a preliminary levy that is artificiaily hieh or they are unable to FF-9. State Administrative Deductions from State Aid Issue: State administrative costs aze deducted from the LGA appropriation. This reduces the property tax relief provided by LGA and creates hidden appropriations for state agencies. Response: All appropriations from LGA resources that fund state operations should be repealed. FF-1�. Reporting Requirements Issue: Budget and financial reporting requirements imposed on cities by the state often result in duplication and additional costs. Bespanse: Requirements for reporting and advertising financial and budget information should be carefully weighed to balance the validity of the s±ate's need for additional information with the costs and burdens of compiling and submitting this information. In addition, all state agencies should be arrare of the information already required by others to avoid duplication of reporting requirements. FF-11. Federal Budget Cutbacks Issue: Congressional actions to balance the federal budget will reduce federal � � � 6 League of Minnesota Cities �`t'�1 � � � 1 � � 1�: �! � ��.I :f, � � � � assistance to the state and to local govemments. Response: The state should not reduce aids or increase fees to local governments as a means for dealing with cutbacks in federal revenues. The state should take responsibility for reductions in federal revenues rather than placing the burden on cities and their property taspayers. FF-12. Local Performance Aid Issue: When the 1996 Legislature created the local performance aid program, the legislation was vague and the program was partially funded by cuts in HACA. In the future, the requirements for applying for the aid could become an onerous mandate on cities and undermine tocat decision-making. Response: The League strongly supports efforts by cities to improve the efficiency and effectiveness of their operations, including exercises such as performance measurement systems. However, these efforts should be local initiatives rather than state-mandated actions. Therefore, the League opposes LPA. If local performance aid is to be continued: • The law must be clariFied and the qualification requirements must be attainable by all cities regardless of city size or staffing levels; • All additional funding must come from new revenue sources rather than shifts of aid from other programs such as LGA and HACA; • The program musY not become an onerous mandate requiring additional cih resources; and •?.nr' information on indi� idual cifies that is collected from the program must not be used to simplistically compare cities. FF-13. Price of Government Issue: The price of government legislation enacted in 1994 was intended to measure the overall effect of state and local taxation over a long period of time. The targets measure govemment revenues as a percent of personal income. Unfortunately, the targets have been misinterpreted and used unfairly to criticize city tax and budget decisions. Response: The price of government statutes as they apply to locai governments should be repealed. If the price of government law is to continue to be applied to local governments, price of government calculations should be: • based on the sum of levy and state aid, not just levy; and • based on long-term trends, not single- year events. FF-14. Capital Improvement Fees Issue: New development and thc resulting growth create an increased demand for public infrastructure and other public facilities. Severe constraints on local fiscal resources and dramatic forecasts for population growth have prompted cities to critically reconsider �cays to pay for the inevitable costs associated with new development. Traditional financing methods tend to subsidize new development at the expense of the existin� community, discourase sound land use planning, place inefficient pressures on public facilities, and allo�r underutilizatior. of existins infrastructure. Conseauentl�.local communities are exploring metnods to � 1999 City Policies ? a� -�� ensure that new development pa}•s its fair shaze of the true costs of growth. Given the existing authorization to impose f es on ne«� development for ��,•ater, sanitary and storm sewer, and pazk purposes, it is reasonable to extend the concept to additional public infrastructure and facilities improvement also necessitated by new development. is brought into the cit}•, the city may assess that ne�cl}� acquired property for road improvements pre� done but not assessed at the time of the improvements. FF-16. Taxation of Electronic Commerce Response: The Legislature should authorize cities to impose capital improvement fees so new development pays its fair share of the off-site, as well as the on-site, costs of public infrastructure and other public facilities needed to adequately serve new deve(opment. FF-15. Deferred Assessments for Roads Issue: Current law allows a city to recoup the costs for water, storm sewer, or sanitary sewer improvements by levying additional assessments on the property benefiting frocn the improvement, but not previously assessed. This authority for defened assessment has not been extended to otherinfrastructure, such as road improvements, even though properties aze benefiting from the improvements. Respoi:se: Cities should be able to assess the cost of infrastructure improvements for roads. Cities should be allowed to defer assessments against property located outside the city for road improvements benefiting property abutting the improvement but not previously assessed for the improvement. For example, if a city makes road improvements to a road that benefits city residents and to�cnship residents, the city may defer the assessments to the township property until the property is brought into the city. Once the toi��nship property Issue: Sales over the Tntemet and through other electronic means are projected to increase exponentially over the next several years. Because of the difficulty of assigning a location to elecironac sales, because many Internet "goods" are not tangible property, and due to potential federal intervention, electronic transactions pose significant tax policy challenges. Response: Federal tax policy must not put main street businesses at a competitive disadvantage to electronic retaiters, must not jeopardize repayment of bonds backed by state and local sales tax revenues, and should ensure stability in state and local revenues. FF-17. Local Option Sales Taxes Issue: Last year, the Legislature authorized local sales taxes for 13 cities to fund regional projects in nine greater Minnesota regional centers. Most Minnesota cities would benefit from diversification of the revenue sources available to them to relieve the local property taY burden. Respo�tse: The Legislature should generally authorize local sales taxes for cities upon local approval. g League of Ylinnesota Cities � L� � Y � � � FF-18. Limited Market Value Issue: Rapidly rising property values in some parts of the state have fueled legislative proposals to expand the current limited mazket value 1aw. One proposal �vould establish the consumer price index as the maximum annual mazket value increase and extend the limit to all classes of property. Further restricting market value increases would have several negative consequences: � • It would unfairly shifr taxes from properties experiencing growth in value onto all other properties. � • Over the long-term, similar properties would be taxed at widely different rates � � merely due to when the properties were last sold. • It could discourage the sale of property because sales would retum the property to full market value for tax purposes. • It would discourage improvements to � property, which would trigger a retum to full market value for tax purposes. This could lead to degradation of housing and � other types of property. • It could adversely affectthe ability of cities to bond for infrastructure � improvements or for tax increment financing since local tax bases would not reflect the growth in property values. � • Once implemented, limited mazket value provisions are politically difficult to � � � qq-�� sunset due to the potential for lazge one- year tax shifts onto properties whose values were artificially capped by the program. Response: The League opposes any expansion of the limited market value law. FF-19. State Charges for Administrative Services Issue: Currently, some state agencies have wide discretion in setting the fees for special services they provide to local governments. For example, the Minnesota Department of Revenue recently increased the fee for administering local sales taxes by 80 percent in the middle of a budget yeaz with less than six weeks notice. The increase had no apparent relationship to increased cost of providing the service. Respo�:se: State agencies should be required to demonstrate the need for increases in service fees, and should give adequate notice of increases to allow local governments to budget for the increases. State agencies should set administrative service fees as close as possible to the marginal cost of pro��iding the service. Local government should be given the option to self-administer or contract with the private sector for the service if the state cannot provide the service at a reasonable cost. � 1999 City Policies 9 �.q-�� IMPROVING LOCAL ECONOMIES LE-1. Tas Increment �'inancing (TIF) Issue: The state has effectively delegated the responsibility for economic development and redevelopment to cities. Unfortunately, neighboring states have given their cities more development tools and, therefore, cities in these states have a competitive advanta�e over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to all cities in their economic development and redevelopment efforts. The state, whether based on a lack of information or misinformation, has been critical of cities' use of the tool and has implemented a series of restrictions over the past several years, rather than partnering with cities and encouraging their endeavors to improve and enhance the economic well-being of Minnesota and the growth and redevelopment of its cities. Cities, required to assume the financial risks associated with development decisions, have used tax increment financing responsibly and examples of these positive uses abound. Response: To effectively compete with other states, Minnesota must provide its cities greater flexibility in the use of tax increment financing and other economic development programs. The state should partner with cities in economic development and redevelopment activities, and encourage cities' use of tax increment in achieving the laudable goals of long-term tax base stabilization and growth, job creation, development of low- to-moderate income housing, remediation of pollufion, elimination of blight, recycling and redevelopment of the infrastructure, and rede�•elopment of its communities. Counties and school districts are appropriately im�olved in cities' development decisions fhrough current "review and comment" requirements. LE-2. TIF Recodification Issue: A legislative task force was created by the 1997 Legislature and directed to recodify the tax increment statutes for the purpose of simplification only, with no policy implications. Respoi:se: TIF recodification legislation should remain an independent bill. Any TIF policy issues identified shouid be separately addressed. LE-3. TIF Reform Issue: It is likely that several TIF policy issues will be identified during the 1999 legislative session. Respa:se: Along �eith these policy issues, the Legislature should equaliy consider: • Clarifying that any tax increment districts approved beriveen 1979 and 1982 ha�e the same authority to pool increments as districts certified after 1982 and prior to April 1,1990; • Authorizing any tax increment districts approved after April 1, 1990, to pool increments in the same manner as districts certified prior fo Apri11,1990; • In light of levy limits, eliminate the LGA/HACA penaity currently � 10 League of Minnesota Cities � � � � imposed on districts or a31ow an exception from levy limits. If the penalty is not eliminated, the restrictions on the source of payment shouid be removed; • Expanding the use of tas increment financing to assist in the development � offechnologicalinfrastructure,job training, the restoration of historic � �< � F�J � structures, and for nonretail commercial projects (e.g., sofhvare companies, banks, and insurance companies); • Exempting redevelopment districts from the'�five year rule"; • Modifying the housing district income qualification level requirements to allow the levels to vary according to those specific to individual communities; • Authorizing the use of federal grants and other funds for local contributions; • Removing the LGA/HACA penalty � imposed on housing districts established beriveen the penalty years �. � � � � of 1990 and 1993; • Making any necessary statutory changes to allotv the Office of the State Auditor to simplify its TIF reporting forms in consultation with those required to complete the forms; and • Authorizing TIF financial information to be published in a more simplified format so it provides the average taspayer with useful information. LE-4. Impact of Property Tax Reform on Existing TiF Districts � Issue: The 1997 and 1998 Legislatures compressed proper.y� tax class rates which, in tu.*n. jeopardized the repa}�menc of � ouist2nding debt o- other obligations in existi.^.g TIF districts. Giver. the long-term � 1999 Cih Policies Q9-I? nature of property tax reform, cities could not have anticipated the impact of the 1997 and 1998 class rate changes, nor can cities project the impact of future changes. The $2 million provided by the 1997 Legislature for grants where the class rate changes cause TIF district deficits, while critically needed, is likely to be insufficient ta cover every deficit, does not provide timely reimbursements, and is administratively confusing. The special taxing district authority provided by the 1998 Legislature might be useful in certain cities, but is oniy a partial solution. Response: The Legislature should provide additional state resources so TIF obligations can be met, and third party bondholders are protected because the $2 million fund is insufficient to cover deficits caused by the 1997 class rate changes. The Legislature should aiso ciarify the administration of the grant process and should require timely reimbursement. LE-5. Corporate Subsidy Reform Issue: Cities support public notice, participation, and accountability in the use of public funds. Current mechanisms aze in place to ensure these are adequately provided. Proponents of corporate subsidy reform would like to implement what they see as increased protections. Response: Current law adequately provides for public notice, participation, and accountability for the use of public funds. Cities oppose: • �'Ieasures Yhat conflict with existing laFr or that ma}' establish a duplicative procedure; • One minimum �va�e le� e1 that does 11 ��-t� not recognize or provide sufficient flexibility for the numerous submarkets existing throughout the state; • Identifying industrial revenue bonds, whose tax esempt status is a result of federal decision-making, as a subsidy; • Processes that hold cities accountabie for decisions made by businesses and for the validity of such decisions; and • Requiring developers to enter into workforce and salary agreements when developers are not responsible for the employment levels and compensation packages offered to their tenants' employees. LE-6. Economic Development Programs are faced with the unique circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and do�cntowns and a lack of land for development. Redevelopment activities usually require large, up-front funds to address multi-phase projects of extensive duration where site assemblage, demolition, relocation, or pollution clean up must occur before private-sector interest can be generated. The 1998 Legislature's creation of a redevelopment acount is a first step in establishing a coherent statewide policy and should help combat the increasing problem of urban sprawl. Additionally, deterioration threatens historic structures in cities across the state. Currently, there are not enou�h tools for cities to utilize in local historic preservation efforts. Issue: The Minnesota Investment Fund is not adequately funded. The state does not authorize an adequate slate of tools for local governments to assist job creation, redevelop blight and decay, and provide adequate housing choices. Consequently, cities aze not well equipped to compete nationally and intemationally for business development. Response: • More state resources should continue to be contributed to the 1Vlinnesota Investment Fund. • Congress should remove the caps that have been placed on Industrial Development Bonds and acknowledge that the extensive eligibility requirements now adequately limit their use. LE-7. Redevelopment Programs Issue: Communities across Minnesota Respa:se: In recognition of the unique needs of redevelopment projects, the state should continue its commitment to reinvest in its communities by increasing funding for the redevelopment account, and should undertake a comprehensive approach that provides financial assistance to address their redevelopment needs such as state tax credits, TIF subdistricts, and other tax incentives for tocal historic preservation efforts. LE-8. Property Tax Abatement Authority Issue: In an effori to increase the number of development tools available, the 1997 Legislature authorized local units of government to grant property tax abatements. Although TIF continues to be the primary financing mechanism for local development projects, tax abatements provide a good addition to a needed list of economic development tools. In order to provide maacimum benefits, tax abatements 12 LeaQue of Minnesota Cities ag-�7 should be less restrictive in terms of funding caps and financing terms. Property tax abatements should not be considered a replacement for ta�c increment financing. Respof:se: TIF is still the primary viable development tool available for cities. Abatement authority should continue to be available, but noY offered as a rationale to eliminate TIF. LE-9. Brownfields Issue: Brownfields are lands unsuitable for development due to the presence of chemical or other contaminants. � Bro�vnfields are a major cause of blight within communities across the state through � loss of local tax base, jobs, housing quality, public safety, and community confidence. Revitali2in� this land is costly and requires � the cooperation of city, county, school, re�ional, state, and federal governments and the assistance of local economic � development organizations and citizens. As we move into an era where the mass creation � � � � � � ofjobs is a necessity and where increased tax base is a requirement for local govemments to adequately face growing financial pressures, efforts to revitalize brownfields must not only continue but be accelerated in the upcoming years. Currently, $7 million exists in the Department of Trade and Economic Development's (DTED) base for the contaminated site clean-up fund. Additionally, $6.2 million is appropriated annually from the Petrofund to DTED to clean up petroleum-related contamination w'ithout the requirement of an identifiable tanl: source. Resportse: A comprehensive set of � economic de� elopment programs must be maintained for cities and other � 1999 City Policies development agencies. The Legislature should: • Increase funding for the Department of Trade and Economic Development's contaminated site clean-up fund and redevelopment account; • Strengthen enforcement and collection of revenues for the state contamination tax; • Continue support for and funding of local and regional programs to assist in the efforts to remediate brownfields; • Establish a fully-funded program to allow cities and other development authorities to gain control of and reclaim and revitalize bro�vnfields; • Protect existing tas increment financing provisions that provide for the remediation of brownfields, and modify restrictions to allow the pooling of district revenues to assist in the financing of remediation of brownfields; • Establish an indemnification fund to provide financial security for institutions and individuals as they invest in efforts to recycle brownfields in order to leverage private investment in cities' efforts to increase their tas base and create jobs; and • Continue financing mechanisms for cleaning contaminated sites. LE-10. Growth Management and Annexation Issue: Unplanned and uncontrolled urban gro��th has a negative environmental, fisczl, and Qovemm�ntal impact for cities, counties, and state oe�ernments because it incrzases the cost of pro� iding �overnment services, and resuits in the loss of natural 13 resource areas and prime agricultural land. Respo�:se: The Leagne belie��es the existing frameFCOrk for guiding growth and development primarily through local plans and controls adopted by local governments should form the basis of a stafewide planning policy, and that the state should not adopt a mandatory comprehensive state�r•ide planning process. Rather, the state should: • Pro��ide additional financial and technical assistance to locai governments for cooperative planning and growth management issues, particularly where new comprehensive plans have been mandated by the Legislature; • Clearly establish the public pur�oses served by existing statewide controls such as shoreland zoning and wetlands consen�ation; clarify, simplify, and streamline these controls; eliminate duplication in their administration; and, fully defend and hold harmiess any local government sued for a"taking" as a result of executing state land use policies; • Give cities broader authority to estend their zoning, subdivision, and other land use controls up to ttivo miles outside the city's boundaries, regardless of the existence of county or fownship controls, to ensure conformance with city facilities and services; • Cieariy define and differentiate beriveen urban and rural development and restrict urban growth outside city boundaries; • Require the Metropolitan Council to seek cooperation from the state of Wisconsin and counties (both Minnesota and «'isconsin) � Qa't'7 surroundine the met�opolitan area to ensure responsible and controlled development; stud}� ezpansion of Metropolitan Council authority in surrounding counties; and, examine the positive and negative impacts of mandatory regional or local land use controis and state-imposed development standards; • Facilitate the annexation of urban land to cities by amending state statutes that regulate annexation to make it easier for cities to annex developed or developing land within unincorporated areas; • Oppose attempts to reinstate the Minnesota i�iunicipal Board as the body for resolving boundary adjustment issues. • Oppose legislation fhat wouid reinstate the election requirement in contested annexations; and • Encourage ideas consistent with the long-term goal of allowing urban development only in urban areas. Density incentives such as sprawl reduction aid programs are more straightfonvard methods of rewarding and encouraging compact urban development than using LGA or HACA for another new �urQose. LE -11. State and/or County Licensed Residential Facilities (group homes) Issue: The need for more residential- based care facilities resulting from state policies makes it clear the state must also provide sufficient fundin� to ensure residents living in �roup homes and licensed facilities have appropriate care and supervision. In ��ie« of the responsibilities cities have to accommodate group homes and residential-based facilities, it is League of blinnesota Cities � °tq -�� i� important that state and county units of govemment make every effort to work with local officials to address care and public safety concems. Cities must also be awaze of special care needed by group home residents in case of public �afety emergencies. Since operatozs of certain residential facilities and services are not required to notify cities when they intend to purchase housing for this purpose, cities have insufficient opportunity to address the special care and pubiic safety needs these residences may require. Respor:se: The Legislature should require state and county agencies that operate or ]icense companies to operate residential-based facilities to notify cities in a timely manner, and allow opportunity for cities to respond regarding the status of facility license requests and renewals and the speciai care needed by residents in case of public safety emergencies. Legislation should � also inciude provisions requiring establishment of nonconcentration standards and direction to avoid 1� � � 1____' � � 1..�_l ciustering residential facilities. Licensing authorities must also be responsible for removing any residents incapab3e of living in such an environment, particularly if they become a danger to themselves or others. LE -12. Housing and Economic Vitality Issue: City officials increasingly recognize that housing shorta�es threaten strong nei�hborhoods, healthy communities, and local economic vitality. Decreased federal housin, assistance and insufficient state resources for housinc p; oduction place statz�tiide economic expansion at risk. Changes in socia? sen�ices and family support, along with welfare-to-work requirements, make it paramount for the Legislature to re-allocate state resources to strengthen family stability, improve workforce availability, and improve children's school performance. Response: The Legislature must increase state investment in housing production, at least doubling the current biennial housing budget, to help leverage private and local resources as well as federal funds. The Legislature should make at least a one-time, S40 million investment outside the metropolitan area for production uf single-family housing affordable to worl:ing families, along with affordable rental units. In the metropolitan area, in�esting another $40 million over the nest biennium to carry out the goais of the Livable Communities Act will help meet the needs of many households in �vhich �i'orking adults must now travel long distances to get to work. LE-13. Housing Preservation Issue: Loss of federally-assisted housing in communities throuehout the state remains a serious threat to the «e11-being of older city residents as well as other vulnerable populations. Few cities have sufficient local resources to purchase or provide equity take- out loans to owners of subsidized rentai units who are considering mortgage prepayment and com�ersion to market-rate rentals for properties oriQinally built to provide housing for lo�c-income residents. Cities and nei�hbornood organization community developmen: projzcts sometimes ;equire demolition of s��os.andard housing, �.hich can compoun� h� �sine shortages and displace occupants. � 1999 Cit} Policies 15 �_ � .Response: The Legisiature must appropriate at least S10 million for preservation of federally-subsidized housing throughout the state to provide additional resources for the Minnesota I3ousing Finance Agency and community- 6ased nonprofit housing organizations to buy units or make equity take-out loans to property owners in return for maintaining rents affordable to low- income residents and agreeing to maintain the federally subsidized mortgage to term. neutral and nondiscriminatory manner. Response: State and federal government should encourage cities and telecommunications service providers to colIaborate to take advantage of planning opportunities for the development of telecommunications infrastructure and services to strengthen local and regional economies. Federal and state government must also strengthen city authority to: • Provide telecommunications services either in partnership with other public entities, the private sector, or as a sole provider; • Grant additional cable TV franchises to provide the benefits of competition � The Legislature should provide incentives to lower housing construction costs and selling prices to encourage local government, builders, developers, housing agencies, and organizations to address housing design and construction costs, land use regulation, and other factors that could reduce housing development costs. LE-14. City Role in Telecommunications Issue: As cities seek the benefits of information technology, they face a number of critical issues, particularly availability and competition for providing advanced community-based telecommunications services. Cities recognize the importance of providing these services for education, health caze, business, and residents in their homes and work places. Cities also play an integral role in the emergence of local competition, the zoning of wireless communications facilities, and preserving cable operator support for public, education and govemment (PEG) access and I-Nets, and upholding federal requirements to treat all providers in a to subscribers; • Require all mvltichannel providers of video programming sen�ices that use public rights of way to compiy with local PEG access and I-Net requirements; and • Exercise effective local zoning controls over the siting of wireless communications facilities. LE-15. Adequate Funding for Transportation Issue: Current funding for roads and transit systems across all govemment levels in the state is not adequate. The League acknowledges that all Minnesota communities benefit from a sound and adequately funded transportation system. Response: More resources must be dedicated to the state's transportation system. The League supports constitutionally dedicating a portion of the sales tax on motor �•ehicles (also referred to as MVET) or other new � I� � � � League of Minnesota � � � � � � � � � �� C —1 !� revenue sources to a transportation fund, which rvould fund both highFVay and transit projects. The League also supports an increase in the gas tax that would be dedicated under the existing highway user trust fund formula. If funding does not come from the state, cities should have funding options available to them to raise the necessary dollars to adequately fund roads and transit. All nontransportation programs should be funded from sources other than the highway user distribution fund or other funds dedicated to transportation. LE-16. State Aid for Urban Road Systems Issue: Current ruies governing municipal state aid erpenditures are restricting the efficient use of these funds, and do not adequately acknowledge the constraints of road systems in urban city environments. Respaue: Rules affecting the � municipal state aid system need to be changed to acl:noFVledge the technical and practical restrictions on construction and L"�! � � � � reconstruction of urban road systems. Nerv municipal state aid design standards should not apply to reconstruction of existing state aid streets originally constructed under different standards. Future changes to state aid rules should ensure the im�olvement of elected officials and engineering professionals in the decision-mal:ing process. �� LE-17. Turnbacks of County and State Roads Issue: As road fundin� becomes increasingly inadequate, more roads are bein� "turned back" to cities from counties and the state. Respo�:se: Turnbacks should not occur without direct funding or transfer of a funding source. A process o£ negotiation and mediation should govern the timing, funding, and condition of turned-back roads. Citytaxpayers should receive the same treatment as township taxpayers. The requirement for a public hearing, standards about the conditions of turnbacks, and temporary maintenance funding should also apply to county turnbacks to cities. At a minimum, roads proposed to be turned back to a lower government level should be brought up to the standards of the receiving government or should be compensated with a direct payment. Direct funding should be provided for smailer cities that are not provided with turnback financing through the municipal state aid s} stem. LE-18. Road Funding for Cities Under 5,000 Issue: Cities under �,000 population do not receive any nonproperty tax funds for their coilector and arterial streets. Respazse: Cities under �,000 population that are not eligible for Municipal State Aid (II.S.A.) should be able to use counh' municipal accounts � 1999 Cih� Policies 1� c�q- t�j and the 5 percent account of the high�c•ay user distribution fund. Uses of county municipal accounfs should be statutority modified so counties can dedicate these funds for local arterials and collector streets �� ithin cities under 5,000 population. In addition, the 5 percent set-aside account in the highway user distribution fund should be used fo meet this funding gap. sought b}� the pri��ate sector. The state and federal go��ernment must participate in adequately funding railroad projects. The federal go��ernment must exercise greater o��ersight of the STB to ensure that fair and equitable solutions are reached when dealing �vith cities in Minnesota. LE-20. Access Management & Plat Approval LE-19. Railroad-Related Projects Issue: Cities are being presented with far-reaching and long-term effects ��hen railroad expansion and related projects enter their communities. Alon� with the concerns related to safety, environmental effects, and noise impacts on the communities, several issues have greater reaching effects. They are: • The cost-share ratio related to roadway crossing improvements will be borne by the public sector to a substantial degree, some estimates are 80 percent public to 20 percent private funding; • The financial burden faced by the pubiic sector to deal with mitigation improvements, a cost that the Surface Transportation Board (STB) is not requiring the private sector to pay; • The issues associated with the length of trains moving through communities; • Liability associated with whistleblowing ordinances; and • Pre-emption of local authority to regulate railroad activities. Response: The pri��ate sector must be required to pay a greater share of the improvements that 6enefit their industry- The public sector shoufd not be expected to undenvrite the costs of impro��ements Issue: Increasingly, the state and some counties express a desire to exercise more control over state and county roads that lie within city boundaries. Some counties have introduced le�istative proposals requiring county plat approval before projects may move for��ard. The Department of Transportation has been studying the issue of access management, and may bring a legislative proposal forward in 1999 to establish minimum standards before new access points onto roads will be allowed. The League has published educational articles designed to highlight the importance of county and state involvement when cities are involved in planning decisions that will allow ne�� de��elopment to access roadways. Resporrse: Cities support maintaining plat appro� al authority with each municipality for all plats located wifhin cities. Cities do not support extending county or state authority over plat approval. Ho�vever, significant advanfages can be gained by using a coordinated re��iew process, already existing in state law, behceen cities and other affected units of government. Such advantages include better ocerall land use planning, site designs, and traffic management. In addition, cities support the concept of state�cide access 18 League of _VIinnesota Cities � a� - t� � � � �i�! L�! � r—' � � management guidelines that can be used in a coordinated reviecv process. LE-21. Right of Way Management Issue: Cities have fundamental responsibility for managing the safe and convenient use of public rights of way. Cities hold local rights of way in trust for the public as a limited and valuable asset. As demand for ri�ht of way use increases, cities must continue to have clear authority to allocate and coordinate that resource among competing uses. Local management responsibilities vary and are site specific, underscoring the importance of upholding local authority to establish fees and standards and to obtain fair and reasonable compensation by telecommunications right of way users. Respoi:se: State go��ernment must: • Uphold local authoriry to manage and protect public rights of tvay; • Recognize that municipal engineering has a paramount role in devetopment and implementation of construction and safety standards; • Support local authority to require reasonable compensation reflecting local policy and fiscal objectives, including the collection of Franchise fees and support of public, education and government (PEG) and I-Net access to providers of multi-channel video programming; and • Nlaintain the courts as the primary forum for resolving allegations by telecommunications ser��ice providers of arbitrarv or capricious city� management policies and �ractices. LE-22. Effective Telecommunications Competition Issue: Consumers need protection in the transition to a competitive marketplace for telecommunications services. Local economies can be strengthened by competitive provision of services to enhance business participation in the global economy. Respo�:se: Federal, state, and local government shouid coordinate policies to protect consumers and encourage emergence of local competition. LE-23. Local Zoning of Telecommunications Facilities Issue: Federal intervention and restrictions on city zoning authority over the use of property by telecommunications service providers threaten to pre-empt basic local land-use regulation. Response: Federal and state government must uphold the fundamental right of local government to adopt and enforce zoning regulations reaffirmed in the federal Telecommunications Act of 1996. LE Workforce Readiness Issue: State and federal welfare reform efforts have focused on the importance of the welfare-to-work transition, and have reco�nized the challenge of ensuring individuals are qualified to work. Cities have an interest in the availabilitv of aualified workers as part of their economic development efforts, and can serce as a � 1999 Cit}' Policies 19 ctq`�� catalyst �� ith other pubiic entities and the private sector to address �� orkforce readiness issues. LE-26. Economic Development Aufhorities � � Respo�:se: The Legislature should fully fund the job sl:ills partnership and pathways programs administered by the Department of Trade and Economic Development. LE-25. Platting Law Recodification Issue: The Minnesota Association of County Surveyors (MACS) is seekin� to recodify Minnesota Statutes Chapter 505. Two issues raised by NIACS that will likely impact cities are the subdivision glat requirements, and the creation and amendment of road right of way acquisition maps. Response: The Legislature should preserve local authority over plat approval and include language in the recodification legislation that will aliow for pedestrian easements or thoroughfares to be dedicated by plat (for sidewalks, public trails, etc.). Issue: The state's policy regarding economic de��elopment authorities (EDAs) has been to limit the specific authority and powers of EDAs to city governments. The state has already determined that city govemment most efficiently provides governmental services in areas intensively developed for residential, industrial, and governmental purposes. Respo�:se: The state should continue to recognize the importance of using and preserving the existing infrastructure in cities, and should continue to find that urban development, and all related authority, remain tsithin cities aud managed by city government. The Legislature should continue its decision to limit EDA authority to c3ties as the primary local government responsible for the organizational and financiat coordination of development and redevetopment. IMPROVING SERVICE DELIVERY SD-1. Redesigning and Reinventing Government Issue: Every level of government is reevaluating, reprioritizing, redesigning, and renewing its organizational structure and programs in response to financial realities and citizens' needs and problems. Reforms, howe��er, must be more than change for the sake of change, or a reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and reassignments of govemmental entities and services should save money where feasible, deliver improved services, sen�e essential needs, and be equitably structured. Cities have and will continue to pursue the use of cooperative agreements, the reevaluation of city programs and ser�rices, and changes to organizational structures. � 20 League of 1l4innesota Cities � � � � � � � � � � � � � Response: The federal, state, and county governments should: • • • Ensure that in redesigning, reinventing, or reassigning government services and programs that the appropriate level of service to citizens is evaluated, and citizen demands and expectations are adequately addressed; Promote local efforts through incentives, rather than mandates; Communicate and establish a process of negotiation before shifting responsibility for delivering services from one level of government to another, or seeking to reduce service duplication; Transfer authority for use of revenues dedicated to such programs, or proF•ide appropriate and adequate alternatives; Identify and repeal programs or discontinue services that are no longer necessary, or which can readily and fairly be provided by the private sector; and Employ esisting government entities in redesign efforts rather than create ne« agencies or units. The League supports cooperative studies � of the follorving issues: � � � � � 1! � �Vhether the enforcement of human rights la�i�s can best be accomplished by a single state system that would allotir local governments to discontinue local enforcement programs; Whether there should be greater use of statewide or consolidated business licensina, including licensina of sign contractors, to eliminate the need for some businesses to obtain a permit in each cit} or county; Policies �°�-�� • �Vhether the existing use and structure of regional development commissions can be improved; • �Vhether greater use can be made of block grants to distribute funds related to transportation, sewage treatment, and public «•ater facitities; • Whether human services and health programs can be improved by further consolidating their administration at the state and county levels of government; and • �Vhether state and federal environmental and water agencies can be combined or eliminated to avoid inconsistent standards and duplication of responsibilities. SD-2. Unfunded Mandates Issue: The cost of federal and state mandated programs substitute the judgment of Congress, the President, the Legislature, and the governor for local budget priorities. These mandates force cities to reduce funding for other basic services or to increase taxes and service charges. The passaae by the Legislature of reporting requirements for new state mandates, and the passage by Congress of legislation restraining new federal mandates, should help address the problem, but other steps are necessary. Kesponse: • Existing unfunded mandates should be revie�ved and modified or repealed where possible. • \o additional statewide mandates should be enacted, unless full funding for the mandate is pro� ided by the le� el of go��ernment imposing it or a 21 qq-i� permanent stable re��enue source is established. • Cities should not be forced to compl}° with unfunded mandates. • Cities should be given the greatest flexibility possible in implementing mandates to ensure their cost is minimized. SD-3. Civil Liability of Local Governments Issue: One of the baniers to the delivery of governmental services and programs is the exposure of local governments and their officials to civil damage claims. The state has acted to protect itself and its local governments by enacting exceptions and limitations to liability suits, and authorazing self-insurance and other mechanisms to deal with claims allowed by law. Additionally, the current law, which requires district court approval of settlements of claims against municipalities that exceed $10,000, has become burdensome for cities. Response: The League supports: approval of settlements requirement or, in the alternatice, increasing the threshold amount for district court approc of settlements to S100,000; and • Clarifi�ing and maintaining the applicability of municipal immunity in various areas including, but not limited to: snow and ice immunity, park and recreafional immunity, inciuding the estension to entities providing a public service that have not traditionally been included within the immunity (e.g. state trails over municipal utility easements), vicarious official immunity, and problems related to the Y2k computer issue. SD-4. Environmental Protection Issue: State and federal environmentai programs are improperly designed to meet their stated goals, and impose an undue burden on ]ocal governments because of a lack of federal or state financial assistance. The refusal to finance these programs by the governments that pass them has eliminated an essential restraining feature in program design and implementation. • Eliminating joint and several liability, or severely restricting its apptication to situations where private or public tortfeasors are substantially at fault for the damages incurred; • Extending the protection of the state and municipai tort claims act to quasi- governmental entities �r•hen performing public services such as firefighting; • Existing constitutional safeguards for protecting public and pri��ate property interests without any statutory espansion of property rights; • Eliminating the district court Specific problems include: • New programs or standards are continually adopted ��ithout regard to the exisCence, attainability, or cost of existing programs and standards. • Inability of regulatory bodies to use good science and accurate data when establishing permit criteria. For example, the Minnesota Pollution Control Agency Citizens Board's recent decisions resulted in a phosphorus standard for the city of Greenfield that was inconsistent with current data and 22 League of Minnesota � L� 1 � � � � ii� � � � � � � � � � � � likely not to have been recommended by aoency staff. • Fra�mented program adoption and impiementation does not ensure prioritization of environmentai matters or the establishment of comprehensive environmental protection strategies. •"One size fits all" implementation of programs force remedial efforts by local govemments for nonexistent environmental problems. • Permit fees and other cost transfer elzments of federal and state programs do not provide an incentive for environmental a�ency efficiency, policy prioritization, or risk assessment. In addition to the above probtems, cities face emerging issues in the areas of drainage, bio-solids, wellhead protection, and feedlots. Response: • A comprehensive effort to consolidate, reorganize, and manage state and federal environmental agencies and programs should be undertaken, and a partial or fuil moratorium on new programs or requirements should be considered. • Permit fees should be limited to 50 percent of the agency's direct operating costs in order to promote efficient agency operation and sufficient legislative o��ersight. • Sufficient state and federal financial assistance should be provided fo comply �rith state and federal infrastructure requirements, particularl} �vith regard to sewer and ��ater facilities. • The option for cities to land apply bio- solids on properties outside their boundaries must be preserved. The �q •�7 Legislature should amend Minnesota Statutes section 11�A.32-39 to reinstate the administrative procedure for the resolution of bio-solids disputes, a procedure whose function was inadvertentl}� deleted during a recodification of the statutes. In addition, the Legislature should provide greater Minnesota tocal governments the same statutory protection afforded to those communities within the Metropolitan CounciPs jurisdiction, found in �Iinnesota Statutes §473.516, allowing bio-solids to be disposed of in manners consistent with the MPCA's permits and rules and avoiding blanket moratoriums on land application of bio-solids. SD Election Issues Issue: Improvements in absentee voting, voter re�istration, and the election process are needed. Response: The Legislature should simplify absentee voting, provide more cities direct access to the statewide voter registration system, clarify restrictions on locating campaign signs within 100 feet of poiling places, modify the voter fraud statute related to voter residency, and ailow cities more flexibility in appointing and compensating election judges. SD Local Election Authority Issue: In the past, the Leoislature has acted to restrict city authority to schedule city elections and estaolish tzrms of office for loczl elected official, thereb� diminishing reeard for �he role of local self- eo�ernment particula::� ��her. state policy � 1499 Cih Policies 23 qq - t� preempts home rule authority goveming city elections. SD-8. Access to Information Technology and Ser��ices Respo�zse: The Legislature should oppose further limits on either the number or the length of terms city elected officials may serve, particularly when those terms have been established by the electorate in home rule charter cities. State policy on uniform elections should continue to recognize and uphold local authority to schedule city elections in November of either even- or odd- numbered years. SD-7. City Costs for Enforcing State and Local Laws Issue: Cities eaperience substantial costs enforcing state and local laws, particulazly those related to traffic, controlled substances, and incarceration of prisoners. The current method in our criminal justice system of recovering costs for law enforcement and prosecution through fines is insufficient to meet the costs incurred by local governments. Response: The Legislature should review this issue and adopt measures that provide for compiete reimbursement of the costs incurred by local go��ernments in enforcing state and locai laws. Solutions that should be considered include the following: • Increasing fine amounts; • Removing or modifyine county and state surcharges that conflict with cost recovery principles; and • Requiring the defendant to pay the full costs of enforcement and prosecution as part of any sentence. Issue: Cities recognize the importance of achievin� �i�orld ciass standards and universal service in order to provide quality education and opportunities for local businesses and industry to engage successfully in global competition. Respoirse: The Legislature should: • Encourage espanded use of inter- active teleconferencing and on-line forums, public access programming and channels, and public broadcast capabilities to �rovide public access to government meetings; • Encourage collaboration among cities, schoots, libraries, health care, and nonprofit organizations to make local training and advanced services available to community residents; and • Provide assistance and funding to cities to strategically prepare themselves to connect to high-speed broadband nehvorks. SD-9. Design-build Issue: The standard bid procedure cities are required to use in selecting contractors for municipal buildings can be quite costly. Private sector development uses a process known as "design-build" in which various firms submit project proposals that include both a design and the construction costs for that design. The selection is then based on the total package. By granting specific statutory authority to use the design-build altemative to the Metropolitan Sports Facilities Commission and state agencies, including the Department of Revenue, the Legislature has recognized the financial 24 Lea�ue of b'finnesota Cities � � � �l � � � � � � � 4 l I..J � � � � L� � savings it can provide. In documented instances, cities have saved taxpayers up to 10 percent of the total project cost by using the desion-build altemative. The design- build process also permits improved project management and oversight. Ho�-ever, absent statutory authorization to use this altemative, cities aze vulnerable to lawsuits from unsuccessful bidders. In addition, the design-build process for playground equipment can encourage greater creativity while maintaining cost controls. Special legislation was enacted for the city of Chanhassen in 1995 to experiment using this process for purchasin� playground equipment. Response: The Legislature should authorize an extension of the design-build procedure to cities as a less expensive niternative to the standard bid procedure. SD-10. Mobile Home Park Oversight Issue: The state has preempted cities in the licensing of mobile home parks and limited the authority of cities to place new regulations on established mobile home parks. However, cities are responsible for dealing with the various housing and public safety challenges mobile home parks may create. Response: Since the state has already taken the lead, the Legislature should provide sufficient resources and direct the Department of Health to conduct a study on the condition of mobile home parks throughout the state of Minnesota. Cities and mobile home park owners and residenYs should be inti�oh ed in the study. The results of the studc should be used as a basis for poticy discussions regarding 1999 Ciri Policies � •(� . ways the state can pro��ide for increased and improved oversight of mobile home parl:s, and establish a state�vide support system for cities dealing �vith the array of mobile home park issues. Outcomes of the study should include: • Best practices for the operation of mobile home parl:s; • Recommended state regulatory changes for the operation of mobile home parl:s; • Suggestions on how cities can better address the issues presented by mobile home parks; and • Identification of inechaaisms to provide assistance in financing mobile home park upgrades. SD-11. Providing Information to Citizens Issue: To keep the public updated and informed, state law requires local units of government to publish various notification documents in newspapers, and ofren dictates which newspapers receive cities' publication business. The number and variety of documents required to be published and the costs of publication are burdensome. Technolo�ical advancements have expanded the ways government can provide information to citizens. In many cases, these new technologies are more efficient and cost effective. Response: Cities should be authorized to take advantage of new technologies to increase the dissemination of information to citizens and potentially lower the associated costs. Specificall}', the Legislature should authorize local units of aocernment to desibnate an appropriate �q ��7 daily/�vee{:1}� publication, elect alternatice means of communication such as ciri� newsletters, cable tele��ision, and the Internet, and expand the use of summaries �chere information is technical or lengthy. Additionall}', fhe Legislature should eliminate oufdated or unnecessary publication requirements. SD-12. Creating a Minnesota GIS Program Issue: Local governments are finding geographic information systems (GIS) an essential tool for comprehensive land use, real estate, environmental, and other land management information. In many counties, maintenance of official land records has not been automated, creating a barrier to GIS development. In addition, the start-up costs of GIS implementation can be prohibitive. Respaise: The Lcgislature should encourage local government implementation of GIS through grants and/or the dedication of a revenue source such as real estate transaction fees. In addition, cities should be invoh•ed in the development of county land records modernization plans. SD-13. State Regulation of Massage Therapists Issue: The state does not cunently regulate massage therapy, an emerging and rapidly growing profession. In order to control prostitution and to provide for health and sanitation standards, several cities have entered the traditional state domain of health-care licensure by enactine ordinances thatrequire ali massa�e therapists to obtain a local professionallicense. These ordinances allow local la�� enforcement officers to differentiate bet�veen le�itimate massage therapists, ��ho ha� e a city license, and prostitution businesses fronting as massage therapy establishments. The lack of statewide regulation of massage therapists has hampered law enforcement techniques, and has caused problems for cities attempting to regulate an entire health-care profession «�ithout any statewide standards. Currently, 25 states regulate massage therapists on a statewide level. Statewide regulation of massa�e therapists would provide a clear set of educational standards that massage therapists must meet, and would provide local law enforcement agencies with an easy tool to distinguish between prostitution and legitimate massage therapy. Statewide regulation would not disturb traditional powers over land use and business licensure. Respo�:se: The League supports the statewide regulation of massage therapists in order to aid local law enforcement efforts at controlling prostitution and other criminal activity. SD-14. Private Property Rights and Takings Issue: During the 1998 legislative session, property rights and takings legislation was introduced. It is anticipated these legislative initiatives will be considered during the 1999 session. In addition to individual bills, it is anticipated that amendments to the Community Based Planning Act of 1997 may be introduced. These amendments may attempt to make part of the Minnesota Statutes those portions of the Minnesota Constitution that relate to property rights. The federal govemment's Swamp Buster/Sod Buster programs, the Z6 League of Dlinnesota Cities � � � �� C.l 4J 4J 4_._.' � Army Corps of Engineer's dredge and fill programs, and the state's �Vetlands Conservation Act and Community Based Planning Act, appeaz to be the nexus for much of the property rights and takings legislation proponents. �Uhile the Lea�ue is committed to the need for local govemment units to balance the rights of private landowners �vith the interest of the public, the Lea�ue is concerned these legislative initiatives will adversely impact cities in rivo �vays. First, such legislative initiatives undermine the fundamental authority of cities to protect the public health, safety, and welfare of its citizens. Second, if the Legislature codifies certain provisions oFthe Minnesota Constitution, an argument may be made the Le�islature intended to create new causes of action aaainst cities. This would encourage more law�suits and expose cities to the expense of defendin� those cases. Response: The League opposes legislation that harms the ability of cities to act in the best interests of the health, safety, and �celfare of its citizens or that creates the possibility of additional lawsuits against cities. The League encourages the state and federal governments to improve their regulatory � programs by eliminating those property rights issues that rvere caused by the adoption of such laws as the Wetlands � Consenation Act or S�vamp Buster/Sod Buster. � 1.� � SD Statewide Building Code Issue: The Go�•ernor's Construction Codes Ad�'isor}� Council has indicated it ma�� be recommendine leoislation to ir.�r.:ute z;tate« ide buildine code. The 9q-�7 International Organization for Standardization (ISO) is expected to evaluate Minnesota's buildin� codes and enforcement by the yeaz 2000. There is some expzctation on the part of council members that ISO wiil act as the catalyst for a statewide buildin� code. Many cities have adopted the state building code. All cities within the seven-county metropolitan azea are requirzd to adhere to the state building code. Respo�rse: A building code provides many benefits including uniformity of construction standards in the industry, consistency in code interpretation and enforcement, and life safety guidance. However, the enforcement of a building code can be cost prohibitive for many cities due to the expenses and overhead related to staffing vs. the limited building activity occurring in some communities. The adoption of the state building code should remain a local option for municipalities outside the seven-county metropolitan area, unless the state particiQates in fully funding the costs of enforcement and inspection services related to a state��ide-enforced building code. SD-16. Building Code Department Special Revenue Accounts Issiee: Several interest groups have indicated they may be recommending legislation to require municipal building code and inspection departments to be self sufficient either throueh the estabiishment of special rz� enue accounts or other mechanisms to Quarantee the provision of services paid for b� fies This stems in par, from a belief Ln the b�ailding commuain that plar ch:ck fees and other � 1999 Cih� Policies 27 99-�1 municipal fees for service do not reflect the actual benefits rzceived. processes to administer municipal administrative penalties. Respos:se: Building permitting and the related inspection and enforcement services are best funded out of a city's general fund. �Vhile some cities may experience a surplus to their general fund during a grotir�th boom, cities that have a building code and inspections department oFten recognize those departments are not seif-sufficient and supplement those departments' budgets from other general fund revenue sources. In addition, special revenue accounts may remove some accountability since departments' funded by such an account «�ould not need to rely on a city's general fund and would subsequently be removed from proving their value during the normal budgetary process. The state should not interfere in the simple budgetary decision-makina performed by cities. The League opposes any move to legislate to cities specific methods to pay for municipal building inspection services. SD-17. Municipal Administrative Penalties Issue: Several cities have been successfully operating administrative processes to deal with local ordinance violations under the theory that the power to adopt ordinances inherently implies the authority to enforce them. Within the narrow scope of ordinance violations, this type of system has the potential advantage of providing a more effective altemative to formal district court proceedings. The Nonfelony Enforcement Advisory Committee's 1997 report contained a recommendation to provide express statutory authorization for cities to create Response: The Legislature should pro��ide express statutory authorization for cities to create processes to administer municipal administrative penalties. SD-18. Reforestation. Issue: Cities throughout Minnesota have experienced a devastating loss of the public forest by natural disasters. It is estimated the cost to replace the forest is beyond the means of Minnesota's cities. In the past, the Legislature has assisted cities in reforestation necessary due to natural causes. Respor:se: The Legisiature should establish and fund reforesfation for cities in federally declared disaster areas that have lost trees due to the 1998 storms. The reforestation program should be modeled after the program set forth in Minnesota Statutes, Chapter 18.023 for Dutch elm disease and oak wilt. The program should provide for direct grants to cities, and not establish a reimbursement program. If necessary, the program should allow for in-kind contributions to count if the state requires a matching program. SD-19. Board of Firefighter Training Issue: The quality, availability, and affordability of firefighter training varies greatiy across the state. After several yeazs of discussion, the fire service has endorsed a proposal to create a state board of firefighter training to ensure the quality of training and oversee state reimbursement of a portion of training costs. The board would not be 2 8 League of �linnesota Cities � �: � f�_.' � � � � � � � � !`s�: � � given authority to mandate specific training requirements or to certify firefighters. Response: The League supports the fire service proposal as long as local governments are fairiy represented on the board; the po�v�ers and duties of the board are not expanded in a�vay that would undermine local managemr.nt authority; and the appro�riation comes from the state general fund. SD-20. Witness Fees Isstie: Court administrators are proposing thatthe Legislature shift the costs attributable to callin� witnesses from counties to cities. The rationale behind this proposal is that city prosecutors have no incentive to limit the witnesses called only to those that will actuaily testify. Most counties currently receive one-third of the fines collected at the city level. Respot:se: Cities oppose the shifting of costs attributable to calling witnesses from counties to cities. City prosecutors responsibly call only those witnesses they expect to testify. Under certain circumstances, Fvitnesses may not ultimately provide testimony for a variety of reasons. The £ne revenue counties receive adequately funds the costs attributable to calling witnesses. SD-21. State Appropriation for Government Training Service (GTS) Issue: In 1977, the Government Trainin� Ser� icz «as created in order to pro��ide a coordinated responseto the training needs o`state and local Qo� zmmznts. GTS «as char�zd �vith 1999 Cih� Policies 9q -►7 coordinating the needs of the state, cities, counties, townships, and school districts, with the delivery capability of the state's institutions of higher leaming and other continuin� education service providers. To support the mission of GTS, in 1981, the Legislature provided a$42,500 annual appropriation that was increased to $50,000 in 1944. The lack of a more adequate increase in state support since 1981 has compromised the administrative, technological, and service delivery capabilities of GTS, making it difficult for the organization to remain at the forefront of innovative training programs for government officials and employees. State financial support of GTS is important. Many cities and other local governments find it difficult to adequately fund official and staff training. GTS provides a cost-effective mechanism for taking advantage of the efficiencies of cooperation. Response: The League supports a significant increase in the state general fund appropriation for the Government Training Service, sufficient to restore the capacity of the organization to deliver high-quality, cost-effective training programs for state and local officials and employees. SD-22. Year 2000 Issues Issue: Addressine potential year 2000 (Y2k) issues poses many difficult and serious problems for cities. System malfunctions or failures are aimost inecitable. Despite cities' best efforts to take reasonable actior.s to addrzss threats to �'ital ser� ices, claims for camases wi11 � -�� occur. Local ta�pa}�ers «i11 bear the burden of extraordinar� leeal costs as cities defend themseives from multiple ciaims. As cities strive to resolc=e complex Y2k problems, cities may also find it necessary to expend additional resources to convert or modify critical service delivery systems to overcome Y2k-related emergencies. If such costs are incurred after cities have certified their 1999 levies, cities �,�ill need to borrow or issue revenue anticipation notes to meet those needs and immediately purchase critically needed materials or equipment. Respoi:se: Congress and the state Legislature should grant cities tort immunity from liability claims related to the impact of Y2k to a��oid the substantial cost to taxpaqers of full triai and the associated legal costs. Cities should also be authorized to issue revenue anticipation notes to be repaid from appropriate future revenue sources and should be granted ezplicit exemption from competitive bidding requirements to expedite purchase of critically needed materials and equipment to overcome anticipated and actual Y2k- related malfunctions or failures. The Legislature should create a loan or grant program to assist cities in addressing unanticipated Y2k-related costs. SD-23. Ne�v Public Safety Spectrum l�Teeds public safety spectrum. Cities can no�� take advanta�e of the ne« radio and wireless communicacions space set aside by the Federal Communications Commission (FCC) at the upper end of the UHF television band for public safety. For future interoperability, cities will need additional spectrum to ensure public safety agencies can communicate with each other and with surrounding jurisdictions. The U.S. Department of Commerce and the FCC Public Safety Wireless Advisory Committee have recommended reallocation of 3 MHZ of radio spectrum in the range of 138-144 MHZ radio band be made available exclusively far state and local public safety interoperability. This spectrum is currently assigned for military use and is not currently in use. Unless secured for public safety purposes, it is likely to be auctioned off to the highest bidder for private use. The radio band available is adjacent to the current MHZ band used for fire, police, and other public safety communications and would provide particularly good frequencies for mobile/portable radio system communications. New spectrum in the 800 MHZ range requires many more sites to cover the same geographic range and uses more expenslve radio equipment. Although many public safety agencies are moving to new 800 MHZ systems, others will need to remain in lower frequency bands. Equipment in 800 MHZ range will not communicate with many of the existing public safety systems that operate at lower frequencies. Issue: Cities ha� e benefited from successful efforts at the federal level to gain access to exclusive radio and ��ireless communications capacity for state and local Response: The federal government must make additiona] spectrum available to allow public safety agencies that require mulfi-agency communications to respond fo accidents, disasters, and 30 League of �linnesota Cities �_ � � � 1� � L_.! `_ ! 1�__! � � r l� q9 � 1'7 criminai activity that cross jurisdictional boundaries. So that it will not be auctioned, the 3 MHZ available for reallocation for public safety should be reserved to relieve congestion on nearbypublic safety frequencies. Immediate action must be taken to secure this additional radio spectrum to advance the interoperability of public safety communications systems. Electric Deregulation Introduction: Cities have a strong interest in the public policy debate about electric restructuring or dere�ulation. Minnesota already enjoys some of the lowest average electric rates in the nation. The case has yet to be made that deregulation will result in either lower rates or improved service for consumers. Tnformation A�ency* are that the upper Midwest, including Minnesota, may actually experience higher rates. Concerns have also been expressed as to whether residential customers, and those in rural and other harder-to-serve areas wi11 actually experience decreased reliability and increased rates. Issue: For many decades, electric service to Minnesota citizens has been delivered through a combination of investor-owned utilities (IOUs), municipal utilities, and rural electric cooperatives. This system has served Minnesota well, deliverin� reliable, universal service at rates among the lowest in the country. In recent years, many have begun to promote "deregulation" or "restructuring" of the industry, meaning that electric service would no longer be a franchised monopoly. A number of states, primarily those with high electric rates, have taken steps to move toward such restructuring. In most of these cases, transmission and distribution remain reeulated, with retail competition allowed for generation source. � �Vhilz advocates of restructuring az�ue tha? such competition w•ill lead to lower rates. estimates by� the federal Energy � � 1999 Cit} Local elected officials have the primary responsibility to the citizens of their cities to make certain restructuring that allows retail competition is as beneficiai to the citizens as it is to the industry. Bzneficial to the citizen means that all Minnesotans experience the same reliable, high-quality, universal, and low-cost service they experience under the current system of electric power delivery. City residents have a stron� interest in the outcome of this important public policy debate. Cities are substantial consumers of electric power. Over 180 cities have 10 percent or more of their property tax base in electric industry property, while others collect franchise fees and/or sales taxes on electric purchases within their boundaries. Citizens in 126 Minnesota communities cunentiy receive economical electric service from municipal utilities. ��hich make EIA is thz nonpanisar. research arm of the li.S. Department of Energy 31 qq-�7 pa}'ments-in-lieu of taxes to help support city senices. Significant increases in the cost of electric po.�er for city operations or losses of these traditional sources of revenue will result in propertp tax increases. Respaise: The federal go��ernment should not mandate restructuring; the decision should be left to the states. The Legisiature should follow a slow, deliberative approach, tal:ing time to consider how alternative models for delivering electric po�+er will affect the state's traditional benefits of reliable, universal, high-quality and lo�v-cost service. The public policy discussion should be focused on actual benefits to citizens, rather than on ideological arguments, stakeholder interests, and over-reliance on simplistic objectives like "consumer choice." Those advocating a change should bear the burden of proof to demonstrate that restructuring and deregulation will, at a minimum, maintain Minnesota's high-quality, low- cost, and reliable sen�ice. Oniy «�hen that burden of proof has been met should restructuring occur. The following public policy goals should be incorporated into any legislation restructuring the electric industry: Consumer Protection or as separate state programs. Environmental Concerns The em•ironment must be adequately protected, �cith consen�ation and renewable energy efforts maintained. The federal government must review the appropriateness of currenf environmental regulations and their effect in a deregulated market; for example, esemptions from the Clean Air Act for some generation facilities. Fair Market Competition To ensure fair market competition, the federal and state go��ernments must ha��e the authority to re�•iew mergers to prevent abuse of market power. Cities must remain viable competitors in the electric market. Municipal utilities must be granted exemptions from rules like the open meeting la�v and data practices requirements «here they hamper the ability to effectively compete with private companies. To ensure adequate service to every citizen, cities and other local go��ernments must maintain their abilih� to issue tax-exempt bonds for construction of electric infrastructure, and be gi��en explicit authority to aggregate or municipalize provision of electricity. Consumer interests must continue to be protected, especially for the most ��ulnerable populations. Reliable service must be universally avaitable and programs such as cold-« eather shut-off rules should be continued either as requirements for all market participants Local Authority Cities must maintain their traditional authority o��er land use, zoning, rights of way management and cost recovery, as �vell as the ability to franchise pro��iders and to receive payments-in-lieu of taxes from municipal utilities. Cities' authority 3z League of Vlinnesota Cities �°i-\� � � L� � � � � f� � � � to negotiate siting fees and agreements for proposed generating facilities should be enhanced. To avoid unnecessary demand for the limited space in public rights of Svay, open access to transmission and distributio❑ facilities should be maintained through regulation. As the electric market is opened to interstate competition, the federal government must preserve the application of Minnesota's stafe and local sales taxes to the sale of electricity, regardless of the place of origin. Stranded Cost Recovery Issue: Re�ulated utilities have traditionally made operating decisions based on needs of consumers within their service territories. Many decisions, therefore, have been based more on need than on economics. In the transition from a regulated to a restructured competitive environment, electric generators' investments in fixed assets and other obli�ations may or may not remain as economically viable. Estimates of these "stranded costs" vary greatly, with some indicating no stranded costs or possibly even negative stranded costs resulting from increased prices after deregulation in Minnesota. Response: If regulatory actions have contributed to investment by existing regulated utilities fhat are not economicall} �iable in a competitive markeY, and if restructuring occurs, the League supports transition mechanisms that «iil alloti� utilities to collect revenues for those particular stranded costs. Ho�vever, these charges must be carefully monitored to ensure that only eligible and verifiable costs are co��ered and that over- collections do not occur. Taspayers and ratepayers should not be expected to cover the cost of incestments fhat were made for business reasons, apart from the requirement to serve under the regulated system. If negative stranded costs for the regulated utility as a whole can be established, and are solely the result of transition to a restructured environment, these regulated utilities should be required to contribute some limited percentage of established amounts to offset tax breaks given to these utilities as a result of restructuring. Property Tax Issue: Part of the discussion regarding possible deregulation of the electric power industry has centered on electric utility taxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed. The main focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or personal property tax. Utilities subject to the tax argue it places them at a competitive disadvantage to non-Mannesota companies, rural electric cooperatives (co-ops), and municipals. However, accurate comparisons of tax burden are difficult, as other siates use completely different taxing systems. Additionally, co-ops and municipals do pay direct taxes on some of their property and indirecth cihen the� purchase �iholesale po��er from sources that arz iased, such as IOUs. tilunicipals makz substantial payments-m-Iieu of cases. � 1999 Cih Policies 33 � Utility pzrsonal property can be a significant po�ion of the local ta� base in all cities. Most obviousl} affected are cities that have pow'er plants; however, transmission and distribution equipment account for over half of the personal property taxes paid by the IOUs and exist in nearly every city. Replacin� the revenue that would be lost to cities, counties, school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources of such a replacement revenue �iouid be difficult to develop and administer, and could be subject to reductions or elimination over time. Furthermore, replacement revenues or aids may not fully address the problems created by a large tax base reduction. Resporzse: Cities oppose proposals for exempting the IOlis from the personal property tax, apart from the decision to restructure the electric industry in 1�Iinnesota. If and �chen deregulation occurs, a truly independent revie�v of the overall tax burden should be conducted to determine �chether Minnesota utilities are at a competitive disadvantage. If an overail tax disadvantage is identified, the state should correct it. Under no circumstances should local units of government or their citizens be required to shouider the burden of tax relief for IOUs. Personnel, Pensions, and Labor Relations Issue: Many state laws increase the cost of providin� city services to residents by requiring city governments to provide certain levels of compensation or benefits to public employees, by specifying certain working conditions, or by limiting city govemments' ability to effectively manage their personnel resources. For instance, existing state laws limit governments' ability to effectively address incompetence or misconduct of city employees specifying certain procedures to be followed or standards of conduct. Respor:se: The state government should refrain from passing laF�•s that regulate the public sector workplace, and should repeal or modify problematic esisting laws and regulations to encourage full local accountability. The League of blinnesota Cities proposes the foilowing reforms: Discipline and Discharge The state should modify ��eterans' preference and civil service laws that restrict the ability of local governments fo effecti��ely discipline public employees. The Legislature should amend the la«� to: • remove the right to multiple, duplicative disciplinary proceedings; • limit any back-pay claims to a maximum of S100,000; • limit the period in �r�hich to request a hearing to 14 da}�s (from the current 60 days); • esclude probationary period employees from ��eterans preference termination law 34 League of Minnesota � �� protections; � • require parties to select their hearing panel re�resentative Fvithin 10 days after notice has � been given to the employer that the veteran employee is seel:ina a veterans' preference hearing; � • require the panel to hear the petition within 30 days after the third panel representative is � 4 ! � selected and issue a decision within 30 days following the hearing; and • amend the law to require state aaencies to abide by the same ��eterans preference la��s required of loca] governments. • The state should re-examine state and � local civil service systems and give ]ocal governments the authority to modify or discontinue systems that are � obsolete in order to ensure fair and accountable hiring and terminafion practices. �� ii� 1 � f.�: � � � W Compensation limits The state should repeal la�ss limiting the compensation of a person employed by a sfatutory or home ru[e charter city to the governor's salary. If repeal is not possible, the limit should be amended to be based upon the governor's total compensation level. PELRA The state should modify the definition of public employee under PELRA by removine the etisting 1�-hour / 67 day requirement and replace it �sith a definition in �chich emplo� ees must �tiork more than an annual average of qq -�� 20 hours per fveek. Temporary or seasonal emploqees should not be included in this definition. The state should change public sector bargaining laws to require arbitrators to adhere to the pa}• equity law with reaard to consideration of interna] class comparisons. Essential Employees • Cities must balance the health, welfare, and safety of the public with the costs to taxpay ers. Therefore, the Legislature should carefully examine requests from interest groups seeking essential employee status under MN Stat. �179A (PELRA). The League opposes legislation that mandates arbitration which increases costs and removes local decision-mal:ing authority. Pensions • The state should re��ise public employee pension la�cs to facilitate consolidation of local pension pians. • The state should stud� initiatives to reform and make uniform pension plans for local gocernment employees without increasing public employer contribution le��els or causing the public employer contribution level to exceed the contribution level required from employees. • The state should adjust the eligibility thresholds for public pensions to reflect inflation, adopt a process for automatic future adjustments, and limit eligibilit} for defined benefit plans to emplo}ees «orl:ing an a� erage of at least 20 hours per week. • The League opposes �pecial legislation � 1999 Cit} Policies 3� qq � �� for indicidual employ�ee pension benefit increases unless they are initiafed and appro��ed by the city council of the impacted cih•. Age Certificates / I-9 Forms The federal I-9 form requires employers and employees to report the same information required by Minnesota's age certificate. The state should repeal MN Stat. §181A.06 and endorse the federal I-9 form to verify age information, and eliminate redundancy for employers and employees �vhen reporting information. amount of an emplo}�er's contribution under D4N Stat. §299A.4b� and whether it changes o�er time. Breathalyzers • MN Stat. §181.950-.957 should be amended to permit the use of breathalyzers as an acceptable technology for determining alcohol use. Currentiy, breathalyzer use is permitted under federal and state commercial drivers' laws. Final Offer - Total Package Arbitration Employer Reference Immunity • The League supports legislation that provides limited immunity to cities when giving accurate written disclosure of information regarding employment related references. This legislation should not undermine the immunity found in the Data Practices Act. State Paid Police and Fire Medical Insurance The state should fully fund programs that pay for health insurance for police and fire emplo}'ees required under MN Stat. §299A.465, as amended in 1997, for police and fire employees hurt or killed in the line of duty. • The Legislature should clarify whether MN Stat. §299A.465 applies to injuries incurred prior to June 1, 1997 (the effecti� e date of the law). • The Legislature should clarify the • The Legislature should preserve the voluntary nature of finai offer - total package arbitration as an optional settlement format for parties and should not amend state law to mandate final offer - total package arbitration. Preservation of Local Decision- Making Authority on Employment Related Issues • The League supports local decision- making authority, and opposes legisiation intended to interfere in local decisions. In addition to these state reforms, the League supports the following policies regarding federal emplo}'ment law: FLSA/Overtime compensation • The Fair Labor Standards Act (FLSA) �vas designed for private employer - employee relations. League of Minnesota Cities q�-i� Government employees were exempt for over 100 years. Through a series of court decisions, this statute is now applied to local governments. The exception for state and local government empioyees should be reinstated by stafute. Peace officer bill of rights • Congress should oppose a federal peace officer bill of rights because it will only compound the difficulties with internat investigations, local � � � �J � � 1.�'1 � 1999 City enforcement and diminish local accountability. Portability of de£erred compensation • Public sector employees are increasingly changing jobs behveen the public and private sectors. Congress should enact legislation that would permit tax deferred rollovers beriveen public and/or private deferred compensation plans to improve the portability of funds. 7 ORIGINAL Presented By Referred To Council File # 1��, 1 Green Sheet # �/�� `� RESOLUTION CITY OF SAINT PAUL, MINNESOTA m Committee: Date i WHEREAS, the League of Miimesota Cities, which represents 811 of Miunesota's 856 cities, z as well as 10 urban towns and special districts, has led the coordina#ion of inember cities in the a development of the 1999 City Policies for Legislative and Aduiinistrative Action which identifies issues 4 as priorifies for action during the 19991egislative session; and 6 WHEREAS, the City of Saint Paul was an acfive participant in this coordinated effort and the � City approves generally of these priorities; now therefore be it 9 NOW THEREFORE, BE IT RESOLVED, that the City Council of Saint Paul does hereby io recommend for consideration by the Minnesota State Legislature, 1999 City Policies for Legislative and ii Administrative action, submitted by the League of Minnesota Cities and does hereby requests that these iz issues be addressed by the Legislature during the 1999 session. Requested by Department of: �`�� By: Form Approved by City Attorney By: 1 \ _ �- . � �r�..o.�a--�— Approved by Mayor: Date � 2 ��1�/� By: 1L- Adopted by Council: Date ( �`'i�5 Adoption Certi£ied by Council Secretary . By: � —3a �Sr qq-\? DEPARTMENT/OFFICFJCOUNCIL OATE WRIpTED a or� Office 12l29/98 GREEN SHEET No 62'714 COMACT PERSON 8 PHONE MnWloafe InR1aIlDate Bill Huepenbecker 6-8517 � �,�� MUST BE ON CIXINCIL AGENDA BY (DAT� .Tanuary 6, 1999 '�s'�" �, NuYBStrox arvwnoelEY arrcLFrtic ROIRING � ❑rilfi�KJCLtFAV�CCFiGR HlatICNLEERY/M1CRC � II�YOR1��8.RRANi) � ❑ TOTAL # OF SIGNATURE PAGES (CUP ALL LOCATIONS FOR SIGNATURE) CTION REQUESTm City Council approval of the League of Minnesota Cities 1999 City Policies for Legislative and Administrative Action. RECOMMENDATION Approve (A) w eject (R PEIt50NAL SERVICE CONiRACfS MUSTANSWER iXE FOLLOWING QUESiIONS: 1. Has this persoNfirm e+er worked under a contraG for this tlepartment� PLANNINGCOMMISSION YES NO CIB COMMR'i'EE 2. Has this persaVfrtm ever been a city empbyee7 CIVILSERVICECOMMISSION YES NO 3. Does th� persoNfirm possess a sidll n� na�maltypossessed by any curterR city employee? YES NO 4. Is Ni8 V�Mrtn a tarpeted ventlaYl YES NO F�lain a0 yes answeis an separate sAeM and attach to green shee[ INITIATING PROBLEM ISSUE, OPPORTUNITV (Who, What, When, Where, Why) Saint Paul is an active member of the League of Cities and a participant in the effort to develop the League's legislative policies. ADVANTAGESIFAPPROVED The City shows support for the League of Minnesota.Cities, an association we work closely with on many issues at the legislature and throughout the year. DISADVANTAGES IF APPROVED None. DISADVANTAGES IF NOT APPROVED TOTAL AMOUNT OF TRANSACTION S COST/REVQlUE 9UDGETEG (CIRCLE ONEj YES NO FUNOING SOURCE ACTIYITY NUMBER FiruNCw�rc�otn�unow�owwM �s�i�' �.,�: ;"`S?.`,^.�rr�°; 4n.�-a;n§o� ��1998 � ' q�-�'7 � � � i f , , � � ---- i r - � — t �� — ; y j� , � � r ; ; ` ( i--� i !-- i ' : � �lII �i� :ii i�. i Ii �'"—'fiii , t , �� --- -(! f`- � i �l�i(� ' � C ;�,ti� r;��;. ;,I� �;}�� {;i, ; I,ii I� ,� ;,E I�; ��;;- ! Fi�fl �;�� f i;:�ll '`� � � i{ tl j�Ii� i�l (� ��I��t (! � f il:�l �i�l�i (E�E�� !i'341 ��i�� i��}If I�:� �Ei� i�j�'i �� i i(' . I�i :: f i. �'l� .�'ft�*!I � i__f i� 4' i� li I 4{ � '•I�.�_. 1 � t� �� 'i'__ i j�: I :!I �;f: Et{ � (j I � I j ` ^i � t � i:_ � � `ij` :ii �I �! I � _'._. l._.__. ! { �� . . 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' � � ' ' � � � ' - — . ___. � __ www.linnc.org' ` — — I a � � SJ �I � _� ' i � � � � CONTENTS 9 °t - �? League Staff .................................................................. iii Legislative Policy Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv Policy DevelopmentProcess ..................................................... vii 1999 CITY POLICIES GeneralPolicy Statement ....................................................... 1 Improving Community Life CL-1. Livable Communities .................................................. 2 Improving Fiscal Futures FF- ] . FF-2. FF-3. FF-4. FF-S. FF-6. FF-7. FF-8. FF-9. FF-10. FF-11. FF-12. FF-13. FF-14. FF-I5. FF-16. FF-17. FF-18. FF-19. State-Local Fiscal Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State Shared Revenues ................................................. TaYation of Municipal Bond Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City Fisca] Year ...................................................... Sates Tas on Local Government Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Delinquent Property Tax Penalties and Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PaymentsforServicesto Tax-Exem ptPropeRy ............................. Truth-in-Taxation ..................................................... State Administrative Deductions from State Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reporting Requirements ................................................ FederalBudgetCutbacks ................................................ LocalPerformance Aid ................................................. Price of Government ................................................... CapitalImprovement�ees ............................................... Deferred Assessmentsfor Roads .......................................... Taxation of Electronic Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Local Option Sales Tax ................................................ Limited Market Value ................................................. State Charges for Administrative Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Improving Local Economies LE- I . LE-2. LE-3. LE-4. LE-5. LE-6. LE-7, LE-8. LE-9. LE- ] 0. LE-11. TaxIncrementFinancing ............................................... TIF Recodification .................................................... TIF Reform .................................... ...................... Impacts of Property Tax Reform on Existing TIF Districts . . . . . . . . . . . . . . . . . . . . . Corporate Subsidy Reform . ......................................... .... Economic DevetopmentPrograms ........................................ Redevzlopme�tPro�rams ............................................... Property Tas Abatement Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brownfizlds ......................................................... Gro��th �IanaQement and Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State an�'or County Licensed Residential Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 5 5 5 6 6 6 6 6 6 7 7 7 8 8 8 9 9 10 10 10 11 11 ]2 12 12 13 13 14 � 1999 Citr' Policies ol q -1'1 LE-12. LE-13. LE-14. LE-I5. LE-1 b. LE-17. LE-18. LE-19. LE-20. LE-21. LE-22. LE-23. LE-24. LE-25. LE-26. Housing Economic Viability ............................................ Housing Presen�ation .................................................. City Role in Telecommunications . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . .. . .. . . . . .. Adequate Funding for Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State Aid for L3rban Road Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tumbacks of County and State Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Road Funding for Cities Under 5,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Railroad-Related Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access Management and Plat Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rightof Way Management ............................................. Effective Telecommunications Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Local Zoning Regulation of Telecommunications Facilities . . . . . . . . . . . . . . . . . . . . Workforce Readiness ................................................... Platting Law Recodification ............................................. Economic Development Authorities . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . . . . . is 15 16 16 17 17 17 18 18 19 19 19 19 20 20 Improving Service Delivery SD-1. SD-2. SD-3. SD-4. SD-5. SD-6. SD-7. SD-8. SD-9. SD-10. SD-I1. SD-12. SD-13. SD-14. SD-15. SD-16. SD-17. SD-18. SD-19. SD-2Q. SD-21. SD-22. SD-23. Redesigning and Reinventing Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unfunded Mandates ................................................... Civil Liability of Local Governments .. . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . Environmental Protection . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E{ectionIssues ....................................................... LocalElection Authority ................................................ City Costs for Enforcing State and Local Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access to Information Technology and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Design -Build ......................................................... Mobile Home Park Oversight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Providing Information to Citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Creating a Minnesota GIS Program ....................................... State Regulation of Massage Therapists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Private Propecty Rights and Takings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statewide Building Code ............................................... Building Code Department Special Revenue Accounts . . . . . . . . . . . . . . . . . . . . . . . . Municipal Administative Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reforestation ......................................................... Board of Firefighter Training ............................................ Witness Fees ......................................................... State Appropriation for Government Training Service (GTS) . . . . . . . . . . . . . . . . . . . Year20001ssues ...................................................... New Public Safety Spectrum Needs . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 20 21 22 22 23 23 24 24 24 25 25 26 26 26 27 27 28 28 28 29 29 29 30 Electric Deregulation ......................................................... 31 Personnel,Pensions,and Labor Relations ........................................ 34 ii League of Minnesota Cities � � � � LEAGUE STAFF WORHING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications aq ..t� � Gary Carlson, Airector of Intergovernmental Relations General revenue sources for cities including aid to cities and the property tax system, fiscai administration of cities, economic development and � � � � ` ! redevelopment, personnel, transportation Kevin Frazell, Director of Member Services Government ►nnovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, telecommunications Ann Higgins, Intergovernmental Relations Representative Telecommunications, housing, elections and ethics, utility service districts, transportation Andrea Stearns, Intergovernmental Relations Representative � Tax increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing, public safety, general municipa! � � governance Remi Stone, Intergovernmental Relations Representative Growth management and land use, environmental protection, personnel Eric Willette, Intergovernmental Relations Representative � General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, pensions � � 1999 Cit� Policies iii �� Legislative Policy Committee Members Improving Community Life Cathy Busho, Chair, Mayor, Rosemount Laurie Ahrens, Ciry Clerk, Piymouth Rosemary Given Amble, Councilmember, Bemidji Bill Barnhart, Inter�ovemmental Relations, Minneapolis Kevin Satchelder, City Administrator, Mendota Heights Merry Beckman, Assn of Minnesota Counties, St. Paul Sohn Blahna, Mayor, Landfall Kathleen Carmody, Counciimember, Brooklyn Center Peter Connor, Mayor, Owatonna Lorenzo Davis, Voluntzer Coordinator, Childrens Home Society, St. Paui Colleen Dirkswager, COS Coordinator, Maplewood Mike Ericson, Assistant to Ciry Manager, Map(ewood Sharon Feess, CounciVmember, Brookiyn Park Walter Fehst, City Manager, Columbia Heights Evelyn Fox, Councilmember, Breckenridge Sue Gehn, Mayor, Falcon Hei�hts Hazlan Gorath, Councilmember, Fairmont Arly Gunderman, Councilmember, New Brighton Vivian Hart, West St. Paul Sue Henry, Administrative Aide, St. Cloud Fran Hesch, Councilmember, Hop{:ins Donna Holstine, Mayor, Fairmont James Hurm, City Administrator, Shorewood Greg Isaacksoa, Clerrk/Administrator(Treassurer, Cottonwood Julianne Manship, Lake Elmo Marcia Marcoux, Councilmember, Rochester Sandy Masin, Councifinember, Eagan Jaznes L. Mladek, Mayor, Montgomery Ed Mlynar, Mayor, Lester Prairie Joan Mo3enaar, Councilmember, Champlin Deborah Moran, Councilmember, Burnsville Judd Mowry, Councilmember, Tonka Bay Larry Nicholson, Councilmem6er, Moorhead Bev O'Connor, MSBA Board, Golden Valley Isobel Rapaich, Councilmember, Duluth Chip Robinson, City Administrator, Forest Lake Paul Robinson, Clerk-Treasurer, Medina Char Samuelson, Councilmember, New Brighton Barbara Sanderson, Councilmember, Grand Rapids Setty Sindt, Councilmember, Lakeville Dawn Weitzel, Communications Specialist, Richfield Jeff Weldon, City Administrator, Redwood Falls Denny Wilde, City Administrator, Paynesville Patrick Wussow, Administrator/Clerk, Tonka Bay Duane Zaun, Mayor, Lakeville Improving Fiscal Futures Dan Vogc, Chair, City Administrator, Brainerd Terri Heaton, Vice Chair, Chief Fi�ancial Officer, Bloomington Richard Abraham, Ciry Administrator, Lake City Karen Anderson, Mayor, Minnetonka Tom Burt, Ciry Administrator, Rosemount Gino Businaro, Finance Director, Mound Jane Chambers, Assistant Ciry Manager, Brooklyn Center Tom Cran, Budget Office, St. Paul John Erar, Ciry Administrator, Farmington Jerry Faust, Councilmember, St. Anthony Bob Fiison, Ciry Administrator, Worthington Roger Fraser, City Manager, Blaine Mary Gover, Councilmember, St. Peter John Gretz, City Adminis[rator, Apple Valley Jeff Haubrich, Assistant Councii Administrator, Red Wing Steve Helget, City Administrator, Ea�le Lake Pat Hentges, City Manager, Manl:ato Bill Huepenbecker, Intergovernmental Relations Director, St. Paul Greg Isaackson, Clerk-Administrator, Cottonwood Joel Jamnik, Campbell Knutson, Eagan Larry Juhl, Mayor, New London E(izabeth Kautz, Mayor, Bumsville James Keinath, City Administrator, Circle Pines Dennis Krafr, City Manager, Robbinsdale Bob Larson, Ciry Administrator, Deephaven Joe Lynch, City Administrator, Long Lake Tom Melena, City Administrator, Oak Park Hts Steve Mietke, City Manager, Hopkins Ed Mlynar, Mayor, Lester Prairie 7ohn Moir, Finance Director, Minneapolis Gary Neumann, Assistant Administrator, Rochster Cote O'Donne!(, City Adminisvatoc, Renville Steve O'Malley, Deputy Manager, Bumsville (altemate) Steve Okins, Finance Director, Wilfmar Douglas Reeder, City Administrator, So. St. Paul Ryan Schroeder, City Administrator, Cottage Grove Alfred Schumann, Mayor, Eyota 7ennifer Schwinn, Finance Director, Big Lake Jim Smith, Councilmember, Independence Geraid Sorenson, Administrative Services Director, Moorhead Pete Stolley, PubLc Works Department, Northfie]d Ioy Tiemey, Mayor, Plymouth David Mark Urbia, Ciry Administrator, Blue Eaah Gene VanOverbeke, Finance Director, Eagan iv League ofMinnesota Cities � � Jeff VanWychen,lnter�ovemmental Relations, � Minneapolis (altemate) Chuck Whitin„ City Administrazor, Mounds View 7im Willis, Ciry Administrator, Inver Grove Hts Rick Wolfstetler, City Administrator, Monticello � � � . _ � � � � � � � � � � Improving Local Economies Duane Zauq Chair, Mayor, Lakeville Leo W. Eldred, Vice-Chair, Councilmember, Moorhead Kirsten Barsness, Economic DeveloQment Director, Cottage Grove David Beaudet, Councilmember, Oak Park Hu Bob Benke, Mayor, New Bri�hton Steve Bjork, City PlannerlCoordinator, St. Francis Carolyn Bloni�an, City Clerk, Avon Curt Bo�aney, City Manager, Brooklyn Park Jerry Bohnsack, City Administrator, New Ptague Lavonne Sowman, Councilmember, Fairmont Gerafd Brever, Ciry Administrator, Staples Kevin Carroli, Councilmember, Rosemount David Childs, City Mana�er, Minnetonka Bonniz Cumberland, Mayor, Brainerd Grant Femelius, Housing Coordinator, Fridley Keith Ford, Community Devetopment Agency, Minneapolis Matt Fulton, City Manager, New Brighton Richard Fursman, City Administrator, Andover Tom Goodwiq Councilmember, App(e Valley Robert Haeussinger, City Administrator, Dod�e Center Tom Hansen, Depury Manager Administrative Entecprises, Bumsviile Tom Harmenin�, Communiry Development Director, St. Louis Park Pat Heldt, Councilmember, Alexandria Jon Hohenstein, Ciry Administrator, Mahtomedi Susan Hoyt, Ciry Administrator, Falcon Heights Sill Huepenbecker, Intergovemmental Relations Director, St. Paul Curtis Jacobseq City Administrator, Bi� Lake Marvin Johnson, Mayor, Independence Brenda Johnson, Counci(member, Chatfield Andrea Hart Kajer, Intergovemmental Re]ations Director, Minneapolis (altemate) Randy Kolb, Councilmember, Blaine Sandra Krzhsbach, Councilmember, Mendota Hei�hts Larry Lee, Community Deveiopment Director, B(oomin�ton vlarcia Marcoux, Councilmember, Rochzster �tichael McGuire. Ciry Mana�er, Maplewood :��Iark hase!. Cirv �tanaoer, Anoka Dennis \eison, City Admtnis[rator, Windom Ro�e: Peterson, A.Vi�.Vi, St_ Paul 1999 City Policies �[9-�7 Bruce Peterson, Director Plannin� & Development Services, Willmar Gene Ranieri, AMM, Executive Director, St. Paul Mike Reardon, Cab(e Administrator, Bumsville Dan Ro�ness, Community Development Director, Rosemaunt Joe Rudber„ Administrator, Becker Nancy Rys-Nico(, Management Assistant, Shoreview Mark Sather, Ciry Manager, White Bear Lake Terry Schneider, Counciimembzr, Minnetonka Daniel Tempel, Housin� Coordinator, Maple Grove Robert Therres, Ciry Adminisuator, Sartell Ann Thies, Councilmember, Medina Craig Waldron, City Administrator, Oakdaie Jeff Weidon, Ciry Administrator, Redwood FaUs Julia VJhalen, Councilmember, Champlin Denny Wilde, City Administrator, Paynesville Betty Zachmann, C(zrk-Treasurer, Winsted Improving Service Delivery Glenda Spiotta, Chair, Ciry Administrator, Carver and Sunfish Lake Mark Karnowski, Vice Chair, City Administrator, Lindstrom Pac Crawford, Clerk-Tceasurer, Motley Ierry Dulear, City Manager, Crystal Theresa Goble, Finance Direc[or, Brainerd 3oe1 Hanson, Administrator, Little Canada Kay Kuhlmann, Council Administrator, Red Wing Ed Mfynar, Mayor, Lester Prairie Judd Mowry, Counci(member, Tonka Bay Susan Olesen, Clerk, Bumsville Sandra Colvin Roy, Counciimember, Minneapolis David Senjem, Councilmember, Rochester Chad Shryock, City Administrator, Wabasha Joyce Twistol, ClerklPersonnel Director, Btaine Karen Low'ery Wagner, Inter�ovemmenial Rela[ions, Minneapolis (altemate) Rena Weber, CIerWCoordinator, Cold Spring Phil Zie[low, Councilmem6er, Medina Efectric Deregutation Task Force Kathleen Sheran, Chair, Councilmembe�, Mankato Bryan Adams, Utility Superintzndent, E!k River Jim Asplund, Flaherty & Koebele, St. Paul Larry Bakken, Counciimember, Golden Valley Mike Bash, Councilmember, Lon� Lake David Bero, RW Beck, Minneapolis Troy Bonkowske, Public Works_ Caledonia Jim Brim:}er, Counciimzmbzr, S. Louis Park Chuck Canfizld. Mayor, Rochz>te; Al Crowse;, Utilities Genzral ,4tanagec, Alexandria Robert Filson, Ciry Administrator. Warthington v q`�r� Paul Grabitske, City Administrator, Janesviile James Gromberg, Cicy Administrator, Isanti Delvin Haa„ Councilmember, Buffalo Ken Hartun„ Ciry Administrator, Ba}•port 7effrey Haubrich, Asst. To Council Administrator, Red Win� Sue Hess, Councilmember, St. Cloud Steven Jones, Ciry Manager, Montevideo Elizabeth Kaut2, Mayor, Bumsville Mark Larson, Clerk-Administrator, Glencoe Charles Merteasotto, Mayor, Mendota Heighu Mary So Murray, Policy Analysis Director, Minnesota Municipai Utilities Associa[ion Robert Museus, City Administrator, Hu�o Mark Na�el, Ciry Manager, Anoka Paul Ostrow, Councilmember, Minneapotis John Remkus, Finance Director, West St. Paul Joe Rudberg, City Administator, Becker Brad Scott, City Administrator, Sandstone Jerry Splinter, City Manager, Coon Rapids Jim Willis, City Administrator, Inver Grove Heights Wally Wysopal, City Manager-Clerk, North SC Paul Personnel Services Committee Joyce Twistol, Chair, CIerIJPersonnel Dic, Blaine Geralyn Barone, Asst. City Manager, Minnetonka Patricia Crawford, Cterk, Motley Holly Duffy, AssL To Mana�er, Eagan Jerry Du]�ar, City Manager, Crystal Christina Frankenfield, City Administrator, Howard Lake Jean Gramling, City Administrator, Savage Terry Haltiner, Risk Analyst, St. Paul Ken Hartung, City Administrator, Bayport Kay Kuhlmann, Council Administrator, Red Wing Karen Kurt, Personnel Manager, Roseville Ed Larson, Ciry Manager, Morris Kay McAloney, Personnel Director, Anoka Tim Madigaq Ciry Administrator, Faribault Ceil Smith, Asst. To Mana�er, Edina Jerry Splinter, City Manager, Coon Rapids Elizabeth Wheeler, Human Resources/Risk Manager, Northfield Harold Windschitl, Counci(member, Sleepy Eye vi League of Minnesota Cities ; � � � i�__1 � � �_-i aa - �� League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past six months. The process began with a member survey of priority issues facing city officials. The process will not end with the Policy Adoption Conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop alternative sotutions, and discuss strategies to implement the League's policies. Listed below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. April/May June The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. The League President accepts applications for committees and appoints policy committee members. The policy committees are: lmpcoving Fiscal Futures Improving Local Economies Improving Service Delivery Personnel Services Electric Deregulation In addition, the Improving Community Life Committee meets on a regular basis to � discuss issues affecting ]ivable communities and to develop the Improving Community Life policy guideline. � Tuly Committees meet to discuss issues raised in the member sucvey. Commitees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. � � :�_ �-1 �� August Committees and task forces meet to discuss issues and problems, accept through testimony and develop policy statements. September October The Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the five policy committees. November January through 14fav Policy Adoption Conference. Members have the opportunity to discuss the drafr po(icies, propose changes, and suggest additional policies for member consideration. Leeisla�ive session. Durin� the session, the policy committees and task forces will continue to meet on issues and scrate�ies. h4embers can assist the Lzague's le;isiative effotts by volunceering ce contacc legisiators on a varizry of issues of in�erest to our ci[ies. � 1999 CitS� Policies vii qq-i� 1999 City Policies � � � � � � � �� r�q-�'7 General Policy Statement The League of Minnesota Cities serves as a forum for cities to define common problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 816 of Minnesota s 853 cities as well as 12 urban towns and 25 special districts. All sizes of communities are represented among the League's members (the largest nonmember city has a population of 170) and all regions of the state aze represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies: 1. There is a need for a governmental system that allo�vs flexibility and authority for cities � to meet the challenges of goveming and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and, 2. The financial and technical requirements for governing and providin� services necessitate a continuing and strengthened partnership with federal, state, and local govemments. This partnership, particularly in the areas of finance, development, housing, environment and transportation, is critical for the successful operation of Minnesota's cities and the well-being of residents. 1949 Ciri� qq-1�1 � IMPROVING COMMUNITY LIFE CL-1. Livabte Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local govemments to work together in partnership to make every community "livable." ISSUE: Cities in Minnesota aze at various stages in meeting the goal of being "livable communities." RESPONSE: The definition of a"livable community" belo�v will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota citeis to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable coramunities. A LIVABLE COMMUNITY IS: WHERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: * safe * a sense of belonging * welcome • engage in life-long leaming activities that: * prepare them for responsible citizenship * enhance the enj oyment of life * prepaze them for changing j ob mazkets • participate in the decision-making process of community leaders • celebrate community • want to make thefr home • have accessto: * goodpayingjobs * adequate and affordable housing * choice of efficient transportation systems including transit, pedestrians, and bicycles � � 2 League of Minnesota Cities � 0 � � � �� C� � I� J L.� ■�.� � �q-l� * gathering places * desired information * choice of cultural and recreational activities * affordable goods and services, including health caze • aze involved in the nurturing of youth • caze about their homes, community, and the environment • get to know each other • have the benefit of strong family support and nurturing adults WHERE LOCAL GOVERNMENT • is responsive to the needs of its citizens • is actively supported by enthusiastic volunteers • is open and user friendly • encourages and implements cooperation and collaboration • provides and maintains an adequate physical infrastructure and promotes social infrastructure to meetlocalneeds s educates citizens of all ages on local, regional, and state issues and govemment processes • informs and communicates with citizens to foster participation in public policy decision- making • participates in youth development � 1999 City Policies 3 �tq -�� IMPROVING FISCAL FUT"URES FF-1. State-Local �'iscal Relations Issue: Minnesota's state and local government finance system is complex and intertwined. Cities rely on their partnership with the state to provide local services. On the other hand, the needs and desires of Minnesota's communities are many and wide-ran�ing. While the state's revenue- sharing system has been regatded as innovative and helpful, there exists a growing need for local elected officials, those closest to the electorate, to be responsive to the service needs ofthe local citizenry. To that end, cities need discretion and flexibility in determining local revenues. The 1997 and 1998 legislatures made changes to Minnesota's property tax system that will impact the ability of local governments to fund necessary services. The reimposition of le�ry limits, significant class rate compression, and chan�es in state funding of schoois all may have unintended consequences. Respo�:se: As the Legislature considers additional property tax changes, it should: � Carefully analyze the combined impacts of the 1997 and 1998 tax bills and chanbing economic circumstances on the taxpayer and on local governments so that policy makers can better understand where the system may need further changes; • Diversify available city revenue sources by generally authorizing cities to impose a local option sales tax with voter approval; and • Reduce the property tax burden for all classes of propert} by increasing the state share of school funding. Any increase in the state share of school funding must guarantee a permanent reducfion in the local property tax burden. The League supports paying for the increased state costs through income and sales tases. The Legislature should not: • Extend le�ry limits, which are inefficient, ineffective, interfere with local accountability, and ignore local circumstances; • Replace all or part of LGA or HACA with state-mandated categorical aid programs, or local option taxing authority; • S�vitch from the classification system to a market value based system, which would cause tremendous shifts of tax burden behveen classes of property. The League aiso opposes applying all future levy increases to market value because this would further complicate the property tax system; • Expand the limited market value la�v; • Interfere in local decision-making regarding service delivery; • Impose a state-levied property tas; nor • Cut LGA or HACA to finance an increased state role in school finance. FF State Shared Revenues Issue: State revenue sharing programs address at least three problems with a stand- alone local govemment finance system. First, the property tax base available to communities can vary dramatically. These � 4 League of Minnesota Cities � � � � L� _! Y�' �� C _f �_l 1 :_I �� programs use state resources to equalize the ability of communities to provide essential services without undue property tax burdens for local residents. Second, nonresidents can take advantage of local services or create additional demands for services without contributing to the taxes that support these services. LGA and HACA help address the free rider problem where nonpayin� individuals consume services without contributing to the local tax base. Third, allowing local units of govemment in Minnesota to only levy the property tax has created an over-reliance on the property tax. LGA and HACA can reduce the overall reliance of local governments on the property tax. Response: LGA and HACA, or similar replacement revenues, must be continued and additional state resources greater than the rate of inflation must be ailocated to prevent rapid future property tax increases. In addition, the HACA household growth factor for cities should be reinstated. FF-3. Taxation of Municipal Bond Interest Issue: The state law that grants a tax exemption for municipal bond interest is being reviewed and couid be repealed. A repeal of this exemption will raise bonowing costs for cities. Respor:se: The state should maintain the tas exemption for municipa( 6ond interest income. ��-�'1 FF-4. City Fiscal Year Issue: The fiscal yeazs for the state and cities aze offset by six months. The state fiscal yeaz begins on July 1 while the city fiscal yeaz begins on January 1. Lawmakers have proposed chan�ing the city fiscal yeaz to coincide with the state. Such a change, while providing questionable benefits for cities, would not correspond with the current property tax cycle, «�ould impair historical comparisons of data, would force cities to retool accounting systems, would adversely impact city credit ratin�s, and could result in state funding gaps. Response: The state should maintain current la�v and not change the city fiscal year to coincide with the state fiscal year. FF-5. Sales Tax on Local Government Purchases Issue: In 1992 when the state was experiencing a bud�et shortfall, the Legislature repealed the sales tax exemption for local govemment purchases. Local governments no�v pa}� state sales tax on purchases like road maintenance supplies and equipment, wastewater treatment facilities, and buildine materials for affordable housing. This action currently costs local govemments an estimated $78.3 million annually. Because no additional state aids were added to offset the additional cost, this repeal has effectively increased local property taxes to finance state operations. Respor:se: The state shouid reinstate the sales tax esemption for all local government purchases. The exemption must not be coupled �tiith cuts in LGA or H�CA. � 1999 City Policies g a� -�� FF-6. Delinquent Property Tax Penalties and Tnteresf Issue: Although city finances aze affected by property tax delinquencies, cities do not receive any associated penalties and interest on these delinquencies. Penalties budget for unforeseen needs that arise afrer September 15. Response: Cities should have the authority to increase the final levy from the preliminary levy to meet unforeseen and uncontroilable needs. � L�l � and interest are split evenly between counties and schoois. Response: Cities and counties should receive a pro-rata distribution of 50 percent of the penalties and interest collected on delinquent property taxes with the remaining 50 percent to be distributed to schools. FF-7. Payments for Services to Tax-Exempt Property Issue: Taxable property in many cities is being acquired by nonprofit and government entities. Converting the property to tax- exempt status can lead to a serious tax base erosion without any cottesponding reduction in the service needs created by the property. Response: Cities should be allowed to collect special assessments or other payments in lieu of property taxes (or special assessments) from statutorily exempt property owners to cover costs of service. FF-8. Truth-in-Taxation Issue: Cities must set a preliminary levy by September 15 which, by law, becomes the maximum that cities can levy for the following year. In recent years, cities have not received complete tax base and aid information in a timely manner. As a result, cities often either set a preliminary levy that is artificiaily hieh or they are unable to FF-9. State Administrative Deductions from State Aid Issue: State administrative costs aze deducted from the LGA appropriation. This reduces the property tax relief provided by LGA and creates hidden appropriations for state agencies. Response: All appropriations from LGA resources that fund state operations should be repealed. FF-1�. Reporting Requirements Issue: Budget and financial reporting requirements imposed on cities by the state often result in duplication and additional costs. Bespanse: Requirements for reporting and advertising financial and budget information should be carefully weighed to balance the validity of the s±ate's need for additional information with the costs and burdens of compiling and submitting this information. In addition, all state agencies should be arrare of the information already required by others to avoid duplication of reporting requirements. FF-11. Federal Budget Cutbacks Issue: Congressional actions to balance the federal budget will reduce federal � � � 6 League of Minnesota Cities �`t'�1 � � � 1 � � 1�: �! � ��.I :f, � � � � assistance to the state and to local govemments. Response: The state should not reduce aids or increase fees to local governments as a means for dealing with cutbacks in federal revenues. The state should take responsibility for reductions in federal revenues rather than placing the burden on cities and their property taspayers. FF-12. Local Performance Aid Issue: When the 1996 Legislature created the local performance aid program, the legislation was vague and the program was partially funded by cuts in HACA. In the future, the requirements for applying for the aid could become an onerous mandate on cities and undermine tocat decision-making. Response: The League strongly supports efforts by cities to improve the efficiency and effectiveness of their operations, including exercises such as performance measurement systems. However, these efforts should be local initiatives rather than state-mandated actions. Therefore, the League opposes LPA. If local performance aid is to be continued: • The law must be clariFied and the qualification requirements must be attainable by all cities regardless of city size or staffing levels; • All additional funding must come from new revenue sources rather than shifts of aid from other programs such as LGA and HACA; • The program musY not become an onerous mandate requiring additional cih resources; and •?.nr' information on indi� idual cifies that is collected from the program must not be used to simplistically compare cities. FF-13. Price of Government Issue: The price of government legislation enacted in 1994 was intended to measure the overall effect of state and local taxation over a long period of time. The targets measure govemment revenues as a percent of personal income. Unfortunately, the targets have been misinterpreted and used unfairly to criticize city tax and budget decisions. Response: The price of government statutes as they apply to locai governments should be repealed. If the price of government law is to continue to be applied to local governments, price of government calculations should be: • based on the sum of levy and state aid, not just levy; and • based on long-term trends, not single- year events. FF-14. Capital Improvement Fees Issue: New development and thc resulting growth create an increased demand for public infrastructure and other public facilities. Severe constraints on local fiscal resources and dramatic forecasts for population growth have prompted cities to critically reconsider �cays to pay for the inevitable costs associated with new development. Traditional financing methods tend to subsidize new development at the expense of the existin� community, discourase sound land use planning, place inefficient pressures on public facilities, and allo�r underutilizatior. of existins infrastructure. Conseauentl�.local communities are exploring metnods to � 1999 City Policies ? a� -�� ensure that new development pa}•s its fair shaze of the true costs of growth. Given the existing authorization to impose f es on ne«� development for ��,•ater, sanitary and storm sewer, and pazk purposes, it is reasonable to extend the concept to additional public infrastructure and facilities improvement also necessitated by new development. is brought into the cit}•, the city may assess that ne�cl}� acquired property for road improvements pre� done but not assessed at the time of the improvements. FF-16. Taxation of Electronic Commerce Response: The Legislature should authorize cities to impose capital improvement fees so new development pays its fair share of the off-site, as well as the on-site, costs of public infrastructure and other public facilities needed to adequately serve new deve(opment. FF-15. Deferred Assessments for Roads Issue: Current law allows a city to recoup the costs for water, storm sewer, or sanitary sewer improvements by levying additional assessments on the property benefiting frocn the improvement, but not previously assessed. This authority for defened assessment has not been extended to otherinfrastructure, such as road improvements, even though properties aze benefiting from the improvements. Respoi:se: Cities should be able to assess the cost of infrastructure improvements for roads. Cities should be allowed to defer assessments against property located outside the city for road improvements benefiting property abutting the improvement but not previously assessed for the improvement. For example, if a city makes road improvements to a road that benefits city residents and to�cnship residents, the city may defer the assessments to the township property until the property is brought into the city. Once the toi��nship property Issue: Sales over the Tntemet and through other electronic means are projected to increase exponentially over the next several years. Because of the difficulty of assigning a location to elecironac sales, because many Internet "goods" are not tangible property, and due to potential federal intervention, electronic transactions pose significant tax policy challenges. Response: Federal tax policy must not put main street businesses at a competitive disadvantage to electronic retaiters, must not jeopardize repayment of bonds backed by state and local sales tax revenues, and should ensure stability in state and local revenues. FF-17. Local Option Sales Taxes Issue: Last year, the Legislature authorized local sales taxes for 13 cities to fund regional projects in nine greater Minnesota regional centers. Most Minnesota cities would benefit from diversification of the revenue sources available to them to relieve the local property taY burden. Respo�tse: The Legislature should generally authorize local sales taxes for cities upon local approval. g League of Ylinnesota Cities � L� � Y � � � FF-18. Limited Market Value Issue: Rapidly rising property values in some parts of the state have fueled legislative proposals to expand the current limited mazket value 1aw. One proposal �vould establish the consumer price index as the maximum annual mazket value increase and extend the limit to all classes of property. Further restricting market value increases would have several negative consequences: � • It would unfairly shifr taxes from properties experiencing growth in value onto all other properties. � • Over the long-term, similar properties would be taxed at widely different rates � � merely due to when the properties were last sold. • It could discourage the sale of property because sales would retum the property to full market value for tax purposes. • It would discourage improvements to � property, which would trigger a retum to full market value for tax purposes. This could lead to degradation of housing and � other types of property. • It could adversely affectthe ability of cities to bond for infrastructure � improvements or for tax increment financing since local tax bases would not reflect the growth in property values. � • Once implemented, limited mazket value provisions are politically difficult to � � � qq-�� sunset due to the potential for lazge one- year tax shifts onto properties whose values were artificially capped by the program. Response: The League opposes any expansion of the limited market value law. FF-19. State Charges for Administrative Services Issue: Currently, some state agencies have wide discretion in setting the fees for special services they provide to local governments. For example, the Minnesota Department of Revenue recently increased the fee for administering local sales taxes by 80 percent in the middle of a budget yeaz with less than six weeks notice. The increase had no apparent relationship to increased cost of providing the service. Respo�:se: State agencies should be required to demonstrate the need for increases in service fees, and should give adequate notice of increases to allow local governments to budget for the increases. State agencies should set administrative service fees as close as possible to the marginal cost of pro��iding the service. Local government should be given the option to self-administer or contract with the private sector for the service if the state cannot provide the service at a reasonable cost. � 1999 City Policies 9 �.q-�� IMPROVING LOCAL ECONOMIES LE-1. Tas Increment �'inancing (TIF) Issue: The state has effectively delegated the responsibility for economic development and redevelopment to cities. Unfortunately, neighboring states have given their cities more development tools and, therefore, cities in these states have a competitive advanta�e over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to all cities in their economic development and redevelopment efforts. The state, whether based on a lack of information or misinformation, has been critical of cities' use of the tool and has implemented a series of restrictions over the past several years, rather than partnering with cities and encouraging their endeavors to improve and enhance the economic well-being of Minnesota and the growth and redevelopment of its cities. Cities, required to assume the financial risks associated with development decisions, have used tax increment financing responsibly and examples of these positive uses abound. Response: To effectively compete with other states, Minnesota must provide its cities greater flexibility in the use of tax increment financing and other economic development programs. The state should partner with cities in economic development and redevelopment activities, and encourage cities' use of tax increment in achieving the laudable goals of long-term tax base stabilization and growth, job creation, development of low- to-moderate income housing, remediation of pollufion, elimination of blight, recycling and redevelopment of the infrastructure, and rede�•elopment of its communities. Counties and school districts are appropriately im�olved in cities' development decisions fhrough current "review and comment" requirements. LE-2. TIF Recodification Issue: A legislative task force was created by the 1997 Legislature and directed to recodify the tax increment statutes for the purpose of simplification only, with no policy implications. Respoi:se: TIF recodification legislation should remain an independent bill. Any TIF policy issues identified shouid be separately addressed. LE-3. TIF Reform Issue: It is likely that several TIF policy issues will be identified during the 1999 legislative session. Respa:se: Along �eith these policy issues, the Legislature should equaliy consider: • Clarifying that any tax increment districts approved beriveen 1979 and 1982 ha�e the same authority to pool increments as districts certified after 1982 and prior to April 1,1990; • Authorizing any tax increment districts approved after April 1, 1990, to pool increments in the same manner as districts certified prior fo Apri11,1990; • In light of levy limits, eliminate the LGA/HACA penaity currently � 10 League of Minnesota Cities � � � � imposed on districts or a31ow an exception from levy limits. If the penalty is not eliminated, the restrictions on the source of payment shouid be removed; • Expanding the use of tas increment financing to assist in the development � offechnologicalinfrastructure,job training, the restoration of historic � �< � F�J � structures, and for nonretail commercial projects (e.g., sofhvare companies, banks, and insurance companies); • Exempting redevelopment districts from the'�five year rule"; • Modifying the housing district income qualification level requirements to allow the levels to vary according to those specific to individual communities; • Authorizing the use of federal grants and other funds for local contributions; • Removing the LGA/HACA penalty � imposed on housing districts established beriveen the penalty years �. � � � � of 1990 and 1993; • Making any necessary statutory changes to allotv the Office of the State Auditor to simplify its TIF reporting forms in consultation with those required to complete the forms; and • Authorizing TIF financial information to be published in a more simplified format so it provides the average taspayer with useful information. LE-4. Impact of Property Tax Reform on Existing TiF Districts � Issue: The 1997 and 1998 Legislatures compressed proper.y� tax class rates which, in tu.*n. jeopardized the repa}�menc of � ouist2nding debt o- other obligations in existi.^.g TIF districts. Giver. the long-term � 1999 Cih Policies Q9-I? nature of property tax reform, cities could not have anticipated the impact of the 1997 and 1998 class rate changes, nor can cities project the impact of future changes. The $2 million provided by the 1997 Legislature for grants where the class rate changes cause TIF district deficits, while critically needed, is likely to be insufficient ta cover every deficit, does not provide timely reimbursements, and is administratively confusing. The special taxing district authority provided by the 1998 Legislature might be useful in certain cities, but is oniy a partial solution. Response: The Legislature should provide additional state resources so TIF obligations can be met, and third party bondholders are protected because the $2 million fund is insufficient to cover deficits caused by the 1997 class rate changes. The Legislature should aiso ciarify the administration of the grant process and should require timely reimbursement. LE-5. Corporate Subsidy Reform Issue: Cities support public notice, participation, and accountability in the use of public funds. Current mechanisms aze in place to ensure these are adequately provided. Proponents of corporate subsidy reform would like to implement what they see as increased protections. Response: Current law adequately provides for public notice, participation, and accountability for the use of public funds. Cities oppose: • �'Ieasures Yhat conflict with existing laFr or that ma}' establish a duplicative procedure; • One minimum �va�e le� e1 that does 11 ��-t� not recognize or provide sufficient flexibility for the numerous submarkets existing throughout the state; • Identifying industrial revenue bonds, whose tax esempt status is a result of federal decision-making, as a subsidy; • Processes that hold cities accountabie for decisions made by businesses and for the validity of such decisions; and • Requiring developers to enter into workforce and salary agreements when developers are not responsible for the employment levels and compensation packages offered to their tenants' employees. LE-6. Economic Development Programs are faced with the unique circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and do�cntowns and a lack of land for development. Redevelopment activities usually require large, up-front funds to address multi-phase projects of extensive duration where site assemblage, demolition, relocation, or pollution clean up must occur before private-sector interest can be generated. The 1998 Legislature's creation of a redevelopment acount is a first step in establishing a coherent statewide policy and should help combat the increasing problem of urban sprawl. Additionally, deterioration threatens historic structures in cities across the state. Currently, there are not enou�h tools for cities to utilize in local historic preservation efforts. Issue: The Minnesota Investment Fund is not adequately funded. The state does not authorize an adequate slate of tools for local governments to assist job creation, redevelop blight and decay, and provide adequate housing choices. Consequently, cities aze not well equipped to compete nationally and intemationally for business development. Response: • More state resources should continue to be contributed to the 1Vlinnesota Investment Fund. • Congress should remove the caps that have been placed on Industrial Development Bonds and acknowledge that the extensive eligibility requirements now adequately limit their use. LE-7. Redevelopment Programs Issue: Communities across Minnesota Respa:se: In recognition of the unique needs of redevelopment projects, the state should continue its commitment to reinvest in its communities by increasing funding for the redevelopment account, and should undertake a comprehensive approach that provides financial assistance to address their redevelopment needs such as state tax credits, TIF subdistricts, and other tax incentives for tocal historic preservation efforts. LE-8. Property Tax Abatement Authority Issue: In an effori to increase the number of development tools available, the 1997 Legislature authorized local units of government to grant property tax abatements. Although TIF continues to be the primary financing mechanism for local development projects, tax abatements provide a good addition to a needed list of economic development tools. In order to provide maacimum benefits, tax abatements 12 LeaQue of Minnesota Cities ag-�7 should be less restrictive in terms of funding caps and financing terms. Property tax abatements should not be considered a replacement for ta�c increment financing. Respof:se: TIF is still the primary viable development tool available for cities. Abatement authority should continue to be available, but noY offered as a rationale to eliminate TIF. LE-9. Brownfields Issue: Brownfields are lands unsuitable for development due to the presence of chemical or other contaminants. � Bro�vnfields are a major cause of blight within communities across the state through � loss of local tax base, jobs, housing quality, public safety, and community confidence. Revitali2in� this land is costly and requires � the cooperation of city, county, school, re�ional, state, and federal governments and the assistance of local economic � development organizations and citizens. As we move into an era where the mass creation � � � � � � ofjobs is a necessity and where increased tax base is a requirement for local govemments to adequately face growing financial pressures, efforts to revitalize brownfields must not only continue but be accelerated in the upcoming years. Currently, $7 million exists in the Department of Trade and Economic Development's (DTED) base for the contaminated site clean-up fund. Additionally, $6.2 million is appropriated annually from the Petrofund to DTED to clean up petroleum-related contamination w'ithout the requirement of an identifiable tanl: source. Resportse: A comprehensive set of � economic de� elopment programs must be maintained for cities and other � 1999 City Policies development agencies. The Legislature should: • Increase funding for the Department of Trade and Economic Development's contaminated site clean-up fund and redevelopment account; • Strengthen enforcement and collection of revenues for the state contamination tax; • Continue support for and funding of local and regional programs to assist in the efforts to remediate brownfields; • Establish a fully-funded program to allow cities and other development authorities to gain control of and reclaim and revitalize bro�vnfields; • Protect existing tas increment financing provisions that provide for the remediation of brownfields, and modify restrictions to allow the pooling of district revenues to assist in the financing of remediation of brownfields; • Establish an indemnification fund to provide financial security for institutions and individuals as they invest in efforts to recycle brownfields in order to leverage private investment in cities' efforts to increase their tas base and create jobs; and • Continue financing mechanisms for cleaning contaminated sites. LE-10. Growth Management and Annexation Issue: Unplanned and uncontrolled urban gro��th has a negative environmental, fisczl, and Qovemm�ntal impact for cities, counties, and state oe�ernments because it incrzases the cost of pro� iding �overnment services, and resuits in the loss of natural 13 resource areas and prime agricultural land. Respo�:se: The Leagne belie��es the existing frameFCOrk for guiding growth and development primarily through local plans and controls adopted by local governments should form the basis of a stafewide planning policy, and that the state should not adopt a mandatory comprehensive state�r•ide planning process. Rather, the state should: • Pro��ide additional financial and technical assistance to locai governments for cooperative planning and growth management issues, particularly where new comprehensive plans have been mandated by the Legislature; • Clearly establish the public pur�oses served by existing statewide controls such as shoreland zoning and wetlands consen�ation; clarify, simplify, and streamline these controls; eliminate duplication in their administration; and, fully defend and hold harmiess any local government sued for a"taking" as a result of executing state land use policies; • Give cities broader authority to estend their zoning, subdivision, and other land use controls up to ttivo miles outside the city's boundaries, regardless of the existence of county or fownship controls, to ensure conformance with city facilities and services; • Cieariy define and differentiate beriveen urban and rural development and restrict urban growth outside city boundaries; • Require the Metropolitan Council to seek cooperation from the state of Wisconsin and counties (both Minnesota and «'isconsin) � Qa't'7 surroundine the met�opolitan area to ensure responsible and controlled development; stud}� ezpansion of Metropolitan Council authority in surrounding counties; and, examine the positive and negative impacts of mandatory regional or local land use controis and state-imposed development standards; • Facilitate the annexation of urban land to cities by amending state statutes that regulate annexation to make it easier for cities to annex developed or developing land within unincorporated areas; • Oppose attempts to reinstate the Minnesota i�iunicipal Board as the body for resolving boundary adjustment issues. • Oppose legislation fhat wouid reinstate the election requirement in contested annexations; and • Encourage ideas consistent with the long-term goal of allowing urban development only in urban areas. Density incentives such as sprawl reduction aid programs are more straightfonvard methods of rewarding and encouraging compact urban development than using LGA or HACA for another new �urQose. LE -11. State and/or County Licensed Residential Facilities (group homes) Issue: The need for more residential- based care facilities resulting from state policies makes it clear the state must also provide sufficient fundin� to ensure residents living in �roup homes and licensed facilities have appropriate care and supervision. In ��ie« of the responsibilities cities have to accommodate group homes and residential-based facilities, it is League of blinnesota Cities � °tq -�� i� important that state and county units of govemment make every effort to work with local officials to address care and public safety concems. Cities must also be awaze of special care needed by group home residents in case of public �afety emergencies. Since operatozs of certain residential facilities and services are not required to notify cities when they intend to purchase housing for this purpose, cities have insufficient opportunity to address the special care and pubiic safety needs these residences may require. Respor:se: The Legislature should require state and county agencies that operate or ]icense companies to operate residential-based facilities to notify cities in a timely manner, and allow opportunity for cities to respond regarding the status of facility license requests and renewals and the speciai care needed by residents in case of public safety emergencies. Legislation should � also inciude provisions requiring establishment of nonconcentration standards and direction to avoid 1� � � 1____' � � 1..�_l ciustering residential facilities. Licensing authorities must also be responsible for removing any residents incapab3e of living in such an environment, particularly if they become a danger to themselves or others. LE -12. Housing and Economic Vitality Issue: City officials increasingly recognize that housing shorta�es threaten strong nei�hborhoods, healthy communities, and local economic vitality. Decreased federal housin, assistance and insufficient state resources for housinc p; oduction place statz�tiide economic expansion at risk. Changes in socia? sen�ices and family support, along with welfare-to-work requirements, make it paramount for the Legislature to re-allocate state resources to strengthen family stability, improve workforce availability, and improve children's school performance. Response: The Legislature must increase state investment in housing production, at least doubling the current biennial housing budget, to help leverage private and local resources as well as federal funds. The Legislature should make at least a one-time, S40 million investment outside the metropolitan area for production uf single-family housing affordable to worl:ing families, along with affordable rental units. In the metropolitan area, in�esting another $40 million over the nest biennium to carry out the goais of the Livable Communities Act will help meet the needs of many households in �vhich �i'orking adults must now travel long distances to get to work. LE-13. Housing Preservation Issue: Loss of federally-assisted housing in communities throuehout the state remains a serious threat to the «e11-being of older city residents as well as other vulnerable populations. Few cities have sufficient local resources to purchase or provide equity take- out loans to owners of subsidized rentai units who are considering mortgage prepayment and com�ersion to market-rate rentals for properties oriQinally built to provide housing for lo�c-income residents. Cities and nei�hbornood organization community developmen: projzcts sometimes ;equire demolition of s��os.andard housing, �.hich can compoun� h� �sine shortages and displace occupants. � 1999 Cit} Policies 15 �_ � .Response: The Legisiature must appropriate at least S10 million for preservation of federally-subsidized housing throughout the state to provide additional resources for the Minnesota I3ousing Finance Agency and community- 6ased nonprofit housing organizations to buy units or make equity take-out loans to property owners in return for maintaining rents affordable to low- income residents and agreeing to maintain the federally subsidized mortgage to term. neutral and nondiscriminatory manner. Response: State and federal government should encourage cities and telecommunications service providers to colIaborate to take advantage of planning opportunities for the development of telecommunications infrastructure and services to strengthen local and regional economies. Federal and state government must also strengthen city authority to: • Provide telecommunications services either in partnership with other public entities, the private sector, or as a sole provider; • Grant additional cable TV franchises to provide the benefits of competition � The Legislature should provide incentives to lower housing construction costs and selling prices to encourage local government, builders, developers, housing agencies, and organizations to address housing design and construction costs, land use regulation, and other factors that could reduce housing development costs. LE-14. City Role in Telecommunications Issue: As cities seek the benefits of information technology, they face a number of critical issues, particularly availability and competition for providing advanced community-based telecommunications services. Cities recognize the importance of providing these services for education, health caze, business, and residents in their homes and work places. Cities also play an integral role in the emergence of local competition, the zoning of wireless communications facilities, and preserving cable operator support for public, education and govemment (PEG) access and I-Nets, and upholding federal requirements to treat all providers in a to subscribers; • Require all mvltichannel providers of video programming sen�ices that use public rights of way to compiy with local PEG access and I-Net requirements; and • Exercise effective local zoning controls over the siting of wireless communications facilities. LE-15. Adequate Funding for Transportation Issue: Current funding for roads and transit systems across all govemment levels in the state is not adequate. The League acknowledges that all Minnesota communities benefit from a sound and adequately funded transportation system. Response: More resources must be dedicated to the state's transportation system. The League supports constitutionally dedicating a portion of the sales tax on motor �•ehicles (also referred to as MVET) or other new � I� � � � League of Minnesota � � � � � � � � � �� C —1 !� revenue sources to a transportation fund, which rvould fund both highFVay and transit projects. The League also supports an increase in the gas tax that would be dedicated under the existing highway user trust fund formula. If funding does not come from the state, cities should have funding options available to them to raise the necessary dollars to adequately fund roads and transit. All nontransportation programs should be funded from sources other than the highway user distribution fund or other funds dedicated to transportation. LE-16. State Aid for Urban Road Systems Issue: Current ruies governing municipal state aid erpenditures are restricting the efficient use of these funds, and do not adequately acknowledge the constraints of road systems in urban city environments. Respaue: Rules affecting the � municipal state aid system need to be changed to acl:noFVledge the technical and practical restrictions on construction and L"�! � � � � reconstruction of urban road systems. Nerv municipal state aid design standards should not apply to reconstruction of existing state aid streets originally constructed under different standards. Future changes to state aid rules should ensure the im�olvement of elected officials and engineering professionals in the decision-mal:ing process. �� LE-17. Turnbacks of County and State Roads Issue: As road fundin� becomes increasingly inadequate, more roads are bein� "turned back" to cities from counties and the state. Respo�:se: Turnbacks should not occur without direct funding or transfer of a funding source. A process o£ negotiation and mediation should govern the timing, funding, and condition of turned-back roads. Citytaxpayers should receive the same treatment as township taxpayers. The requirement for a public hearing, standards about the conditions of turnbacks, and temporary maintenance funding should also apply to county turnbacks to cities. At a minimum, roads proposed to be turned back to a lower government level should be brought up to the standards of the receiving government or should be compensated with a direct payment. Direct funding should be provided for smailer cities that are not provided with turnback financing through the municipal state aid s} stem. LE-18. Road Funding for Cities Under 5,000 Issue: Cities under �,000 population do not receive any nonproperty tax funds for their coilector and arterial streets. Respazse: Cities under �,000 population that are not eligible for Municipal State Aid (II.S.A.) should be able to use counh' municipal accounts � 1999 Cih� Policies 1� c�q- t�j and the 5 percent account of the high�c•ay user distribution fund. Uses of county municipal accounfs should be statutority modified so counties can dedicate these funds for local arterials and collector streets �� ithin cities under 5,000 population. In addition, the 5 percent set-aside account in the highway user distribution fund should be used fo meet this funding gap. sought b}� the pri��ate sector. The state and federal go��ernment must participate in adequately funding railroad projects. The federal go��ernment must exercise greater o��ersight of the STB to ensure that fair and equitable solutions are reached when dealing �vith cities in Minnesota. LE-20. Access Management & Plat Approval LE-19. Railroad-Related Projects Issue: Cities are being presented with far-reaching and long-term effects ��hen railroad expansion and related projects enter their communities. Alon� with the concerns related to safety, environmental effects, and noise impacts on the communities, several issues have greater reaching effects. They are: • The cost-share ratio related to roadway crossing improvements will be borne by the public sector to a substantial degree, some estimates are 80 percent public to 20 percent private funding; • The financial burden faced by the pubiic sector to deal with mitigation improvements, a cost that the Surface Transportation Board (STB) is not requiring the private sector to pay; • The issues associated with the length of trains moving through communities; • Liability associated with whistleblowing ordinances; and • Pre-emption of local authority to regulate railroad activities. Response: The pri��ate sector must be required to pay a greater share of the improvements that 6enefit their industry- The public sector shoufd not be expected to undenvrite the costs of impro��ements Issue: Increasingly, the state and some counties express a desire to exercise more control over state and county roads that lie within city boundaries. Some counties have introduced le�istative proposals requiring county plat approval before projects may move for��ard. The Department of Transportation has been studying the issue of access management, and may bring a legislative proposal forward in 1999 to establish minimum standards before new access points onto roads will be allowed. The League has published educational articles designed to highlight the importance of county and state involvement when cities are involved in planning decisions that will allow ne�� de��elopment to access roadways. Resporrse: Cities support maintaining plat appro� al authority with each municipality for all plats located wifhin cities. Cities do not support extending county or state authority over plat approval. Ho�vever, significant advanfages can be gained by using a coordinated re��iew process, already existing in state law, behceen cities and other affected units of government. Such advantages include better ocerall land use planning, site designs, and traffic management. In addition, cities support the concept of state�cide access 18 League of _VIinnesota Cities � a� - t� � � � �i�! L�! � r—' � � management guidelines that can be used in a coordinated reviecv process. LE-21. Right of Way Management Issue: Cities have fundamental responsibility for managing the safe and convenient use of public rights of way. Cities hold local rights of way in trust for the public as a limited and valuable asset. As demand for ri�ht of way use increases, cities must continue to have clear authority to allocate and coordinate that resource among competing uses. Local management responsibilities vary and are site specific, underscoring the importance of upholding local authority to establish fees and standards and to obtain fair and reasonable compensation by telecommunications right of way users. Respoi:se: State go��ernment must: • Uphold local authoriry to manage and protect public rights of tvay; • Recognize that municipal engineering has a paramount role in devetopment and implementation of construction and safety standards; • Support local authority to require reasonable compensation reflecting local policy and fiscal objectives, including the collection of Franchise fees and support of public, education and government (PEG) and I-Net access to providers of multi-channel video programming; and • Nlaintain the courts as the primary forum for resolving allegations by telecommunications ser��ice providers of arbitrarv or capricious city� management policies and �ractices. LE-22. Effective Telecommunications Competition Issue: Consumers need protection in the transition to a competitive marketplace for telecommunications services. Local economies can be strengthened by competitive provision of services to enhance business participation in the global economy. Respo�:se: Federal, state, and local government shouid coordinate policies to protect consumers and encourage emergence of local competition. LE-23. Local Zoning of Telecommunications Facilities Issue: Federal intervention and restrictions on city zoning authority over the use of property by telecommunications service providers threaten to pre-empt basic local land-use regulation. Response: Federal and state government must uphold the fundamental right of local government to adopt and enforce zoning regulations reaffirmed in the federal Telecommunications Act of 1996. LE Workforce Readiness Issue: State and federal welfare reform efforts have focused on the importance of the welfare-to-work transition, and have reco�nized the challenge of ensuring individuals are qualified to work. Cities have an interest in the availabilitv of aualified workers as part of their economic development efforts, and can serce as a � 1999 Cit}' Policies 19 ctq`�� catalyst �� ith other pubiic entities and the private sector to address �� orkforce readiness issues. LE-26. Economic Development Aufhorities � � Respo�:se: The Legislature should fully fund the job sl:ills partnership and pathways programs administered by the Department of Trade and Economic Development. LE-25. Platting Law Recodification Issue: The Minnesota Association of County Surveyors (MACS) is seekin� to recodify Minnesota Statutes Chapter 505. Two issues raised by NIACS that will likely impact cities are the subdivision glat requirements, and the creation and amendment of road right of way acquisition maps. Response: The Legislature should preserve local authority over plat approval and include language in the recodification legislation that will aliow for pedestrian easements or thoroughfares to be dedicated by plat (for sidewalks, public trails, etc.). Issue: The state's policy regarding economic de��elopment authorities (EDAs) has been to limit the specific authority and powers of EDAs to city governments. The state has already determined that city govemment most efficiently provides governmental services in areas intensively developed for residential, industrial, and governmental purposes. Respo�:se: The state should continue to recognize the importance of using and preserving the existing infrastructure in cities, and should continue to find that urban development, and all related authority, remain tsithin cities aud managed by city government. The Legislature should continue its decision to limit EDA authority to c3ties as the primary local government responsible for the organizational and financiat coordination of development and redevetopment. IMPROVING SERVICE DELIVERY SD-1. Redesigning and Reinventing Government Issue: Every level of government is reevaluating, reprioritizing, redesigning, and renewing its organizational structure and programs in response to financial realities and citizens' needs and problems. Reforms, howe��er, must be more than change for the sake of change, or a reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and reassignments of govemmental entities and services should save money where feasible, deliver improved services, sen�e essential needs, and be equitably structured. Cities have and will continue to pursue the use of cooperative agreements, the reevaluation of city programs and ser�rices, and changes to organizational structures. � 20 League of 1l4innesota Cities � � � � � � � � � � � � � Response: The federal, state, and county governments should: • • • Ensure that in redesigning, reinventing, or reassigning government services and programs that the appropriate level of service to citizens is evaluated, and citizen demands and expectations are adequately addressed; Promote local efforts through incentives, rather than mandates; Communicate and establish a process of negotiation before shifting responsibility for delivering services from one level of government to another, or seeking to reduce service duplication; Transfer authority for use of revenues dedicated to such programs, or proF•ide appropriate and adequate alternatives; Identify and repeal programs or discontinue services that are no longer necessary, or which can readily and fairly be provided by the private sector; and Employ esisting government entities in redesign efforts rather than create ne« agencies or units. The League supports cooperative studies � of the follorving issues: � � � � � 1! � �Vhether the enforcement of human rights la�i�s can best be accomplished by a single state system that would allotir local governments to discontinue local enforcement programs; Whether there should be greater use of statewide or consolidated business licensina, including licensina of sign contractors, to eliminate the need for some businesses to obtain a permit in each cit} or county; Policies �°�-�� • �Vhether the existing use and structure of regional development commissions can be improved; • �Vhether greater use can be made of block grants to distribute funds related to transportation, sewage treatment, and public «•ater facitities; • Whether human services and health programs can be improved by further consolidating their administration at the state and county levels of government; and • �Vhether state and federal environmental and water agencies can be combined or eliminated to avoid inconsistent standards and duplication of responsibilities. SD-2. Unfunded Mandates Issue: The cost of federal and state mandated programs substitute the judgment of Congress, the President, the Legislature, and the governor for local budget priorities. These mandates force cities to reduce funding for other basic services or to increase taxes and service charges. The passaae by the Legislature of reporting requirements for new state mandates, and the passage by Congress of legislation restraining new federal mandates, should help address the problem, but other steps are necessary. Kesponse: • Existing unfunded mandates should be revie�ved and modified or repealed where possible. • \o additional statewide mandates should be enacted, unless full funding for the mandate is pro� ided by the le� el of go��ernment imposing it or a 21 qq-i� permanent stable re��enue source is established. • Cities should not be forced to compl}° with unfunded mandates. • Cities should be given the greatest flexibility possible in implementing mandates to ensure their cost is minimized. SD-3. Civil Liability of Local Governments Issue: One of the baniers to the delivery of governmental services and programs is the exposure of local governments and their officials to civil damage claims. The state has acted to protect itself and its local governments by enacting exceptions and limitations to liability suits, and authorazing self-insurance and other mechanisms to deal with claims allowed by law. Additionally, the current law, which requires district court approval of settlements of claims against municipalities that exceed $10,000, has become burdensome for cities. Response: The League supports: approval of settlements requirement or, in the alternatice, increasing the threshold amount for district court approc of settlements to S100,000; and • Clarifi�ing and maintaining the applicability of municipal immunity in various areas including, but not limited to: snow and ice immunity, park and recreafional immunity, inciuding the estension to entities providing a public service that have not traditionally been included within the immunity (e.g. state trails over municipal utility easements), vicarious official immunity, and problems related to the Y2k computer issue. SD-4. Environmental Protection Issue: State and federal environmentai programs are improperly designed to meet their stated goals, and impose an undue burden on ]ocal governments because of a lack of federal or state financial assistance. The refusal to finance these programs by the governments that pass them has eliminated an essential restraining feature in program design and implementation. • Eliminating joint and several liability, or severely restricting its apptication to situations where private or public tortfeasors are substantially at fault for the damages incurred; • Extending the protection of the state and municipai tort claims act to quasi- governmental entities �r•hen performing public services such as firefighting; • Existing constitutional safeguards for protecting public and pri��ate property interests without any statutory espansion of property rights; • Eliminating the district court Specific problems include: • New programs or standards are continually adopted ��ithout regard to the exisCence, attainability, or cost of existing programs and standards. • Inability of regulatory bodies to use good science and accurate data when establishing permit criteria. For example, the Minnesota Pollution Control Agency Citizens Board's recent decisions resulted in a phosphorus standard for the city of Greenfield that was inconsistent with current data and 22 League of Minnesota � L� 1 � � � � ii� � � � � � � � � � � � likely not to have been recommended by aoency staff. • Fra�mented program adoption and impiementation does not ensure prioritization of environmentai matters or the establishment of comprehensive environmental protection strategies. •"One size fits all" implementation of programs force remedial efforts by local govemments for nonexistent environmental problems. • Permit fees and other cost transfer elzments of federal and state programs do not provide an incentive for environmental a�ency efficiency, policy prioritization, or risk assessment. In addition to the above probtems, cities face emerging issues in the areas of drainage, bio-solids, wellhead protection, and feedlots. Response: • A comprehensive effort to consolidate, reorganize, and manage state and federal environmental agencies and programs should be undertaken, and a partial or fuil moratorium on new programs or requirements should be considered. • Permit fees should be limited to 50 percent of the agency's direct operating costs in order to promote efficient agency operation and sufficient legislative o��ersight. • Sufficient state and federal financial assistance should be provided fo comply �rith state and federal infrastructure requirements, particularl} �vith regard to sewer and ��ater facilities. • The option for cities to land apply bio- solids on properties outside their boundaries must be preserved. The �q •�7 Legislature should amend Minnesota Statutes section 11�A.32-39 to reinstate the administrative procedure for the resolution of bio-solids disputes, a procedure whose function was inadvertentl}� deleted during a recodification of the statutes. In addition, the Legislature should provide greater Minnesota tocal governments the same statutory protection afforded to those communities within the Metropolitan CounciPs jurisdiction, found in �Iinnesota Statutes §473.516, allowing bio-solids to be disposed of in manners consistent with the MPCA's permits and rules and avoiding blanket moratoriums on land application of bio-solids. SD Election Issues Issue: Improvements in absentee voting, voter re�istration, and the election process are needed. Response: The Legislature should simplify absentee voting, provide more cities direct access to the statewide voter registration system, clarify restrictions on locating campaign signs within 100 feet of poiling places, modify the voter fraud statute related to voter residency, and ailow cities more flexibility in appointing and compensating election judges. SD Local Election Authority Issue: In the past, the Leoislature has acted to restrict city authority to schedule city elections and estaolish tzrms of office for loczl elected official, thereb� diminishing reeard for �he role of local self- eo�ernment particula::� ��her. state policy � 1499 Cih Policies 23 qq - t� preempts home rule authority goveming city elections. SD-8. Access to Information Technology and Ser��ices Respo�zse: The Legislature should oppose further limits on either the number or the length of terms city elected officials may serve, particularly when those terms have been established by the electorate in home rule charter cities. State policy on uniform elections should continue to recognize and uphold local authority to schedule city elections in November of either even- or odd- numbered years. SD-7. City Costs for Enforcing State and Local Laws Issue: Cities eaperience substantial costs enforcing state and local laws, particulazly those related to traffic, controlled substances, and incarceration of prisoners. The current method in our criminal justice system of recovering costs for law enforcement and prosecution through fines is insufficient to meet the costs incurred by local governments. Response: The Legislature should review this issue and adopt measures that provide for compiete reimbursement of the costs incurred by local go��ernments in enforcing state and locai laws. Solutions that should be considered include the following: • Increasing fine amounts; • Removing or modifyine county and state surcharges that conflict with cost recovery principles; and • Requiring the defendant to pay the full costs of enforcement and prosecution as part of any sentence. Issue: Cities recognize the importance of achievin� �i�orld ciass standards and universal service in order to provide quality education and opportunities for local businesses and industry to engage successfully in global competition. Respoirse: The Legislature should: • Encourage espanded use of inter- active teleconferencing and on-line forums, public access programming and channels, and public broadcast capabilities to �rovide public access to government meetings; • Encourage collaboration among cities, schoots, libraries, health care, and nonprofit organizations to make local training and advanced services available to community residents; and • Provide assistance and funding to cities to strategically prepare themselves to connect to high-speed broadband nehvorks. SD-9. Design-build Issue: The standard bid procedure cities are required to use in selecting contractors for municipal buildings can be quite costly. Private sector development uses a process known as "design-build" in which various firms submit project proposals that include both a design and the construction costs for that design. The selection is then based on the total package. By granting specific statutory authority to use the design-build altemative to the Metropolitan Sports Facilities Commission and state agencies, including the Department of Revenue, the Legislature has recognized the financial 24 Lea�ue of b'finnesota Cities � � � �l � � � � � � � 4 l I..J � � � � L� � savings it can provide. In documented instances, cities have saved taxpayers up to 10 percent of the total project cost by using the desion-build altemative. The design- build process also permits improved project management and oversight. Ho�-ever, absent statutory authorization to use this altemative, cities aze vulnerable to lawsuits from unsuccessful bidders. In addition, the design-build process for playground equipment can encourage greater creativity while maintaining cost controls. Special legislation was enacted for the city of Chanhassen in 1995 to experiment using this process for purchasin� playground equipment. Response: The Legislature should authorize an extension of the design-build procedure to cities as a less expensive niternative to the standard bid procedure. SD-10. Mobile Home Park Oversight Issue: The state has preempted cities in the licensing of mobile home parks and limited the authority of cities to place new regulations on established mobile home parks. However, cities are responsible for dealing with the various housing and public safety challenges mobile home parks may create. Response: Since the state has already taken the lead, the Legislature should provide sufficient resources and direct the Department of Health to conduct a study on the condition of mobile home parks throughout the state of Minnesota. Cities and mobile home park owners and residenYs should be inti�oh ed in the study. The results of the studc should be used as a basis for poticy discussions regarding 1999 Ciri Policies � •(� . ways the state can pro��ide for increased and improved oversight of mobile home parl:s, and establish a state�vide support system for cities dealing �vith the array of mobile home park issues. Outcomes of the study should include: • Best practices for the operation of mobile home parl:s; • Recommended state regulatory changes for the operation of mobile home parl:s; • Suggestions on how cities can better address the issues presented by mobile home parks; and • Identification of inechaaisms to provide assistance in financing mobile home park upgrades. SD-11. Providing Information to Citizens Issue: To keep the public updated and informed, state law requires local units of government to publish various notification documents in newspapers, and ofren dictates which newspapers receive cities' publication business. The number and variety of documents required to be published and the costs of publication are burdensome. Technolo�ical advancements have expanded the ways government can provide information to citizens. In many cases, these new technologies are more efficient and cost effective. Response: Cities should be authorized to take advantage of new technologies to increase the dissemination of information to citizens and potentially lower the associated costs. Specificall}', the Legislature should authorize local units of aocernment to desibnate an appropriate �q ��7 daily/�vee{:1}� publication, elect alternatice means of communication such as ciri� newsletters, cable tele��ision, and the Internet, and expand the use of summaries �chere information is technical or lengthy. Additionall}', fhe Legislature should eliminate oufdated or unnecessary publication requirements. SD-12. Creating a Minnesota GIS Program Issue: Local governments are finding geographic information systems (GIS) an essential tool for comprehensive land use, real estate, environmental, and other land management information. In many counties, maintenance of official land records has not been automated, creating a barrier to GIS development. In addition, the start-up costs of GIS implementation can be prohibitive. Respaise: The Lcgislature should encourage local government implementation of GIS through grants and/or the dedication of a revenue source such as real estate transaction fees. In addition, cities should be invoh•ed in the development of county land records modernization plans. SD-13. State Regulation of Massage Therapists Issue: The state does not cunently regulate massage therapy, an emerging and rapidly growing profession. In order to control prostitution and to provide for health and sanitation standards, several cities have entered the traditional state domain of health-care licensure by enactine ordinances thatrequire ali massa�e therapists to obtain a local professionallicense. These ordinances allow local la�� enforcement officers to differentiate bet�veen le�itimate massage therapists, ��ho ha� e a city license, and prostitution businesses fronting as massage therapy establishments. The lack of statewide regulation of massage therapists has hampered law enforcement techniques, and has caused problems for cities attempting to regulate an entire health-care profession «�ithout any statewide standards. Currently, 25 states regulate massage therapists on a statewide level. Statewide regulation of massa�e therapists would provide a clear set of educational standards that massage therapists must meet, and would provide local law enforcement agencies with an easy tool to distinguish between prostitution and legitimate massage therapy. Statewide regulation would not disturb traditional powers over land use and business licensure. Respo�:se: The League supports the statewide regulation of massage therapists in order to aid local law enforcement efforts at controlling prostitution and other criminal activity. SD-14. Private Property Rights and Takings Issue: During the 1998 legislative session, property rights and takings legislation was introduced. It is anticipated these legislative initiatives will be considered during the 1999 session. In addition to individual bills, it is anticipated that amendments to the Community Based Planning Act of 1997 may be introduced. These amendments may attempt to make part of the Minnesota Statutes those portions of the Minnesota Constitution that relate to property rights. The federal govemment's Swamp Buster/Sod Buster programs, the Z6 League of Dlinnesota Cities � � � �� C.l 4J 4J 4_._.' � Army Corps of Engineer's dredge and fill programs, and the state's �Vetlands Conservation Act and Community Based Planning Act, appeaz to be the nexus for much of the property rights and takings legislation proponents. �Uhile the Lea�ue is committed to the need for local govemment units to balance the rights of private landowners �vith the interest of the public, the Lea�ue is concerned these legislative initiatives will adversely impact cities in rivo �vays. First, such legislative initiatives undermine the fundamental authority of cities to protect the public health, safety, and welfare of its citizens. Second, if the Legislature codifies certain provisions oFthe Minnesota Constitution, an argument may be made the Le�islature intended to create new causes of action aaainst cities. This would encourage more law�suits and expose cities to the expense of defendin� those cases. Response: The League opposes legislation that harms the ability of cities to act in the best interests of the health, safety, and �celfare of its citizens or that creates the possibility of additional lawsuits against cities. The League encourages the state and federal governments to improve their regulatory � programs by eliminating those property rights issues that rvere caused by the adoption of such laws as the Wetlands � Consenation Act or S�vamp Buster/Sod Buster. � 1.� � SD Statewide Building Code Issue: The Go�•ernor's Construction Codes Ad�'isor}� Council has indicated it ma�� be recommendine leoislation to ir.�r.:ute z;tate« ide buildine code. The 9q-�7 International Organization for Standardization (ISO) is expected to evaluate Minnesota's buildin� codes and enforcement by the yeaz 2000. There is some expzctation on the part of council members that ISO wiil act as the catalyst for a statewide buildin� code. Many cities have adopted the state building code. All cities within the seven-county metropolitan azea are requirzd to adhere to the state building code. Respo�rse: A building code provides many benefits including uniformity of construction standards in the industry, consistency in code interpretation and enforcement, and life safety guidance. However, the enforcement of a building code can be cost prohibitive for many cities due to the expenses and overhead related to staffing vs. the limited building activity occurring in some communities. The adoption of the state building code should remain a local option for municipalities outside the seven-county metropolitan area, unless the state particiQates in fully funding the costs of enforcement and inspection services related to a state��ide-enforced building code. SD-16. Building Code Department Special Revenue Accounts Issiee: Several interest groups have indicated they may be recommending legislation to require municipal building code and inspection departments to be self sufficient either throueh the estabiishment of special rz� enue accounts or other mechanisms to Quarantee the provision of services paid for b� fies This stems in par, from a belief Ln the b�ailding commuain that plar ch:ck fees and other � 1999 Cih� Policies 27 99-�1 municipal fees for service do not reflect the actual benefits rzceived. processes to administer municipal administrative penalties. Respos:se: Building permitting and the related inspection and enforcement services are best funded out of a city's general fund. �Vhile some cities may experience a surplus to their general fund during a grotir�th boom, cities that have a building code and inspections department oFten recognize those departments are not seif-sufficient and supplement those departments' budgets from other general fund revenue sources. In addition, special revenue accounts may remove some accountability since departments' funded by such an account «�ould not need to rely on a city's general fund and would subsequently be removed from proving their value during the normal budgetary process. The state should not interfere in the simple budgetary decision-makina performed by cities. The League opposes any move to legislate to cities specific methods to pay for municipal building inspection services. SD-17. Municipal Administrative Penalties Issue: Several cities have been successfully operating administrative processes to deal with local ordinance violations under the theory that the power to adopt ordinances inherently implies the authority to enforce them. Within the narrow scope of ordinance violations, this type of system has the potential advantage of providing a more effective altemative to formal district court proceedings. The Nonfelony Enforcement Advisory Committee's 1997 report contained a recommendation to provide express statutory authorization for cities to create Response: The Legislature should pro��ide express statutory authorization for cities to create processes to administer municipal administrative penalties. SD-18. Reforestation. Issue: Cities throughout Minnesota have experienced a devastating loss of the public forest by natural disasters. It is estimated the cost to replace the forest is beyond the means of Minnesota's cities. In the past, the Legislature has assisted cities in reforestation necessary due to natural causes. Respor:se: The Legisiature should establish and fund reforesfation for cities in federally declared disaster areas that have lost trees due to the 1998 storms. The reforestation program should be modeled after the program set forth in Minnesota Statutes, Chapter 18.023 for Dutch elm disease and oak wilt. The program should provide for direct grants to cities, and not establish a reimbursement program. If necessary, the program should allow for in-kind contributions to count if the state requires a matching program. SD-19. Board of Firefighter Training Issue: The quality, availability, and affordability of firefighter training varies greatiy across the state. After several yeazs of discussion, the fire service has endorsed a proposal to create a state board of firefighter training to ensure the quality of training and oversee state reimbursement of a portion of training costs. The board would not be 2 8 League of �linnesota Cities � �: � f�_.' � � � � � � � � !`s�: � � given authority to mandate specific training requirements or to certify firefighters. Response: The League supports the fire service proposal as long as local governments are fairiy represented on the board; the po�v�ers and duties of the board are not expanded in a�vay that would undermine local managemr.nt authority; and the appro�riation comes from the state general fund. SD-20. Witness Fees Isstie: Court administrators are proposing thatthe Legislature shift the costs attributable to callin� witnesses from counties to cities. The rationale behind this proposal is that city prosecutors have no incentive to limit the witnesses called only to those that will actuaily testify. Most counties currently receive one-third of the fines collected at the city level. Respot:se: Cities oppose the shifting of costs attributable to calling witnesses from counties to cities. City prosecutors responsibly call only those witnesses they expect to testify. Under certain circumstances, Fvitnesses may not ultimately provide testimony for a variety of reasons. The £ne revenue counties receive adequately funds the costs attributable to calling witnesses. SD-21. State Appropriation for Government Training Service (GTS) Issue: In 1977, the Government Trainin� Ser� icz «as created in order to pro��ide a coordinated responseto the training needs o`state and local Qo� zmmznts. GTS «as char�zd �vith 1999 Cih� Policies 9q -►7 coordinating the needs of the state, cities, counties, townships, and school districts, with the delivery capability of the state's institutions of higher leaming and other continuin� education service providers. To support the mission of GTS, in 1981, the Legislature provided a$42,500 annual appropriation that was increased to $50,000 in 1944. The lack of a more adequate increase in state support since 1981 has compromised the administrative, technological, and service delivery capabilities of GTS, making it difficult for the organization to remain at the forefront of innovative training programs for government officials and employees. State financial support of GTS is important. Many cities and other local governments find it difficult to adequately fund official and staff training. GTS provides a cost-effective mechanism for taking advantage of the efficiencies of cooperation. Response: The League supports a significant increase in the state general fund appropriation for the Government Training Service, sufficient to restore the capacity of the organization to deliver high-quality, cost-effective training programs for state and local officials and employees. SD-22. Year 2000 Issues Issue: Addressine potential year 2000 (Y2k) issues poses many difficult and serious problems for cities. System malfunctions or failures are aimost inecitable. Despite cities' best efforts to take reasonable actior.s to addrzss threats to �'ital ser� ices, claims for camases wi11 � -�� occur. Local ta�pa}�ers «i11 bear the burden of extraordinar� leeal costs as cities defend themseives from multiple ciaims. As cities strive to resolc=e complex Y2k problems, cities may also find it necessary to expend additional resources to convert or modify critical service delivery systems to overcome Y2k-related emergencies. If such costs are incurred after cities have certified their 1999 levies, cities �,�ill need to borrow or issue revenue anticipation notes to meet those needs and immediately purchase critically needed materials or equipment. Respoi:se: Congress and the state Legislature should grant cities tort immunity from liability claims related to the impact of Y2k to a��oid the substantial cost to taxpaqers of full triai and the associated legal costs. Cities should also be authorized to issue revenue anticipation notes to be repaid from appropriate future revenue sources and should be granted ezplicit exemption from competitive bidding requirements to expedite purchase of critically needed materials and equipment to overcome anticipated and actual Y2k- related malfunctions or failures. The Legislature should create a loan or grant program to assist cities in addressing unanticipated Y2k-related costs. SD-23. Ne�v Public Safety Spectrum l�Teeds public safety spectrum. Cities can no�� take advanta�e of the ne« radio and wireless communicacions space set aside by the Federal Communications Commission (FCC) at the upper end of the UHF television band for public safety. For future interoperability, cities will need additional spectrum to ensure public safety agencies can communicate with each other and with surrounding jurisdictions. The U.S. Department of Commerce and the FCC Public Safety Wireless Advisory Committee have recommended reallocation of 3 MHZ of radio spectrum in the range of 138-144 MHZ radio band be made available exclusively far state and local public safety interoperability. This spectrum is currently assigned for military use and is not currently in use. Unless secured for public safety purposes, it is likely to be auctioned off to the highest bidder for private use. The radio band available is adjacent to the current MHZ band used for fire, police, and other public safety communications and would provide particularly good frequencies for mobile/portable radio system communications. New spectrum in the 800 MHZ range requires many more sites to cover the same geographic range and uses more expenslve radio equipment. Although many public safety agencies are moving to new 800 MHZ systems, others will need to remain in lower frequency bands. Equipment in 800 MHZ range will not communicate with many of the existing public safety systems that operate at lower frequencies. Issue: Cities ha� e benefited from successful efforts at the federal level to gain access to exclusive radio and ��ireless communications capacity for state and local Response: The federal government must make additiona] spectrum available to allow public safety agencies that require mulfi-agency communications to respond fo accidents, disasters, and 30 League of �linnesota Cities �_ � � � 1� � L_.! `_ ! 1�__! � � r l� q9 � 1'7 criminai activity that cross jurisdictional boundaries. So that it will not be auctioned, the 3 MHZ available for reallocation for public safety should be reserved to relieve congestion on nearbypublic safety frequencies. Immediate action must be taken to secure this additional radio spectrum to advance the interoperability of public safety communications systems. Electric Deregulation Introduction: Cities have a strong interest in the public policy debate about electric restructuring or dere�ulation. Minnesota already enjoys some of the lowest average electric rates in the nation. The case has yet to be made that deregulation will result in either lower rates or improved service for consumers. Tnformation A�ency* are that the upper Midwest, including Minnesota, may actually experience higher rates. Concerns have also been expressed as to whether residential customers, and those in rural and other harder-to-serve areas wi11 actually experience decreased reliability and increased rates. Issue: For many decades, electric service to Minnesota citizens has been delivered through a combination of investor-owned utilities (IOUs), municipal utilities, and rural electric cooperatives. This system has served Minnesota well, deliverin� reliable, universal service at rates among the lowest in the country. In recent years, many have begun to promote "deregulation" or "restructuring" of the industry, meaning that electric service would no longer be a franchised monopoly. A number of states, primarily those with high electric rates, have taken steps to move toward such restructuring. In most of these cases, transmission and distribution remain reeulated, with retail competition allowed for generation source. � �Vhilz advocates of restructuring az�ue tha? such competition w•ill lead to lower rates. estimates by� the federal Energy � � 1999 Cit} Local elected officials have the primary responsibility to the citizens of their cities to make certain restructuring that allows retail competition is as beneficiai to the citizens as it is to the industry. Bzneficial to the citizen means that all Minnesotans experience the same reliable, high-quality, universal, and low-cost service they experience under the current system of electric power delivery. City residents have a stron� interest in the outcome of this important public policy debate. Cities are substantial consumers of electric power. Over 180 cities have 10 percent or more of their property tax base in electric industry property, while others collect franchise fees and/or sales taxes on electric purchases within their boundaries. Citizens in 126 Minnesota communities cunentiy receive economical electric service from municipal utilities. ��hich make EIA is thz nonpanisar. research arm of the li.S. Department of Energy 31 qq-�7 pa}'ments-in-lieu of taxes to help support city senices. Significant increases in the cost of electric po.�er for city operations or losses of these traditional sources of revenue will result in propertp tax increases. Respaise: The federal go��ernment should not mandate restructuring; the decision should be left to the states. The Legisiature should follow a slow, deliberative approach, tal:ing time to consider how alternative models for delivering electric po�+er will affect the state's traditional benefits of reliable, universal, high-quality and lo�v-cost service. The public policy discussion should be focused on actual benefits to citizens, rather than on ideological arguments, stakeholder interests, and over-reliance on simplistic objectives like "consumer choice." Those advocating a change should bear the burden of proof to demonstrate that restructuring and deregulation will, at a minimum, maintain Minnesota's high-quality, low- cost, and reliable sen�ice. Oniy «�hen that burden of proof has been met should restructuring occur. The following public policy goals should be incorporated into any legislation restructuring the electric industry: Consumer Protection or as separate state programs. Environmental Concerns The em•ironment must be adequately protected, �cith consen�ation and renewable energy efforts maintained. The federal government must review the appropriateness of currenf environmental regulations and their effect in a deregulated market; for example, esemptions from the Clean Air Act for some generation facilities. Fair Market Competition To ensure fair market competition, the federal and state go��ernments must ha��e the authority to re�•iew mergers to prevent abuse of market power. Cities must remain viable competitors in the electric market. Municipal utilities must be granted exemptions from rules like the open meeting la�v and data practices requirements «here they hamper the ability to effectively compete with private companies. To ensure adequate service to every citizen, cities and other local go��ernments must maintain their abilih� to issue tax-exempt bonds for construction of electric infrastructure, and be gi��en explicit authority to aggregate or municipalize provision of electricity. Consumer interests must continue to be protected, especially for the most ��ulnerable populations. Reliable service must be universally avaitable and programs such as cold-« eather shut-off rules should be continued either as requirements for all market participants Local Authority Cities must maintain their traditional authority o��er land use, zoning, rights of way management and cost recovery, as �vell as the ability to franchise pro��iders and to receive payments-in-lieu of taxes from municipal utilities. Cities' authority 3z League of Vlinnesota Cities �°i-\� � � L� � � � � f� � � � to negotiate siting fees and agreements for proposed generating facilities should be enhanced. To avoid unnecessary demand for the limited space in public rights of Svay, open access to transmission and distributio❑ facilities should be maintained through regulation. As the electric market is opened to interstate competition, the federal government must preserve the application of Minnesota's stafe and local sales taxes to the sale of electricity, regardless of the place of origin. Stranded Cost Recovery Issue: Re�ulated utilities have traditionally made operating decisions based on needs of consumers within their service territories. Many decisions, therefore, have been based more on need than on economics. In the transition from a regulated to a restructured competitive environment, electric generators' investments in fixed assets and other obli�ations may or may not remain as economically viable. Estimates of these "stranded costs" vary greatly, with some indicating no stranded costs or possibly even negative stranded costs resulting from increased prices after deregulation in Minnesota. Response: If regulatory actions have contributed to investment by existing regulated utilities fhat are not economicall} �iable in a competitive markeY, and if restructuring occurs, the League supports transition mechanisms that «iil alloti� utilities to collect revenues for those particular stranded costs. Ho�vever, these charges must be carefully monitored to ensure that only eligible and verifiable costs are co��ered and that over- collections do not occur. Taspayers and ratepayers should not be expected to cover the cost of incestments fhat were made for business reasons, apart from the requirement to serve under the regulated system. If negative stranded costs for the regulated utility as a whole can be established, and are solely the result of transition to a restructured environment, these regulated utilities should be required to contribute some limited percentage of established amounts to offset tax breaks given to these utilities as a result of restructuring. Property Tax Issue: Part of the discussion regarding possible deregulation of the electric power industry has centered on electric utility taxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed. The main focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or personal property tax. Utilities subject to the tax argue it places them at a competitive disadvantage to non-Mannesota companies, rural electric cooperatives (co-ops), and municipals. However, accurate comparisons of tax burden are difficult, as other siates use completely different taxing systems. Additionally, co-ops and municipals do pay direct taxes on some of their property and indirecth cihen the� purchase �iholesale po��er from sources that arz iased, such as IOUs. tilunicipals makz substantial payments-m-Iieu of cases. � 1999 Cih Policies 33 � Utility pzrsonal property can be a significant po�ion of the local ta� base in all cities. Most obviousl} affected are cities that have pow'er plants; however, transmission and distribution equipment account for over half of the personal property taxes paid by the IOUs and exist in nearly every city. Replacin� the revenue that would be lost to cities, counties, school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources of such a replacement revenue �iouid be difficult to develop and administer, and could be subject to reductions or elimination over time. Furthermore, replacement revenues or aids may not fully address the problems created by a large tax base reduction. Resporzse: Cities oppose proposals for exempting the IOlis from the personal property tax, apart from the decision to restructure the electric industry in 1�Iinnesota. If and �chen deregulation occurs, a truly independent revie�v of the overall tax burden should be conducted to determine �chether Minnesota utilities are at a competitive disadvantage. If an overail tax disadvantage is identified, the state should correct it. Under no circumstances should local units of government or their citizens be required to shouider the burden of tax relief for IOUs. Personnel, Pensions, and Labor Relations Issue: Many state laws increase the cost of providin� city services to residents by requiring city governments to provide certain levels of compensation or benefits to public employees, by specifying certain working conditions, or by limiting city govemments' ability to effectively manage their personnel resources. For instance, existing state laws limit governments' ability to effectively address incompetence or misconduct of city employees specifying certain procedures to be followed or standards of conduct. Respor:se: The state government should refrain from passing laF�•s that regulate the public sector workplace, and should repeal or modify problematic esisting laws and regulations to encourage full local accountability. The League of blinnesota Cities proposes the foilowing reforms: Discipline and Discharge The state should modify ��eterans' preference and civil service laws that restrict the ability of local governments fo effecti��ely discipline public employees. The Legislature should amend the la«� to: • remove the right to multiple, duplicative disciplinary proceedings; • limit any back-pay claims to a maximum of S100,000; • limit the period in �r�hich to request a hearing to 14 da}�s (from the current 60 days); • esclude probationary period employees from ��eterans preference termination law 34 League of Minnesota � �� protections; � • require parties to select their hearing panel re�resentative Fvithin 10 days after notice has � been given to the employer that the veteran employee is seel:ina a veterans' preference hearing; � • require the panel to hear the petition within 30 days after the third panel representative is � 4 ! � selected and issue a decision within 30 days following the hearing; and • amend the law to require state aaencies to abide by the same ��eterans preference la��s required of loca] governments. • The state should re-examine state and � local civil service systems and give ]ocal governments the authority to modify or discontinue systems that are � obsolete in order to ensure fair and accountable hiring and terminafion practices. �� ii� 1 � f.�: � � � W Compensation limits The state should repeal la�ss limiting the compensation of a person employed by a sfatutory or home ru[e charter city to the governor's salary. If repeal is not possible, the limit should be amended to be based upon the governor's total compensation level. PELRA The state should modify the definition of public employee under PELRA by removine the etisting 1�-hour / 67 day requirement and replace it �sith a definition in �chich emplo� ees must �tiork more than an annual average of qq -�� 20 hours per fveek. Temporary or seasonal emploqees should not be included in this definition. The state should change public sector bargaining laws to require arbitrators to adhere to the pa}• equity law with reaard to consideration of interna] class comparisons. Essential Employees • Cities must balance the health, welfare, and safety of the public with the costs to taxpay ers. Therefore, the Legislature should carefully examine requests from interest groups seeking essential employee status under MN Stat. �179A (PELRA). The League opposes legislation that mandates arbitration which increases costs and removes local decision-mal:ing authority. Pensions • The state should re��ise public employee pension la�cs to facilitate consolidation of local pension pians. • The state should stud� initiatives to reform and make uniform pension plans for local gocernment employees without increasing public employer contribution le��els or causing the public employer contribution level to exceed the contribution level required from employees. • The state should adjust the eligibility thresholds for public pensions to reflect inflation, adopt a process for automatic future adjustments, and limit eligibilit} for defined benefit plans to emplo}ees «orl:ing an a� erage of at least 20 hours per week. • The League opposes �pecial legislation � 1999 Cit} Policies 3� qq � �� for indicidual employ�ee pension benefit increases unless they are initiafed and appro��ed by the city council of the impacted cih•. Age Certificates / I-9 Forms The federal I-9 form requires employers and employees to report the same information required by Minnesota's age certificate. The state should repeal MN Stat. §181A.06 and endorse the federal I-9 form to verify age information, and eliminate redundancy for employers and employees �vhen reporting information. amount of an emplo}�er's contribution under D4N Stat. §299A.4b� and whether it changes o�er time. Breathalyzers • MN Stat. §181.950-.957 should be amended to permit the use of breathalyzers as an acceptable technology for determining alcohol use. Currentiy, breathalyzer use is permitted under federal and state commercial drivers' laws. Final Offer - Total Package Arbitration Employer Reference Immunity • The League supports legislation that provides limited immunity to cities when giving accurate written disclosure of information regarding employment related references. This legislation should not undermine the immunity found in the Data Practices Act. State Paid Police and Fire Medical Insurance The state should fully fund programs that pay for health insurance for police and fire emplo}'ees required under MN Stat. §299A.465, as amended in 1997, for police and fire employees hurt or killed in the line of duty. • The Legislature should clarify whether MN Stat. §299A.465 applies to injuries incurred prior to June 1, 1997 (the effecti� e date of the law). • The Legislature should clarify the • The Legislature should preserve the voluntary nature of finai offer - total package arbitration as an optional settlement format for parties and should not amend state law to mandate final offer - total package arbitration. Preservation of Local Decision- Making Authority on Employment Related Issues • The League supports local decision- making authority, and opposes legisiation intended to interfere in local decisions. In addition to these state reforms, the League supports the following policies regarding federal emplo}'ment law: FLSA/Overtime compensation • The Fair Labor Standards Act (FLSA) �vas designed for private employer - employee relations. League of Minnesota Cities q�-i� Government employees were exempt for over 100 years. Through a series of court decisions, this statute is now applied to local governments. The exception for state and local government empioyees should be reinstated by stafute. Peace officer bill of rights • Congress should oppose a federal peace officer bill of rights because it will only compound the difficulties with internat investigations, local � � � �J � � 1.�'1 � 1999 City enforcement and diminish local accountability. Portability of de£erred compensation • Public sector employees are increasingly changing jobs behveen the public and private sectors. Congress should enact legislation that would permit tax deferred rollovers beriveen public and/or private deferred compensation plans to improve the portability of funds. 7 ORIGINAL Presented By Referred To Council File # 1��, 1 Green Sheet # �/�� `� RESOLUTION CITY OF SAINT PAUL, MINNESOTA m Committee: Date i WHEREAS, the League of Miimesota Cities, which represents 811 of Miunesota's 856 cities, z as well as 10 urban towns and special districts, has led the coordina#ion of inember cities in the a development of the 1999 City Policies for Legislative and Aduiinistrative Action which identifies issues 4 as priorifies for action during the 19991egislative session; and 6 WHEREAS, the City of Saint Paul was an acfive participant in this coordinated effort and the � City approves generally of these priorities; now therefore be it 9 NOW THEREFORE, BE IT RESOLVED, that the City Council of Saint Paul does hereby io recommend for consideration by the Minnesota State Legislature, 1999 City Policies for Legislative and ii Administrative action, submitted by the League of Minnesota Cities and does hereby requests that these iz issues be addressed by the Legislature during the 1999 session. Requested by Department of: �`�� By: Form Approved by City Attorney By: 1 \ _ �- . � �r�..o.�a--�— Approved by Mayor: Date � 2 ��1�/� By: 1L- Adopted by Council: Date ( �`'i�5 Adoption Certi£ied by Council Secretary . By: � —3a �Sr qq-\? DEPARTMENT/OFFICFJCOUNCIL OATE WRIpTED a or� Office 12l29/98 GREEN SHEET No 62'714 COMACT PERSON 8 PHONE MnWloafe InR1aIlDate Bill Huepenbecker 6-8517 � �,�� MUST BE ON CIXINCIL AGENDA BY (DAT� .Tanuary 6, 1999 '�s'�" �, NuYBStrox arvwnoelEY arrcLFrtic ROIRING � ❑rilfi�KJCLtFAV�CCFiGR HlatICNLEERY/M1CRC � II�YOR1��8.RRANi) � ❑ TOTAL # OF SIGNATURE PAGES (CUP ALL LOCATIONS FOR SIGNATURE) CTION REQUESTm City Council approval of the League of Minnesota Cities 1999 City Policies for Legislative and Administrative Action. RECOMMENDATION Approve (A) w eject (R PEIt50NAL SERVICE CONiRACfS MUSTANSWER iXE FOLLOWING QUESiIONS: 1. Has this persoNfirm e+er worked under a contraG for this tlepartment� PLANNINGCOMMISSION YES NO CIB COMMR'i'EE 2. Has this persaVfrtm ever been a city empbyee7 CIVILSERVICECOMMISSION YES NO 3. Does th� persoNfirm possess a sidll n� na�maltypossessed by any curterR city employee? YES NO 4. Is Ni8 V�Mrtn a tarpeted ventlaYl YES NO F�lain a0 yes answeis an separate sAeM and attach to green shee[ INITIATING PROBLEM ISSUE, OPPORTUNITV (Who, What, When, Where, Why) Saint Paul is an active member of the League of Cities and a participant in the effort to develop the League's legislative policies. ADVANTAGESIFAPPROVED The City shows support for the League of Minnesota.Cities, an association we work closely with on many issues at the legislature and throughout the year. DISADVANTAGES IF APPROVED None. 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' � � ' ' � � � ' - — . ___. � __ www.linnc.org' ` — — I a � � SJ �I � _� ' i � � � � CONTENTS 9 °t - �? League Staff .................................................................. iii Legislative Policy Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv Policy DevelopmentProcess ..................................................... vii 1999 CITY POLICIES GeneralPolicy Statement ....................................................... 1 Improving Community Life CL-1. Livable Communities .................................................. 2 Improving Fiscal Futures FF- ] . FF-2. FF-3. FF-4. FF-S. FF-6. FF-7. FF-8. FF-9. FF-10. FF-11. FF-12. FF-13. FF-14. FF-I5. FF-16. FF-17. FF-18. FF-19. State-Local Fiscal Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State Shared Revenues ................................................. TaYation of Municipal Bond Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City Fisca] Year ...................................................... Sates Tas on Local Government Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Delinquent Property Tax Penalties and Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PaymentsforServicesto Tax-Exem ptPropeRy ............................. Truth-in-Taxation ..................................................... State Administrative Deductions from State Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reporting Requirements ................................................ FederalBudgetCutbacks ................................................ LocalPerformance Aid ................................................. Price of Government ................................................... CapitalImprovement�ees ............................................... Deferred Assessmentsfor Roads .......................................... Taxation of Electronic Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Local Option Sales Tax ................................................ Limited Market Value ................................................. State Charges for Administrative Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Improving Local Economies LE- I . LE-2. LE-3. LE-4. LE-5. LE-6. LE-7, LE-8. LE-9. LE- ] 0. LE-11. TaxIncrementFinancing ............................................... TIF Recodification .................................................... TIF Reform .................................... ...................... Impacts of Property Tax Reform on Existing TIF Districts . . . . . . . . . . . . . . . . . . . . . Corporate Subsidy Reform . ......................................... .... Economic DevetopmentPrograms ........................................ Redevzlopme�tPro�rams ............................................... Property Tas Abatement Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brownfizlds ......................................................... Gro��th �IanaQement and Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State an�'or County Licensed Residential Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 5 5 5 6 6 6 6 6 6 7 7 7 8 8 8 9 9 10 10 10 11 11 ]2 12 12 13 13 14 � 1999 Citr' Policies ol q -1'1 LE-12. LE-13. LE-14. LE-I5. LE-1 b. LE-17. LE-18. LE-19. LE-20. LE-21. LE-22. LE-23. LE-24. LE-25. LE-26. Housing Economic Viability ............................................ Housing Presen�ation .................................................. City Role in Telecommunications . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . .. . .. . . . . .. Adequate Funding for Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State Aid for L3rban Road Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tumbacks of County and State Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Road Funding for Cities Under 5,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Railroad-Related Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access Management and Plat Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rightof Way Management ............................................. Effective Telecommunications Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Local Zoning Regulation of Telecommunications Facilities . . . . . . . . . . . . . . . . . . . . Workforce Readiness ................................................... Platting Law Recodification ............................................. Economic Development Authorities . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . . . . . is 15 16 16 17 17 17 18 18 19 19 19 19 20 20 Improving Service Delivery SD-1. SD-2. SD-3. SD-4. SD-5. SD-6. SD-7. SD-8. SD-9. SD-10. SD-I1. SD-12. SD-13. SD-14. SD-15. SD-16. SD-17. SD-18. SD-19. SD-2Q. SD-21. SD-22. SD-23. Redesigning and Reinventing Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unfunded Mandates ................................................... Civil Liability of Local Governments .. . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . Environmental Protection . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E{ectionIssues ....................................................... LocalElection Authority ................................................ City Costs for Enforcing State and Local Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access to Information Technology and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Design -Build ......................................................... Mobile Home Park Oversight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Providing Information to Citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Creating a Minnesota GIS Program ....................................... State Regulation of Massage Therapists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Private Propecty Rights and Takings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statewide Building Code ............................................... Building Code Department Special Revenue Accounts . . . . . . . . . . . . . . . . . . . . . . . . Municipal Administative Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reforestation ......................................................... Board of Firefighter Training ............................................ Witness Fees ......................................................... State Appropriation for Government Training Service (GTS) . . . . . . . . . . . . . . . . . . . Year20001ssues ...................................................... New Public Safety Spectrum Needs . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 20 21 22 22 23 23 24 24 24 25 25 26 26 26 27 27 28 28 28 29 29 29 30 Electric Deregulation ......................................................... 31 Personnel,Pensions,and Labor Relations ........................................ 34 ii League of Minnesota Cities � � � � LEAGUE STAFF WORHING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications aq ..t� � Gary Carlson, Airector of Intergovernmental Relations General revenue sources for cities including aid to cities and the property tax system, fiscai administration of cities, economic development and � � � � ` ! redevelopment, personnel, transportation Kevin Frazell, Director of Member Services Government ►nnovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, telecommunications Ann Higgins, Intergovernmental Relations Representative Telecommunications, housing, elections and ethics, utility service districts, transportation Andrea Stearns, Intergovernmental Relations Representative � Tax increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing, public safety, general municipa! � � governance Remi Stone, Intergovernmental Relations Representative Growth management and land use, environmental protection, personnel Eric Willette, Intergovernmental Relations Representative � General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, pensions � � 1999 Cit� Policies iii �� Legislative Policy Committee Members Improving Community Life Cathy Busho, Chair, Mayor, Rosemount Laurie Ahrens, Ciry Clerk, Piymouth Rosemary Given Amble, Councilmember, Bemidji Bill Barnhart, Inter�ovemmental Relations, Minneapolis Kevin Satchelder, City Administrator, Mendota Heights Merry Beckman, Assn of Minnesota Counties, St. Paul Sohn Blahna, Mayor, Landfall Kathleen Carmody, Counciimember, Brooklyn Center Peter Connor, Mayor, Owatonna Lorenzo Davis, Voluntzer Coordinator, Childrens Home Society, St. Paui Colleen Dirkswager, COS Coordinator, Maplewood Mike Ericson, Assistant to Ciry Manager, Map(ewood Sharon Feess, CounciVmember, Brookiyn Park Walter Fehst, City Manager, Columbia Heights Evelyn Fox, Councilmember, Breckenridge Sue Gehn, Mayor, Falcon Hei�hts Hazlan Gorath, Councilmember, Fairmont Arly Gunderman, Councilmember, New Brighton Vivian Hart, West St. Paul Sue Henry, Administrative Aide, St. Cloud Fran Hesch, Councilmember, Hop{:ins Donna Holstine, Mayor, Fairmont James Hurm, City Administrator, Shorewood Greg Isaacksoa, Clerrk/Administrator(Treassurer, Cottonwood Julianne Manship, Lake Elmo Marcia Marcoux, Councilmember, Rochester Sandy Masin, Councifinember, Eagan Jaznes L. Mladek, Mayor, Montgomery Ed Mlynar, Mayor, Lester Prairie Joan Mo3enaar, Councilmember, Champlin Deborah Moran, Councilmember, Burnsville Judd Mowry, Councilmember, Tonka Bay Larry Nicholson, Councilmem6er, Moorhead Bev O'Connor, MSBA Board, Golden Valley Isobel Rapaich, Councilmember, Duluth Chip Robinson, City Administrator, Forest Lake Paul Robinson, Clerk-Treasurer, Medina Char Samuelson, Councilmember, New Brighton Barbara Sanderson, Councilmember, Grand Rapids Setty Sindt, Councilmember, Lakeville Dawn Weitzel, Communications Specialist, Richfield Jeff Weldon, City Administrator, Redwood Falls Denny Wilde, City Administrator, Paynesville Patrick Wussow, Administrator/Clerk, Tonka Bay Duane Zaun, Mayor, Lakeville Improving Fiscal Futures Dan Vogc, Chair, City Administrator, Brainerd Terri Heaton, Vice Chair, Chief Fi�ancial Officer, Bloomington Richard Abraham, Ciry Administrator, Lake City Karen Anderson, Mayor, Minnetonka Tom Burt, Ciry Administrator, Rosemount Gino Businaro, Finance Director, Mound Jane Chambers, Assistant Ciry Manager, Brooklyn Center Tom Cran, Budget Office, St. Paul John Erar, Ciry Administrator, Farmington Jerry Faust, Councilmember, St. Anthony Bob Fiison, Ciry Administrator, Worthington Roger Fraser, City Manager, Blaine Mary Gover, Councilmember, St. Peter John Gretz, City Adminis[rator, Apple Valley Jeff Haubrich, Assistant Councii Administrator, Red Wing Steve Helget, City Administrator, Ea�le Lake Pat Hentges, City Manager, Manl:ato Bill Huepenbecker, Intergovernmental Relations Director, St. Paul Greg Isaackson, Clerk-Administrator, Cottonwood Joel Jamnik, Campbell Knutson, Eagan Larry Juhl, Mayor, New London E(izabeth Kautz, Mayor, Bumsville James Keinath, City Administrator, Circle Pines Dennis Krafr, City Manager, Robbinsdale Bob Larson, Ciry Administrator, Deephaven Joe Lynch, City Administrator, Long Lake Tom Melena, City Administrator, Oak Park Hts Steve Mietke, City Manager, Hopkins Ed Mlynar, Mayor, Lester Prairie 7ohn Moir, Finance Director, Minneapolis Gary Neumann, Assistant Administrator, Rochster Cote O'Donne!(, City Adminisvatoc, Renville Steve O'Malley, Deputy Manager, Bumsville (altemate) Steve Okins, Finance Director, Wilfmar Douglas Reeder, City Administrator, So. St. Paul Ryan Schroeder, City Administrator, Cottage Grove Alfred Schumann, Mayor, Eyota 7ennifer Schwinn, Finance Director, Big Lake Jim Smith, Councilmember, Independence Geraid Sorenson, Administrative Services Director, Moorhead Pete Stolley, PubLc Works Department, Northfie]d Ioy Tiemey, Mayor, Plymouth David Mark Urbia, Ciry Administrator, Blue Eaah Gene VanOverbeke, Finance Director, Eagan iv League ofMinnesota Cities � � Jeff VanWychen,lnter�ovemmental Relations, � Minneapolis (altemate) Chuck Whitin„ City Administrazor, Mounds View 7im Willis, Ciry Administrator, Inver Grove Hts Rick Wolfstetler, City Administrator, Monticello � � � . _ � � � � � � � � � � Improving Local Economies Duane Zauq Chair, Mayor, Lakeville Leo W. Eldred, Vice-Chair, Councilmember, Moorhead Kirsten Barsness, Economic DeveloQment Director, Cottage Grove David Beaudet, Councilmember, Oak Park Hu Bob Benke, Mayor, New Bri�hton Steve Bjork, City PlannerlCoordinator, St. Francis Carolyn Bloni�an, City Clerk, Avon Curt Bo�aney, City Manager, Brooklyn Park Jerry Bohnsack, City Administrator, New Ptague Lavonne Sowman, Councilmember, Fairmont Gerafd Brever, Ciry Administrator, Staples Kevin Carroli, Councilmember, Rosemount David Childs, City Mana�er, Minnetonka Bonniz Cumberland, Mayor, Brainerd Grant Femelius, Housing Coordinator, Fridley Keith Ford, Community Devetopment Agency, Minneapolis Matt Fulton, City Manager, New Brighton Richard Fursman, City Administrator, Andover Tom Goodwiq Councilmember, App(e Valley Robert Haeussinger, City Administrator, Dod�e Center Tom Hansen, Depury Manager Administrative Entecprises, Bumsviile Tom Harmenin�, Communiry Development Director, St. Louis Park Pat Heldt, Councilmember, Alexandria Jon Hohenstein, Ciry Administrator, Mahtomedi Susan Hoyt, Ciry Administrator, Falcon Heights Sill Huepenbecker, Intergovemmental Relations Director, St. Paul Curtis Jacobseq City Administrator, Bi� Lake Marvin Johnson, Mayor, Independence Brenda Johnson, Counci(member, Chatfield Andrea Hart Kajer, Intergovemmental Re]ations Director, Minneapolis (altemate) Randy Kolb, Councilmember, Blaine Sandra Krzhsbach, Councilmember, Mendota Hei�hts Larry Lee, Community Deveiopment Director, B(oomin�ton vlarcia Marcoux, Councilmember, Rochzster �tichael McGuire. Ciry Mana�er, Maplewood :��Iark hase!. Cirv �tanaoer, Anoka Dennis \eison, City Admtnis[rator, Windom Ro�e: Peterson, A.Vi�.Vi, St_ Paul 1999 City Policies �[9-�7 Bruce Peterson, Director Plannin� & Development Services, Willmar Gene Ranieri, AMM, Executive Director, St. Paul Mike Reardon, Cab(e Administrator, Bumsville Dan Ro�ness, Community Development Director, Rosemaunt Joe Rudber„ Administrator, Becker Nancy Rys-Nico(, Management Assistant, Shoreview Mark Sather, Ciry Manager, White Bear Lake Terry Schneider, Counciimembzr, Minnetonka Daniel Tempel, Housin� Coordinator, Maple Grove Robert Therres, Ciry Adminisuator, Sartell Ann Thies, Councilmember, Medina Craig Waldron, City Administrator, Oakdaie Jeff Weidon, Ciry Administrator, Redwood FaUs Julia VJhalen, Councilmember, Champlin Denny Wilde, City Administrator, Paynesville Betty Zachmann, C(zrk-Treasurer, Winsted Improving Service Delivery Glenda Spiotta, Chair, Ciry Administrator, Carver and Sunfish Lake Mark Karnowski, Vice Chair, City Administrator, Lindstrom Pac Crawford, Clerk-Tceasurer, Motley Ierry Dulear, City Manager, Crystal Theresa Goble, Finance Direc[or, Brainerd 3oe1 Hanson, Administrator, Little Canada Kay Kuhlmann, Council Administrator, Red Wing Ed Mfynar, Mayor, Lester Prairie Judd Mowry, Counci(member, Tonka Bay Susan Olesen, Clerk, Bumsville Sandra Colvin Roy, Counciimember, Minneapolis David Senjem, Councilmember, Rochester Chad Shryock, City Administrator, Wabasha Joyce Twistol, ClerklPersonnel Director, Btaine Karen Low'ery Wagner, Inter�ovemmenial Rela[ions, Minneapolis (altemate) Rena Weber, CIerWCoordinator, Cold Spring Phil Zie[low, Councilmem6er, Medina Efectric Deregutation Task Force Kathleen Sheran, Chair, Councilmembe�, Mankato Bryan Adams, Utility Superintzndent, E!k River Jim Asplund, Flaherty & Koebele, St. Paul Larry Bakken, Counciimember, Golden Valley Mike Bash, Councilmember, Lon� Lake David Bero, RW Beck, Minneapolis Troy Bonkowske, Public Works_ Caledonia Jim Brim:}er, Counciimzmbzr, S. Louis Park Chuck Canfizld. Mayor, Rochz>te; Al Crowse;, Utilities Genzral ,4tanagec, Alexandria Robert Filson, Ciry Administrator. Warthington v q`�r� Paul Grabitske, City Administrator, Janesviile James Gromberg, Cicy Administrator, Isanti Delvin Haa„ Councilmember, Buffalo Ken Hartun„ Ciry Administrator, Ba}•port 7effrey Haubrich, Asst. To Council Administrator, Red Win� Sue Hess, Councilmember, St. Cloud Steven Jones, Ciry Manager, Montevideo Elizabeth Kaut2, Mayor, Bumsville Mark Larson, Clerk-Administrator, Glencoe Charles Merteasotto, Mayor, Mendota Heighu Mary So Murray, Policy Analysis Director, Minnesota Municipai Utilities Associa[ion Robert Museus, City Administrator, Hu�o Mark Na�el, Ciry Manager, Anoka Paul Ostrow, Councilmember, Minneapotis John Remkus, Finance Director, West St. Paul Joe Rudberg, City Administator, Becker Brad Scott, City Administrator, Sandstone Jerry Splinter, City Manager, Coon Rapids Jim Willis, City Administrator, Inver Grove Heights Wally Wysopal, City Manager-Clerk, North SC Paul Personnel Services Committee Joyce Twistol, Chair, CIerIJPersonnel Dic, Blaine Geralyn Barone, Asst. City Manager, Minnetonka Patricia Crawford, Cterk, Motley Holly Duffy, AssL To Mana�er, Eagan Jerry Du]�ar, City Manager, Crystal Christina Frankenfield, City Administrator, Howard Lake Jean Gramling, City Administrator, Savage Terry Haltiner, Risk Analyst, St. Paul Ken Hartung, City Administrator, Bayport Kay Kuhlmann, Council Administrator, Red Wing Karen Kurt, Personnel Manager, Roseville Ed Larson, Ciry Manager, Morris Kay McAloney, Personnel Director, Anoka Tim Madigaq Ciry Administrator, Faribault Ceil Smith, Asst. To Mana�er, Edina Jerry Splinter, City Manager, Coon Rapids Elizabeth Wheeler, Human Resources/Risk Manager, Northfield Harold Windschitl, Counci(member, Sleepy Eye vi League of Minnesota Cities ; � � � i�__1 � � �_-i aa - �� League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past six months. The process began with a member survey of priority issues facing city officials. The process will not end with the Policy Adoption Conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop alternative sotutions, and discuss strategies to implement the League's policies. Listed below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. April/May June The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. The League President accepts applications for committees and appoints policy committee members. The policy committees are: lmpcoving Fiscal Futures Improving Local Economies Improving Service Delivery Personnel Services Electric Deregulation In addition, the Improving Community Life Committee meets on a regular basis to � discuss issues affecting ]ivable communities and to develop the Improving Community Life policy guideline. � Tuly Committees meet to discuss issues raised in the member sucvey. Commitees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. � � :�_ �-1 �� August Committees and task forces meet to discuss issues and problems, accept through testimony and develop policy statements. September October The Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the five policy committees. November January through 14fav Policy Adoption Conference. Members have the opportunity to discuss the drafr po(icies, propose changes, and suggest additional policies for member consideration. Leeisla�ive session. Durin� the session, the policy committees and task forces will continue to meet on issues and scrate�ies. h4embers can assist the Lzague's le;isiative effotts by volunceering ce contacc legisiators on a varizry of issues of in�erest to our ci[ies. � 1999 CitS� Policies vii qq-i� 1999 City Policies � � � � � � � �� r�q-�'7 General Policy Statement The League of Minnesota Cities serves as a forum for cities to define common problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 816 of Minnesota s 853 cities as well as 12 urban towns and 25 special districts. All sizes of communities are represented among the League's members (the largest nonmember city has a population of 170) and all regions of the state aze represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies: 1. There is a need for a governmental system that allo�vs flexibility and authority for cities � to meet the challenges of goveming and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and, 2. The financial and technical requirements for governing and providin� services necessitate a continuing and strengthened partnership with federal, state, and local govemments. This partnership, particularly in the areas of finance, development, housing, environment and transportation, is critical for the successful operation of Minnesota's cities and the well-being of residents. 1949 Ciri� qq-1�1 � IMPROVING COMMUNITY LIFE CL-1. Livabte Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local govemments to work together in partnership to make every community "livable." ISSUE: Cities in Minnesota aze at various stages in meeting the goal of being "livable communities." RESPONSE: The definition of a"livable community" belo�v will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota citeis to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable coramunities. A LIVABLE COMMUNITY IS: WHERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: * safe * a sense of belonging * welcome • engage in life-long leaming activities that: * prepare them for responsible citizenship * enhance the enj oyment of life * prepaze them for changing j ob mazkets • participate in the decision-making process of community leaders • celebrate community • want to make thefr home • have accessto: * goodpayingjobs * adequate and affordable housing * choice of efficient transportation systems including transit, pedestrians, and bicycles � � 2 League of Minnesota Cities � 0 � � � �� C� � I� J L.� ■�.� � �q-l� * gathering places * desired information * choice of cultural and recreational activities * affordable goods and services, including health caze • aze involved in the nurturing of youth • caze about their homes, community, and the environment • get to know each other • have the benefit of strong family support and nurturing adults WHERE LOCAL GOVERNMENT • is responsive to the needs of its citizens • is actively supported by enthusiastic volunteers • is open and user friendly • encourages and implements cooperation and collaboration • provides and maintains an adequate physical infrastructure and promotes social infrastructure to meetlocalneeds s educates citizens of all ages on local, regional, and state issues and govemment processes • informs and communicates with citizens to foster participation in public policy decision- making • participates in youth development � 1999 City Policies 3 �tq -�� IMPROVING FISCAL FUT"URES FF-1. State-Local �'iscal Relations Issue: Minnesota's state and local government finance system is complex and intertwined. Cities rely on their partnership with the state to provide local services. On the other hand, the needs and desires of Minnesota's communities are many and wide-ran�ing. While the state's revenue- sharing system has been regatded as innovative and helpful, there exists a growing need for local elected officials, those closest to the electorate, to be responsive to the service needs ofthe local citizenry. To that end, cities need discretion and flexibility in determining local revenues. The 1997 and 1998 legislatures made changes to Minnesota's property tax system that will impact the ability of local governments to fund necessary services. The reimposition of le�ry limits, significant class rate compression, and chan�es in state funding of schoois all may have unintended consequences. Respo�:se: As the Legislature considers additional property tax changes, it should: � Carefully analyze the combined impacts of the 1997 and 1998 tax bills and chanbing economic circumstances on the taxpayer and on local governments so that policy makers can better understand where the system may need further changes; • Diversify available city revenue sources by generally authorizing cities to impose a local option sales tax with voter approval; and • Reduce the property tax burden for all classes of propert} by increasing the state share of school funding. Any increase in the state share of school funding must guarantee a permanent reducfion in the local property tax burden. The League supports paying for the increased state costs through income and sales tases. The Legislature should not: • Extend le�ry limits, which are inefficient, ineffective, interfere with local accountability, and ignore local circumstances; • Replace all or part of LGA or HACA with state-mandated categorical aid programs, or local option taxing authority; • S�vitch from the classification system to a market value based system, which would cause tremendous shifts of tax burden behveen classes of property. The League aiso opposes applying all future levy increases to market value because this would further complicate the property tax system; • Expand the limited market value la�v; • Interfere in local decision-making regarding service delivery; • Impose a state-levied property tas; nor • Cut LGA or HACA to finance an increased state role in school finance. FF State Shared Revenues Issue: State revenue sharing programs address at least three problems with a stand- alone local govemment finance system. First, the property tax base available to communities can vary dramatically. These � 4 League of Minnesota Cities � � � � L� _! Y�' �� C _f �_l 1 :_I �� programs use state resources to equalize the ability of communities to provide essential services without undue property tax burdens for local residents. Second, nonresidents can take advantage of local services or create additional demands for services without contributing to the taxes that support these services. LGA and HACA help address the free rider problem where nonpayin� individuals consume services without contributing to the local tax base. Third, allowing local units of govemment in Minnesota to only levy the property tax has created an over-reliance on the property tax. LGA and HACA can reduce the overall reliance of local governments on the property tax. Response: LGA and HACA, or similar replacement revenues, must be continued and additional state resources greater than the rate of inflation must be ailocated to prevent rapid future property tax increases. In addition, the HACA household growth factor for cities should be reinstated. FF-3. Taxation of Municipal Bond Interest Issue: The state law that grants a tax exemption for municipal bond interest is being reviewed and couid be repealed. A repeal of this exemption will raise bonowing costs for cities. Respor:se: The state should maintain the tas exemption for municipa( 6ond interest income. ��-�'1 FF-4. City Fiscal Year Issue: The fiscal yeazs for the state and cities aze offset by six months. The state fiscal yeaz begins on July 1 while the city fiscal yeaz begins on January 1. Lawmakers have proposed chan�ing the city fiscal yeaz to coincide with the state. Such a change, while providing questionable benefits for cities, would not correspond with the current property tax cycle, «�ould impair historical comparisons of data, would force cities to retool accounting systems, would adversely impact city credit ratin�s, and could result in state funding gaps. Response: The state should maintain current la�v and not change the city fiscal year to coincide with the state fiscal year. FF-5. Sales Tax on Local Government Purchases Issue: In 1992 when the state was experiencing a bud�et shortfall, the Legislature repealed the sales tax exemption for local govemment purchases. Local governments no�v pa}� state sales tax on purchases like road maintenance supplies and equipment, wastewater treatment facilities, and buildine materials for affordable housing. This action currently costs local govemments an estimated $78.3 million annually. Because no additional state aids were added to offset the additional cost, this repeal has effectively increased local property taxes to finance state operations. Respor:se: The state shouid reinstate the sales tax esemption for all local government purchases. The exemption must not be coupled �tiith cuts in LGA or H�CA. � 1999 City Policies g a� -�� FF-6. Delinquent Property Tax Penalties and Tnteresf Issue: Although city finances aze affected by property tax delinquencies, cities do not receive any associated penalties and interest on these delinquencies. Penalties budget for unforeseen needs that arise afrer September 15. Response: Cities should have the authority to increase the final levy from the preliminary levy to meet unforeseen and uncontroilable needs. � L�l � and interest are split evenly between counties and schoois. Response: Cities and counties should receive a pro-rata distribution of 50 percent of the penalties and interest collected on delinquent property taxes with the remaining 50 percent to be distributed to schools. FF-7. Payments for Services to Tax-Exempt Property Issue: Taxable property in many cities is being acquired by nonprofit and government entities. Converting the property to tax- exempt status can lead to a serious tax base erosion without any cottesponding reduction in the service needs created by the property. Response: Cities should be allowed to collect special assessments or other payments in lieu of property taxes (or special assessments) from statutorily exempt property owners to cover costs of service. FF-8. Truth-in-Taxation Issue: Cities must set a preliminary levy by September 15 which, by law, becomes the maximum that cities can levy for the following year. In recent years, cities have not received complete tax base and aid information in a timely manner. As a result, cities often either set a preliminary levy that is artificiaily hieh or they are unable to FF-9. State Administrative Deductions from State Aid Issue: State administrative costs aze deducted from the LGA appropriation. This reduces the property tax relief provided by LGA and creates hidden appropriations for state agencies. Response: All appropriations from LGA resources that fund state operations should be repealed. FF-1�. Reporting Requirements Issue: Budget and financial reporting requirements imposed on cities by the state often result in duplication and additional costs. Bespanse: Requirements for reporting and advertising financial and budget information should be carefully weighed to balance the validity of the s±ate's need for additional information with the costs and burdens of compiling and submitting this information. In addition, all state agencies should be arrare of the information already required by others to avoid duplication of reporting requirements. FF-11. Federal Budget Cutbacks Issue: Congressional actions to balance the federal budget will reduce federal � � � 6 League of Minnesota Cities �`t'�1 � � � 1 � � 1�: �! � ��.I :f, � � � � assistance to the state and to local govemments. Response: The state should not reduce aids or increase fees to local governments as a means for dealing with cutbacks in federal revenues. The state should take responsibility for reductions in federal revenues rather than placing the burden on cities and their property taspayers. FF-12. Local Performance Aid Issue: When the 1996 Legislature created the local performance aid program, the legislation was vague and the program was partially funded by cuts in HACA. In the future, the requirements for applying for the aid could become an onerous mandate on cities and undermine tocat decision-making. Response: The League strongly supports efforts by cities to improve the efficiency and effectiveness of their operations, including exercises such as performance measurement systems. However, these efforts should be local initiatives rather than state-mandated actions. Therefore, the League opposes LPA. If local performance aid is to be continued: • The law must be clariFied and the qualification requirements must be attainable by all cities regardless of city size or staffing levels; • All additional funding must come from new revenue sources rather than shifts of aid from other programs such as LGA and HACA; • The program musY not become an onerous mandate requiring additional cih resources; and •?.nr' information on indi� idual cifies that is collected from the program must not be used to simplistically compare cities. FF-13. Price of Government Issue: The price of government legislation enacted in 1994 was intended to measure the overall effect of state and local taxation over a long period of time. The targets measure govemment revenues as a percent of personal income. Unfortunately, the targets have been misinterpreted and used unfairly to criticize city tax and budget decisions. Response: The price of government statutes as they apply to locai governments should be repealed. If the price of government law is to continue to be applied to local governments, price of government calculations should be: • based on the sum of levy and state aid, not just levy; and • based on long-term trends, not single- year events. FF-14. Capital Improvement Fees Issue: New development and thc resulting growth create an increased demand for public infrastructure and other public facilities. Severe constraints on local fiscal resources and dramatic forecasts for population growth have prompted cities to critically reconsider �cays to pay for the inevitable costs associated with new development. Traditional financing methods tend to subsidize new development at the expense of the existin� community, discourase sound land use planning, place inefficient pressures on public facilities, and allo�r underutilizatior. of existins infrastructure. Conseauentl�.local communities are exploring metnods to � 1999 City Policies ? a� -�� ensure that new development pa}•s its fair shaze of the true costs of growth. Given the existing authorization to impose f es on ne«� development for ��,•ater, sanitary and storm sewer, and pazk purposes, it is reasonable to extend the concept to additional public infrastructure and facilities improvement also necessitated by new development. is brought into the cit}•, the city may assess that ne�cl}� acquired property for road improvements pre� done but not assessed at the time of the improvements. FF-16. Taxation of Electronic Commerce Response: The Legislature should authorize cities to impose capital improvement fees so new development pays its fair share of the off-site, as well as the on-site, costs of public infrastructure and other public facilities needed to adequately serve new deve(opment. FF-15. Deferred Assessments for Roads Issue: Current law allows a city to recoup the costs for water, storm sewer, or sanitary sewer improvements by levying additional assessments on the property benefiting frocn the improvement, but not previously assessed. This authority for defened assessment has not been extended to otherinfrastructure, such as road improvements, even though properties aze benefiting from the improvements. Respoi:se: Cities should be able to assess the cost of infrastructure improvements for roads. Cities should be allowed to defer assessments against property located outside the city for road improvements benefiting property abutting the improvement but not previously assessed for the improvement. For example, if a city makes road improvements to a road that benefits city residents and to�cnship residents, the city may defer the assessments to the township property until the property is brought into the city. Once the toi��nship property Issue: Sales over the Tntemet and through other electronic means are projected to increase exponentially over the next several years. Because of the difficulty of assigning a location to elecironac sales, because many Internet "goods" are not tangible property, and due to potential federal intervention, electronic transactions pose significant tax policy challenges. Response: Federal tax policy must not put main street businesses at a competitive disadvantage to electronic retaiters, must not jeopardize repayment of bonds backed by state and local sales tax revenues, and should ensure stability in state and local revenues. FF-17. Local Option Sales Taxes Issue: Last year, the Legislature authorized local sales taxes for 13 cities to fund regional projects in nine greater Minnesota regional centers. Most Minnesota cities would benefit from diversification of the revenue sources available to them to relieve the local property taY burden. Respo�tse: The Legislature should generally authorize local sales taxes for cities upon local approval. g League of Ylinnesota Cities � L� � Y � � � FF-18. Limited Market Value Issue: Rapidly rising property values in some parts of the state have fueled legislative proposals to expand the current limited mazket value 1aw. One proposal �vould establish the consumer price index as the maximum annual mazket value increase and extend the limit to all classes of property. Further restricting market value increases would have several negative consequences: � • It would unfairly shifr taxes from properties experiencing growth in value onto all other properties. � • Over the long-term, similar properties would be taxed at widely different rates � � merely due to when the properties were last sold. • It could discourage the sale of property because sales would retum the property to full market value for tax purposes. • It would discourage improvements to � property, which would trigger a retum to full market value for tax purposes. This could lead to degradation of housing and � other types of property. • It could adversely affectthe ability of cities to bond for infrastructure � improvements or for tax increment financing since local tax bases would not reflect the growth in property values. � • Once implemented, limited mazket value provisions are politically difficult to � � � qq-�� sunset due to the potential for lazge one- year tax shifts onto properties whose values were artificially capped by the program. Response: The League opposes any expansion of the limited market value law. FF-19. State Charges for Administrative Services Issue: Currently, some state agencies have wide discretion in setting the fees for special services they provide to local governments. For example, the Minnesota Department of Revenue recently increased the fee for administering local sales taxes by 80 percent in the middle of a budget yeaz with less than six weeks notice. The increase had no apparent relationship to increased cost of providing the service. Respo�:se: State agencies should be required to demonstrate the need for increases in service fees, and should give adequate notice of increases to allow local governments to budget for the increases. State agencies should set administrative service fees as close as possible to the marginal cost of pro��iding the service. Local government should be given the option to self-administer or contract with the private sector for the service if the state cannot provide the service at a reasonable cost. � 1999 City Policies 9 �.q-�� IMPROVING LOCAL ECONOMIES LE-1. Tas Increment �'inancing (TIF) Issue: The state has effectively delegated the responsibility for economic development and redevelopment to cities. Unfortunately, neighboring states have given their cities more development tools and, therefore, cities in these states have a competitive advanta�e over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to all cities in their economic development and redevelopment efforts. The state, whether based on a lack of information or misinformation, has been critical of cities' use of the tool and has implemented a series of restrictions over the past several years, rather than partnering with cities and encouraging their endeavors to improve and enhance the economic well-being of Minnesota and the growth and redevelopment of its cities. Cities, required to assume the financial risks associated with development decisions, have used tax increment financing responsibly and examples of these positive uses abound. Response: To effectively compete with other states, Minnesota must provide its cities greater flexibility in the use of tax increment financing and other economic development programs. The state should partner with cities in economic development and redevelopment activities, and encourage cities' use of tax increment in achieving the laudable goals of long-term tax base stabilization and growth, job creation, development of low- to-moderate income housing, remediation of pollufion, elimination of blight, recycling and redevelopment of the infrastructure, and rede�•elopment of its communities. Counties and school districts are appropriately im�olved in cities' development decisions fhrough current "review and comment" requirements. LE-2. TIF Recodification Issue: A legislative task force was created by the 1997 Legislature and directed to recodify the tax increment statutes for the purpose of simplification only, with no policy implications. Respoi:se: TIF recodification legislation should remain an independent bill. Any TIF policy issues identified shouid be separately addressed. LE-3. TIF Reform Issue: It is likely that several TIF policy issues will be identified during the 1999 legislative session. Respa:se: Along �eith these policy issues, the Legislature should equaliy consider: • Clarifying that any tax increment districts approved beriveen 1979 and 1982 ha�e the same authority to pool increments as districts certified after 1982 and prior to April 1,1990; • Authorizing any tax increment districts approved after April 1, 1990, to pool increments in the same manner as districts certified prior fo Apri11,1990; • In light of levy limits, eliminate the LGA/HACA penaity currently � 10 League of Minnesota Cities � � � � imposed on districts or a31ow an exception from levy limits. If the penalty is not eliminated, the restrictions on the source of payment shouid be removed; • Expanding the use of tas increment financing to assist in the development � offechnologicalinfrastructure,job training, the restoration of historic � �< � F�J � structures, and for nonretail commercial projects (e.g., sofhvare companies, banks, and insurance companies); • Exempting redevelopment districts from the'�five year rule"; • Modifying the housing district income qualification level requirements to allow the levels to vary according to those specific to individual communities; • Authorizing the use of federal grants and other funds for local contributions; • Removing the LGA/HACA penalty � imposed on housing districts established beriveen the penalty years �. � � � � of 1990 and 1993; • Making any necessary statutory changes to allotv the Office of the State Auditor to simplify its TIF reporting forms in consultation with those required to complete the forms; and • Authorizing TIF financial information to be published in a more simplified format so it provides the average taspayer with useful information. LE-4. Impact of Property Tax Reform on Existing TiF Districts � Issue: The 1997 and 1998 Legislatures compressed proper.y� tax class rates which, in tu.*n. jeopardized the repa}�menc of � ouist2nding debt o- other obligations in existi.^.g TIF districts. Giver. the long-term � 1999 Cih Policies Q9-I? nature of property tax reform, cities could not have anticipated the impact of the 1997 and 1998 class rate changes, nor can cities project the impact of future changes. The $2 million provided by the 1997 Legislature for grants where the class rate changes cause TIF district deficits, while critically needed, is likely to be insufficient ta cover every deficit, does not provide timely reimbursements, and is administratively confusing. The special taxing district authority provided by the 1998 Legislature might be useful in certain cities, but is oniy a partial solution. Response: The Legislature should provide additional state resources so TIF obligations can be met, and third party bondholders are protected because the $2 million fund is insufficient to cover deficits caused by the 1997 class rate changes. The Legislature should aiso ciarify the administration of the grant process and should require timely reimbursement. LE-5. Corporate Subsidy Reform Issue: Cities support public notice, participation, and accountability in the use of public funds. Current mechanisms aze in place to ensure these are adequately provided. Proponents of corporate subsidy reform would like to implement what they see as increased protections. Response: Current law adequately provides for public notice, participation, and accountability for the use of public funds. Cities oppose: • �'Ieasures Yhat conflict with existing laFr or that ma}' establish a duplicative procedure; • One minimum �va�e le� e1 that does 11 ��-t� not recognize or provide sufficient flexibility for the numerous submarkets existing throughout the state; • Identifying industrial revenue bonds, whose tax esempt status is a result of federal decision-making, as a subsidy; • Processes that hold cities accountabie for decisions made by businesses and for the validity of such decisions; and • Requiring developers to enter into workforce and salary agreements when developers are not responsible for the employment levels and compensation packages offered to their tenants' employees. LE-6. Economic Development Programs are faced with the unique circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and do�cntowns and a lack of land for development. Redevelopment activities usually require large, up-front funds to address multi-phase projects of extensive duration where site assemblage, demolition, relocation, or pollution clean up must occur before private-sector interest can be generated. The 1998 Legislature's creation of a redevelopment acount is a first step in establishing a coherent statewide policy and should help combat the increasing problem of urban sprawl. Additionally, deterioration threatens historic structures in cities across the state. Currently, there are not enou�h tools for cities to utilize in local historic preservation efforts. Issue: The Minnesota Investment Fund is not adequately funded. The state does not authorize an adequate slate of tools for local governments to assist job creation, redevelop blight and decay, and provide adequate housing choices. Consequently, cities aze not well equipped to compete nationally and intemationally for business development. Response: • More state resources should continue to be contributed to the 1Vlinnesota Investment Fund. • Congress should remove the caps that have been placed on Industrial Development Bonds and acknowledge that the extensive eligibility requirements now adequately limit their use. LE-7. Redevelopment Programs Issue: Communities across Minnesota Respa:se: In recognition of the unique needs of redevelopment projects, the state should continue its commitment to reinvest in its communities by increasing funding for the redevelopment account, and should undertake a comprehensive approach that provides financial assistance to address their redevelopment needs such as state tax credits, TIF subdistricts, and other tax incentives for tocal historic preservation efforts. LE-8. Property Tax Abatement Authority Issue: In an effori to increase the number of development tools available, the 1997 Legislature authorized local units of government to grant property tax abatements. Although TIF continues to be the primary financing mechanism for local development projects, tax abatements provide a good addition to a needed list of economic development tools. In order to provide maacimum benefits, tax abatements 12 LeaQue of Minnesota Cities ag-�7 should be less restrictive in terms of funding caps and financing terms. Property tax abatements should not be considered a replacement for ta�c increment financing. Respof:se: TIF is still the primary viable development tool available for cities. Abatement authority should continue to be available, but noY offered as a rationale to eliminate TIF. LE-9. Brownfields Issue: Brownfields are lands unsuitable for development due to the presence of chemical or other contaminants. � Bro�vnfields are a major cause of blight within communities across the state through � loss of local tax base, jobs, housing quality, public safety, and community confidence. Revitali2in� this land is costly and requires � the cooperation of city, county, school, re�ional, state, and federal governments and the assistance of local economic � development organizations and citizens. As we move into an era where the mass creation � � � � � � ofjobs is a necessity and where increased tax base is a requirement for local govemments to adequately face growing financial pressures, efforts to revitalize brownfields must not only continue but be accelerated in the upcoming years. Currently, $7 million exists in the Department of Trade and Economic Development's (DTED) base for the contaminated site clean-up fund. Additionally, $6.2 million is appropriated annually from the Petrofund to DTED to clean up petroleum-related contamination w'ithout the requirement of an identifiable tanl: source. Resportse: A comprehensive set of � economic de� elopment programs must be maintained for cities and other � 1999 City Policies development agencies. The Legislature should: • Increase funding for the Department of Trade and Economic Development's contaminated site clean-up fund and redevelopment account; • Strengthen enforcement and collection of revenues for the state contamination tax; • Continue support for and funding of local and regional programs to assist in the efforts to remediate brownfields; • Establish a fully-funded program to allow cities and other development authorities to gain control of and reclaim and revitalize bro�vnfields; • Protect existing tas increment financing provisions that provide for the remediation of brownfields, and modify restrictions to allow the pooling of district revenues to assist in the financing of remediation of brownfields; • Establish an indemnification fund to provide financial security for institutions and individuals as they invest in efforts to recycle brownfields in order to leverage private investment in cities' efforts to increase their tas base and create jobs; and • Continue financing mechanisms for cleaning contaminated sites. LE-10. Growth Management and Annexation Issue: Unplanned and uncontrolled urban gro��th has a negative environmental, fisczl, and Qovemm�ntal impact for cities, counties, and state oe�ernments because it incrzases the cost of pro� iding �overnment services, and resuits in the loss of natural 13 resource areas and prime agricultural land. Respo�:se: The Leagne belie��es the existing frameFCOrk for guiding growth and development primarily through local plans and controls adopted by local governments should form the basis of a stafewide planning policy, and that the state should not adopt a mandatory comprehensive state�r•ide planning process. Rather, the state should: • Pro��ide additional financial and technical assistance to locai governments for cooperative planning and growth management issues, particularly where new comprehensive plans have been mandated by the Legislature; • Clearly establish the public pur�oses served by existing statewide controls such as shoreland zoning and wetlands consen�ation; clarify, simplify, and streamline these controls; eliminate duplication in their administration; and, fully defend and hold harmiess any local government sued for a"taking" as a result of executing state land use policies; • Give cities broader authority to estend their zoning, subdivision, and other land use controls up to ttivo miles outside the city's boundaries, regardless of the existence of county or fownship controls, to ensure conformance with city facilities and services; • Cieariy define and differentiate beriveen urban and rural development and restrict urban growth outside city boundaries; • Require the Metropolitan Council to seek cooperation from the state of Wisconsin and counties (both Minnesota and «'isconsin) � Qa't'7 surroundine the met�opolitan area to ensure responsible and controlled development; stud}� ezpansion of Metropolitan Council authority in surrounding counties; and, examine the positive and negative impacts of mandatory regional or local land use controis and state-imposed development standards; • Facilitate the annexation of urban land to cities by amending state statutes that regulate annexation to make it easier for cities to annex developed or developing land within unincorporated areas; • Oppose attempts to reinstate the Minnesota i�iunicipal Board as the body for resolving boundary adjustment issues. • Oppose legislation fhat wouid reinstate the election requirement in contested annexations; and • Encourage ideas consistent with the long-term goal of allowing urban development only in urban areas. Density incentives such as sprawl reduction aid programs are more straightfonvard methods of rewarding and encouraging compact urban development than using LGA or HACA for another new �urQose. LE -11. State and/or County Licensed Residential Facilities (group homes) Issue: The need for more residential- based care facilities resulting from state policies makes it clear the state must also provide sufficient fundin� to ensure residents living in �roup homes and licensed facilities have appropriate care and supervision. In ��ie« of the responsibilities cities have to accommodate group homes and residential-based facilities, it is League of blinnesota Cities � °tq -�� i� important that state and county units of govemment make every effort to work with local officials to address care and public safety concems. Cities must also be awaze of special care needed by group home residents in case of public �afety emergencies. Since operatozs of certain residential facilities and services are not required to notify cities when they intend to purchase housing for this purpose, cities have insufficient opportunity to address the special care and pubiic safety needs these residences may require. Respor:se: The Legislature should require state and county agencies that operate or ]icense companies to operate residential-based facilities to notify cities in a timely manner, and allow opportunity for cities to respond regarding the status of facility license requests and renewals and the speciai care needed by residents in case of public safety emergencies. Legislation should � also inciude provisions requiring establishment of nonconcentration standards and direction to avoid 1� � � 1____' � � 1..�_l ciustering residential facilities. Licensing authorities must also be responsible for removing any residents incapab3e of living in such an environment, particularly if they become a danger to themselves or others. LE -12. Housing and Economic Vitality Issue: City officials increasingly recognize that housing shorta�es threaten strong nei�hborhoods, healthy communities, and local economic vitality. Decreased federal housin, assistance and insufficient state resources for housinc p; oduction place statz�tiide economic expansion at risk. Changes in socia? sen�ices and family support, along with welfare-to-work requirements, make it paramount for the Legislature to re-allocate state resources to strengthen family stability, improve workforce availability, and improve children's school performance. Response: The Legislature must increase state investment in housing production, at least doubling the current biennial housing budget, to help leverage private and local resources as well as federal funds. The Legislature should make at least a one-time, S40 million investment outside the metropolitan area for production uf single-family housing affordable to worl:ing families, along with affordable rental units. In the metropolitan area, in�esting another $40 million over the nest biennium to carry out the goais of the Livable Communities Act will help meet the needs of many households in �vhich �i'orking adults must now travel long distances to get to work. LE-13. Housing Preservation Issue: Loss of federally-assisted housing in communities throuehout the state remains a serious threat to the «e11-being of older city residents as well as other vulnerable populations. Few cities have sufficient local resources to purchase or provide equity take- out loans to owners of subsidized rentai units who are considering mortgage prepayment and com�ersion to market-rate rentals for properties oriQinally built to provide housing for lo�c-income residents. Cities and nei�hbornood organization community developmen: projzcts sometimes ;equire demolition of s��os.andard housing, �.hich can compoun� h� �sine shortages and displace occupants. � 1999 Cit} Policies 15 �_ � .Response: The Legisiature must appropriate at least S10 million for preservation of federally-subsidized housing throughout the state to provide additional resources for the Minnesota I3ousing Finance Agency and community- 6ased nonprofit housing organizations to buy units or make equity take-out loans to property owners in return for maintaining rents affordable to low- income residents and agreeing to maintain the federally subsidized mortgage to term. neutral and nondiscriminatory manner. Response: State and federal government should encourage cities and telecommunications service providers to colIaborate to take advantage of planning opportunities for the development of telecommunications infrastructure and services to strengthen local and regional economies. Federal and state government must also strengthen city authority to: • Provide telecommunications services either in partnership with other public entities, the private sector, or as a sole provider; • Grant additional cable TV franchises to provide the benefits of competition � The Legislature should provide incentives to lower housing construction costs and selling prices to encourage local government, builders, developers, housing agencies, and organizations to address housing design and construction costs, land use regulation, and other factors that could reduce housing development costs. LE-14. City Role in Telecommunications Issue: As cities seek the benefits of information technology, they face a number of critical issues, particularly availability and competition for providing advanced community-based telecommunications services. Cities recognize the importance of providing these services for education, health caze, business, and residents in their homes and work places. Cities also play an integral role in the emergence of local competition, the zoning of wireless communications facilities, and preserving cable operator support for public, education and govemment (PEG) access and I-Nets, and upholding federal requirements to treat all providers in a to subscribers; • Require all mvltichannel providers of video programming sen�ices that use public rights of way to compiy with local PEG access and I-Net requirements; and • Exercise effective local zoning controls over the siting of wireless communications facilities. LE-15. Adequate Funding for Transportation Issue: Current funding for roads and transit systems across all govemment levels in the state is not adequate. The League acknowledges that all Minnesota communities benefit from a sound and adequately funded transportation system. Response: More resources must be dedicated to the state's transportation system. The League supports constitutionally dedicating a portion of the sales tax on motor �•ehicles (also referred to as MVET) or other new � I� � � � League of Minnesota � � � � � � � � � �� C —1 !� revenue sources to a transportation fund, which rvould fund both highFVay and transit projects. The League also supports an increase in the gas tax that would be dedicated under the existing highway user trust fund formula. If funding does not come from the state, cities should have funding options available to them to raise the necessary dollars to adequately fund roads and transit. All nontransportation programs should be funded from sources other than the highway user distribution fund or other funds dedicated to transportation. LE-16. State Aid for Urban Road Systems Issue: Current ruies governing municipal state aid erpenditures are restricting the efficient use of these funds, and do not adequately acknowledge the constraints of road systems in urban city environments. Respaue: Rules affecting the � municipal state aid system need to be changed to acl:noFVledge the technical and practical restrictions on construction and L"�! � � � � reconstruction of urban road systems. Nerv municipal state aid design standards should not apply to reconstruction of existing state aid streets originally constructed under different standards. Future changes to state aid rules should ensure the im�olvement of elected officials and engineering professionals in the decision-mal:ing process. �� LE-17. Turnbacks of County and State Roads Issue: As road fundin� becomes increasingly inadequate, more roads are bein� "turned back" to cities from counties and the state. Respo�:se: Turnbacks should not occur without direct funding or transfer of a funding source. A process o£ negotiation and mediation should govern the timing, funding, and condition of turned-back roads. Citytaxpayers should receive the same treatment as township taxpayers. The requirement for a public hearing, standards about the conditions of turnbacks, and temporary maintenance funding should also apply to county turnbacks to cities. At a minimum, roads proposed to be turned back to a lower government level should be brought up to the standards of the receiving government or should be compensated with a direct payment. Direct funding should be provided for smailer cities that are not provided with turnback financing through the municipal state aid s} stem. LE-18. Road Funding for Cities Under 5,000 Issue: Cities under �,000 population do not receive any nonproperty tax funds for their coilector and arterial streets. Respazse: Cities under �,000 population that are not eligible for Municipal State Aid (II.S.A.) should be able to use counh' municipal accounts � 1999 Cih� Policies 1� c�q- t�j and the 5 percent account of the high�c•ay user distribution fund. Uses of county municipal accounfs should be statutority modified so counties can dedicate these funds for local arterials and collector streets �� ithin cities under 5,000 population. In addition, the 5 percent set-aside account in the highway user distribution fund should be used fo meet this funding gap. sought b}� the pri��ate sector. The state and federal go��ernment must participate in adequately funding railroad projects. The federal go��ernment must exercise greater o��ersight of the STB to ensure that fair and equitable solutions are reached when dealing �vith cities in Minnesota. LE-20. Access Management & Plat Approval LE-19. Railroad-Related Projects Issue: Cities are being presented with far-reaching and long-term effects ��hen railroad expansion and related projects enter their communities. Alon� with the concerns related to safety, environmental effects, and noise impacts on the communities, several issues have greater reaching effects. They are: • The cost-share ratio related to roadway crossing improvements will be borne by the public sector to a substantial degree, some estimates are 80 percent public to 20 percent private funding; • The financial burden faced by the pubiic sector to deal with mitigation improvements, a cost that the Surface Transportation Board (STB) is not requiring the private sector to pay; • The issues associated with the length of trains moving through communities; • Liability associated with whistleblowing ordinances; and • Pre-emption of local authority to regulate railroad activities. Response: The pri��ate sector must be required to pay a greater share of the improvements that 6enefit their industry- The public sector shoufd not be expected to undenvrite the costs of impro��ements Issue: Increasingly, the state and some counties express a desire to exercise more control over state and county roads that lie within city boundaries. Some counties have introduced le�istative proposals requiring county plat approval before projects may move for��ard. The Department of Transportation has been studying the issue of access management, and may bring a legislative proposal forward in 1999 to establish minimum standards before new access points onto roads will be allowed. The League has published educational articles designed to highlight the importance of county and state involvement when cities are involved in planning decisions that will allow ne�� de��elopment to access roadways. Resporrse: Cities support maintaining plat appro� al authority with each municipality for all plats located wifhin cities. Cities do not support extending county or state authority over plat approval. Ho�vever, significant advanfages can be gained by using a coordinated re��iew process, already existing in state law, behceen cities and other affected units of government. Such advantages include better ocerall land use planning, site designs, and traffic management. In addition, cities support the concept of state�cide access 18 League of _VIinnesota Cities � a� - t� � � � �i�! L�! � r—' � � management guidelines that can be used in a coordinated reviecv process. LE-21. Right of Way Management Issue: Cities have fundamental responsibility for managing the safe and convenient use of public rights of way. Cities hold local rights of way in trust for the public as a limited and valuable asset. As demand for ri�ht of way use increases, cities must continue to have clear authority to allocate and coordinate that resource among competing uses. Local management responsibilities vary and are site specific, underscoring the importance of upholding local authority to establish fees and standards and to obtain fair and reasonable compensation by telecommunications right of way users. Respoi:se: State go��ernment must: • Uphold local authoriry to manage and protect public rights of tvay; • Recognize that municipal engineering has a paramount role in devetopment and implementation of construction and safety standards; • Support local authority to require reasonable compensation reflecting local policy and fiscal objectives, including the collection of Franchise fees and support of public, education and government (PEG) and I-Net access to providers of multi-channel video programming; and • Nlaintain the courts as the primary forum for resolving allegations by telecommunications ser��ice providers of arbitrarv or capricious city� management policies and �ractices. LE-22. Effective Telecommunications Competition Issue: Consumers need protection in the transition to a competitive marketplace for telecommunications services. Local economies can be strengthened by competitive provision of services to enhance business participation in the global economy. Respo�:se: Federal, state, and local government shouid coordinate policies to protect consumers and encourage emergence of local competition. LE-23. Local Zoning of Telecommunications Facilities Issue: Federal intervention and restrictions on city zoning authority over the use of property by telecommunications service providers threaten to pre-empt basic local land-use regulation. Response: Federal and state government must uphold the fundamental right of local government to adopt and enforce zoning regulations reaffirmed in the federal Telecommunications Act of 1996. LE Workforce Readiness Issue: State and federal welfare reform efforts have focused on the importance of the welfare-to-work transition, and have reco�nized the challenge of ensuring individuals are qualified to work. Cities have an interest in the availabilitv of aualified workers as part of their economic development efforts, and can serce as a � 1999 Cit}' Policies 19 ctq`�� catalyst �� ith other pubiic entities and the private sector to address �� orkforce readiness issues. LE-26. Economic Development Aufhorities � � Respo�:se: The Legislature should fully fund the job sl:ills partnership and pathways programs administered by the Department of Trade and Economic Development. LE-25. Platting Law Recodification Issue: The Minnesota Association of County Surveyors (MACS) is seekin� to recodify Minnesota Statutes Chapter 505. Two issues raised by NIACS that will likely impact cities are the subdivision glat requirements, and the creation and amendment of road right of way acquisition maps. Response: The Legislature should preserve local authority over plat approval and include language in the recodification legislation that will aliow for pedestrian easements or thoroughfares to be dedicated by plat (for sidewalks, public trails, etc.). Issue: The state's policy regarding economic de��elopment authorities (EDAs) has been to limit the specific authority and powers of EDAs to city governments. The state has already determined that city govemment most efficiently provides governmental services in areas intensively developed for residential, industrial, and governmental purposes. Respo�:se: The state should continue to recognize the importance of using and preserving the existing infrastructure in cities, and should continue to find that urban development, and all related authority, remain tsithin cities aud managed by city government. The Legislature should continue its decision to limit EDA authority to c3ties as the primary local government responsible for the organizational and financiat coordination of development and redevetopment. IMPROVING SERVICE DELIVERY SD-1. Redesigning and Reinventing Government Issue: Every level of government is reevaluating, reprioritizing, redesigning, and renewing its organizational structure and programs in response to financial realities and citizens' needs and problems. Reforms, howe��er, must be more than change for the sake of change, or a reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and reassignments of govemmental entities and services should save money where feasible, deliver improved services, sen�e essential needs, and be equitably structured. Cities have and will continue to pursue the use of cooperative agreements, the reevaluation of city programs and ser�rices, and changes to organizational structures. � 20 League of 1l4innesota Cities � � � � � � � � � � � � � Response: The federal, state, and county governments should: • • • Ensure that in redesigning, reinventing, or reassigning government services and programs that the appropriate level of service to citizens is evaluated, and citizen demands and expectations are adequately addressed; Promote local efforts through incentives, rather than mandates; Communicate and establish a process of negotiation before shifting responsibility for delivering services from one level of government to another, or seeking to reduce service duplication; Transfer authority for use of revenues dedicated to such programs, or proF•ide appropriate and adequate alternatives; Identify and repeal programs or discontinue services that are no longer necessary, or which can readily and fairly be provided by the private sector; and Employ esisting government entities in redesign efforts rather than create ne« agencies or units. The League supports cooperative studies � of the follorving issues: � � � � � 1! � �Vhether the enforcement of human rights la�i�s can best be accomplished by a single state system that would allotir local governments to discontinue local enforcement programs; Whether there should be greater use of statewide or consolidated business licensina, including licensina of sign contractors, to eliminate the need for some businesses to obtain a permit in each cit} or county; Policies �°�-�� • �Vhether the existing use and structure of regional development commissions can be improved; • �Vhether greater use can be made of block grants to distribute funds related to transportation, sewage treatment, and public «•ater facitities; • Whether human services and health programs can be improved by further consolidating their administration at the state and county levels of government; and • �Vhether state and federal environmental and water agencies can be combined or eliminated to avoid inconsistent standards and duplication of responsibilities. SD-2. Unfunded Mandates Issue: The cost of federal and state mandated programs substitute the judgment of Congress, the President, the Legislature, and the governor for local budget priorities. These mandates force cities to reduce funding for other basic services or to increase taxes and service charges. The passaae by the Legislature of reporting requirements for new state mandates, and the passage by Congress of legislation restraining new federal mandates, should help address the problem, but other steps are necessary. Kesponse: • Existing unfunded mandates should be revie�ved and modified or repealed where possible. • \o additional statewide mandates should be enacted, unless full funding for the mandate is pro� ided by the le� el of go��ernment imposing it or a 21 qq-i� permanent stable re��enue source is established. • Cities should not be forced to compl}° with unfunded mandates. • Cities should be given the greatest flexibility possible in implementing mandates to ensure their cost is minimized. SD-3. Civil Liability of Local Governments Issue: One of the baniers to the delivery of governmental services and programs is the exposure of local governments and their officials to civil damage claims. The state has acted to protect itself and its local governments by enacting exceptions and limitations to liability suits, and authorazing self-insurance and other mechanisms to deal with claims allowed by law. Additionally, the current law, which requires district court approval of settlements of claims against municipalities that exceed $10,000, has become burdensome for cities. Response: The League supports: approval of settlements requirement or, in the alternatice, increasing the threshold amount for district court approc of settlements to S100,000; and • Clarifi�ing and maintaining the applicability of municipal immunity in various areas including, but not limited to: snow and ice immunity, park and recreafional immunity, inciuding the estension to entities providing a public service that have not traditionally been included within the immunity (e.g. state trails over municipal utility easements), vicarious official immunity, and problems related to the Y2k computer issue. SD-4. Environmental Protection Issue: State and federal environmentai programs are improperly designed to meet their stated goals, and impose an undue burden on ]ocal governments because of a lack of federal or state financial assistance. The refusal to finance these programs by the governments that pass them has eliminated an essential restraining feature in program design and implementation. • Eliminating joint and several liability, or severely restricting its apptication to situations where private or public tortfeasors are substantially at fault for the damages incurred; • Extending the protection of the state and municipai tort claims act to quasi- governmental entities �r•hen performing public services such as firefighting; • Existing constitutional safeguards for protecting public and pri��ate property interests without any statutory espansion of property rights; • Eliminating the district court Specific problems include: • New programs or standards are continually adopted ��ithout regard to the exisCence, attainability, or cost of existing programs and standards. • Inability of regulatory bodies to use good science and accurate data when establishing permit criteria. For example, the Minnesota Pollution Control Agency Citizens Board's recent decisions resulted in a phosphorus standard for the city of Greenfield that was inconsistent with current data and 22 League of Minnesota � L� 1 � � � � ii� � � � � � � � � � � � likely not to have been recommended by aoency staff. • Fra�mented program adoption and impiementation does not ensure prioritization of environmentai matters or the establishment of comprehensive environmental protection strategies. •"One size fits all" implementation of programs force remedial efforts by local govemments for nonexistent environmental problems. • Permit fees and other cost transfer elzments of federal and state programs do not provide an incentive for environmental a�ency efficiency, policy prioritization, or risk assessment. In addition to the above probtems, cities face emerging issues in the areas of drainage, bio-solids, wellhead protection, and feedlots. Response: • A comprehensive effort to consolidate, reorganize, and manage state and federal environmental agencies and programs should be undertaken, and a partial or fuil moratorium on new programs or requirements should be considered. • Permit fees should be limited to 50 percent of the agency's direct operating costs in order to promote efficient agency operation and sufficient legislative o��ersight. • Sufficient state and federal financial assistance should be provided fo comply �rith state and federal infrastructure requirements, particularl} �vith regard to sewer and ��ater facilities. • The option for cities to land apply bio- solids on properties outside their boundaries must be preserved. The �q •�7 Legislature should amend Minnesota Statutes section 11�A.32-39 to reinstate the administrative procedure for the resolution of bio-solids disputes, a procedure whose function was inadvertentl}� deleted during a recodification of the statutes. In addition, the Legislature should provide greater Minnesota tocal governments the same statutory protection afforded to those communities within the Metropolitan CounciPs jurisdiction, found in �Iinnesota Statutes §473.516, allowing bio-solids to be disposed of in manners consistent with the MPCA's permits and rules and avoiding blanket moratoriums on land application of bio-solids. SD Election Issues Issue: Improvements in absentee voting, voter re�istration, and the election process are needed. Response: The Legislature should simplify absentee voting, provide more cities direct access to the statewide voter registration system, clarify restrictions on locating campaign signs within 100 feet of poiling places, modify the voter fraud statute related to voter residency, and ailow cities more flexibility in appointing and compensating election judges. SD Local Election Authority Issue: In the past, the Leoislature has acted to restrict city authority to schedule city elections and estaolish tzrms of office for loczl elected official, thereb� diminishing reeard for �he role of local self- eo�ernment particula::� ��her. state policy � 1499 Cih Policies 23 qq - t� preempts home rule authority goveming city elections. SD-8. Access to Information Technology and Ser��ices Respo�zse: The Legislature should oppose further limits on either the number or the length of terms city elected officials may serve, particularly when those terms have been established by the electorate in home rule charter cities. State policy on uniform elections should continue to recognize and uphold local authority to schedule city elections in November of either even- or odd- numbered years. SD-7. City Costs for Enforcing State and Local Laws Issue: Cities eaperience substantial costs enforcing state and local laws, particulazly those related to traffic, controlled substances, and incarceration of prisoners. The current method in our criminal justice system of recovering costs for law enforcement and prosecution through fines is insufficient to meet the costs incurred by local governments. Response: The Legislature should review this issue and adopt measures that provide for compiete reimbursement of the costs incurred by local go��ernments in enforcing state and locai laws. Solutions that should be considered include the following: • Increasing fine amounts; • Removing or modifyine county and state surcharges that conflict with cost recovery principles; and • Requiring the defendant to pay the full costs of enforcement and prosecution as part of any sentence. Issue: Cities recognize the importance of achievin� �i�orld ciass standards and universal service in order to provide quality education and opportunities for local businesses and industry to engage successfully in global competition. Respoirse: The Legislature should: • Encourage espanded use of inter- active teleconferencing and on-line forums, public access programming and channels, and public broadcast capabilities to �rovide public access to government meetings; • Encourage collaboration among cities, schoots, libraries, health care, and nonprofit organizations to make local training and advanced services available to community residents; and • Provide assistance and funding to cities to strategically prepare themselves to connect to high-speed broadband nehvorks. SD-9. Design-build Issue: The standard bid procedure cities are required to use in selecting contractors for municipal buildings can be quite costly. Private sector development uses a process known as "design-build" in which various firms submit project proposals that include both a design and the construction costs for that design. The selection is then based on the total package. By granting specific statutory authority to use the design-build altemative to the Metropolitan Sports Facilities Commission and state agencies, including the Department of Revenue, the Legislature has recognized the financial 24 Lea�ue of b'finnesota Cities � � � �l � � � � � � � 4 l I..J � � � � L� � savings it can provide. In documented instances, cities have saved taxpayers up to 10 percent of the total project cost by using the desion-build altemative. The design- build process also permits improved project management and oversight. Ho�-ever, absent statutory authorization to use this altemative, cities aze vulnerable to lawsuits from unsuccessful bidders. In addition, the design-build process for playground equipment can encourage greater creativity while maintaining cost controls. Special legislation was enacted for the city of Chanhassen in 1995 to experiment using this process for purchasin� playground equipment. Response: The Legislature should authorize an extension of the design-build procedure to cities as a less expensive niternative to the standard bid procedure. SD-10. Mobile Home Park Oversight Issue: The state has preempted cities in the licensing of mobile home parks and limited the authority of cities to place new regulations on established mobile home parks. However, cities are responsible for dealing with the various housing and public safety challenges mobile home parks may create. Response: Since the state has already taken the lead, the Legislature should provide sufficient resources and direct the Department of Health to conduct a study on the condition of mobile home parks throughout the state of Minnesota. Cities and mobile home park owners and residenYs should be inti�oh ed in the study. The results of the studc should be used as a basis for poticy discussions regarding 1999 Ciri Policies � •(� . ways the state can pro��ide for increased and improved oversight of mobile home parl:s, and establish a state�vide support system for cities dealing �vith the array of mobile home park issues. Outcomes of the study should include: • Best practices for the operation of mobile home parl:s; • Recommended state regulatory changes for the operation of mobile home parl:s; • Suggestions on how cities can better address the issues presented by mobile home parks; and • Identification of inechaaisms to provide assistance in financing mobile home park upgrades. SD-11. Providing Information to Citizens Issue: To keep the public updated and informed, state law requires local units of government to publish various notification documents in newspapers, and ofren dictates which newspapers receive cities' publication business. The number and variety of documents required to be published and the costs of publication are burdensome. Technolo�ical advancements have expanded the ways government can provide information to citizens. In many cases, these new technologies are more efficient and cost effective. Response: Cities should be authorized to take advantage of new technologies to increase the dissemination of information to citizens and potentially lower the associated costs. Specificall}', the Legislature should authorize local units of aocernment to desibnate an appropriate �q ��7 daily/�vee{:1}� publication, elect alternatice means of communication such as ciri� newsletters, cable tele��ision, and the Internet, and expand the use of summaries �chere information is technical or lengthy. Additionall}', fhe Legislature should eliminate oufdated or unnecessary publication requirements. SD-12. Creating a Minnesota GIS Program Issue: Local governments are finding geographic information systems (GIS) an essential tool for comprehensive land use, real estate, environmental, and other land management information. In many counties, maintenance of official land records has not been automated, creating a barrier to GIS development. In addition, the start-up costs of GIS implementation can be prohibitive. Respaise: The Lcgislature should encourage local government implementation of GIS through grants and/or the dedication of a revenue source such as real estate transaction fees. In addition, cities should be invoh•ed in the development of county land records modernization plans. SD-13. State Regulation of Massage Therapists Issue: The state does not cunently regulate massage therapy, an emerging and rapidly growing profession. In order to control prostitution and to provide for health and sanitation standards, several cities have entered the traditional state domain of health-care licensure by enactine ordinances thatrequire ali massa�e therapists to obtain a local professionallicense. These ordinances allow local la�� enforcement officers to differentiate bet�veen le�itimate massage therapists, ��ho ha� e a city license, and prostitution businesses fronting as massage therapy establishments. The lack of statewide regulation of massage therapists has hampered law enforcement techniques, and has caused problems for cities attempting to regulate an entire health-care profession «�ithout any statewide standards. Currently, 25 states regulate massage therapists on a statewide level. Statewide regulation of massa�e therapists would provide a clear set of educational standards that massage therapists must meet, and would provide local law enforcement agencies with an easy tool to distinguish between prostitution and legitimate massage therapy. Statewide regulation would not disturb traditional powers over land use and business licensure. Respo�:se: The League supports the statewide regulation of massage therapists in order to aid local law enforcement efforts at controlling prostitution and other criminal activity. SD-14. Private Property Rights and Takings Issue: During the 1998 legislative session, property rights and takings legislation was introduced. It is anticipated these legislative initiatives will be considered during the 1999 session. In addition to individual bills, it is anticipated that amendments to the Community Based Planning Act of 1997 may be introduced. These amendments may attempt to make part of the Minnesota Statutes those portions of the Minnesota Constitution that relate to property rights. The federal govemment's Swamp Buster/Sod Buster programs, the Z6 League of Dlinnesota Cities � � � �� C.l 4J 4J 4_._.' � Army Corps of Engineer's dredge and fill programs, and the state's �Vetlands Conservation Act and Community Based Planning Act, appeaz to be the nexus for much of the property rights and takings legislation proponents. �Uhile the Lea�ue is committed to the need for local govemment units to balance the rights of private landowners �vith the interest of the public, the Lea�ue is concerned these legislative initiatives will adversely impact cities in rivo �vays. First, such legislative initiatives undermine the fundamental authority of cities to protect the public health, safety, and welfare of its citizens. Second, if the Legislature codifies certain provisions oFthe Minnesota Constitution, an argument may be made the Le�islature intended to create new causes of action aaainst cities. This would encourage more law�suits and expose cities to the expense of defendin� those cases. Response: The League opposes legislation that harms the ability of cities to act in the best interests of the health, safety, and �celfare of its citizens or that creates the possibility of additional lawsuits against cities. The League encourages the state and federal governments to improve their regulatory � programs by eliminating those property rights issues that rvere caused by the adoption of such laws as the Wetlands � Consenation Act or S�vamp Buster/Sod Buster. � 1.� � SD Statewide Building Code Issue: The Go�•ernor's Construction Codes Ad�'isor}� Council has indicated it ma�� be recommendine leoislation to ir.�r.:ute z;tate« ide buildine code. The 9q-�7 International Organization for Standardization (ISO) is expected to evaluate Minnesota's buildin� codes and enforcement by the yeaz 2000. There is some expzctation on the part of council members that ISO wiil act as the catalyst for a statewide buildin� code. Many cities have adopted the state building code. All cities within the seven-county metropolitan azea are requirzd to adhere to the state building code. Respo�rse: A building code provides many benefits including uniformity of construction standards in the industry, consistency in code interpretation and enforcement, and life safety guidance. However, the enforcement of a building code can be cost prohibitive for many cities due to the expenses and overhead related to staffing vs. the limited building activity occurring in some communities. The adoption of the state building code should remain a local option for municipalities outside the seven-county metropolitan area, unless the state particiQates in fully funding the costs of enforcement and inspection services related to a state��ide-enforced building code. SD-16. Building Code Department Special Revenue Accounts Issiee: Several interest groups have indicated they may be recommending legislation to require municipal building code and inspection departments to be self sufficient either throueh the estabiishment of special rz� enue accounts or other mechanisms to Quarantee the provision of services paid for b� fies This stems in par, from a belief Ln the b�ailding commuain that plar ch:ck fees and other � 1999 Cih� Policies 27 99-�1 municipal fees for service do not reflect the actual benefits rzceived. processes to administer municipal administrative penalties. Respos:se: Building permitting and the related inspection and enforcement services are best funded out of a city's general fund. �Vhile some cities may experience a surplus to their general fund during a grotir�th boom, cities that have a building code and inspections department oFten recognize those departments are not seif-sufficient and supplement those departments' budgets from other general fund revenue sources. In addition, special revenue accounts may remove some accountability since departments' funded by such an account «�ould not need to rely on a city's general fund and would subsequently be removed from proving their value during the normal budgetary process. The state should not interfere in the simple budgetary decision-makina performed by cities. The League opposes any move to legislate to cities specific methods to pay for municipal building inspection services. SD-17. Municipal Administrative Penalties Issue: Several cities have been successfully operating administrative processes to deal with local ordinance violations under the theory that the power to adopt ordinances inherently implies the authority to enforce them. Within the narrow scope of ordinance violations, this type of system has the potential advantage of providing a more effective altemative to formal district court proceedings. The Nonfelony Enforcement Advisory Committee's 1997 report contained a recommendation to provide express statutory authorization for cities to create Response: The Legislature should pro��ide express statutory authorization for cities to create processes to administer municipal administrative penalties. SD-18. Reforestation. Issue: Cities throughout Minnesota have experienced a devastating loss of the public forest by natural disasters. It is estimated the cost to replace the forest is beyond the means of Minnesota's cities. In the past, the Legislature has assisted cities in reforestation necessary due to natural causes. Respor:se: The Legisiature should establish and fund reforesfation for cities in federally declared disaster areas that have lost trees due to the 1998 storms. The reforestation program should be modeled after the program set forth in Minnesota Statutes, Chapter 18.023 for Dutch elm disease and oak wilt. The program should provide for direct grants to cities, and not establish a reimbursement program. If necessary, the program should allow for in-kind contributions to count if the state requires a matching program. SD-19. Board of Firefighter Training Issue: The quality, availability, and affordability of firefighter training varies greatiy across the state. After several yeazs of discussion, the fire service has endorsed a proposal to create a state board of firefighter training to ensure the quality of training and oversee state reimbursement of a portion of training costs. The board would not be 2 8 League of �linnesota Cities � �: � f�_.' � � � � � � � � !`s�: � � given authority to mandate specific training requirements or to certify firefighters. Response: The League supports the fire service proposal as long as local governments are fairiy represented on the board; the po�v�ers and duties of the board are not expanded in a�vay that would undermine local managemr.nt authority; and the appro�riation comes from the state general fund. SD-20. Witness Fees Isstie: Court administrators are proposing thatthe Legislature shift the costs attributable to callin� witnesses from counties to cities. The rationale behind this proposal is that city prosecutors have no incentive to limit the witnesses called only to those that will actuaily testify. Most counties currently receive one-third of the fines collected at the city level. Respot:se: Cities oppose the shifting of costs attributable to calling witnesses from counties to cities. City prosecutors responsibly call only those witnesses they expect to testify. Under certain circumstances, Fvitnesses may not ultimately provide testimony for a variety of reasons. The £ne revenue counties receive adequately funds the costs attributable to calling witnesses. SD-21. State Appropriation for Government Training Service (GTS) Issue: In 1977, the Government Trainin� Ser� icz «as created in order to pro��ide a coordinated responseto the training needs o`state and local Qo� zmmznts. GTS «as char�zd �vith 1999 Cih� Policies 9q -►7 coordinating the needs of the state, cities, counties, townships, and school districts, with the delivery capability of the state's institutions of higher leaming and other continuin� education service providers. To support the mission of GTS, in 1981, the Legislature provided a$42,500 annual appropriation that was increased to $50,000 in 1944. The lack of a more adequate increase in state support since 1981 has compromised the administrative, technological, and service delivery capabilities of GTS, making it difficult for the organization to remain at the forefront of innovative training programs for government officials and employees. State financial support of GTS is important. Many cities and other local governments find it difficult to adequately fund official and staff training. GTS provides a cost-effective mechanism for taking advantage of the efficiencies of cooperation. Response: The League supports a significant increase in the state general fund appropriation for the Government Training Service, sufficient to restore the capacity of the organization to deliver high-quality, cost-effective training programs for state and local officials and employees. SD-22. Year 2000 Issues Issue: Addressine potential year 2000 (Y2k) issues poses many difficult and serious problems for cities. System malfunctions or failures are aimost inecitable. Despite cities' best efforts to take reasonable actior.s to addrzss threats to �'ital ser� ices, claims for camases wi11 � -�� occur. Local ta�pa}�ers «i11 bear the burden of extraordinar� leeal costs as cities defend themseives from multiple ciaims. As cities strive to resolc=e complex Y2k problems, cities may also find it necessary to expend additional resources to convert or modify critical service delivery systems to overcome Y2k-related emergencies. If such costs are incurred after cities have certified their 1999 levies, cities �,�ill need to borrow or issue revenue anticipation notes to meet those needs and immediately purchase critically needed materials or equipment. Respoi:se: Congress and the state Legislature should grant cities tort immunity from liability claims related to the impact of Y2k to a��oid the substantial cost to taxpaqers of full triai and the associated legal costs. Cities should also be authorized to issue revenue anticipation notes to be repaid from appropriate future revenue sources and should be granted ezplicit exemption from competitive bidding requirements to expedite purchase of critically needed materials and equipment to overcome anticipated and actual Y2k- related malfunctions or failures. The Legislature should create a loan or grant program to assist cities in addressing unanticipated Y2k-related costs. SD-23. Ne�v Public Safety Spectrum l�Teeds public safety spectrum. Cities can no�� take advanta�e of the ne« radio and wireless communicacions space set aside by the Federal Communications Commission (FCC) at the upper end of the UHF television band for public safety. For future interoperability, cities will need additional spectrum to ensure public safety agencies can communicate with each other and with surrounding jurisdictions. The U.S. Department of Commerce and the FCC Public Safety Wireless Advisory Committee have recommended reallocation of 3 MHZ of radio spectrum in the range of 138-144 MHZ radio band be made available exclusively far state and local public safety interoperability. This spectrum is currently assigned for military use and is not currently in use. Unless secured for public safety purposes, it is likely to be auctioned off to the highest bidder for private use. The radio band available is adjacent to the current MHZ band used for fire, police, and other public safety communications and would provide particularly good frequencies for mobile/portable radio system communications. New spectrum in the 800 MHZ range requires many more sites to cover the same geographic range and uses more expenslve radio equipment. Although many public safety agencies are moving to new 800 MHZ systems, others will need to remain in lower frequency bands. Equipment in 800 MHZ range will not communicate with many of the existing public safety systems that operate at lower frequencies. Issue: Cities ha� e benefited from successful efforts at the federal level to gain access to exclusive radio and ��ireless communications capacity for state and local Response: The federal government must make additiona] spectrum available to allow public safety agencies that require mulfi-agency communications to respond fo accidents, disasters, and 30 League of �linnesota Cities �_ � � � 1� � L_.! `_ ! 1�__! � � r l� q9 � 1'7 criminai activity that cross jurisdictional boundaries. So that it will not be auctioned, the 3 MHZ available for reallocation for public safety should be reserved to relieve congestion on nearbypublic safety frequencies. Immediate action must be taken to secure this additional radio spectrum to advance the interoperability of public safety communications systems. Electric Deregulation Introduction: Cities have a strong interest in the public policy debate about electric restructuring or dere�ulation. Minnesota already enjoys some of the lowest average electric rates in the nation. The case has yet to be made that deregulation will result in either lower rates or improved service for consumers. Tnformation A�ency* are that the upper Midwest, including Minnesota, may actually experience higher rates. Concerns have also been expressed as to whether residential customers, and those in rural and other harder-to-serve areas wi11 actually experience decreased reliability and increased rates. Issue: For many decades, electric service to Minnesota citizens has been delivered through a combination of investor-owned utilities (IOUs), municipal utilities, and rural electric cooperatives. This system has served Minnesota well, deliverin� reliable, universal service at rates among the lowest in the country. In recent years, many have begun to promote "deregulation" or "restructuring" of the industry, meaning that electric service would no longer be a franchised monopoly. A number of states, primarily those with high electric rates, have taken steps to move toward such restructuring. In most of these cases, transmission and distribution remain reeulated, with retail competition allowed for generation source. � �Vhilz advocates of restructuring az�ue tha? such competition w•ill lead to lower rates. estimates by� the federal Energy � � 1999 Cit} Local elected officials have the primary responsibility to the citizens of their cities to make certain restructuring that allows retail competition is as beneficiai to the citizens as it is to the industry. Bzneficial to the citizen means that all Minnesotans experience the same reliable, high-quality, universal, and low-cost service they experience under the current system of electric power delivery. City residents have a stron� interest in the outcome of this important public policy debate. Cities are substantial consumers of electric power. Over 180 cities have 10 percent or more of their property tax base in electric industry property, while others collect franchise fees and/or sales taxes on electric purchases within their boundaries. Citizens in 126 Minnesota communities cunentiy receive economical electric service from municipal utilities. ��hich make EIA is thz nonpanisar. research arm of the li.S. Department of Energy 31 qq-�7 pa}'ments-in-lieu of taxes to help support city senices. Significant increases in the cost of electric po.�er for city operations or losses of these traditional sources of revenue will result in propertp tax increases. Respaise: The federal go��ernment should not mandate restructuring; the decision should be left to the states. The Legisiature should follow a slow, deliberative approach, tal:ing time to consider how alternative models for delivering electric po�+er will affect the state's traditional benefits of reliable, universal, high-quality and lo�v-cost service. The public policy discussion should be focused on actual benefits to citizens, rather than on ideological arguments, stakeholder interests, and over-reliance on simplistic objectives like "consumer choice." Those advocating a change should bear the burden of proof to demonstrate that restructuring and deregulation will, at a minimum, maintain Minnesota's high-quality, low- cost, and reliable sen�ice. Oniy «�hen that burden of proof has been met should restructuring occur. The following public policy goals should be incorporated into any legislation restructuring the electric industry: Consumer Protection or as separate state programs. Environmental Concerns The em•ironment must be adequately protected, �cith consen�ation and renewable energy efforts maintained. The federal government must review the appropriateness of currenf environmental regulations and their effect in a deregulated market; for example, esemptions from the Clean Air Act for some generation facilities. Fair Market Competition To ensure fair market competition, the federal and state go��ernments must ha��e the authority to re�•iew mergers to prevent abuse of market power. Cities must remain viable competitors in the electric market. Municipal utilities must be granted exemptions from rules like the open meeting la�v and data practices requirements «here they hamper the ability to effectively compete with private companies. To ensure adequate service to every citizen, cities and other local go��ernments must maintain their abilih� to issue tax-exempt bonds for construction of electric infrastructure, and be gi��en explicit authority to aggregate or municipalize provision of electricity. Consumer interests must continue to be protected, especially for the most ��ulnerable populations. Reliable service must be universally avaitable and programs such as cold-« eather shut-off rules should be continued either as requirements for all market participants Local Authority Cities must maintain their traditional authority o��er land use, zoning, rights of way management and cost recovery, as �vell as the ability to franchise pro��iders and to receive payments-in-lieu of taxes from municipal utilities. Cities' authority 3z League of Vlinnesota Cities �°i-\� � � L� � � � � f� � � � to negotiate siting fees and agreements for proposed generating facilities should be enhanced. To avoid unnecessary demand for the limited space in public rights of Svay, open access to transmission and distributio❑ facilities should be maintained through regulation. As the electric market is opened to interstate competition, the federal government must preserve the application of Minnesota's stafe and local sales taxes to the sale of electricity, regardless of the place of origin. Stranded Cost Recovery Issue: Re�ulated utilities have traditionally made operating decisions based on needs of consumers within their service territories. Many decisions, therefore, have been based more on need than on economics. In the transition from a regulated to a restructured competitive environment, electric generators' investments in fixed assets and other obli�ations may or may not remain as economically viable. Estimates of these "stranded costs" vary greatly, with some indicating no stranded costs or possibly even negative stranded costs resulting from increased prices after deregulation in Minnesota. Response: If regulatory actions have contributed to investment by existing regulated utilities fhat are not economicall} �iable in a competitive markeY, and if restructuring occurs, the League supports transition mechanisms that «iil alloti� utilities to collect revenues for those particular stranded costs. Ho�vever, these charges must be carefully monitored to ensure that only eligible and verifiable costs are co��ered and that over- collections do not occur. Taspayers and ratepayers should not be expected to cover the cost of incestments fhat were made for business reasons, apart from the requirement to serve under the regulated system. If negative stranded costs for the regulated utility as a whole can be established, and are solely the result of transition to a restructured environment, these regulated utilities should be required to contribute some limited percentage of established amounts to offset tax breaks given to these utilities as a result of restructuring. Property Tax Issue: Part of the discussion regarding possible deregulation of the electric power industry has centered on electric utility taxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed. The main focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or personal property tax. Utilities subject to the tax argue it places them at a competitive disadvantage to non-Mannesota companies, rural electric cooperatives (co-ops), and municipals. However, accurate comparisons of tax burden are difficult, as other siates use completely different taxing systems. Additionally, co-ops and municipals do pay direct taxes on some of their property and indirecth cihen the� purchase �iholesale po��er from sources that arz iased, such as IOUs. tilunicipals makz substantial payments-m-Iieu of cases. � 1999 Cih Policies 33 � Utility pzrsonal property can be a significant po�ion of the local ta� base in all cities. Most obviousl} affected are cities that have pow'er plants; however, transmission and distribution equipment account for over half of the personal property taxes paid by the IOUs and exist in nearly every city. Replacin� the revenue that would be lost to cities, counties, school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources of such a replacement revenue �iouid be difficult to develop and administer, and could be subject to reductions or elimination over time. Furthermore, replacement revenues or aids may not fully address the problems created by a large tax base reduction. Resporzse: Cities oppose proposals for exempting the IOlis from the personal property tax, apart from the decision to restructure the electric industry in 1�Iinnesota. If and �chen deregulation occurs, a truly independent revie�v of the overall tax burden should be conducted to determine �chether Minnesota utilities are at a competitive disadvantage. If an overail tax disadvantage is identified, the state should correct it. Under no circumstances should local units of government or their citizens be required to shouider the burden of tax relief for IOUs. Personnel, Pensions, and Labor Relations Issue: Many state laws increase the cost of providin� city services to residents by requiring city governments to provide certain levels of compensation or benefits to public employees, by specifying certain working conditions, or by limiting city govemments' ability to effectively manage their personnel resources. For instance, existing state laws limit governments' ability to effectively address incompetence or misconduct of city employees specifying certain procedures to be followed or standards of conduct. Respor:se: The state government should refrain from passing laF�•s that regulate the public sector workplace, and should repeal or modify problematic esisting laws and regulations to encourage full local accountability. The League of blinnesota Cities proposes the foilowing reforms: Discipline and Discharge The state should modify ��eterans' preference and civil service laws that restrict the ability of local governments fo effecti��ely discipline public employees. The Legislature should amend the la«� to: • remove the right to multiple, duplicative disciplinary proceedings; • limit any back-pay claims to a maximum of S100,000; • limit the period in �r�hich to request a hearing to 14 da}�s (from the current 60 days); • esclude probationary period employees from ��eterans preference termination law 34 League of Minnesota � �� protections; � • require parties to select their hearing panel re�resentative Fvithin 10 days after notice has � been given to the employer that the veteran employee is seel:ina a veterans' preference hearing; � • require the panel to hear the petition within 30 days after the third panel representative is � 4 ! � selected and issue a decision within 30 days following the hearing; and • amend the law to require state aaencies to abide by the same ��eterans preference la��s required of loca] governments. • The state should re-examine state and � local civil service systems and give ]ocal governments the authority to modify or discontinue systems that are � obsolete in order to ensure fair and accountable hiring and terminafion practices. �� ii� 1 � f.�: � � � W Compensation limits The state should repeal la�ss limiting the compensation of a person employed by a sfatutory or home ru[e charter city to the governor's salary. If repeal is not possible, the limit should be amended to be based upon the governor's total compensation level. PELRA The state should modify the definition of public employee under PELRA by removine the etisting 1�-hour / 67 day requirement and replace it �sith a definition in �chich emplo� ees must �tiork more than an annual average of qq -�� 20 hours per fveek. Temporary or seasonal emploqees should not be included in this definition. The state should change public sector bargaining laws to require arbitrators to adhere to the pa}• equity law with reaard to consideration of interna] class comparisons. Essential Employees • Cities must balance the health, welfare, and safety of the public with the costs to taxpay ers. Therefore, the Legislature should carefully examine requests from interest groups seeking essential employee status under MN Stat. �179A (PELRA). The League opposes legislation that mandates arbitration which increases costs and removes local decision-mal:ing authority. Pensions • The state should re��ise public employee pension la�cs to facilitate consolidation of local pension pians. • The state should stud� initiatives to reform and make uniform pension plans for local gocernment employees without increasing public employer contribution le��els or causing the public employer contribution level to exceed the contribution level required from employees. • The state should adjust the eligibility thresholds for public pensions to reflect inflation, adopt a process for automatic future adjustments, and limit eligibilit} for defined benefit plans to emplo}ees «orl:ing an a� erage of at least 20 hours per week. • The League opposes �pecial legislation � 1999 Cit} Policies 3� qq � �� for indicidual employ�ee pension benefit increases unless they are initiafed and appro��ed by the city council of the impacted cih•. Age Certificates / I-9 Forms The federal I-9 form requires employers and employees to report the same information required by Minnesota's age certificate. The state should repeal MN Stat. §181A.06 and endorse the federal I-9 form to verify age information, and eliminate redundancy for employers and employees �vhen reporting information. amount of an emplo}�er's contribution under D4N Stat. §299A.4b� and whether it changes o�er time. Breathalyzers • MN Stat. §181.950-.957 should be amended to permit the use of breathalyzers as an acceptable technology for determining alcohol use. Currentiy, breathalyzer use is permitted under federal and state commercial drivers' laws. Final Offer - Total Package Arbitration Employer Reference Immunity • The League supports legislation that provides limited immunity to cities when giving accurate written disclosure of information regarding employment related references. This legislation should not undermine the immunity found in the Data Practices Act. State Paid Police and Fire Medical Insurance The state should fully fund programs that pay for health insurance for police and fire emplo}'ees required under MN Stat. §299A.465, as amended in 1997, for police and fire employees hurt or killed in the line of duty. • The Legislature should clarify whether MN Stat. §299A.465 applies to injuries incurred prior to June 1, 1997 (the effecti� e date of the law). • The Legislature should clarify the • The Legislature should preserve the voluntary nature of finai offer - total package arbitration as an optional settlement format for parties and should not amend state law to mandate final offer - total package arbitration. Preservation of Local Decision- Making Authority on Employment Related Issues • The League supports local decision- making authority, and opposes legisiation intended to interfere in local decisions. In addition to these state reforms, the League supports the following policies regarding federal emplo}'ment law: FLSA/Overtime compensation • The Fair Labor Standards Act (FLSA) �vas designed for private employer - employee relations. League of Minnesota Cities q�-i� Government employees were exempt for over 100 years. Through a series of court decisions, this statute is now applied to local governments. The exception for state and local government empioyees should be reinstated by stafute. Peace officer bill of rights • Congress should oppose a federal peace officer bill of rights because it will only compound the difficulties with internat investigations, local � � � �J � � 1.�'1 � 1999 City enforcement and diminish local accountability. Portability of de£erred compensation • Public sector employees are increasingly changing jobs behveen the public and private sectors. Congress should enact legislation that would permit tax deferred rollovers beriveen public and/or private deferred compensation plans to improve the portability of funds. 7