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99-18OR(G1NAL Presented By Referred To Committee: Date i WHEREAS, the Association of Metropolitan Municipalities has adopted its 1999 Policies and z Legislative Proposals to be considered by the Mimiesota Legislature during the 1999 session; and 3 4 WHEREAS, the City of Saint Paul was an active participant in the development of these s policies and legislative proposals and the City concurs generally on these policies and proposals, now 6 therefore be it 7 s NOW THEREFORE, BE IT RESOLVED, that the City Council of Saint Paul does hereby 9 recommend for consideration by the Minnesota Legislature the 1999 Policies and Legislative Proposals io submitted by the Association of Metropolitan Municipalities and does hereby request that these issues be ii addressed by the Legislature during the 1999 session. Requested by Department of: s �._ , % Approved by Mayor: Date �l r ��'( "� By � ,G �� Council File #� ��-� Green Sheet # �� , � RESOLUTION CITY OF SAINT PAUL, MINNESOTA 0 �,�� t� � rl � Form Approved by City Attorney sy: �/ ` -3u - � Approved b Mayor Co ' BY Submission to Adopted by Council: Date _ � � Adoption Certified by Council Secretary q� -l8' , S GREEN SHEET n,o 62'715 Bill Huepenbecker 6-8517 � TOTAL # OF SIGNATURE PAGES U oES.uefr+rmECron ancaHCa _ � arr�nauEV rnvct.cac ❑ wux�ataonnr.�soae R++urw.mnixnc � rwrortt��sasr�ert� � (CLIP ALL LO ATIONS FOR SIGNATURE) City Council approval of the Association of Metropolitan Municipalities 1999 Policies and Legislative Proposals. PLANNING COMMISSION CIB COMMITTEE CIVIL SERVICE CAMMISSION Has this perwNfirm everworketl untler a Contract for Nis tlepartmer� YES NO Hes fhis PersoNfirtn ever been a dlY emPbyce9 YES NO Dces this peisorJfirm posaess a slall not nwmalypossessetl Ey any curtent cdy employee? YES NO Is this persoNfirm a farpeted vendor? YES NO �lain a11 ves ansroers on seoarate sheet and attach to areen shee[ Saint Paul is an active member of the AMNI and was a participant in the effort to develop this year's legislative policies. The City shows support for the Association of Metropolitian Municipalities, an association we work closely with on many issues during the session and throughout the year. } G Q�.u'� ° �v 9 1 �'��,�`+^- _ � C` v.�.i�:'�� FGES IFAPPROVED None. S SOURCE : . l ' . �� 'r -� �. �-. �� , COS7/REVENUE BUOGETED (CIRCLE ON� ACTNIiV NUMBER YES NO INFORMATON (IXPVJI� � � 0 0 � � � � 0 0 a 0 � aq-�g� .lanuary 1999 � . �� ' • • '� � '�e S � Association of Metropolitan Municipalities 145 University Ave. W. ♦ St. Paul, Minnesota 55103-2044 Phone: (651� 215-40Q0 ♦ Fax: (651J 281-1299 � E-mail: amm@amm 145.org � � � � � � � �� qq-ltC � Table of Contents Municipal Revenue & Taxation (I) Levy Limits (I-A} Local Government Aid (I-B) Homestead & Agricultural Credit Aid (I-C) Tax Exempt Property (I-D) Sales Tax on Local Government Purchases {I-E) Local Performance Aid (I-F) Price of Government (I-G) Fiscal Disparity Fund Distribution (I-H) Personal Property Taxation: Electric Utility (I-I) Revenue Diversificatian (I-J) Class Rate Tax System (I-K) Limited Market Value (I-L} Funding Shifts (I-M) City Revenue Stability & Fund Balance (I-N) General Legislation (II) Mandates & Local Authority (II-A) Public Right-of-Way (II-B) County Plat Appxoval Authority (II-C) Police & Fire Precention Pro� isions (II-D) 1 1 1 1 2 2 2 2 2 3 3 4 5 5 7 5 � 1999 Legislation Policies i Toble of Contents � `"'`� 911 Telephone Tax (II-E) 800 MHz Radio System (II-F) Permit Approval: Zoning (II-G) Witness Fee Costs (II-H) Urban Reforestation (II-I) Elections: AlIey System Authority (II-J) Housing 8� Economic Development (lll) Livable Communities Act (III-A) State Housing Policy (III-B) Housing Preservation (III-C) Minnesota Housing Finance Agency Appropriation (III-D) Family & Elderly Housing (III-E) Economic Development Responsibilities (III-F) Tax Increment Financing (III-G) Property Tax Reform Impact on TIF (III-H) Development Tools (III-I) Welfare Reform/Work£orce Readiness (III-J) Business Subsidy (III-K) Building Permit Fee Surcharge (III-L) Group Homes (III-M) Metropofitan Agencies (IV) Introduction: Metropolitan Governance Structure Metropolitan Council Principles (IV-A) Purpose of Metropolitan Governance (N-B) G 6 6 7 7 7 7 10 10 11 11 12 12 1� 15 15 16 17 17 19 20 20 ii 1999 Legislative Policies � F 1 f � 6 F � s � � � � � � � � � �' � � L: _l � 0 Table of Contents _18 ••� l Criteria for Extension of Metropolitan Govemance Authority (IV-C) Restructuring of Metropolitan Aaencies (IV-D) Regionally Provided Services: Funding (IV-E) Coordinarion o£ Local & Regional Plans (IV-F) Metropolitan Council Focus on Planning (IV-G) Growth Management Strategy (IV-H) Local Plan Implementation (IV-I) Budget Process & Work Program Evaluation (IV-J) Metropoiitan Council: Method to Select Members (IV-K) Parks & Open Space: Operation & Maintenance Capital Funding (IV-L) Surface & Groundwater Water Management (IV-M) Water Supply (IV-N) Regional Wastewater (Sewer) Treatment System (IV-O) Waste Stream Management (IV-P) Transportation (V) Transportation Funding (V-A) Regional Transit System (V-B) � Transportation Incentives & Disincentives (V-C) Transportation Utility (V-D) � Highway Turnbacks & Funding (V-E) � '3C' Transportation Planning Process: Elected Officials Role (V-F) 1� � Motion Imaging Recording System (M.I.R.S.): Traffic Law Compliance (V-G) Airport Noise Mitigation (V-H) 20 21 21 22 23 23 24 24 25 26 27 28 28 28 31 31 32 32 32 33 33 33 � 1999 Legisla`ive Policies iii 7ab{e of Contents �p _t� t Road Access Charge (V-I) Committee Rosters (VI) 1998-99 Housing & Economic Development Commiftee 1998-99 Mefropolitan Agencies Committee 1998-99 Municipal Revenue & Taxation Cominittee 1998-99 Transportation & General Government Committee 3� 35 36 37 39 iv 1999 Legislative Policies � � � � � � a �D Levy Limits (I-A) Municipal Revenue & °� Taxation The AMM strongly opposes levy limits and urges the legislature � to not re-enact them for 2000 or beyond. The AMI�I also opposes I the imposition of artificial mechanisms such as valuation freezes, � payroll freezes, super majority requirements for levy, or other limitations to the local government budget and taxing process. Locaf Government Aid (I-8) Local Government Aid (LGA) is a necessary, state-raised resource to supplement local property taxes. Therefore, the AMM supports its continuation with an annual inflation index, along with additional state resources to further reduce the reliance on the property tax. In addition, any LGA formula changes considered by the legislature must have a positive impacC on the metropolitan area. Homestead & Agricultural Credit Aid (I-C) The Homestead and Agricultural Credit Aid (HACA} equals about 40 percent of the totallocal aid and should be continued as part of the local fiscal relationship, with an inflafion or increased household growth factor restared for cities. The AMM strongly opposes the conversion of city HACA to school aid. Tax Exempt Property (1-D) � The AMM encourages the legisiature to authorize cities to establish . a program of payments in lieu of taxes by tax exempt governmental and non-governmental organizafions, except cons�itutionally � exempt property, (churches and schools) for the cost of services such as police, fire and streets to their facilities. � � 1999 ! egislation Policies i I Revenue & Taxation Ga' � � Sales Tax on Local Government Purchases (I-E) The legislature should reinstate the sales tax exemption for all local government purchases without requiring a reduction in other aids. Local Performance Aid (I-F) The AMM opposes the Local Performance Aid prob am. The current program is vague, creates complexity to the overall state aids programs, and approximately one-fourth of the states cities do not participate. Price of Government (I-G) The price of governsnent calculation in regard to local aovernments should be based on (1) changes in the sum of the levy and state aids, and (2) examination of long term trends, not single year events. In addition, consideration should be given to service provision transfers between governmental units, increased demand for services by citizens and legislative mandates or tax rate changes. Fiscai Disparity Fund Distribution (I-H) The AMM opposes the use o£ fiscal disparities to fund sacial or physical metropolitan prob ams since it results in a metropolitan-wide property tax increase hidden from the public. Personal Property Taxation: Electric Utility (I-I) The AMM opposes proposals for exempting the Investor Owned Ufilities (IOUs) from the personal property tax. Under no circumstances should local units of government and their taxpayers be required to shoulder the burdens of tax relief for IOUs. The personal property tax is a significant portion of the metropolitan fiscal disparity pool and, if eliminated, w•ould have a metro-wide property tax impact. � t� 2 7999 Legislative Policies � � j �' I � Table of Contents � Revenue Diversification {I-J) The AMM supports revenue diversification for cities to reduce the reliance on local properEy taxes. Some examples include authorization for local sales taxes, payments in lieu of taxes, franchise fees, deed taxes to remain �vith city, development impact fees, or the creation of a separate income/sales tax fund that would grow with the economy. Class Rate Tax System (I-K) The AMM opposes a change from the class rate tax system to a market value system, which would cause tremendous shifts of tax burden between classes of property, or applying future levy increases to market value, since this would further complicate the property tax system. Limited Market Value (I-L) The AMM opposes futther extension of artificial limits in valuing property at market for property taxation purposes. Limiting market value increase on existing property to a non-market index or set raEe will cause various property tax system problems. Similar properties wiil be taxed differently if new or sold and improvements will be discouraged. Tax shifts will occur mainly on lower valued homes and the ability to issue bonds may be adversely affected. Finally, it wi11 be politically difficult as well as costly to persons owning long-term capped properties when it becomes necessary to sunset due to vast differences in tax liabilities for like properties. The AMM believes that enhanced targeting for special circumstances such as low-income persons better serves the tax system. Funding Shifts (I-M) The AMM requests the legislature to continue to reduce the imbalance of aids versus revenue between metro and outstate cities and to consider how this distribution of resources affects the economic b owth and vitality of the metro area, and thus the entire state. CurrenEly in the metro area, about 65 percent of the state revenue is collected, �vhile onl�� about 48 percent of the aids and credits are redistributed. 1999 L2gisla�ive Policies 3 � �0 � Revenue & 7axafiion City Revenue Stabifity & Fund Bafance (i-N} �_t8' � The legislature should not attempt to control or restrict city fund balances. These funds are necessary to maintain fiscal viability to meet unexpected or emergencp resource needs of city governments, to purchase capital goods and infrastructure, provide adequate cash flow and to maintain high-level bond ratings. 4 1999 Legislative Poficies 0 � � � � a � � � � � �� Generai Legislation Mandates 8� Local Authority (lt-A) C��) a q_tY The AMM opposes statutory changes which erode local control and authority or create mandated additional tasks requiring new or added local costs cvithout a corresponding state appropriation or funding mechanism. New unfunded mandates cause increased property taxes which impedes the ability to fund traditional service needs. Pubiic Right-of-Way (II-Bj The AMM supports the continued effort of the League of � � Minnesota Cities (LMC) to protect the authority of cities to maintain jurisdiction over municipal public rights-of-way, to � establish relevant criteria and to obfain reasonable compensation for its degradation. � County Plat Approval Authority (II-C} Cities oppose county authority over plat approval for plats that are � contiguous to existing or proposed county roads. While counties have a valid interest in proposed plat decisions, this does not warrant a transfer of approval authority. Police & Fire Pension Provisions ({I-D) The AMM opposes reductions of state amortization aid to local poiice and fire retief associations or benefit increases, which are not financed by at least a 50 percenE employee conixibution for the benefit or resulting deficit. The emplo��ee pension contribution amount should be set at 40 percent of the normal cost oE financing the benefits even if this amounE exceeds 8 percent of the base salary. 1499 Legislative Policies � � General Legislation � "�� Actuarial assumptions relating to salaries and in� return � should more trul�� reflect experiences and bonuses. The AMM opposes bonuses such as the 13th check, which should not be included in actuarial assumption changes. � 911 Telephone Tax (II-E) The AMM supports the current distribution of the 911-access fee � and the limit of 30 cents per line per month to offset basic maintenance costs and enhanced upgrade. Any fee b anted � legislatively in excess of 30 cents should be returned directly to the municipality or public safety answering provider (I'SAP) where � collected. Fee increases granted by the legislature should be a specific amount not a general authorization and only for a specific purpose. Phase 2 Wireless enhanced 911 costs should be recovered � from a direct charge to ce11 phone users. 800 MHz Radio System (II-F) The AMM supports the continuation of thelVletropolitan 800 MHz Radio System legislation and Uoard, as long as cities are not forced to modify their current systems or become part of the 800 MHz Radio System until they so choose. The system should provide a phased transition guaranteeing uninterrupted service and be technically capable of allowing communities the flexibility to form various coordinated arrangements for dispatching and service provision. Since there are both regional and local benefits to local goverrunent units joining the system, the AMM urges the Regional Radio Board to seek a state appropriation to assist local units of government in joining the system. Permit Approval: Zoning (11-G) The permit approval statute delineating time limit requirements should be modified so that in the case of a rezoning application, a motion which requires a simple majority vote that extends action beyond the 60 or 120 day time requirement, constitutes a denial not an approval in order to uphold the super majority requirement of the zoning statute. Current law provides aueomatic approval if no action is taken. 6 1999 Legislative Policies � � � � � � � � � � � C1 � � � � � � Ci General Legislation �q_IY Witness Fee Costs (II-H) Since one third of fines far city-relaEed prosecutions remain with the county and adequately fund this cost, the AMM opposes shifting witness' fees from counties to cities for these actions. Urban Reforestation (If-1) The AMM supports the creation of a program in the Department of Natural Resources to provide for urban reforestation. Elections: Alley System Authority (11-J) The AMM supports permissive authority for statutory cities to adopt an alley system for filing for city council seats. 1999 Legislative Policies 7 � General Legislation a`1 _ tg � � 8 1999 Legislafiive Poiicies � .� � � � � �, �, ,. .,, .-' �, •%� P:. � ; �------; Housing & Economic Development (II!) Livabfe Communities Act (itt-A) The 1995 Legislature enacted the Livable Communities Act (LCA) � to stimulate housing and economic and community development in the metropolitan area. The act permits cities to access about $11.0 million in funding for pollution clean-up, housing and � redevelopment. As a participant, a city must adopt affordable and life cycle housing goals and a plan to achieve the goals. I� � L�7 f�J � � � Since its inception, the Metropolitan Council has been responsible for program implementation, including the completion of an annual proa ess report. The report for the 1996 calendar year indicates progress to�vard achieving the stated goals but also raises concern regarding the preservation of affordable housing, particularly the demolition of housing units. The AMM has maintained that the LCA should not be amended until there are prob ess reports and experience with the LCA. Based on the reports and experience of cities, the AMM recommends: ♦ The LCA should be continued. ♦ The LCA should be amended to eliminate the requirement that a city annually elect to be a participant in the act and require by November 15 Ehat a resolution to withdraw be approved. � ♦ The state should appropriate funds for the LCA. The appropriation should not replace the current funding sources but should be in addition to them. � � �� 1999 Legislative Poticies 9 Housing 8, Economic Development �n ��p _� State Housing Policy (III-B) To continue the expansion of the state's economy, the governor and lea slature should recob ize the importance of housing to economic vitality and family stability and should adopt policies that preserve existing housing, permit the production of safe affordable housing and provide resources to produce and preserve housing. The AMM recommends the following: Land LIse Standards and State Ince�ztives ♦ Minnesota cities are responsible for and should retain the authority to regulate the location, size and amount, and type of housing within their boundaries. The state, in an effort to encourage more affordable housing, should authorize cities on a voluntary basis and provide incentives for such concepts as density bonuses and mixes of housing types and price ranges. The incentives can be, but not be limited to, property tax class rates and sales tax exemptions for construction materials. ♦ State funding provided for the incentives should not reduce existing programs. Housing Preservation (III-C) Housing preservation includes the maintenance of the exisring rental and owner occupiecl housing, as we11 as the retention of affordable units that were formerly subsidized by federal programs. The state should: Continue and increase funding the housing preservation program for federally subsidized housing that could be converted to market rate housing. ♦ Expand efforts to provide resources for housing rehabilitation. ♦ Provide a sales tax exemption for construction supplies and materials used in the construction or substantial rehabilitation of affordabie housing. 10 1999 Legislative Poiicies � � � � Housing & Economic Development _ �r _� Exempt public agencies from paying the mortgage and deed tax when developing or providing for affordable housina and redevelopment. Minnesota Housing Finance Agency Appropriation (111-D) � The Vlinnesota Housing Finance Agency`s (MHFA) biennial general fund appropriation approximates 578.0 million. The agency � uses the funds for several housing programs including rental and homeownership. For the next biennium the agency should: � ♦ Have its appropriation increased and the increase be used primarily for housing preservation, housing production and homeless prevention programs. � L� � {..__7 � L_1 i � � L_,7 � L _ �! , �I Redesign, if �varranted and with city input, the Community Rehabilitation Program to encourage additional participation from the metropolitan area. The redesign, if needed, could include modification of the area designation, and appropriation set aside, a multiple year funding commitment, recognition of local needs, the timing of the application process, and a linkage to the LCA. Family & Elderly Housing (III-E) Demographic trends indicate that Minnesota's population is aging. For example, the Metropolitan Council projects that the region`s population age 65 and older wi11 nearly double from the year 2000 to 2020. Since most of the population owns singie family housing and they will be smaller households there could be a demand for smaller housing units. The elderly population will also be older than their predecessors wi11. In the metropolitan area, the Council reports that the number of persons age 75 and over will increase from approximately 116,000 in the year 2000 to 180,000 in 2020. Being aware of the trends, the legislature should: Pro��ide additional resources to serve the lo�e income elderly. Resources should include housing as well as related sereices. 1999 Legisiative Policies 11 � Housing & Economic Development � � ♦ Direct state agencies to provide information and technical � assistance to local governments regarding the population changes and their impacts on public ser��ices. ♦ Develop policies that encourage the development of housing for � the elderly that is affordable and provides an attractive alteznative to current housing and preserves the current housing. � Economic Development Responsibilities (lil-F} The state should continue to recognize cities as the primary unit of government responsible for implementing economic development policies and land use controls. New or amended economic development programs designed to address specific economic circumstances with cities or counties should use problem definition as the criteria rather than geographic location, city size or similar criteria. Tax Increment Financing (111-G) The legislative Recodification Tax Increment Financing (TIF) Task Force will initially have a bi11 that wi11 be absent of policy changes. Policy changes should be addressed separately from the recodification and among the changes the legislature should: PooltnQ ♦ Clarify that any tax increment districts approved between 1979 and 1982 have the same authority to pool increments as distxicts certified after 1982 and prior to Apri11,1990. Allow districts approved after April 1,1990 to pool increments for affordable housing or pollution remediation. Local Ef�'ort ♦ Eliminate the LGA/HACA penalty or allow an exception from levy limits. If the penalty is not eliminated, the restrictions on the source of payment should be removed. Authorize the use of federal grants and other locai funds for local contributions. 12 1949 Legislative Policies � � � L ] � � � Housing & Economic Development aa-Ir TrF use ♦ Exempt redevelopment districts from the five-year rule. ♦ Reaffirm Ehat cities alone should be authorized to approve city initiated tax increment districts and that counties and school districts should continue to have the ability to review and comment on TIF. ♦ Permit all cities to establish housing replacement (scattered site) districts and allow TIP to be used for historic preservation. Housin Modify the housing district income qualificarion requirements to allow the levels to vary according to individual regions of the � . � � �a � � � � � � � �� state or counties. ♦ Remove the LGA jHACA penalty imposed on housing districts established between 1990 and 1993. Reporting ♦ Authorize the publication of TIF financial information in a format so that it provides taxpayers with useful information. ♦ Clarify that the Office of State Auditor (OSA) must give cities sixty days to respond to a violation of the TIF law prior to sending a notice of the violation to the county attorney. The notice to the city must also state that at the end of the sixty-day period any resolved issues will be sent to the county attorney for possible action. Require the county attorney to decide on action regarding violation within ninetp days of receipt of the notice from the OSA. 1999 Legisiative Policies 13 Nousing & Economic Development F � � -1 ♦ Authori2e the OSA to conduct a compliance revie�v of a tax inaement district within fcvelve months of Ehe date the district is decertified or the increment is completely expended �vhichever is later. The State Auditor, upon completion of the review and resolution of outstanding issues, must issue a certification that the district is complete and not subject to further actions by the Office. ♦ Make statutory changes to simplify the TIF reporting forms submitted annually to the State Auditor. Property Tax Reform Impact on TIF (ili-H) During the past two legislative sessions, the property tax class rates have been compressed and as a result commercial industrial property taxes should decrease. The decrease could also result in revenue shortfalls in TIF districts. The shortfalls could impact bond payments and other contractual obligations. Being aware of the impact, the 1997 Legislature authorized a$2.0 million grant program to be administered by the Minnesota Department of Revenue and the 1998 Legislature authorized cities to establish special service districts to offset possibie shortfalls. Being aware of the impacts, the legislature should: ♦ Authorize the grant program for 1998 tax change impacts in addition to the 1997 tax changes. ♦ Provide additional funding for the program and extend the sunset to the year 2003. ♦ Include the changes in class rate definitions such as maximum market value limits and number of parcels per class in the calculations to determine class rate compression iinpacts. ♦ Move the application and payment dates to coincide with the city budget time frames. ♦ Permit city councils to transfer funds from one city development agency to another to prevent shortfalls due to property tax changes or TIF law changes that ti�ould result in a deficit in paying outstanding contracts ar obiigations. 14 1499 l,egislative Policies � � � � � � Housing & Economic Development °t`� Development Tools (III-I) Over the past several sessions, the legislature has provided cities with development tools to redevelop property, clean up polluted siEes and encourage business retention and expansion. The tools include, but are not limited, to TIF, tax expenditures and loans and grants. Many of the state tools have supplemented local efforts. To continue this state local relationship, the legislature should: ♦ Continue the Minnesota Investment Fund. � ♦ Support increased funding for the pollution clean-up program administered by the Minnesota Department of Trade and Economic Development (DTED). � � � f� !�J � � � !'� E� � � � ♦ Require condemnation commissioners to consider the cost of correcting pollution problems in determining the final value of property. ♦ Establish an indemnification fund to provide financial security for institutions and individuals as they invest in developing and clean-up of polluted sites. ♦ Eliminate Ehe requirement to match a portion of the clean-up grant program with local general funds. ♦ Continue and increase funding for the Redevelopment Fund established in 1998. Weifare Reform/Workforce Readiness (ill-J) With the passage of federal welfare reform and enactment of Minnesota's new welfare program - the Minnesota Family Investment Program (MFIP), public policy is placing an emphasis on work and job readiness. The purpose of MFIP is intended to support �vork and not to replace income when people are not working. To accomplish the goal of get�ing people to work Minnesota has adopted a work first program that expects, supports, and rewards wark. 1999 �egislative Polides 15 .�6 Housing & Economic Oeve�opment �q �t0 Among the program elements established b}� the legislature to implement MFIP are jobs training, transportation, medical assistance, and housina. � !� � As MFIP is being implemented statecvide, the state is experiencing [ record lo�v unemployment and economic growth and as a result � there are now employment opportunities. If the economy, however, declines, employment opportunities for MFIP participants will � decrease and the state's human service system could be over exEended. Being aware that a trained work force is a major part of � an economic development strategy the legislarixre should: ♦ Provide state funding to match the maximum amount of available federal training funds. ♦ Continue and increase funding for state job training programs including Pathways and the Job Training Partnership. ♦ Modify the Pathw�ays Program to provide public agencies with the flexibility to contract with training programs of employers, as well as those of public institutions. ♦ Continue and increase funding for the transportaEion and childcare programs including siiding fee daycare. ♦ Examine the delivery system for state services (training, daycare) to determine and ensure that administrative procedures are implemented uniformly throughout the state. Business Subsidy (Iil-K) The Minnesota Department of Trade and Economic Development (DTED) and local governments provide financial incentives to businesses to relocate, expand or remain in the state or specific city. The provision of the incentives is usually part of a development agreement between the business and the public entity. The ab eement contains a description of the incentive and the type of development to be completed in terms of market value or square footage and penalties for non-performance. The agreements also contain job and wage goals as required by current Minnesota 1aw. 16 1999 Legislative Policies �� Housing & Economic Development /�Q. �� In reviewing the issue of corporate subsidy the legisiature should: � 6:� � � L�! � LJ � � LJ 1� 1� 1� � � � � ♦ Clarify the reporting requirements in terms of time frames and reporting entity. ♦ Exclude redevelopment and housing TIF districts from the reporting requirements of current law. ♦ Maintain the reporting of job and wage goals in current law but do not require a specific wage amount. Building Permit Fee Surcharge (111-L) Local governments collect a half-percent surcharge on building permits. The proceeds of the surcharge are paid to the state and are used to support the State Suilding Codes and Standards Division. Prior to 1991, any excess proceeds were remitted on a prorate basis to the local governments. To help with the development of affordable housing it is recommended that: ♦ The proceeds from the building permit surcharge fee be paid to the MHFA for the support of affordable housing and that the building codes and standards division be funded from the state generalfund. Group Homes (ill-M) ♦ State and county agencies must provide timely notification to cities of facility license requesEs and renewals and provide adequate opportunity to respond. Cities must also be aware of the special care needed by residents of such facilities in case of public safety emergencies. Clustering of community residential facilities because of economic, geographic or other factors shoutd be avoided. Standards of non-concentration for state or county-issued Requests for Proposals (RFPs) should be established. 1494 teg�siative Policies 17 Housing & Economic Development �Q � ♦ There must be an ongoing screening process, particularly in the correction area, to insure that persons placed in a residentiaI facility will benefit from such an environment and will not be a danger to themselves or others. The licensina authority must be responsible for removing any person found incapable of living peacefully in such an environment. Facilities licensed by the corrections department should not be exempt from reasonable local land use regulations. ♦ A fair share concept should be considered within the metropolitan area. However, this concept should consider other £actors induding transpartation facilities, job availability and other needed support services. ♦ The licensing authority and/or legislature should allow cities Yo participate in the search for facility locations in order to meet needs of the providers, facility residents and the neighborhood. 18 1999 Legislative Policies � �1 � 0 � � LJ C� � � � L-1 � 1 ; I _I � I; -a � � Metropolitan Agencies (IV) q 9 -18' Introduction: Metropolitan Governance Structure The Metropolitan Council was established in 1967 to coordinate "the planning and development" of the seven county metropolitan area. To fulfill its responsibilities, the Council has worked with local governments to establish policies regarding growth and development in the region. Over the years, the Council has been authorized by the legislature to be involved in the development of regional parks and in the operation of regional services. In 1994, two independent agencies responsible for transit and waste water disposal were merged into the Council. In the following years the Council was mosEly advisory, but was given responsibility for regionai policy development and coordination in the areas of wastewater treatment, transportation and airports. The Council was given limited approval authority for development proposals, which were of inetropolitan (regional) significance but was not given direct operational authority. The Metropolitan Council's responsibilities have been expanded over the years. The Council was given direct operational responsibility for regional transit and wastewater treatment in 1994. In the following year, the legislature directed the Council to implement the Livable Communities Act (LCA). The Council's role with the LCA is to negotiate affordable and life cycle housing goals for cities and provide grant funds for the clean-up of polluted lands and demonstration projects that foster a mix of land uses and housing types. The Council's role has evolved since its inception to long-range planning and the operation of regional services. 1999 Legislative Policies 19 Metropolitan Agencies q9 - � Metropolitan Council Principles (IV-A) The MetropoliEan Council is a planning and operating entity. The Council is not only responsible for guiding the growth of the region but also operates the region`s wastewater disposal and transit systems. As a planning and operating agency, the Council's policies and guidelines impact local units of governxnents particularly cities. The AMM, in framing its relationship with the Metropolitan Councii, has developed several principles that are incorporated into the following policy areas. Purpose Qf Metropolitan Governance (IV-B) The AMM affirms its support for the existence of a metropolitan governance system to deal with appropriate regional issues and concerns. The purpose of the metropolitan governance system should be: ♦ To facilitate region-wide planning �vith the cooperation and consideration of the affected local units. ♦ To provide certain region-wide services that do not dupl'acate those that can be provided by local governmental units, either individually or jointly. To fulfill other specific responsibilities mandated by the state and federal governments. Criteria for Extension of Metropolitan Governance Authority (IV-C) The legislature, if granting the metropolitan governance structure E additional responsibility or authority, should be specific in the � grant. Additional new or expanded authority should be considered only when one or more of the following exist: The seroice, function or activity has been shown to be needed and it can be demonstrated that it cannot or is not being effectively or efficiently provided through existing general purpose units of goverrunent. Z� 1999 Legislative Policies ,� �� J � � {�..:, � r � L� 4� � � ■_ ; � � �' f � � Metropolitan Agencies qq.l� ♦ The service, funcfion or activity is not an appropriate state level or local government level acEiviry or function. ♦ Regional intervention is needed for protection of the region's investment in an exisring metropolitan system. Restructuring of Metropolitan Agencies (IV-D) The Sports Facilities Commission and the Metropolitan Airports Commission (MAC) are currently metropolitan commissions. The legislatuxe should make the spozEs facility commission a local commission if the back-up tax is limited to one city or is expanded to additional cities. If the tax is extended to other cities, the commission should be restructured to have membership from those cities. The legislature should clarify the status of the MAC so that it becomes either a metropolitan or state directed agency. The determining factor in the agency decision is the nature of the commissiori s back-up tax. If the tax will be a metropolitan area tax, its membership should come from the metropolitan area. If the back-up tax is statewide, then the MAC should have statewide representation. Regionally Provided Services: Funding (IV-E) The Metropolitan Council should continue to fund its regional services and activities through the existing combination of user fees, property taxes, and state and federal grants. The current revenue system provides better visibility to the customers of the expenditures and efforts to move toward a single revenue source should be opposed. The Metropolitan Council, in conjunction with the operating entities and not the legaslature, should be responsible for determining user fees. The fees should be consistent with regional system plans and goals and be established by an open, visible procedure including, but noE limited to, pubiic notice and hearings. A clear linkage between revenue and service should be maintained. 1999 Legislotive Polici2s 21 Metropolitan Agencies c�q _l� Coordination of Local 8� Regional Plans (IV-F) The regional inveshnent in metropolitan systems must be maintained and preserved by preventing adverse impact because of the lack of integration and coordination between regional and local planning. Regional system desib ation should only be approved if there is a compelling metropolitan problem or concern that can best be addressed through the designation. The regional planning process must, on a continual basis, have the input of local government officials. To ensure input, the Council should hold hearings and provide public notice and copies of proposals regarding amendments to the Metropolitan Development Guide. Metropolitan system plans must be specific in terms of locations, capacities and timing to allow for consideration in local comprehensive planning. System plans should clearly state the criteria by which the local plans will be judged for consistency. The system plans should also clearly state the criteria that will be used to find that a local plan has a subsEantial impact on or contains a substantial departure from the metropolitan system plans. The Metropolitan Council should continue to offer assistance to cities. The assistance should include but not be limited to staff support, research, policy guidelines, system statements and procedures for the review and evaluation of plans and amendments. The Metropolitan Council, in its review of local plan amendments, must have a procedure that will: Recognize that the Council's role is to review and comment, unless there is a substantial impact on or departure from the system plans. ♦ Establish an open ciialogue between cities and the Council, including public meetings and public hearings. 22 1999 Legislative Policies Metropolitan Agencies aq- �s Be a�vare of the sfatutory time consiraints imposed by the legislature on plan amendments and development applications. ♦ Provide for immediate effectuation of plan amendments, which have no potential for substantial impact on systems plans. � Require the information needed for the Council to complete its review, but not prescribe additional content or format beyond that is required by the Metropolitan Land Planning Act (MLPA). Metropolitan Councii Focus on Planning (IV-G) For cities to meet their planning mandates, the Council must ensure � that its planning, data collection and dissemination functions are fulfilled in a timely manner and are consistent with its statutory � � 4 '' � � � � � � � � obligations. Growth Management Strategy (IV-H) The Council should continue its discussions with officials in western Wisconsin to encourage their adoption of effective growth control measures. Further investment in transportation infrastructure with Wisconsin should be conEingent upon Wisconsin local governments and their implementation of such controls. The legislature should devise effective methods of ensuring responsible and controlled development in counties surrounding the metropolitan area. The Metropolitan Council should continue its flexible guided growth policy regarding Metropolitan Urban Sereice Area (MUSA) expansion requests as outlined in the Regional BIueprint. However, the Metropolitan Council must recognize that until there are effective growth management strategies and tools beyond the metropolitan area, tightening of MUSA expansion criteria within the metropolitan area will cause one or more of the following: ♦ Increased leapfrog development into adjacent counties and 4�'isconsin. 1999 Legislaiiv� Policies 23 Metropolitan Agencies q`i- I�' ♦ Increased housing cosEs within the metro}��lit�:. area. ♦ Decreased economic growth due to incre.l��d �°'velopment costs. ♦ Increased development activity in the Rw.i1 Ser��ice Area. Local Plan fmpiementation (IV-I) Local governments are responsible for zonin�;. ThE�'>� zoning decisions should not be conditioned upon apf�rov<�ls by the Council or other governmental agency. The AMM is open t�� the use of alternative dispute resolution procedures pri��r to j�ldicial remedies. Alternative dispute resolution could reduce cc�sts r� nd time for all parties involved in the dispute. The AMM strungly �PPoses the creation of an appeals board that could supersede ��ty planning or zoning decisions. Budget Process & Work Program Evaluation (IV-J) Mandated and non-discretionary projects shc�uld l�� identified, along with their funding sources and pro}ects and ,�ctivities which are discretionary but totally or mostly funde�l by s(ate or federal funds should be identified. Previous year's e�pencliture history should also be provided. The annual budget should deiineate the services fc �nnerly provided by the operating agencies and the expenses and revenue for those services should be clearly identified and linkages l�etween expense and revenue maintained. Further, the funds or res�•rve funds raised for a particular service should not be used or com�ilingled with the funds raised for any other service or activity. The CounciI's work program should meet four tes1�: The issue or problem identified is important tn the region s well being. ♦ Council intervention or activity will prod uce a positive result. 24 � qqq �egislative Pollcies � � � � � � � � � � � E: _' � Metropolitan Agencies � � -, ♦ The Council's action does not duplicate or serve as a substitute for a state level program or effort or what should be a state level activity. The Council is the most appropriate agency to intervene or perform the activity. Metropolitan Counci(: Method to Select Members (IV-K) The legislature has debated proposals to amend the process to select Metropolitan Council members. Proposals to elect the members directly or to elect county commissioners as council members have been discussed but not enacted into law. The AMM has siudied the governance issue and has released a separate "Metropolitan Governance Report" (October 1998). The report notes that there is no regional crisis that requires a governance change, but did recommend that council members serve fixed, staggered terms. The AMM further recommends that no changes be made to the metropolitan council unless a governance proposal meets a set of criteria. The intent of the criteria is to fashion a regional governance structure that has a distinct mission, but does not establish a political subdivision with local government powers or one that is a state agency. The Council should have a distinct mission of long- range planning and operation of legislaEively-authorized regional services. The criteria include: Terms o�0 ice 1 � L.� � L� � � Members should serve fixed, staggered terms. Councii Powers The Council should continue to be a long-range, pianning agency and potentially an operator or oversight agency for regional services. As such, the Met Council must maintain planning, coordinating and local assistance as a high priority. 1999 Legislative Policies �5 Mefiropolitan Agencies qq - lY AdditionaI Powers New powers must not expand or override city responsibilities, especially land use reb lation authority. The Met Council must not become an agency with general Iocal government powers. State Role The legislature should focus on broad oversight of the Met Council's mission and services. Local Govennnent Local elected officials must be involved in the selection process of Met Council members and there must be a mechanism to facilitate meaningful dialogue and input between the Met Council and cities. Collar Counties The metropolitan region clearly includes the seven designated counties and the adjacent eleven Minnesota counties, as well as three Wisconsin counties. The needs of the entire metropolitan region beyond the current seven county region must be addressed. Mef Courzcii Members The selection process must strive to appoint Met Council members who have an understanding of and wilI be responsive to the district represented, as well as be responsive to the best interests of the region. The selection process should limit the potential influence and support (including financial) of special interests. Parks 8� Open Space: Operation & Maintenance Capital Funding (tV-L) The governor and Ehe legislature should continue to appropriate funding for the operation and maintenance of regional parks. The Ievel of funding should be equal to the stahztory goal of 40 percent of the total budget. Regional parks essentially serve the role of state parks in the metro area and the acquisition, development and improvement of the parks should continue to be funded, in part, with state resources. 26 1999 Legislative Policies , Metropolitan Agencies qq-lY Surface 8� Groundwater Water Management (IV-M} If legislation is considered for surface water management, it should be based on the following principles: ♦ The legislature should provide full funding if it mandates additional water management planning or implemenring activities by local units of government. �� Local units of government should continue to be responsible for surface and groundwater management, since they are the closest to the problem. ♦ Ne�v state requirements should not add to Iocal costs and duplicate revie�vs/approvals should be reduced or eliminated. The AMM wouid support the following iniEiatives/action: A thorough assessment of the Board and Water and Soil Resources (BWSR) structure and authorities to ascertain if it should continue to be the approval and oversight agency for surface water management planning and activities in the metropolitan area. A thorough assessment of the metropolitan area surface water management planning and permitting process with the objective of developing improvements in conflict resolution, better coordination between state and local agencies, and streamlining the project permit approvals process. Compliance by local units of government located outside of Yhe metropolitan area with the same standards and requirements for surface water management as those imposed on local units within the metropolitan area. � ♦ A technical evaluation of the impact of 2:1 wetland replacement in the urbanized area on the goal of greater urban densities as stated in the Metropolitan Council's Regional Blueprint. � � � 1949 Leg+s!ativP Polic;as 27 Metropolitan Agencies � � r � � Water Supply (IV-N) Addirional legislation pertaining to local or re� onal water supply planning is not warranted. If legislation, however, is proposed it should be based on the following principles: L� !� ♦ Local units should retain the basic responsibility for water [� supply planning and management as in current law. � ♦ The state should fund additional mandates. ♦ Potable water should not be designated a regional system. Regional Wastewater (Sewer) Treatment System (IV-O) The regional wastewater ireatment system has improved the water quality of the regiori s major river and iakes. The system should not be permitted to break up or to diminish its effectiveness. Since all users benefit equally, the regional rates should be uniform by type of user. Waste Stream Management (IV-P) The legislature should enact leaislation, which will: ♦ Establish goals to reduce, recycle and reuse packaging materials and establish fees, taxes or deposits to encourage accomplishment of the goals. The revenues would be waived when the goals are met. Available revenues would be used to promote or enhance Iocal programs to achieve the goals. Continue the Office of Environmental Assistance (OEA} as an agency that primarily assists local governments to manage waste effectively. ♦ Continue the role of cities in waste stream management unless a state or metropolitan system is established to achieve the same goal. ♦ Distribute all proceeds from any funding system for solid waste management activities and require distribution of funds to all entities involved in tite system 28 1999 Legislative Policies � � � L�� .�1 � � � � � � L�J � � � L�1 Metropolitan Agencies � -'� Q ♦ Provide that host communities £or solid waste facilities will not have a financialliabiliEy for costs associated with operating and monitoring the facility. Such costs shouId be borne by the operator and in the absence of regulations should be assumed by the state. Maintain, at a minimum, the current compensation level permitted through surcharge fees and increase the level as well as making the compensation available to all types of solid waste facilities. ♦ Define municipal solid waste not to be a hazardous substance. The definition would enhance the ability of local governments involved in clean-ups to settle potential liability. 1999 Legisfative Policies 29 � Metropolitan Agencies o� 9 -1�' [ � � � � � �� 30 1999 Legislative Policies � =�_._._ :-.... _:�-� o c Transportation Funding (V-A) Transportation (V) The AMM strongly supports increased funding for transit and highways, both of which are a critical need in the metropolitan area. In addition, funding for mass transit including transit ways, light rail or heavy rail in existing corridors should be dedicated in a manner consistent with current highway funding. Funds allocated to the metropolitan area should be flexible so that the most efficient and cost effective transportation solution may be chosen. � � Funding needs in the next two decades far outstrip current funding sources and rates. Therefore, the legislature should consider additional funding and alternatives such as an increase in the gas tax, future indexing of the gas tax, use of the motor vehicle sales tax (formerly MVET), use of a certain percentage of the state general fund, a dedicated porEion of the general sales tax, a sales tax on gasoline at the pump, state bonding authority for major projects, or a combination of these. If an aiternative to the transit property tax in the metropolitan area � is adopted, current opt-out transit systems should continue to be funded at comparable levels. ��' � r � � r� Regionai 7ransit System (V-B) The Regional Transit System should be a combination of integrated traffic management systems which include use of HOV lanes, express buses, exclusive transit ways, light rail transit, and commuter rail corridors built to connect residents to job, retail and commercial centers, plus a variety of oEher transit modes, including taxi, bus, pedestrian and bicycle. 1999 Legislative Policies 3� Transporfation �� p� �q . Park-and-ride facilities for mass transit modes adequate to connect the regional centers, major trip generators and communities, both urban and suburban, should have integrated feeder systems to accommodate local buses, automobiles, van pools, bicycles, as well as walking facilities. The Metropolitan Council should work with local units of governmenE to encourage appropriate Iand use controls along designated transit corridors to promote transit ridership. Transportation Incentives & Disincentives (V-C) The AMM supports the development of a comprehensive system that will facilitate an increase in the occupancy level of cars, reduce commuter trips and enhance the use of transit within the metropolitan area through the use of tax incentives and f or impact fees that encourages multiple occupancy transit use, the exclusion from gross income the value of commuter transportation benefits provided by an employer, and/or a tax deduction and tax credit for employers who provide commuter transportation benefits to employees. Transportation Utility (V-D) The AMM requests the legislature to authorize cities to establish a transportation utility £or street maintenance and reconstruction of aging infrastructure, similar to the existing storm water utility, so that costs of improved facilities can be more fairly charged to the users rather than the general population as a whole. Highway Turnbacks & Funding (V-E) The AMM supports jurisdictional reassigiunent or turnback of roads on a phased basis using functional classification and other appropriate criteria subject to a corresponding mechanism for adequate funding of roadway improvements and continuing maintenance. Cities do not currently have the financial capacity other than significant property tax increase to absorb the additional roadway responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated tumbacks. 32 1999 Legislative Policies � � � LJ � � L�:J � � �' � i � -i � � � iransportation qq-t�' '3C' Transportation Planning Process: Elected Officials Rote (V-F) The AMM supports continuation of the Transportation Advisory Board (TAB), a majority of local elected officials membership on the TAB itself and the TAB process, wl�ich was developed to meet federal requirements for desib ation of the Metropolitan Council as the Metropolitan Planning Organization that is responsible for the continuous, comprehensive and cooperative (3C) transportation planning process to allocate federal funds among mefro area projects. This process requirement �vas reinforced by the ISTEA Act of 1991 and the 1998 Transportation Efficiency Act for the 21st Century (TEA21). Motion Imaging Recording System (M.I.R.S.): Traffic Law Compiiance (V-G) The AMM requests legislative action authorizing utilizaEion of motion imaging recording system technology for governmental units, inciuding cities, on streets and hibhways to assist promotion of safety and traffic law compliance enforcement. The technology has been proven and is currently used for 1aw enforcement by numerous states, municipalities and other countries. The state should consider a pilot project on municipal streets in the Airport Noise Mitigation (V-H) metropolitan area. In 1996, the Metropolitan Airports Commission (MAC) was charged with developing a mitigation package for legislative consideration in 1997, but the package was never developed. Costs associated �n�ith noise mitigation should be borne by the airport (MAC) and the state since the airport is considered a statewide facility. Noise mitigation programs need to be enhanced to beyond the current 60 DNL contours for existing and future impacted areas. Impacts, including envirorunental and low frequency noise, must � be identified at all MAC airparts and applicable mitigation measures implemented ty MAC. By the year 2000, the Environmental Quality Board (EQB) should establish o idelines for � airport noise (including low frequenc� ) in consultation with the v1aC, �Ietropolitan Council, MSP Noise Mitigation Committee and � aftected cities_ This mav include expansion of the sound insulation program to the 5� DNL. � 1999 �egisiative ?olicies 33 Transportation qb ��r 7 The MAC should establish a plan to assure funding for required environmental impact mitigation for Iegislative action by the conclusion of the 2000 Session and levy a property tax on MAC- owned and leased property if it is not approved. Due to an operations increase of 27 percent b5� 2010, noise impact fees should be created to encourage conversion to real stage III aircraft. This policy is not intended to impact airport development or construction decisions. Road Access Charge (V-i) In order to fairly provide for major street improvements of primary benefit to a particular subdivision development but not directly assessable and to allocate cost so that new growth pays its fair share, the legislature should authorize cities to establish at their option a road access charge to be levied on an area or per lot basis at the time that subdivisions are approved or at the time building permits are issued similar to park dedication fees. 34 1999 Legislative Policies � � r 0 � � � � �J � � � � � � � � ' ' � �. �. a �� i , Commitfiee Rosters (Vf) dq-rr Housing & Economic Development Craig Waldron (Chair), Administrator, Oakdale Beverly Aplikowski, Councilmember, Arden Hills Kirstin Barsness, Director of Economic Development, Cottage Grove Janis Callison, Councilmember, Minnetonka Dennis Cavanaugh, Councilmember, St. Anthony Dan Donahue, Manager, New Hope Gail Dorfman, Mayor, St. Louis Park Mike Ericson, Assistant Manager, Maplewood Mike Freeburg, Councilmember, Anoka john Goedeke, Councilmember, Roseville Regina Harris, HRA Director, Bloomington Andrea Hart Kajer, IGR Director, Minneapolis Coral Houle, Mayor, Bloomington Gordon Hughes, Assistant Manager, Edina Marvin Johnson, Vlayox, Independence Dwight Johnson, Manager, Plymouth Jane Kansier, Plazuting Coordinator, Prior Lake Kathy Lantry, Councilmember, St. Paul Jan LeSuer, Councilmembei, Golden Valley Joan tilolenaaz, Councilmember, Champlin 1999 Legislativ� Polici2s 35 Committee Rosters ��I Ron Rankin, Community Development Director, Minnetonka Mark Sather, Manager, White Bear Lake Cari Sclunidt, Assistant to City Manager, Mounds View Mark Senn, Councilmember, Chanhassen Kathy Thurber, Councilmember, Minneapolis JeTry Tumquist, Councilmember, Oak Park Heights Liz Workman, Councilmember, Bumsville Metropolitan Agencies Terry Schneider (Chair), Councilxnember, Minnetonka Bi11 Bamhart, Government Relations Representative, Minneapolis Kevin Batchelder, Adnunistrator, Mendota Heights Bob Bruton, Councilmember, North St. Paul Cathy Busho, Mayor, Rosemount Sharon Feess, Councilmember, Brooklyn Park Matt Fulton, Manager, New Brighton Thomas Goodwin, Councilmember, Apple Valley Tom Harren, Planner, St. Paul Ken Hartung, Adnunisirator, Bayport Susan Hoyt, Administrator, Falcon Heights Anne HurlburC, D'uector of Community Development, Plymouth Barbara Johnson, Councilmember, D4inneapolis E Gary Joselyn, Councilmember, Crystal Rick Kelley, Community Development Director, Apple Valley Larry Lee, Director of Community Development, Bloomington Tom Link, Director of Development & Prot. Serv., Inver Grove Heights 36 1999 Legislative Policies � I � � Committee Rosters �►9 -�r Paul Malone, Councilmember, Arden Hills Niary Helen Mische, IGR AssisEant, St. Paul Mark Nagel, Manager, Anoka Jim Norman, Administrator, Ramsey Don Rye, Planning Director, Prior Lake Dave Schaaf, Mayor, Oak Park Heights Charlotte Shover, Councilmember, Burnsville Jill Smith, Councilmember, Mendota Heights James Smith, Councilmember, Independence Russ Susag, Councilmember, Richfield Eric Thole, Councilmember, Srillwater Joy Tierney,l�layor, Plymouth � � � � � � � � � � � � � � � � Sherry Timmerman, CouncIlmember, Oakdale Kurt Ulrich, Administratar, Champlin Chuck YVhiting, Adinuiistrator, Mounds View Donn Wiski, Councilmember, Roseville Municipal Revenue 8� Taxation Frank Boyles (Chair), Manager, Piior Lake Leslie Anderson, Director of Finance, Burnsville Gene Anderson, Councilmember, St. Paul Park Karen Anderson, Mayor, Minnetonka Curt Boganey, Manager, Brooklyn Park Edward Burreil, Treasurer & Finance Director, Roseville Thomas Burt, Administratoi, Rosemount Dave Cailister, Clerk-Administrator, Osseo joan Campbell, Councilmember, Minneapolis 1999 Legislaiive Policies 37 Committee Rosters A9 -t P' Tom Cran, Budget Analysis, St. Paul Steve Devich, Administrafive Services Director, Richfield Terry Dussault, Asst. to Manager, Blaine blargaret Egan, Finance Director, New Brighton Dan Faust, Finance D"uector, Maplewood John Gretz, Admuuster, Apple Vailey Terri Heaton, Chief Finance Officer, Bloomington Jon Hohenstein, Administrator, Mahtomedi Bill Huepenbecker, IGR Director, St. Paul James Keinath, Administrator, Circle Pines jim Knutson, Finance Director, Anoka Bob Larson, Administrator, Deephaven Tom Melena, Administrator, Oak Park Heights Steve Mielke, Manager, Hopkins John Moir, Finance Officer, Minneapolis Mike Mornson, Manager, St. Anthony Steve O'Maliey, Deputy City Manager, Burnsville Douglas Reeder, Adminstrator, South St. Paul Janet Robert, Councilmember, Oak Park Heights Ryan Schroeder, Administratoz, Cottage Grove James Smith, Councilmember, Independence Jerry Splinter, Manager, Coon Rapids Joy Tierney, Mayor, Plymouth Kurt Ulrich, Admizustrator, Champlin Gene Van Overbeke, Finance Director, Eagan John Wallin, Finance Director, Edina 3$ 1999 Legislative Policies � � � t � � � �' � � � LJ � � � � � Committee Rosters �� John Weaver, Councilmember, Anoka Jim Willis, Admulstrator, Inver Grove Heights Transportation & General Government Veid Muiznieks (Chau), Councilmember, St. Paul Park Gene Anderson, Councilmember, St. Paul Park Bill Bamhart, Govemment Relations Representative, Minneapolis Geralyn Barone, Assistant City Manager, Minnetonka Lyle Berg, Engineer Traffic & Transportation, Bloomington David Childs, Manager, Minnetonka Charlie Crichton, Councilmember, Burnsville Jerry Dulgar, Manager, Cxystal Dale Gusafson, Councilmember, Brooklyn Park Natalie Haas Steffen, Councilmember, Ramsey Gary Humphrey, Mayor, Apple Valley Gloria Johnson, Councilmember, Golden Valley Mike IClassen, Traffic Engineer, St. Paul Sandra Krebsbach, Councilmember, Mendota Heights Charles Lenthe, Director of Public Works, Blaine Dennis Maetzold, Councilmember, Edina Sandra Masin, CouncIlmember, Eagan Mark McNeill, Administrator, Shakopee Dore Mead, Councilmember, Minneapolis Charlie Meyer, Manager, St. Louis Park 1tilary Helen �lische, IGR Assistant, St. Paul Lynn �3oratzka, Councilmember, Hastings Dave Schaaf, �Sayor, Oak Park Heights 1999 Legislative Po6cies 39 Commifitee Rosters �Q -� �I Mazk Senn, Councilmember, Chanhassen Ceil Smith, Assistant to City Manager, Edina Dawn Weitzel, Community/Special Project Assistant, Richfield Donn Wiski, Councilmember, Roseville Bret Woodson, Assistant City Manager, Prior Lake 40 1999 Legisiative Policies October 1998 �� t � n 0 T �; � Association of Metropolitan Municipalifies 145 University Ave. W. ♦ St. Paul, Minnesota 55103-2044 Phone: (651 J 215-Q000 � Fax: (65I J 281-1299 E-mail: amm@amm 145.org . . � . q9-lP" Table of Contents 1. Introduction 2. Principles & Options 1 � 3. General Observations of the Committee 5 4. Issues Related to the Selection Method of Metropolitan Council Members 7 5. Recommendation on Changing the Selection Method of Metropolitan Council Members 8 6. AMM Metropolitan Agencies Coinmittee 10 1998 Metropolitan Governance Report �Tq - lP' 1. Introduction The Metropolitan Council was originally established to be a regional planning agency. However, the Met Council has evolved into an agency that also operates iransit and wastewater disposal and administers several federal, state and regional grant programs for parks, pollution clean-up, housing and redevelopment. In addition, the Met Council has a functioning housing and redevelopment authority. The Met Council's activities and annual budget, which is about $400.0 million, are the responsibility of a 17-member board. The board is appointed by and serves at the pleasure of the governor. 4Vhile the functions of the Met Council have changed, the Met Council's governance structure has basically remained unchanged. The evolving functions and the unchanged governing structure have prompted several legislative proposals regarding the Met Council's governing structure. The legislative proposals have included a directly elected Met Council, a Met Council composed of county commissioners elected to the Council, and the abolition of the Met Council. All the governance proposals have either been vetoed or have failed to gain legislative approval. As the 1999 Legislative Session approaches, there will probably be similar proposals introduced. The Association of Metropolitan Municipaliries (AMM) has been studying the Met Council, its governance structure and roles and responsibilities. The AMM's Metropolitan Agencies Committee began meeting in May 1998 and has developed several observations, principles and criteria to evaluate governance proposals. The following sections include the committee's principles and options, general observations and recommendations. 1998 Metropoiitan Governance Reporf 2. Principles & Options As defined in statute, the Met Council is a public corporation and a political subdivision of the state. The Met Council, however, is not like most political subdivisions. It may appear to function as a general-purpose unit of government, For example, ehe Met Council can authorize a property tax levy and it receives its authority from the legislature. The Met Council, unlike other general-purpose units, has a reporting relationship with the governor who appoints all Met CounciI members and approves IegisIa6ve initiatives. To others, the Met Council may function as a state agency. The governor s role with the Met Council and the need for legislative authority to conduct most activiries suggest that the Met Council is similar to a state agency. Being aware of the discussion regarding the status of the Met Council - government or state agency - the coizunittee offers the following advantages and disadvantages of three metropolitan governance models. Metropolitan Governance Model #1 If the Met Council is a state agency. AdvantaQes ♦ Budget review and approval and setting of fee amounts should be a state (legislative) function. ♦ An advisory council of appointed members similar to the board of the Pollution Controi Agency (PCA) could be established. ♦ The operating functions of the Met Council could become part of existzng state agencies, Disadvanta�es ♦ iVlany regional issues including budget approval, land use planning, and user fees for regional services should be made by a regional body. 1999 Metropolitan Governance Reporf aq -18' ♦ The comprehensive planning review and growth strategies need local govemment and citizen input. ♦ Review at the state level further distances the customers from the decision-makers. Metropolitan Governance Model #2 If the Met Council is viezued as a regional operating agency zvith an elected board and a planning agency zt�ith a separate appointed board. ♦ The board would be similar in size to the Met Council and could be responsible for regional long-range planning and coordinating. ♦ The operaiing agency could also be initially responsible for wastewater treatment and transit, but also be legislatively authorized to assume such services as airports or sports facilities. AdvantaQes ♦ The organization would be more directly accountable to the electorate. ♦ Regional planning and growth management would be separate from operation of regional services. ♦ There would be less involvement by the governor. ♦ There would be less involvement in operating issues by the state legislature and the governor. ♦ The organization may provide for more clear direction from the electorate. DisadvantaQes ♦ Planning and service delivery are separate. ♦ The organizational shucture could dilute the importance and impact of long-range planning. ♦ Another layer of elected government has been established. 1998 Metropolitan Governance Reporf ♦ The organization could be more costly than the current Met Council. The elected operating agency of the Met Council could be subject to greater influence from special interests or vendors providing campaign financing. Metropolitan Governance Model #3 If the Met Counczl is a political subdivision and a planning and operafing agenn� zvifh an elected govertting body. ♦ The governing body could be elected direcfly by the voters or by local government officials representing the district, ♦ The latter procedure is similar to the selection process used to select the University of Minnesota Board of Regents. AdvantaQes ♦ The system would be mare directly accountable to the electorate. ♦ There wouId be less direct invoIvement by the governor and legislature. ♦ The system may provide for mare cIear direction from the electorate. Disadvanta�es s Another layer of elected goverrunent has been established. An elected Met Council could be granEed expanded authority by the legislature to include activities currently provided by other political subdivisions, such as land use plaruling and zoning or offer new services. ♦ An elected Met Council could be subject to greater inEluence from special interests that could provide campaign financing. 1999 Metropolitan Govemance Report aq-«- The committee did not adopt any of the proposed alternatives but in listing the advantages and disadvantages was able to develop a list of criteria that ate essential for the fraining of an acceptable legislative proposal. 3. Generat Observations of the Committee The committee met with several elected and appointed officials to discuss previous reports and express their views on the issue of metropolitan governance. The following are the corrunittee's observations along with a general recommendation for each finding. Regional Problem Observation The presence or perception of a crisis did not motivate the study. The committee did observe that no regional issue is evident that requires a change in governance. General Recommendation The region should examine the role and function of the Met Council and its relationship with local government. Metropolitan Council Reorganization Act Observation The 1994 Metropolitan Council Reorganization Act merged the transit and wastewater functions into the Met Council. To date there has been no evaluation of the merger to assess the reorganization. General Recommendafion The Legislative Auditor should examine the new structure to determine if the region has been better served by the new structure and if the Met Council is the best agency to deliver the services. 1998 Metropolitan Govemance Report Collar Counties Observation The region s impact extends beyond the seven counties. The collar counties are growing in population and many residents of the collar counties commute into the metro area for work. Generai Recommendation The region should be recognized to be more than the current seven counties. There should a means to involve local goveriunents from the collar counties with the Met Council. Local Government Involvement Observation City and county officials expressed a lack o# comfort with the Met Council. Many officials believe that the relationship has improved but want to have more involvement of the Met Council with their local government. General Recommendntion There should •be a more fozmalized,process for local government involvement, including the selection of Met Council members. Basic Operations Observation The Met CounciI functions with many governmental responsibilities including but not limited to fee setting, making a fax Ievy and adopting regulations and also operates as a state agency. For example, the Met Council must request a state appropriation for the transit system. Therefore, it is difficult to determine what is the most appropriate governance sixucture. General Recommendafron Because of the unique nature of its tasks and duties, the Met Council's structure should not be limited to one form or the other. Refer to section five for specific recommendations. 1999 Metropolitan Governance Report q 9 - I�' 4. issues Related ta the Selection Method of Metropolitan Council Members The committee discussed the various methods of selecting Met Council members. While not favaring a particular method, the committee developed an issues list for several alternatives. The list is as follows: If the procedure for Met Council member selection remains as is: ♦ Concern that representatives of a district may represent the governor's interests rather than the interests of the district. ♦ Not adequate involvement of local elected officials in the selection process. ♦ If a representative is unresponsive to requests for dialogue with local officials, there is no meaningful recourse. ♦ There is no direct participation in the selection process by the general public, although not everyone felt that the general public wants to be involved in the process. If Met Council members are elected bu a direct election of the �eneral public: ♦ Concern that selection process would be unduly politicized. ♦ Concern for campaign funding and undue influence by special interests. ♦ Concern for creation of another formal level of government, and the possibility that once elected, the Met Council would be given more authority over local governments, especially in relation to land use decisions. IfMet Council snembers are appointed bU the �overnor from a Iist of candidates provided bU local e2ected o icials: ♦ Would address the issue of involvement of local officials in the selection process, but may not bring forward the best candidate that has a regional perspective. 1998 Metropolitan Governance Report May not allow for representation of ali stakeholders in the region (including the perspective of the development commc�nity). IfMetCouncil members are elected by Tocal elected o'cials• ♦ WouId address the issue of inaoIvement of local officials in the selection process, but may not bring forward the best candidate that has a regional perspective. ♦ May not allow for representation of all stakeholders in the region (including the perspective of the development community). 5. Recommendation on Changing the Setection Method of Metropolitan Council Members A. The committee recommends that fixed, staggered terms be established for Met Council members. B. The committee recommends that no changes should be made to the Met Council unless a governance proposal meets the following criteria: Ternzs o�0 ce Members of the Met CounciI should be selected to serve a fixed term of office. The terms of the members should be staggered. Met Council Pozoers The Met Council should continue to be a long-range planning agency and potentially an operator or oversight agency for regional services. As such, the Met Council must maintain planning, coordinating and local assistance as a high priority. Additional Poz��ers New powers must not expand or override city responsibilities, especially land use regulation authority. The Met Council must not become an agency with general local government powers. i999 MeTropo(itan Govemance Reporf R'9 -l� State Role The legislature should focus on broad oversight of the Met Council's mission and services. Loca1 Government Local elected officials must be involved in the selection process of Met Council members and there must be a mechanism to facilitate meaningful dialogue and input between the Met Council and cities. Collar Counties The metropolitan region clearly includes the seven designated counties and the adjacent eleven Minnesota counties, as well as three Wisconsin counties. The needs of the collar counties and the entire metropolitan region beyond the current seven county region must be addressed. Met Council Members The selection process must strive to appoint Met Council members who have an understanding of and will be responsive to the district represented, as well as be responsive to the best interest of the region as a whole. The selection process should limit the potential influence and support (including financial) of special interests. The above criteria attempt to fashion a regional governance structure that has a distinct mission but does not establish a political subdivision with local government powers or one Ehat is a state agency. The Met Council should not be a super government that could override local powers or be a state agency. Rather, Ehe Met Council should have a distinct mission of long-range plamting and operation of legislatively authorized regional services. 1998 Metropolitan Governance Report 6. AMM Metropolitan Agencies Committee Terry Schneider (Chair), Councilmember, Minnetonka Bill Barnhazt, Goverrunent Relations Representative, Minneapolis Kevin Batchelder, Administrator, Mendota Heights Bob Bruton, Councilmember, North St. Paul Cathy Busho, Mayor, Rosemount Sharon Feess, Councilmember, Brooklyn Pazk Matt Fulton, Manager, New Brighton Thomas Goodwin, Councilmember, Apple Valley Tom Harren, Planner, St. Paul Ken Hartung, Actministrator, Bayport Susan Hoyt, Administrator, Falcon Heights Anne Hurlburt, Duector of Community Development, Plymouth Barbara Johnson, Councilmember, Muuteapolis E Gary Joselyn, Councilmember, Crystal Rick Keltey, Community Development Director, Apple VaIIey Lazry Lee, Duector of Community Development, Bloomington Tom Link, Director of Development & Prot. Serv., Inver Grove Heights Paul Malone, Councilmember, Arden Hills Mary Helen Mische, IGR Assistant, St. Paul Mazk NageI, Manager, Anoka Jim Norman, Adinulistrator, Ramsey Don Rye, Plazuiutg Duector, Prior Lake Dave Schaaf, Mayor, Oak Pazk Heights Charlotte Shover, Councilmember, Bumsville JiII Smith, Councilmember, Mendota Heights � � 1999 Metropolitan Governance Reporf Qq - td' James Smith, Councilmember, Independence Russ Susag, Councilmembei, Richfield Eric Thole, Councilmember, Stillwater Joy Tierney, Mayor, Plymouth Sherry Timmeruzan, Councilmember, Oakdale Kurt Ulrich, Administrator, Champlin Chuck Whiting, Admuristrator, Mounds View Donn Wiski, Councilmember, Roseville 1998 Metropolitan Governance Report i l OR(G1NAL Presented By Referred To Committee: Date i WHEREAS, the Association of Metropolitan Municipalities has adopted its 1999 Policies and z Legislative Proposals to be considered by the Mimiesota Legislature during the 1999 session; and 3 4 WHEREAS, the City of Saint Paul was an active participant in the development of these s policies and legislative proposals and the City concurs generally on these policies and proposals, now 6 therefore be it 7 s NOW THEREFORE, BE IT RESOLVED, that the City Council of Saint Paul does hereby 9 recommend for consideration by the Minnesota Legislature the 1999 Policies and Legislative Proposals io submitted by the Association of Metropolitan Municipalities and does hereby request that these issues be ii addressed by the Legislature during the 1999 session. Requested by Department of: s �._ , % Approved by Mayor: Date �l r ��'( "� By � ,G �� Council File #� ��-� Green Sheet # �� , � RESOLUTION CITY OF SAINT PAUL, MINNESOTA 0 �,�� t� � rl � Form Approved by City Attorney sy: �/ ` -3u - � Approved b Mayor Co ' BY Submission to Adopted by Council: Date _ � � Adoption Certified by Council Secretary q� -l8' , S GREEN SHEET n,o 62'715 Bill Huepenbecker 6-8517 � TOTAL # OF SIGNATURE PAGES U oES.uefr+rmECron ancaHCa _ � arr�nauEV rnvct.cac ❑ wux�ataonnr.�soae R++urw.mnixnc � rwrortt��sasr�ert� � (CLIP ALL LO ATIONS FOR SIGNATURE) City Council approval of the Association of Metropolitan Municipalities 1999 Policies and Legislative Proposals. PLANNING COMMISSION CIB COMMITTEE CIVIL SERVICE CAMMISSION Has this perwNfirm everworketl untler a Contract for Nis tlepartmer� YES NO Hes fhis PersoNfirtn ever been a dlY emPbyce9 YES NO Dces this peisorJfirm posaess a slall not nwmalypossessetl Ey any curtent cdy employee? YES NO Is this persoNfirm a farpeted vendor? YES NO �lain a11 ves ansroers on seoarate sheet and attach to areen shee[ Saint Paul is an active member of the AMNI and was a participant in the effort to develop this year's legislative policies. The City shows support for the Association of Metropolitian Municipalities, an association we work closely with on many issues during the session and throughout the year. } G Q�.u'� ° �v 9 1 �'��,�`+^- _ � C` v.�.i�:'�� FGES IFAPPROVED None. S SOURCE : . l ' . �� 'r -� �. �-. �� , COS7/REVENUE BUOGETED (CIRCLE ON� ACTNIiV NUMBER YES NO INFORMATON (IXPVJI� � � 0 0 � � � � 0 0 a 0 � aq-�g� .lanuary 1999 � . �� ' • • '� � '�e S � Association of Metropolitan Municipalities 145 University Ave. W. ♦ St. Paul, Minnesota 55103-2044 Phone: (651� 215-40Q0 ♦ Fax: (651J 281-1299 � E-mail: amm@amm 145.org � � � � � � � �� qq-ltC � Table of Contents Municipal Revenue & Taxation (I) Levy Limits (I-A} Local Government Aid (I-B) Homestead & Agricultural Credit Aid (I-C) Tax Exempt Property (I-D) Sales Tax on Local Government Purchases {I-E) Local Performance Aid (I-F) Price of Government (I-G) Fiscal Disparity Fund Distribution (I-H) Personal Property Taxation: Electric Utility (I-I) Revenue Diversificatian (I-J) Class Rate Tax System (I-K) Limited Market Value (I-L} Funding Shifts (I-M) City Revenue Stability & Fund Balance (I-N) General Legislation (II) Mandates & Local Authority (II-A) Public Right-of-Way (II-B) County Plat Appxoval Authority (II-C) Police & Fire Precention Pro� isions (II-D) 1 1 1 1 2 2 2 2 2 3 3 4 5 5 7 5 � 1999 Legislation Policies i Toble of Contents � `"'`� 911 Telephone Tax (II-E) 800 MHz Radio System (II-F) Permit Approval: Zoning (II-G) Witness Fee Costs (II-H) Urban Reforestation (II-I) Elections: AlIey System Authority (II-J) Housing 8� Economic Development (lll) Livable Communities Act (III-A) State Housing Policy (III-B) Housing Preservation (III-C) Minnesota Housing Finance Agency Appropriation (III-D) Family & Elderly Housing (III-E) Economic Development Responsibilities (III-F) Tax Increment Financing (III-G) Property Tax Reform Impact on TIF (III-H) Development Tools (III-I) Welfare Reform/Work£orce Readiness (III-J) Business Subsidy (III-K) Building Permit Fee Surcharge (III-L) Group Homes (III-M) Metropofitan Agencies (IV) Introduction: Metropolitan Governance Structure Metropolitan Council Principles (IV-A) Purpose of Metropolitan Governance (N-B) G 6 6 7 7 7 7 10 10 11 11 12 12 1� 15 15 16 17 17 19 20 20 ii 1999 Legislative Policies � F 1 f � 6 F � s � � � � � � � � � �' � � L: _l � 0 Table of Contents _18 ••� l Criteria for Extension of Metropolitan Govemance Authority (IV-C) Restructuring of Metropolitan Aaencies (IV-D) Regionally Provided Services: Funding (IV-E) Coordinarion o£ Local & Regional Plans (IV-F) Metropolitan Council Focus on Planning (IV-G) Growth Management Strategy (IV-H) Local Plan Implementation (IV-I) Budget Process & Work Program Evaluation (IV-J) Metropoiitan Council: Method to Select Members (IV-K) Parks & Open Space: Operation & Maintenance Capital Funding (IV-L) Surface & Groundwater Water Management (IV-M) Water Supply (IV-N) Regional Wastewater (Sewer) Treatment System (IV-O) Waste Stream Management (IV-P) Transportation (V) Transportation Funding (V-A) Regional Transit System (V-B) � Transportation Incentives & Disincentives (V-C) Transportation Utility (V-D) � Highway Turnbacks & Funding (V-E) � '3C' Transportation Planning Process: Elected Officials Role (V-F) 1� � Motion Imaging Recording System (M.I.R.S.): Traffic Law Compliance (V-G) Airport Noise Mitigation (V-H) 20 21 21 22 23 23 24 24 25 26 27 28 28 28 31 31 32 32 32 33 33 33 � 1999 Legisla`ive Policies iii 7ab{e of Contents �p _t� t Road Access Charge (V-I) Committee Rosters (VI) 1998-99 Housing & Economic Development Commiftee 1998-99 Mefropolitan Agencies Committee 1998-99 Municipal Revenue & Taxation Cominittee 1998-99 Transportation & General Government Committee 3� 35 36 37 39 iv 1999 Legislative Policies � � � � � � a �D Levy Limits (I-A) Municipal Revenue & °� Taxation The AMM strongly opposes levy limits and urges the legislature � to not re-enact them for 2000 or beyond. The AMI�I also opposes I the imposition of artificial mechanisms such as valuation freezes, � payroll freezes, super majority requirements for levy, or other limitations to the local government budget and taxing process. Locaf Government Aid (I-8) Local Government Aid (LGA) is a necessary, state-raised resource to supplement local property taxes. Therefore, the AMM supports its continuation with an annual inflation index, along with additional state resources to further reduce the reliance on the property tax. In addition, any LGA formula changes considered by the legislature must have a positive impacC on the metropolitan area. Homestead & Agricultural Credit Aid (I-C) The Homestead and Agricultural Credit Aid (HACA} equals about 40 percent of the totallocal aid and should be continued as part of the local fiscal relationship, with an inflafion or increased household growth factor restared for cities. The AMM strongly opposes the conversion of city HACA to school aid. Tax Exempt Property (1-D) � The AMM encourages the legisiature to authorize cities to establish . a program of payments in lieu of taxes by tax exempt governmental and non-governmental organizafions, except cons�itutionally � exempt property, (churches and schools) for the cost of services such as police, fire and streets to their facilities. � � 1999 ! egislation Policies i I Revenue & Taxation Ga' � � Sales Tax on Local Government Purchases (I-E) The legislature should reinstate the sales tax exemption for all local government purchases without requiring a reduction in other aids. Local Performance Aid (I-F) The AMM opposes the Local Performance Aid prob am. The current program is vague, creates complexity to the overall state aids programs, and approximately one-fourth of the states cities do not participate. Price of Government (I-G) The price of governsnent calculation in regard to local aovernments should be based on (1) changes in the sum of the levy and state aids, and (2) examination of long term trends, not single year events. In addition, consideration should be given to service provision transfers between governmental units, increased demand for services by citizens and legislative mandates or tax rate changes. Fiscai Disparity Fund Distribution (I-H) The AMM opposes the use o£ fiscal disparities to fund sacial or physical metropolitan prob ams since it results in a metropolitan-wide property tax increase hidden from the public. Personal Property Taxation: Electric Utility (I-I) The AMM opposes proposals for exempting the Investor Owned Ufilities (IOUs) from the personal property tax. Under no circumstances should local units of government and their taxpayers be required to shoulder the burdens of tax relief for IOUs. The personal property tax is a significant portion of the metropolitan fiscal disparity pool and, if eliminated, w•ould have a metro-wide property tax impact. � t� 2 7999 Legislative Policies � � j �' I � Table of Contents � Revenue Diversification {I-J) The AMM supports revenue diversification for cities to reduce the reliance on local properEy taxes. Some examples include authorization for local sales taxes, payments in lieu of taxes, franchise fees, deed taxes to remain �vith city, development impact fees, or the creation of a separate income/sales tax fund that would grow with the economy. Class Rate Tax System (I-K) The AMM opposes a change from the class rate tax system to a market value system, which would cause tremendous shifts of tax burden between classes of property, or applying future levy increases to market value, since this would further complicate the property tax system. Limited Market Value (I-L) The AMM opposes futther extension of artificial limits in valuing property at market for property taxation purposes. Limiting market value increase on existing property to a non-market index or set raEe will cause various property tax system problems. Similar properties wiil be taxed differently if new or sold and improvements will be discouraged. Tax shifts will occur mainly on lower valued homes and the ability to issue bonds may be adversely affected. Finally, it wi11 be politically difficult as well as costly to persons owning long-term capped properties when it becomes necessary to sunset due to vast differences in tax liabilities for like properties. The AMM believes that enhanced targeting for special circumstances such as low-income persons better serves the tax system. Funding Shifts (I-M) The AMM requests the legislature to continue to reduce the imbalance of aids versus revenue between metro and outstate cities and to consider how this distribution of resources affects the economic b owth and vitality of the metro area, and thus the entire state. CurrenEly in the metro area, about 65 percent of the state revenue is collected, �vhile onl�� about 48 percent of the aids and credits are redistributed. 1999 L2gisla�ive Policies 3 � �0 � Revenue & 7axafiion City Revenue Stabifity & Fund Bafance (i-N} �_t8' � The legislature should not attempt to control or restrict city fund balances. These funds are necessary to maintain fiscal viability to meet unexpected or emergencp resource needs of city governments, to purchase capital goods and infrastructure, provide adequate cash flow and to maintain high-level bond ratings. 4 1999 Legislative Poficies 0 � � � � a � � � � � �� Generai Legislation Mandates 8� Local Authority (lt-A) C��) a q_tY The AMM opposes statutory changes which erode local control and authority or create mandated additional tasks requiring new or added local costs cvithout a corresponding state appropriation or funding mechanism. New unfunded mandates cause increased property taxes which impedes the ability to fund traditional service needs. Pubiic Right-of-Way (II-Bj The AMM supports the continued effort of the League of � � Minnesota Cities (LMC) to protect the authority of cities to maintain jurisdiction over municipal public rights-of-way, to � establish relevant criteria and to obfain reasonable compensation for its degradation. � County Plat Approval Authority (II-C} Cities oppose county authority over plat approval for plats that are � contiguous to existing or proposed county roads. While counties have a valid interest in proposed plat decisions, this does not warrant a transfer of approval authority. Police & Fire Pension Provisions ({I-D) The AMM opposes reductions of state amortization aid to local poiice and fire retief associations or benefit increases, which are not financed by at least a 50 percenE employee conixibution for the benefit or resulting deficit. The emplo��ee pension contribution amount should be set at 40 percent of the normal cost oE financing the benefits even if this amounE exceeds 8 percent of the base salary. 1499 Legislative Policies � � General Legislation � "�� Actuarial assumptions relating to salaries and in� return � should more trul�� reflect experiences and bonuses. The AMM opposes bonuses such as the 13th check, which should not be included in actuarial assumption changes. � 911 Telephone Tax (II-E) The AMM supports the current distribution of the 911-access fee � and the limit of 30 cents per line per month to offset basic maintenance costs and enhanced upgrade. Any fee b anted � legislatively in excess of 30 cents should be returned directly to the municipality or public safety answering provider (I'SAP) where � collected. Fee increases granted by the legislature should be a specific amount not a general authorization and only for a specific purpose. Phase 2 Wireless enhanced 911 costs should be recovered � from a direct charge to ce11 phone users. 800 MHz Radio System (II-F) The AMM supports the continuation of thelVletropolitan 800 MHz Radio System legislation and Uoard, as long as cities are not forced to modify their current systems or become part of the 800 MHz Radio System until they so choose. The system should provide a phased transition guaranteeing uninterrupted service and be technically capable of allowing communities the flexibility to form various coordinated arrangements for dispatching and service provision. Since there are both regional and local benefits to local goverrunent units joining the system, the AMM urges the Regional Radio Board to seek a state appropriation to assist local units of government in joining the system. Permit Approval: Zoning (11-G) The permit approval statute delineating time limit requirements should be modified so that in the case of a rezoning application, a motion which requires a simple majority vote that extends action beyond the 60 or 120 day time requirement, constitutes a denial not an approval in order to uphold the super majority requirement of the zoning statute. Current law provides aueomatic approval if no action is taken. 6 1999 Legislative Policies � � � � � � � � � � � C1 � � � � � � Ci General Legislation �q_IY Witness Fee Costs (II-H) Since one third of fines far city-relaEed prosecutions remain with the county and adequately fund this cost, the AMM opposes shifting witness' fees from counties to cities for these actions. Urban Reforestation (If-1) The AMM supports the creation of a program in the Department of Natural Resources to provide for urban reforestation. Elections: Alley System Authority (11-J) The AMM supports permissive authority for statutory cities to adopt an alley system for filing for city council seats. 1999 Legislative Policies 7 � General Legislation a`1 _ tg � � 8 1999 Legislafiive Poiicies � .� � � � � �, �, ,. .,, .-' �, •%� P:. � ; �------; Housing & Economic Development (II!) Livabfe Communities Act (itt-A) The 1995 Legislature enacted the Livable Communities Act (LCA) � to stimulate housing and economic and community development in the metropolitan area. The act permits cities to access about $11.0 million in funding for pollution clean-up, housing and � redevelopment. As a participant, a city must adopt affordable and life cycle housing goals and a plan to achieve the goals. I� � L�7 f�J � � � Since its inception, the Metropolitan Council has been responsible for program implementation, including the completion of an annual proa ess report. The report for the 1996 calendar year indicates progress to�vard achieving the stated goals but also raises concern regarding the preservation of affordable housing, particularly the demolition of housing units. The AMM has maintained that the LCA should not be amended until there are prob ess reports and experience with the LCA. Based on the reports and experience of cities, the AMM recommends: ♦ The LCA should be continued. ♦ The LCA should be amended to eliminate the requirement that a city annually elect to be a participant in the act and require by November 15 Ehat a resolution to withdraw be approved. � ♦ The state should appropriate funds for the LCA. The appropriation should not replace the current funding sources but should be in addition to them. � � �� 1999 Legislative Poticies 9 Housing 8, Economic Development �n ��p _� State Housing Policy (III-B) To continue the expansion of the state's economy, the governor and lea slature should recob ize the importance of housing to economic vitality and family stability and should adopt policies that preserve existing housing, permit the production of safe affordable housing and provide resources to produce and preserve housing. The AMM recommends the following: Land LIse Standards and State Ince�ztives ♦ Minnesota cities are responsible for and should retain the authority to regulate the location, size and amount, and type of housing within their boundaries. The state, in an effort to encourage more affordable housing, should authorize cities on a voluntary basis and provide incentives for such concepts as density bonuses and mixes of housing types and price ranges. The incentives can be, but not be limited to, property tax class rates and sales tax exemptions for construction materials. ♦ State funding provided for the incentives should not reduce existing programs. Housing Preservation (III-C) Housing preservation includes the maintenance of the exisring rental and owner occupiecl housing, as we11 as the retention of affordable units that were formerly subsidized by federal programs. The state should: Continue and increase funding the housing preservation program for federally subsidized housing that could be converted to market rate housing. ♦ Expand efforts to provide resources for housing rehabilitation. ♦ Provide a sales tax exemption for construction supplies and materials used in the construction or substantial rehabilitation of affordabie housing. 10 1999 Legislative Poiicies � � � � Housing & Economic Development _ �r _� Exempt public agencies from paying the mortgage and deed tax when developing or providing for affordable housina and redevelopment. Minnesota Housing Finance Agency Appropriation (111-D) � The Vlinnesota Housing Finance Agency`s (MHFA) biennial general fund appropriation approximates 578.0 million. The agency � uses the funds for several housing programs including rental and homeownership. For the next biennium the agency should: � ♦ Have its appropriation increased and the increase be used primarily for housing preservation, housing production and homeless prevention programs. � L� � {..__7 � L_1 i � � L_,7 � L _ �! , �I Redesign, if �varranted and with city input, the Community Rehabilitation Program to encourage additional participation from the metropolitan area. The redesign, if needed, could include modification of the area designation, and appropriation set aside, a multiple year funding commitment, recognition of local needs, the timing of the application process, and a linkage to the LCA. Family & Elderly Housing (III-E) Demographic trends indicate that Minnesota's population is aging. For example, the Metropolitan Council projects that the region`s population age 65 and older wi11 nearly double from the year 2000 to 2020. Since most of the population owns singie family housing and they will be smaller households there could be a demand for smaller housing units. The elderly population will also be older than their predecessors wi11. In the metropolitan area, the Council reports that the number of persons age 75 and over will increase from approximately 116,000 in the year 2000 to 180,000 in 2020. Being aware of the trends, the legislature should: Pro��ide additional resources to serve the lo�e income elderly. Resources should include housing as well as related sereices. 1999 Legisiative Policies 11 � Housing & Economic Development � � ♦ Direct state agencies to provide information and technical � assistance to local governments regarding the population changes and their impacts on public ser��ices. ♦ Develop policies that encourage the development of housing for � the elderly that is affordable and provides an attractive alteznative to current housing and preserves the current housing. � Economic Development Responsibilities (lil-F} The state should continue to recognize cities as the primary unit of government responsible for implementing economic development policies and land use controls. New or amended economic development programs designed to address specific economic circumstances with cities or counties should use problem definition as the criteria rather than geographic location, city size or similar criteria. Tax Increment Financing (111-G) The legislative Recodification Tax Increment Financing (TIF) Task Force will initially have a bi11 that wi11 be absent of policy changes. Policy changes should be addressed separately from the recodification and among the changes the legislature should: PooltnQ ♦ Clarify that any tax increment districts approved between 1979 and 1982 have the same authority to pool increments as distxicts certified after 1982 and prior to Apri11,1990. Allow districts approved after April 1,1990 to pool increments for affordable housing or pollution remediation. Local Ef�'ort ♦ Eliminate the LGA/HACA penalty or allow an exception from levy limits. If the penalty is not eliminated, the restrictions on the source of payment should be removed. Authorize the use of federal grants and other locai funds for local contributions. 12 1949 Legislative Policies � � � L ] � � � Housing & Economic Development aa-Ir TrF use ♦ Exempt redevelopment districts from the five-year rule. ♦ Reaffirm Ehat cities alone should be authorized to approve city initiated tax increment districts and that counties and school districts should continue to have the ability to review and comment on TIF. ♦ Permit all cities to establish housing replacement (scattered site) districts and allow TIP to be used for historic preservation. Housin Modify the housing district income qualificarion requirements to allow the levels to vary according to individual regions of the � . � � �a � � � � � � � �� state or counties. ♦ Remove the LGA jHACA penalty imposed on housing districts established between 1990 and 1993. Reporting ♦ Authorize the publication of TIF financial information in a format so that it provides taxpayers with useful information. ♦ Clarify that the Office of State Auditor (OSA) must give cities sixty days to respond to a violation of the TIF law prior to sending a notice of the violation to the county attorney. The notice to the city must also state that at the end of the sixty-day period any resolved issues will be sent to the county attorney for possible action. Require the county attorney to decide on action regarding violation within ninetp days of receipt of the notice from the OSA. 1999 Legisiative Policies 13 Nousing & Economic Development F � � -1 ♦ Authori2e the OSA to conduct a compliance revie�v of a tax inaement district within fcvelve months of Ehe date the district is decertified or the increment is completely expended �vhichever is later. The State Auditor, upon completion of the review and resolution of outstanding issues, must issue a certification that the district is complete and not subject to further actions by the Office. ♦ Make statutory changes to simplify the TIF reporting forms submitted annually to the State Auditor. Property Tax Reform Impact on TIF (ili-H) During the past two legislative sessions, the property tax class rates have been compressed and as a result commercial industrial property taxes should decrease. The decrease could also result in revenue shortfalls in TIF districts. The shortfalls could impact bond payments and other contractual obligations. Being aware of the impact, the 1997 Legislature authorized a$2.0 million grant program to be administered by the Minnesota Department of Revenue and the 1998 Legislature authorized cities to establish special service districts to offset possibie shortfalls. Being aware of the impacts, the legislature should: ♦ Authorize the grant program for 1998 tax change impacts in addition to the 1997 tax changes. ♦ Provide additional funding for the program and extend the sunset to the year 2003. ♦ Include the changes in class rate definitions such as maximum market value limits and number of parcels per class in the calculations to determine class rate compression iinpacts. ♦ Move the application and payment dates to coincide with the city budget time frames. ♦ Permit city councils to transfer funds from one city development agency to another to prevent shortfalls due to property tax changes or TIF law changes that ti�ould result in a deficit in paying outstanding contracts ar obiigations. 14 1499 l,egislative Policies � � � � � � Housing & Economic Development °t`� Development Tools (III-I) Over the past several sessions, the legislature has provided cities with development tools to redevelop property, clean up polluted siEes and encourage business retention and expansion. The tools include, but are not limited, to TIF, tax expenditures and loans and grants. Many of the state tools have supplemented local efforts. To continue this state local relationship, the legislature should: ♦ Continue the Minnesota Investment Fund. � ♦ Support increased funding for the pollution clean-up program administered by the Minnesota Department of Trade and Economic Development (DTED). � � � f� !�J � � � !'� E� � � � ♦ Require condemnation commissioners to consider the cost of correcting pollution problems in determining the final value of property. ♦ Establish an indemnification fund to provide financial security for institutions and individuals as they invest in developing and clean-up of polluted sites. ♦ Eliminate Ehe requirement to match a portion of the clean-up grant program with local general funds. ♦ Continue and increase funding for the Redevelopment Fund established in 1998. Weifare Reform/Workforce Readiness (ill-J) With the passage of federal welfare reform and enactment of Minnesota's new welfare program - the Minnesota Family Investment Program (MFIP), public policy is placing an emphasis on work and job readiness. The purpose of MFIP is intended to support �vork and not to replace income when people are not working. To accomplish the goal of get�ing people to work Minnesota has adopted a work first program that expects, supports, and rewards wark. 1999 �egislative Polides 15 .�6 Housing & Economic Oeve�opment �q �t0 Among the program elements established b}� the legislature to implement MFIP are jobs training, transportation, medical assistance, and housina. � !� � As MFIP is being implemented statecvide, the state is experiencing [ record lo�v unemployment and economic growth and as a result � there are now employment opportunities. If the economy, however, declines, employment opportunities for MFIP participants will � decrease and the state's human service system could be over exEended. Being aware that a trained work force is a major part of � an economic development strategy the legislarixre should: ♦ Provide state funding to match the maximum amount of available federal training funds. ♦ Continue and increase funding for state job training programs including Pathways and the Job Training Partnership. ♦ Modify the Pathw�ays Program to provide public agencies with the flexibility to contract with training programs of employers, as well as those of public institutions. ♦ Continue and increase funding for the transportaEion and childcare programs including siiding fee daycare. ♦ Examine the delivery system for state services (training, daycare) to determine and ensure that administrative procedures are implemented uniformly throughout the state. Business Subsidy (Iil-K) The Minnesota Department of Trade and Economic Development (DTED) and local governments provide financial incentives to businesses to relocate, expand or remain in the state or specific city. The provision of the incentives is usually part of a development agreement between the business and the public entity. The ab eement contains a description of the incentive and the type of development to be completed in terms of market value or square footage and penalties for non-performance. The agreements also contain job and wage goals as required by current Minnesota 1aw. 16 1999 Legislative Policies �� Housing & Economic Development /�Q. �� In reviewing the issue of corporate subsidy the legisiature should: � 6:� � � L�! � LJ � � LJ 1� 1� 1� � � � � ♦ Clarify the reporting requirements in terms of time frames and reporting entity. ♦ Exclude redevelopment and housing TIF districts from the reporting requirements of current law. ♦ Maintain the reporting of job and wage goals in current law but do not require a specific wage amount. Building Permit Fee Surcharge (111-L) Local governments collect a half-percent surcharge on building permits. The proceeds of the surcharge are paid to the state and are used to support the State Suilding Codes and Standards Division. Prior to 1991, any excess proceeds were remitted on a prorate basis to the local governments. To help with the development of affordable housing it is recommended that: ♦ The proceeds from the building permit surcharge fee be paid to the MHFA for the support of affordable housing and that the building codes and standards division be funded from the state generalfund. Group Homes (ill-M) ♦ State and county agencies must provide timely notification to cities of facility license requesEs and renewals and provide adequate opportunity to respond. Cities must also be aware of the special care needed by residents of such facilities in case of public safety emergencies. Clustering of community residential facilities because of economic, geographic or other factors shoutd be avoided. Standards of non-concentration for state or county-issued Requests for Proposals (RFPs) should be established. 1494 teg�siative Policies 17 Housing & Economic Development �Q � ♦ There must be an ongoing screening process, particularly in the correction area, to insure that persons placed in a residentiaI facility will benefit from such an environment and will not be a danger to themselves or others. The licensina authority must be responsible for removing any person found incapable of living peacefully in such an environment. Facilities licensed by the corrections department should not be exempt from reasonable local land use regulations. ♦ A fair share concept should be considered within the metropolitan area. However, this concept should consider other £actors induding transpartation facilities, job availability and other needed support services. ♦ The licensing authority and/or legislature should allow cities Yo participate in the search for facility locations in order to meet needs of the providers, facility residents and the neighborhood. 18 1999 Legislative Policies � �1 � 0 � � LJ C� � � � L-1 � 1 ; I _I � I; -a � � Metropolitan Agencies (IV) q 9 -18' Introduction: Metropolitan Governance Structure The Metropolitan Council was established in 1967 to coordinate "the planning and development" of the seven county metropolitan area. To fulfill its responsibilities, the Council has worked with local governments to establish policies regarding growth and development in the region. Over the years, the Council has been authorized by the legislature to be involved in the development of regional parks and in the operation of regional services. In 1994, two independent agencies responsible for transit and waste water disposal were merged into the Council. In the following years the Council was mosEly advisory, but was given responsibility for regionai policy development and coordination in the areas of wastewater treatment, transportation and airports. The Council was given limited approval authority for development proposals, which were of inetropolitan (regional) significance but was not given direct operational authority. The Metropolitan Council's responsibilities have been expanded over the years. The Council was given direct operational responsibility for regional transit and wastewater treatment in 1994. In the following year, the legislature directed the Council to implement the Livable Communities Act (LCA). The Council's role with the LCA is to negotiate affordable and life cycle housing goals for cities and provide grant funds for the clean-up of polluted lands and demonstration projects that foster a mix of land uses and housing types. The Council's role has evolved since its inception to long-range planning and the operation of regional services. 1999 Legislative Policies 19 Metropolitan Agencies q9 - � Metropolitan Council Principles (IV-A) The MetropoliEan Council is a planning and operating entity. The Council is not only responsible for guiding the growth of the region but also operates the region`s wastewater disposal and transit systems. As a planning and operating agency, the Council's policies and guidelines impact local units of governxnents particularly cities. The AMM, in framing its relationship with the Metropolitan Councii, has developed several principles that are incorporated into the following policy areas. Purpose Qf Metropolitan Governance (IV-B) The AMM affirms its support for the existence of a metropolitan governance system to deal with appropriate regional issues and concerns. The purpose of the metropolitan governance system should be: ♦ To facilitate region-wide planning �vith the cooperation and consideration of the affected local units. ♦ To provide certain region-wide services that do not dupl'acate those that can be provided by local governmental units, either individually or jointly. To fulfill other specific responsibilities mandated by the state and federal governments. Criteria for Extension of Metropolitan Governance Authority (IV-C) The legislature, if granting the metropolitan governance structure E additional responsibility or authority, should be specific in the � grant. Additional new or expanded authority should be considered only when one or more of the following exist: The seroice, function or activity has been shown to be needed and it can be demonstrated that it cannot or is not being effectively or efficiently provided through existing general purpose units of goverrunent. Z� 1999 Legislative Policies ,� �� J � � {�..:, � r � L� 4� � � ■_ ; � � �' f � � Metropolitan Agencies qq.l� ♦ The service, funcfion or activity is not an appropriate state level or local government level acEiviry or function. ♦ Regional intervention is needed for protection of the region's investment in an exisring metropolitan system. Restructuring of Metropolitan Agencies (IV-D) The Sports Facilities Commission and the Metropolitan Airports Commission (MAC) are currently metropolitan commissions. The legislatuxe should make the spozEs facility commission a local commission if the back-up tax is limited to one city or is expanded to additional cities. If the tax is extended to other cities, the commission should be restructured to have membership from those cities. The legislature should clarify the status of the MAC so that it becomes either a metropolitan or state directed agency. The determining factor in the agency decision is the nature of the commissiori s back-up tax. If the tax will be a metropolitan area tax, its membership should come from the metropolitan area. If the back-up tax is statewide, then the MAC should have statewide representation. Regionally Provided Services: Funding (IV-E) The Metropolitan Council should continue to fund its regional services and activities through the existing combination of user fees, property taxes, and state and federal grants. The current revenue system provides better visibility to the customers of the expenditures and efforts to move toward a single revenue source should be opposed. The Metropolitan Council, in conjunction with the operating entities and not the legaslature, should be responsible for determining user fees. The fees should be consistent with regional system plans and goals and be established by an open, visible procedure including, but noE limited to, pubiic notice and hearings. A clear linkage between revenue and service should be maintained. 1999 Legislotive Polici2s 21 Metropolitan Agencies c�q _l� Coordination of Local 8� Regional Plans (IV-F) The regional inveshnent in metropolitan systems must be maintained and preserved by preventing adverse impact because of the lack of integration and coordination between regional and local planning. Regional system desib ation should only be approved if there is a compelling metropolitan problem or concern that can best be addressed through the designation. The regional planning process must, on a continual basis, have the input of local government officials. To ensure input, the Council should hold hearings and provide public notice and copies of proposals regarding amendments to the Metropolitan Development Guide. Metropolitan system plans must be specific in terms of locations, capacities and timing to allow for consideration in local comprehensive planning. System plans should clearly state the criteria by which the local plans will be judged for consistency. The system plans should also clearly state the criteria that will be used to find that a local plan has a subsEantial impact on or contains a substantial departure from the metropolitan system plans. The Metropolitan Council should continue to offer assistance to cities. The assistance should include but not be limited to staff support, research, policy guidelines, system statements and procedures for the review and evaluation of plans and amendments. The Metropolitan Council, in its review of local plan amendments, must have a procedure that will: Recognize that the Council's role is to review and comment, unless there is a substantial impact on or departure from the system plans. ♦ Establish an open ciialogue between cities and the Council, including public meetings and public hearings. 22 1999 Legislative Policies Metropolitan Agencies aq- �s Be a�vare of the sfatutory time consiraints imposed by the legislature on plan amendments and development applications. ♦ Provide for immediate effectuation of plan amendments, which have no potential for substantial impact on systems plans. � Require the information needed for the Council to complete its review, but not prescribe additional content or format beyond that is required by the Metropolitan Land Planning Act (MLPA). Metropolitan Councii Focus on Planning (IV-G) For cities to meet their planning mandates, the Council must ensure � that its planning, data collection and dissemination functions are fulfilled in a timely manner and are consistent with its statutory � � 4 '' � � � � � � � � obligations. Growth Management Strategy (IV-H) The Council should continue its discussions with officials in western Wisconsin to encourage their adoption of effective growth control measures. Further investment in transportation infrastructure with Wisconsin should be conEingent upon Wisconsin local governments and their implementation of such controls. The legislature should devise effective methods of ensuring responsible and controlled development in counties surrounding the metropolitan area. The Metropolitan Council should continue its flexible guided growth policy regarding Metropolitan Urban Sereice Area (MUSA) expansion requests as outlined in the Regional BIueprint. However, the Metropolitan Council must recognize that until there are effective growth management strategies and tools beyond the metropolitan area, tightening of MUSA expansion criteria within the metropolitan area will cause one or more of the following: ♦ Increased leapfrog development into adjacent counties and 4�'isconsin. 1999 Legislaiiv� Policies 23 Metropolitan Agencies q`i- I�' ♦ Increased housing cosEs within the metro}��lit�:. area. ♦ Decreased economic growth due to incre.l��d �°'velopment costs. ♦ Increased development activity in the Rw.i1 Ser��ice Area. Local Plan fmpiementation (IV-I) Local governments are responsible for zonin�;. ThE�'>� zoning decisions should not be conditioned upon apf�rov<�ls by the Council or other governmental agency. The AMM is open t�� the use of alternative dispute resolution procedures pri��r to j�ldicial remedies. Alternative dispute resolution could reduce cc�sts r� nd time for all parties involved in the dispute. The AMM strungly �PPoses the creation of an appeals board that could supersede ��ty planning or zoning decisions. Budget Process & Work Program Evaluation (IV-J) Mandated and non-discretionary projects shc�uld l�� identified, along with their funding sources and pro}ects and ,�ctivities which are discretionary but totally or mostly funde�l by s(ate or federal funds should be identified. Previous year's e�pencliture history should also be provided. The annual budget should deiineate the services fc �nnerly provided by the operating agencies and the expenses and revenue for those services should be clearly identified and linkages l�etween expense and revenue maintained. Further, the funds or res�•rve funds raised for a particular service should not be used or com�ilingled with the funds raised for any other service or activity. The CounciI's work program should meet four tes1�: The issue or problem identified is important tn the region s well being. ♦ Council intervention or activity will prod uce a positive result. 24 � qqq �egislative Pollcies � � � � � � � � � � � E: _' � Metropolitan Agencies � � -, ♦ The Council's action does not duplicate or serve as a substitute for a state level program or effort or what should be a state level activity. The Council is the most appropriate agency to intervene or perform the activity. Metropolitan Counci(: Method to Select Members (IV-K) The legislature has debated proposals to amend the process to select Metropolitan Council members. Proposals to elect the members directly or to elect county commissioners as council members have been discussed but not enacted into law. The AMM has siudied the governance issue and has released a separate "Metropolitan Governance Report" (October 1998). The report notes that there is no regional crisis that requires a governance change, but did recommend that council members serve fixed, staggered terms. The AMM further recommends that no changes be made to the metropolitan council unless a governance proposal meets a set of criteria. The intent of the criteria is to fashion a regional governance structure that has a distinct mission, but does not establish a political subdivision with local government powers or one that is a state agency. The Council should have a distinct mission of long- range planning and operation of legislaEively-authorized regional services. The criteria include: Terms o�0 ice 1 � L.� � L� � � Members should serve fixed, staggered terms. Councii Powers The Council should continue to be a long-range, pianning agency and potentially an operator or oversight agency for regional services. As such, the Met Council must maintain planning, coordinating and local assistance as a high priority. 1999 Legislative Policies �5 Mefiropolitan Agencies qq - lY AdditionaI Powers New powers must not expand or override city responsibilities, especially land use reb lation authority. The Met Council must not become an agency with general Iocal government powers. State Role The legislature should focus on broad oversight of the Met Council's mission and services. Local Govennnent Local elected officials must be involved in the selection process of Met Council members and there must be a mechanism to facilitate meaningful dialogue and input between the Met Council and cities. Collar Counties The metropolitan region clearly includes the seven designated counties and the adjacent eleven Minnesota counties, as well as three Wisconsin counties. The needs of the entire metropolitan region beyond the current seven county region must be addressed. Mef Courzcii Members The selection process must strive to appoint Met Council members who have an understanding of and wilI be responsive to the district represented, as well as be responsive to the best interests of the region. The selection process should limit the potential influence and support (including financial) of special interests. Parks 8� Open Space: Operation & Maintenance Capital Funding (tV-L) The governor and Ehe legislature should continue to appropriate funding for the operation and maintenance of regional parks. The Ievel of funding should be equal to the stahztory goal of 40 percent of the total budget. Regional parks essentially serve the role of state parks in the metro area and the acquisition, development and improvement of the parks should continue to be funded, in part, with state resources. 26 1999 Legislative Policies , Metropolitan Agencies qq-lY Surface 8� Groundwater Water Management (IV-M} If legislation is considered for surface water management, it should be based on the following principles: ♦ The legislature should provide full funding if it mandates additional water management planning or implemenring activities by local units of government. �� Local units of government should continue to be responsible for surface and groundwater management, since they are the closest to the problem. ♦ Ne�v state requirements should not add to Iocal costs and duplicate revie�vs/approvals should be reduced or eliminated. The AMM wouid support the following iniEiatives/action: A thorough assessment of the Board and Water and Soil Resources (BWSR) structure and authorities to ascertain if it should continue to be the approval and oversight agency for surface water management planning and activities in the metropolitan area. A thorough assessment of the metropolitan area surface water management planning and permitting process with the objective of developing improvements in conflict resolution, better coordination between state and local agencies, and streamlining the project permit approvals process. Compliance by local units of government located outside of Yhe metropolitan area with the same standards and requirements for surface water management as those imposed on local units within the metropolitan area. � ♦ A technical evaluation of the impact of 2:1 wetland replacement in the urbanized area on the goal of greater urban densities as stated in the Metropolitan Council's Regional Blueprint. � � � 1949 Leg+s!ativP Polic;as 27 Metropolitan Agencies � � r � � Water Supply (IV-N) Addirional legislation pertaining to local or re� onal water supply planning is not warranted. If legislation, however, is proposed it should be based on the following principles: L� !� ♦ Local units should retain the basic responsibility for water [� supply planning and management as in current law. � ♦ The state should fund additional mandates. ♦ Potable water should not be designated a regional system. Regional Wastewater (Sewer) Treatment System (IV-O) The regional wastewater ireatment system has improved the water quality of the regiori s major river and iakes. The system should not be permitted to break up or to diminish its effectiveness. Since all users benefit equally, the regional rates should be uniform by type of user. Waste Stream Management (IV-P) The legislature should enact leaislation, which will: ♦ Establish goals to reduce, recycle and reuse packaging materials and establish fees, taxes or deposits to encourage accomplishment of the goals. The revenues would be waived when the goals are met. Available revenues would be used to promote or enhance Iocal programs to achieve the goals. Continue the Office of Environmental Assistance (OEA} as an agency that primarily assists local governments to manage waste effectively. ♦ Continue the role of cities in waste stream management unless a state or metropolitan system is established to achieve the same goal. ♦ Distribute all proceeds from any funding system for solid waste management activities and require distribution of funds to all entities involved in tite system 28 1999 Legislative Policies � � � L�� .�1 � � � � � � L�J � � � L�1 Metropolitan Agencies � -'� Q ♦ Provide that host communities £or solid waste facilities will not have a financialliabiliEy for costs associated with operating and monitoring the facility. Such costs shouId be borne by the operator and in the absence of regulations should be assumed by the state. Maintain, at a minimum, the current compensation level permitted through surcharge fees and increase the level as well as making the compensation available to all types of solid waste facilities. ♦ Define municipal solid waste not to be a hazardous substance. The definition would enhance the ability of local governments involved in clean-ups to settle potential liability. 1999 Legisfative Policies 29 � Metropolitan Agencies o� 9 -1�' [ � � � � � �� 30 1999 Legislative Policies � =�_._._ :-.... _:�-� o c Transportation Funding (V-A) Transportation (V) The AMM strongly supports increased funding for transit and highways, both of which are a critical need in the metropolitan area. In addition, funding for mass transit including transit ways, light rail or heavy rail in existing corridors should be dedicated in a manner consistent with current highway funding. Funds allocated to the metropolitan area should be flexible so that the most efficient and cost effective transportation solution may be chosen. � � Funding needs in the next two decades far outstrip current funding sources and rates. Therefore, the legislature should consider additional funding and alternatives such as an increase in the gas tax, future indexing of the gas tax, use of the motor vehicle sales tax (formerly MVET), use of a certain percentage of the state general fund, a dedicated porEion of the general sales tax, a sales tax on gasoline at the pump, state bonding authority for major projects, or a combination of these. If an aiternative to the transit property tax in the metropolitan area � is adopted, current opt-out transit systems should continue to be funded at comparable levels. ��' � r � � r� Regionai 7ransit System (V-B) The Regional Transit System should be a combination of integrated traffic management systems which include use of HOV lanes, express buses, exclusive transit ways, light rail transit, and commuter rail corridors built to connect residents to job, retail and commercial centers, plus a variety of oEher transit modes, including taxi, bus, pedestrian and bicycle. 1999 Legislative Policies 3� Transporfation �� p� �q . Park-and-ride facilities for mass transit modes adequate to connect the regional centers, major trip generators and communities, both urban and suburban, should have integrated feeder systems to accommodate local buses, automobiles, van pools, bicycles, as well as walking facilities. The Metropolitan Council should work with local units of governmenE to encourage appropriate Iand use controls along designated transit corridors to promote transit ridership. Transportation Incentives & Disincentives (V-C) The AMM supports the development of a comprehensive system that will facilitate an increase in the occupancy level of cars, reduce commuter trips and enhance the use of transit within the metropolitan area through the use of tax incentives and f or impact fees that encourages multiple occupancy transit use, the exclusion from gross income the value of commuter transportation benefits provided by an employer, and/or a tax deduction and tax credit for employers who provide commuter transportation benefits to employees. Transportation Utility (V-D) The AMM requests the legislature to authorize cities to establish a transportation utility £or street maintenance and reconstruction of aging infrastructure, similar to the existing storm water utility, so that costs of improved facilities can be more fairly charged to the users rather than the general population as a whole. Highway Turnbacks & Funding (V-E) The AMM supports jurisdictional reassigiunent or turnback of roads on a phased basis using functional classification and other appropriate criteria subject to a corresponding mechanism for adequate funding of roadway improvements and continuing maintenance. Cities do not currently have the financial capacity other than significant property tax increase to absorb the additional roadway responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated tumbacks. 32 1999 Legislative Policies � � � LJ � � L�:J � � �' � i � -i � � � iransportation qq-t�' '3C' Transportation Planning Process: Elected Officials Rote (V-F) The AMM supports continuation of the Transportation Advisory Board (TAB), a majority of local elected officials membership on the TAB itself and the TAB process, wl�ich was developed to meet federal requirements for desib ation of the Metropolitan Council as the Metropolitan Planning Organization that is responsible for the continuous, comprehensive and cooperative (3C) transportation planning process to allocate federal funds among mefro area projects. This process requirement �vas reinforced by the ISTEA Act of 1991 and the 1998 Transportation Efficiency Act for the 21st Century (TEA21). Motion Imaging Recording System (M.I.R.S.): Traffic Law Compiiance (V-G) The AMM requests legislative action authorizing utilizaEion of motion imaging recording system technology for governmental units, inciuding cities, on streets and hibhways to assist promotion of safety and traffic law compliance enforcement. The technology has been proven and is currently used for 1aw enforcement by numerous states, municipalities and other countries. The state should consider a pilot project on municipal streets in the Airport Noise Mitigation (V-H) metropolitan area. In 1996, the Metropolitan Airports Commission (MAC) was charged with developing a mitigation package for legislative consideration in 1997, but the package was never developed. Costs associated �n�ith noise mitigation should be borne by the airport (MAC) and the state since the airport is considered a statewide facility. Noise mitigation programs need to be enhanced to beyond the current 60 DNL contours for existing and future impacted areas. Impacts, including envirorunental and low frequency noise, must � be identified at all MAC airparts and applicable mitigation measures implemented ty MAC. By the year 2000, the Environmental Quality Board (EQB) should establish o idelines for � airport noise (including low frequenc� ) in consultation with the v1aC, �Ietropolitan Council, MSP Noise Mitigation Committee and � aftected cities_ This mav include expansion of the sound insulation program to the 5� DNL. � 1999 �egisiative ?olicies 33 Transportation qb ��r 7 The MAC should establish a plan to assure funding for required environmental impact mitigation for Iegislative action by the conclusion of the 2000 Session and levy a property tax on MAC- owned and leased property if it is not approved. Due to an operations increase of 27 percent b5� 2010, noise impact fees should be created to encourage conversion to real stage III aircraft. This policy is not intended to impact airport development or construction decisions. Road Access Charge (V-i) In order to fairly provide for major street improvements of primary benefit to a particular subdivision development but not directly assessable and to allocate cost so that new growth pays its fair share, the legislature should authorize cities to establish at their option a road access charge to be levied on an area or per lot basis at the time that subdivisions are approved or at the time building permits are issued similar to park dedication fees. 34 1999 Legislative Policies � � r 0 � � � � �J � � � � � � � � ' ' � �. �. a �� i , Commitfiee Rosters (Vf) dq-rr Housing & Economic Development Craig Waldron (Chair), Administrator, Oakdale Beverly Aplikowski, Councilmember, Arden Hills Kirstin Barsness, Director of Economic Development, Cottage Grove Janis Callison, Councilmember, Minnetonka Dennis Cavanaugh, Councilmember, St. Anthony Dan Donahue, Manager, New Hope Gail Dorfman, Mayor, St. Louis Park Mike Ericson, Assistant Manager, Maplewood Mike Freeburg, Councilmember, Anoka john Goedeke, Councilmember, Roseville Regina Harris, HRA Director, Bloomington Andrea Hart Kajer, IGR Director, Minneapolis Coral Houle, Mayor, Bloomington Gordon Hughes, Assistant Manager, Edina Marvin Johnson, Vlayox, Independence Dwight Johnson, Manager, Plymouth Jane Kansier, Plazuting Coordinator, Prior Lake Kathy Lantry, Councilmember, St. Paul Jan LeSuer, Councilmembei, Golden Valley Joan tilolenaaz, Councilmember, Champlin 1999 Legislativ� Polici2s 35 Committee Rosters ��I Ron Rankin, Community Development Director, Minnetonka Mark Sather, Manager, White Bear Lake Cari Sclunidt, Assistant to City Manager, Mounds View Mark Senn, Councilmember, Chanhassen Kathy Thurber, Councilmember, Minneapolis JeTry Tumquist, Councilmember, Oak Park Heights Liz Workman, Councilmember, Bumsville Metropolitan Agencies Terry Schneider (Chair), Councilxnember, Minnetonka Bi11 Bamhart, Government Relations Representative, Minneapolis Kevin Batchelder, Adnunistrator, Mendota Heights Bob Bruton, Councilmember, North St. Paul Cathy Busho, Mayor, Rosemount Sharon Feess, Councilmember, Brooklyn Park Matt Fulton, Manager, New Brighton Thomas Goodwin, Councilmember, Apple Valley Tom Harren, Planner, St. Paul Ken Hartung, Adnunisirator, Bayport Susan Hoyt, Administrator, Falcon Heights Anne HurlburC, D'uector of Community Development, Plymouth Barbara Johnson, Councilmember, D4inneapolis E Gary Joselyn, Councilmember, Crystal Rick Kelley, Community Development Director, Apple Valley Larry Lee, Director of Community Development, Bloomington Tom Link, Director of Development & Prot. Serv., Inver Grove Heights 36 1999 Legislative Policies � I � � Committee Rosters �►9 -�r Paul Malone, Councilmember, Arden Hills Niary Helen Mische, IGR AssisEant, St. Paul Mark Nagel, Manager, Anoka Jim Norman, Administrator, Ramsey Don Rye, Planning Director, Prior Lake Dave Schaaf, Mayor, Oak Park Heights Charlotte Shover, Councilmember, Burnsville Jill Smith, Councilmember, Mendota Heights James Smith, Councilmember, Independence Russ Susag, Councilmember, Richfield Eric Thole, Councilmember, Srillwater Joy Tierney,l�layor, Plymouth � � � � � � � � � � � � � � � � Sherry Timmerman, CouncIlmember, Oakdale Kurt Ulrich, Administratar, Champlin Chuck YVhiting, Adinuiistrator, Mounds View Donn Wiski, Councilmember, Roseville Municipal Revenue 8� Taxation Frank Boyles (Chair), Manager, Piior Lake Leslie Anderson, Director of Finance, Burnsville Gene Anderson, Councilmember, St. Paul Park Karen Anderson, Mayor, Minnetonka Curt Boganey, Manager, Brooklyn Park Edward Burreil, Treasurer & Finance Director, Roseville Thomas Burt, Administratoi, Rosemount Dave Cailister, Clerk-Administrator, Osseo joan Campbell, Councilmember, Minneapolis 1999 Legislaiive Policies 37 Committee Rosters A9 -t P' Tom Cran, Budget Analysis, St. Paul Steve Devich, Administrafive Services Director, Richfield Terry Dussault, Asst. to Manager, Blaine blargaret Egan, Finance Director, New Brighton Dan Faust, Finance D"uector, Maplewood John Gretz, Admuuster, Apple Vailey Terri Heaton, Chief Finance Officer, Bloomington Jon Hohenstein, Administrator, Mahtomedi Bill Huepenbecker, IGR Director, St. Paul James Keinath, Administrator, Circle Pines jim Knutson, Finance Director, Anoka Bob Larson, Administrator, Deephaven Tom Melena, Administrator, Oak Park Heights Steve Mielke, Manager, Hopkins John Moir, Finance Officer, Minneapolis Mike Mornson, Manager, St. Anthony Steve O'Maliey, Deputy City Manager, Burnsville Douglas Reeder, Adminstrator, South St. Paul Janet Robert, Councilmember, Oak Park Heights Ryan Schroeder, Administratoz, Cottage Grove James Smith, Councilmember, Independence Jerry Splinter, Manager, Coon Rapids Joy Tierney, Mayor, Plymouth Kurt Ulrich, Admizustrator, Champlin Gene Van Overbeke, Finance Director, Eagan John Wallin, Finance Director, Edina 3$ 1999 Legislative Policies � � � t � � � �' � � � LJ � � � � � Committee Rosters �� John Weaver, Councilmember, Anoka Jim Willis, Admulstrator, Inver Grove Heights Transportation & General Government Veid Muiznieks (Chau), Councilmember, St. Paul Park Gene Anderson, Councilmember, St. Paul Park Bill Bamhart, Govemment Relations Representative, Minneapolis Geralyn Barone, Assistant City Manager, Minnetonka Lyle Berg, Engineer Traffic & Transportation, Bloomington David Childs, Manager, Minnetonka Charlie Crichton, Councilmember, Burnsville Jerry Dulgar, Manager, Cxystal Dale Gusafson, Councilmember, Brooklyn Park Natalie Haas Steffen, Councilmember, Ramsey Gary Humphrey, Mayor, Apple Valley Gloria Johnson, Councilmember, Golden Valley Mike IClassen, Traffic Engineer, St. Paul Sandra Krebsbach, Councilmember, Mendota Heights Charles Lenthe, Director of Public Works, Blaine Dennis Maetzold, Councilmember, Edina Sandra Masin, CouncIlmember, Eagan Mark McNeill, Administrator, Shakopee Dore Mead, Councilmember, Minneapolis Charlie Meyer, Manager, St. Louis Park 1tilary Helen �lische, IGR Assistant, St. Paul Lynn �3oratzka, Councilmember, Hastings Dave Schaaf, �Sayor, Oak Park Heights 1999 Legislative Po6cies 39 Commifitee Rosters �Q -� �I Mazk Senn, Councilmember, Chanhassen Ceil Smith, Assistant to City Manager, Edina Dawn Weitzel, Community/Special Project Assistant, Richfield Donn Wiski, Councilmember, Roseville Bret Woodson, Assistant City Manager, Prior Lake 40 1999 Legisiative Policies October 1998 �� t � n 0 T �; � Association of Metropolitan Municipalifies 145 University Ave. W. ♦ St. Paul, Minnesota 55103-2044 Phone: (651 J 215-Q000 � Fax: (65I J 281-1299 E-mail: amm@amm 145.org . . � . q9-lP" Table of Contents 1. Introduction 2. Principles & Options 1 � 3. General Observations of the Committee 5 4. Issues Related to the Selection Method of Metropolitan Council Members 7 5. Recommendation on Changing the Selection Method of Metropolitan Council Members 8 6. AMM Metropolitan Agencies Coinmittee 10 1998 Metropolitan Governance Report �Tq - lP' 1. Introduction The Metropolitan Council was originally established to be a regional planning agency. However, the Met Council has evolved into an agency that also operates iransit and wastewater disposal and administers several federal, state and regional grant programs for parks, pollution clean-up, housing and redevelopment. In addition, the Met Council has a functioning housing and redevelopment authority. The Met Council's activities and annual budget, which is about $400.0 million, are the responsibility of a 17-member board. The board is appointed by and serves at the pleasure of the governor. 4Vhile the functions of the Met Council have changed, the Met Council's governance structure has basically remained unchanged. The evolving functions and the unchanged governing structure have prompted several legislative proposals regarding the Met Council's governing structure. The legislative proposals have included a directly elected Met Council, a Met Council composed of county commissioners elected to the Council, and the abolition of the Met Council. All the governance proposals have either been vetoed or have failed to gain legislative approval. As the 1999 Legislative Session approaches, there will probably be similar proposals introduced. The Association of Metropolitan Municipaliries (AMM) has been studying the Met Council, its governance structure and roles and responsibilities. The AMM's Metropolitan Agencies Committee began meeting in May 1998 and has developed several observations, principles and criteria to evaluate governance proposals. The following sections include the committee's principles and options, general observations and recommendations. 1998 Metropoiitan Governance Reporf 2. Principles & Options As defined in statute, the Met Council is a public corporation and a political subdivision of the state. The Met Council, however, is not like most political subdivisions. It may appear to function as a general-purpose unit of government, For example, ehe Met Council can authorize a property tax levy and it receives its authority from the legislature. The Met Council, unlike other general-purpose units, has a reporting relationship with the governor who appoints all Met CounciI members and approves IegisIa6ve initiatives. To others, the Met Council may function as a state agency. The governor s role with the Met Council and the need for legislative authority to conduct most activiries suggest that the Met Council is similar to a state agency. Being aware of the discussion regarding the status of the Met Council - government or state agency - the coizunittee offers the following advantages and disadvantages of three metropolitan governance models. Metropolitan Governance Model #1 If the Met Council is a state agency. AdvantaQes ♦ Budget review and approval and setting of fee amounts should be a state (legislative) function. ♦ An advisory council of appointed members similar to the board of the Pollution Controi Agency (PCA) could be established. ♦ The operating functions of the Met Council could become part of existzng state agencies, Disadvanta�es ♦ iVlany regional issues including budget approval, land use planning, and user fees for regional services should be made by a regional body. 1999 Metropolitan Governance Reporf aq -18' ♦ The comprehensive planning review and growth strategies need local govemment and citizen input. ♦ Review at the state level further distances the customers from the decision-makers. Metropolitan Governance Model #2 If the Met Council is viezued as a regional operating agency zvith an elected board and a planning agency zt�ith a separate appointed board. ♦ The board would be similar in size to the Met Council and could be responsible for regional long-range planning and coordinating. ♦ The operaiing agency could also be initially responsible for wastewater treatment and transit, but also be legislatively authorized to assume such services as airports or sports facilities. AdvantaQes ♦ The organization would be more directly accountable to the electorate. ♦ Regional planning and growth management would be separate from operation of regional services. ♦ There would be less involvement by the governor. ♦ There would be less involvement in operating issues by the state legislature and the governor. ♦ The organization may provide for more clear direction from the electorate. DisadvantaQes ♦ Planning and service delivery are separate. ♦ The organizational shucture could dilute the importance and impact of long-range planning. ♦ Another layer of elected government has been established. 1998 Metropolitan Governance Reporf ♦ The organization could be more costly than the current Met Council. The elected operating agency of the Met Council could be subject to greater influence from special interests or vendors providing campaign financing. Metropolitan Governance Model #3 If the Met Counczl is a political subdivision and a planning and operafing agenn� zvifh an elected govertting body. ♦ The governing body could be elected direcfly by the voters or by local government officials representing the district, ♦ The latter procedure is similar to the selection process used to select the University of Minnesota Board of Regents. AdvantaQes ♦ The system would be mare directly accountable to the electorate. ♦ There wouId be less direct invoIvement by the governor and legislature. ♦ The system may provide for mare cIear direction from the electorate. Disadvanta�es s Another layer of elected goverrunent has been established. An elected Met Council could be granEed expanded authority by the legislature to include activities currently provided by other political subdivisions, such as land use plaruling and zoning or offer new services. ♦ An elected Met Council could be subject to greater inEluence from special interests that could provide campaign financing. 1999 Metropolitan Govemance Report aq-«- The committee did not adopt any of the proposed alternatives but in listing the advantages and disadvantages was able to develop a list of criteria that ate essential for the fraining of an acceptable legislative proposal. 3. Generat Observations of the Committee The committee met with several elected and appointed officials to discuss previous reports and express their views on the issue of metropolitan governance. The following are the corrunittee's observations along with a general recommendation for each finding. Regional Problem Observation The presence or perception of a crisis did not motivate the study. The committee did observe that no regional issue is evident that requires a change in governance. General Recommendation The region should examine the role and function of the Met Council and its relationship with local government. Metropolitan Council Reorganization Act Observation The 1994 Metropolitan Council Reorganization Act merged the transit and wastewater functions into the Met Council. To date there has been no evaluation of the merger to assess the reorganization. General Recommendafion The Legislative Auditor should examine the new structure to determine if the region has been better served by the new structure and if the Met Council is the best agency to deliver the services. 1998 Metropolitan Govemance Report Collar Counties Observation The region s impact extends beyond the seven counties. The collar counties are growing in population and many residents of the collar counties commute into the metro area for work. Generai Recommendation The region should be recognized to be more than the current seven counties. There should a means to involve local goveriunents from the collar counties with the Met Council. Local Government Involvement Observation City and county officials expressed a lack o# comfort with the Met Council. Many officials believe that the relationship has improved but want to have more involvement of the Met Council with their local government. General Recommendntion There should •be a more fozmalized,process for local government involvement, including the selection of Met Council members. Basic Operations Observation The Met CounciI functions with many governmental responsibilities including but not limited to fee setting, making a fax Ievy and adopting regulations and also operates as a state agency. For example, the Met Council must request a state appropriation for the transit system. Therefore, it is difficult to determine what is the most appropriate governance sixucture. General Recommendafron Because of the unique nature of its tasks and duties, the Met Council's structure should not be limited to one form or the other. Refer to section five for specific recommendations. 1999 Metropolitan Governance Report q 9 - I�' 4. issues Related ta the Selection Method of Metropolitan Council Members The committee discussed the various methods of selecting Met Council members. While not favaring a particular method, the committee developed an issues list for several alternatives. The list is as follows: If the procedure for Met Council member selection remains as is: ♦ Concern that representatives of a district may represent the governor's interests rather than the interests of the district. ♦ Not adequate involvement of local elected officials in the selection process. ♦ If a representative is unresponsive to requests for dialogue with local officials, there is no meaningful recourse. ♦ There is no direct participation in the selection process by the general public, although not everyone felt that the general public wants to be involved in the process. If Met Council members are elected bu a direct election of the �eneral public: ♦ Concern that selection process would be unduly politicized. ♦ Concern for campaign funding and undue influence by special interests. ♦ Concern for creation of another formal level of government, and the possibility that once elected, the Met Council would be given more authority over local governments, especially in relation to land use decisions. IfMet Council snembers are appointed bU the �overnor from a Iist of candidates provided bU local e2ected o icials: ♦ Would address the issue of involvement of local officials in the selection process, but may not bring forward the best candidate that has a regional perspective. 1998 Metropolitan Governance Report May not allow for representation of ali stakeholders in the region (including the perspective of the development commc�nity). IfMetCouncil members are elected by Tocal elected o'cials• ♦ WouId address the issue of inaoIvement of local officials in the selection process, but may not bring forward the best candidate that has a regional perspective. ♦ May not allow for representation of all stakeholders in the region (including the perspective of the development community). 5. Recommendation on Changing the Setection Method of Metropolitan Council Members A. The committee recommends that fixed, staggered terms be established for Met Council members. B. The committee recommends that no changes should be made to the Met Council unless a governance proposal meets the following criteria: Ternzs o�0 ce Members of the Met CounciI should be selected to serve a fixed term of office. The terms of the members should be staggered. Met Council Pozoers The Met Council should continue to be a long-range planning agency and potentially an operator or oversight agency for regional services. As such, the Met Council must maintain planning, coordinating and local assistance as a high priority. Additional Poz��ers New powers must not expand or override city responsibilities, especially land use regulation authority. The Met Council must not become an agency with general local government powers. i999 MeTropo(itan Govemance Reporf R'9 -l� State Role The legislature should focus on broad oversight of the Met Council's mission and services. Loca1 Government Local elected officials must be involved in the selection process of Met Council members and there must be a mechanism to facilitate meaningful dialogue and input between the Met Council and cities. Collar Counties The metropolitan region clearly includes the seven designated counties and the adjacent eleven Minnesota counties, as well as three Wisconsin counties. The needs of the collar counties and the entire metropolitan region beyond the current seven county region must be addressed. Met Council Members The selection process must strive to appoint Met Council members who have an understanding of and will be responsive to the district represented, as well as be responsive to the best interest of the region as a whole. The selection process should limit the potential influence and support (including financial) of special interests. The above criteria attempt to fashion a regional governance structure that has a distinct mission but does not establish a political subdivision with local government powers or one Ehat is a state agency. The Met Council should not be a super government that could override local powers or be a state agency. Rather, Ehe Met Council should have a distinct mission of long-range plamting and operation of legislatively authorized regional services. 1998 Metropolitan Governance Report 6. AMM Metropolitan Agencies Committee Terry Schneider (Chair), Councilmember, Minnetonka Bill Barnhazt, Goverrunent Relations Representative, Minneapolis Kevin Batchelder, Administrator, Mendota Heights Bob Bruton, Councilmember, North St. Paul Cathy Busho, Mayor, Rosemount Sharon Feess, Councilmember, Brooklyn Pazk Matt Fulton, Manager, New Brighton Thomas Goodwin, Councilmember, Apple Valley Tom Harren, Planner, St. Paul Ken Hartung, Actministrator, Bayport Susan Hoyt, Administrator, Falcon Heights Anne Hurlburt, Duector of Community Development, Plymouth Barbara Johnson, Councilmember, Muuteapolis E Gary Joselyn, Councilmember, Crystal Rick Keltey, Community Development Director, Apple VaIIey Lazry Lee, Duector of Community Development, Bloomington Tom Link, Director of Development & Prot. Serv., Inver Grove Heights Paul Malone, Councilmember, Arden Hills Mary Helen Mische, IGR Assistant, St. Paul Mazk NageI, Manager, Anoka Jim Norman, Adinulistrator, Ramsey Don Rye, Plazuiutg Duector, Prior Lake Dave Schaaf, Mayor, Oak Pazk Heights Charlotte Shover, Councilmember, Bumsville JiII Smith, Councilmember, Mendota Heights � � 1999 Metropolitan Governance Reporf Qq - td' James Smith, Councilmember, Independence Russ Susag, Councilmembei, Richfield Eric Thole, Councilmember, Stillwater Joy Tierney, Mayor, Plymouth Sherry Timmeruzan, Councilmember, Oakdale Kurt Ulrich, Administrator, Champlin Chuck Whiting, Admuristrator, Mounds View Donn Wiski, Councilmember, Roseville 1998 Metropolitan Governance Report i l OR(G1NAL Presented By Referred To Committee: Date i WHEREAS, the Association of Metropolitan Municipalities has adopted its 1999 Policies and z Legislative Proposals to be considered by the Mimiesota Legislature during the 1999 session; and 3 4 WHEREAS, the City of Saint Paul was an active participant in the development of these s policies and legislative proposals and the City concurs generally on these policies and proposals, now 6 therefore be it 7 s NOW THEREFORE, BE IT RESOLVED, that the City Council of Saint Paul does hereby 9 recommend for consideration by the Minnesota Legislature the 1999 Policies and Legislative Proposals io submitted by the Association of Metropolitan Municipalities and does hereby request that these issues be ii addressed by the Legislature during the 1999 session. Requested by Department of: s �._ , % Approved by Mayor: Date �l r ��'( "� By � ,G �� Council File #� ��-� Green Sheet # �� , � RESOLUTION CITY OF SAINT PAUL, MINNESOTA 0 �,�� t� � rl � Form Approved by City Attorney sy: �/ ` -3u - � Approved b Mayor Co ' BY Submission to Adopted by Council: Date _ � � Adoption Certified by Council Secretary q� -l8' , S GREEN SHEET n,o 62'715 Bill Huepenbecker 6-8517 � TOTAL # OF SIGNATURE PAGES U oES.uefr+rmECron ancaHCa _ � arr�nauEV rnvct.cac ❑ wux�ataonnr.�soae R++urw.mnixnc � rwrortt��sasr�ert� � (CLIP ALL LO ATIONS FOR SIGNATURE) City Council approval of the Association of Metropolitan Municipalities 1999 Policies and Legislative Proposals. PLANNING COMMISSION CIB COMMITTEE CIVIL SERVICE CAMMISSION Has this perwNfirm everworketl untler a Contract for Nis tlepartmer� YES NO Hes fhis PersoNfirtn ever been a dlY emPbyce9 YES NO Dces this peisorJfirm posaess a slall not nwmalypossessetl Ey any curtent cdy employee? YES NO Is this persoNfirm a farpeted vendor? YES NO �lain a11 ves ansroers on seoarate sheet and attach to areen shee[ Saint Paul is an active member of the AMNI and was a participant in the effort to develop this year's legislative policies. The City shows support for the Association of Metropolitian Municipalities, an association we work closely with on many issues during the session and throughout the year. } G Q�.u'� ° �v 9 1 �'��,�`+^- _ � C` v.�.i�:'�� FGES IFAPPROVED None. S SOURCE : . l ' . �� 'r -� �. �-. �� , COS7/REVENUE BUOGETED (CIRCLE ON� ACTNIiV NUMBER YES NO INFORMATON (IXPVJI� � � 0 0 � � � � 0 0 a 0 � aq-�g� .lanuary 1999 � . �� ' • • '� � '�e S � Association of Metropolitan Municipalities 145 University Ave. W. ♦ St. Paul, Minnesota 55103-2044 Phone: (651� 215-40Q0 ♦ Fax: (651J 281-1299 � E-mail: amm@amm 145.org � � � � � � � �� qq-ltC � Table of Contents Municipal Revenue & Taxation (I) Levy Limits (I-A} Local Government Aid (I-B) Homestead & Agricultural Credit Aid (I-C) Tax Exempt Property (I-D) Sales Tax on Local Government Purchases {I-E) Local Performance Aid (I-F) Price of Government (I-G) Fiscal Disparity Fund Distribution (I-H) Personal Property Taxation: Electric Utility (I-I) Revenue Diversificatian (I-J) Class Rate Tax System (I-K) Limited Market Value (I-L} Funding Shifts (I-M) City Revenue Stability & Fund Balance (I-N) General Legislation (II) Mandates & Local Authority (II-A) Public Right-of-Way (II-B) County Plat Appxoval Authority (II-C) Police & Fire Precention Pro� isions (II-D) 1 1 1 1 2 2 2 2 2 3 3 4 5 5 7 5 � 1999 Legislation Policies i Toble of Contents � `"'`� 911 Telephone Tax (II-E) 800 MHz Radio System (II-F) Permit Approval: Zoning (II-G) Witness Fee Costs (II-H) Urban Reforestation (II-I) Elections: AlIey System Authority (II-J) Housing 8� Economic Development (lll) Livable Communities Act (III-A) State Housing Policy (III-B) Housing Preservation (III-C) Minnesota Housing Finance Agency Appropriation (III-D) Family & Elderly Housing (III-E) Economic Development Responsibilities (III-F) Tax Increment Financing (III-G) Property Tax Reform Impact on TIF (III-H) Development Tools (III-I) Welfare Reform/Work£orce Readiness (III-J) Business Subsidy (III-K) Building Permit Fee Surcharge (III-L) Group Homes (III-M) Metropofitan Agencies (IV) Introduction: Metropolitan Governance Structure Metropolitan Council Principles (IV-A) Purpose of Metropolitan Governance (N-B) G 6 6 7 7 7 7 10 10 11 11 12 12 1� 15 15 16 17 17 19 20 20 ii 1999 Legislative Policies � F 1 f � 6 F � s � � � � � � � � � �' � � L: _l � 0 Table of Contents _18 ••� l Criteria for Extension of Metropolitan Govemance Authority (IV-C) Restructuring of Metropolitan Aaencies (IV-D) Regionally Provided Services: Funding (IV-E) Coordinarion o£ Local & Regional Plans (IV-F) Metropolitan Council Focus on Planning (IV-G) Growth Management Strategy (IV-H) Local Plan Implementation (IV-I) Budget Process & Work Program Evaluation (IV-J) Metropoiitan Council: Method to Select Members (IV-K) Parks & Open Space: Operation & Maintenance Capital Funding (IV-L) Surface & Groundwater Water Management (IV-M) Water Supply (IV-N) Regional Wastewater (Sewer) Treatment System (IV-O) Waste Stream Management (IV-P) Transportation (V) Transportation Funding (V-A) Regional Transit System (V-B) � Transportation Incentives & Disincentives (V-C) Transportation Utility (V-D) � Highway Turnbacks & Funding (V-E) � '3C' Transportation Planning Process: Elected Officials Role (V-F) 1� � Motion Imaging Recording System (M.I.R.S.): Traffic Law Compliance (V-G) Airport Noise Mitigation (V-H) 20 21 21 22 23 23 24 24 25 26 27 28 28 28 31 31 32 32 32 33 33 33 � 1999 Legisla`ive Policies iii 7ab{e of Contents �p _t� t Road Access Charge (V-I) Committee Rosters (VI) 1998-99 Housing & Economic Development Commiftee 1998-99 Mefropolitan Agencies Committee 1998-99 Municipal Revenue & Taxation Cominittee 1998-99 Transportation & General Government Committee 3� 35 36 37 39 iv 1999 Legislative Policies � � � � � � a �D Levy Limits (I-A) Municipal Revenue & °� Taxation The AMM strongly opposes levy limits and urges the legislature � to not re-enact them for 2000 or beyond. The AMI�I also opposes I the imposition of artificial mechanisms such as valuation freezes, � payroll freezes, super majority requirements for levy, or other limitations to the local government budget and taxing process. Locaf Government Aid (I-8) Local Government Aid (LGA) is a necessary, state-raised resource to supplement local property taxes. Therefore, the AMM supports its continuation with an annual inflation index, along with additional state resources to further reduce the reliance on the property tax. In addition, any LGA formula changes considered by the legislature must have a positive impacC on the metropolitan area. Homestead & Agricultural Credit Aid (I-C) The Homestead and Agricultural Credit Aid (HACA} equals about 40 percent of the totallocal aid and should be continued as part of the local fiscal relationship, with an inflafion or increased household growth factor restared for cities. The AMM strongly opposes the conversion of city HACA to school aid. Tax Exempt Property (1-D) � The AMM encourages the legisiature to authorize cities to establish . a program of payments in lieu of taxes by tax exempt governmental and non-governmental organizafions, except cons�itutionally � exempt property, (churches and schools) for the cost of services such as police, fire and streets to their facilities. � � 1999 ! egislation Policies i I Revenue & Taxation Ga' � � Sales Tax on Local Government Purchases (I-E) The legislature should reinstate the sales tax exemption for all local government purchases without requiring a reduction in other aids. Local Performance Aid (I-F) The AMM opposes the Local Performance Aid prob am. The current program is vague, creates complexity to the overall state aids programs, and approximately one-fourth of the states cities do not participate. Price of Government (I-G) The price of governsnent calculation in regard to local aovernments should be based on (1) changes in the sum of the levy and state aids, and (2) examination of long term trends, not single year events. In addition, consideration should be given to service provision transfers between governmental units, increased demand for services by citizens and legislative mandates or tax rate changes. Fiscai Disparity Fund Distribution (I-H) The AMM opposes the use o£ fiscal disparities to fund sacial or physical metropolitan prob ams since it results in a metropolitan-wide property tax increase hidden from the public. Personal Property Taxation: Electric Utility (I-I) The AMM opposes proposals for exempting the Investor Owned Ufilities (IOUs) from the personal property tax. Under no circumstances should local units of government and their taxpayers be required to shoulder the burdens of tax relief for IOUs. The personal property tax is a significant portion of the metropolitan fiscal disparity pool and, if eliminated, w•ould have a metro-wide property tax impact. � t� 2 7999 Legislative Policies � � j �' I � Table of Contents � Revenue Diversification {I-J) The AMM supports revenue diversification for cities to reduce the reliance on local properEy taxes. Some examples include authorization for local sales taxes, payments in lieu of taxes, franchise fees, deed taxes to remain �vith city, development impact fees, or the creation of a separate income/sales tax fund that would grow with the economy. Class Rate Tax System (I-K) The AMM opposes a change from the class rate tax system to a market value system, which would cause tremendous shifts of tax burden between classes of property, or applying future levy increases to market value, since this would further complicate the property tax system. Limited Market Value (I-L) The AMM opposes futther extension of artificial limits in valuing property at market for property taxation purposes. Limiting market value increase on existing property to a non-market index or set raEe will cause various property tax system problems. Similar properties wiil be taxed differently if new or sold and improvements will be discouraged. Tax shifts will occur mainly on lower valued homes and the ability to issue bonds may be adversely affected. Finally, it wi11 be politically difficult as well as costly to persons owning long-term capped properties when it becomes necessary to sunset due to vast differences in tax liabilities for like properties. The AMM believes that enhanced targeting for special circumstances such as low-income persons better serves the tax system. Funding Shifts (I-M) The AMM requests the legislature to continue to reduce the imbalance of aids versus revenue between metro and outstate cities and to consider how this distribution of resources affects the economic b owth and vitality of the metro area, and thus the entire state. CurrenEly in the metro area, about 65 percent of the state revenue is collected, �vhile onl�� about 48 percent of the aids and credits are redistributed. 1999 L2gisla�ive Policies 3 � �0 � Revenue & 7axafiion City Revenue Stabifity & Fund Bafance (i-N} �_t8' � The legislature should not attempt to control or restrict city fund balances. These funds are necessary to maintain fiscal viability to meet unexpected or emergencp resource needs of city governments, to purchase capital goods and infrastructure, provide adequate cash flow and to maintain high-level bond ratings. 4 1999 Legislative Poficies 0 � � � � a � � � � � �� Generai Legislation Mandates 8� Local Authority (lt-A) C��) a q_tY The AMM opposes statutory changes which erode local control and authority or create mandated additional tasks requiring new or added local costs cvithout a corresponding state appropriation or funding mechanism. New unfunded mandates cause increased property taxes which impedes the ability to fund traditional service needs. Pubiic Right-of-Way (II-Bj The AMM supports the continued effort of the League of � � Minnesota Cities (LMC) to protect the authority of cities to maintain jurisdiction over municipal public rights-of-way, to � establish relevant criteria and to obfain reasonable compensation for its degradation. � County Plat Approval Authority (II-C} Cities oppose county authority over plat approval for plats that are � contiguous to existing or proposed county roads. While counties have a valid interest in proposed plat decisions, this does not warrant a transfer of approval authority. Police & Fire Pension Provisions ({I-D) The AMM opposes reductions of state amortization aid to local poiice and fire retief associations or benefit increases, which are not financed by at least a 50 percenE employee conixibution for the benefit or resulting deficit. The emplo��ee pension contribution amount should be set at 40 percent of the normal cost oE financing the benefits even if this amounE exceeds 8 percent of the base salary. 1499 Legislative Policies � � General Legislation � "�� Actuarial assumptions relating to salaries and in� return � should more trul�� reflect experiences and bonuses. The AMM opposes bonuses such as the 13th check, which should not be included in actuarial assumption changes. � 911 Telephone Tax (II-E) The AMM supports the current distribution of the 911-access fee � and the limit of 30 cents per line per month to offset basic maintenance costs and enhanced upgrade. Any fee b anted � legislatively in excess of 30 cents should be returned directly to the municipality or public safety answering provider (I'SAP) where � collected. Fee increases granted by the legislature should be a specific amount not a general authorization and only for a specific purpose. Phase 2 Wireless enhanced 911 costs should be recovered � from a direct charge to ce11 phone users. 800 MHz Radio System (II-F) The AMM supports the continuation of thelVletropolitan 800 MHz Radio System legislation and Uoard, as long as cities are not forced to modify their current systems or become part of the 800 MHz Radio System until they so choose. The system should provide a phased transition guaranteeing uninterrupted service and be technically capable of allowing communities the flexibility to form various coordinated arrangements for dispatching and service provision. Since there are both regional and local benefits to local goverrunent units joining the system, the AMM urges the Regional Radio Board to seek a state appropriation to assist local units of government in joining the system. Permit Approval: Zoning (11-G) The permit approval statute delineating time limit requirements should be modified so that in the case of a rezoning application, a motion which requires a simple majority vote that extends action beyond the 60 or 120 day time requirement, constitutes a denial not an approval in order to uphold the super majority requirement of the zoning statute. Current law provides aueomatic approval if no action is taken. 6 1999 Legislative Policies � � � � � � � � � � � C1 � � � � � � Ci General Legislation �q_IY Witness Fee Costs (II-H) Since one third of fines far city-relaEed prosecutions remain with the county and adequately fund this cost, the AMM opposes shifting witness' fees from counties to cities for these actions. Urban Reforestation (If-1) The AMM supports the creation of a program in the Department of Natural Resources to provide for urban reforestation. Elections: Alley System Authority (11-J) The AMM supports permissive authority for statutory cities to adopt an alley system for filing for city council seats. 1999 Legislative Policies 7 � General Legislation a`1 _ tg � � 8 1999 Legislafiive Poiicies � .� � � � � �, �, ,. .,, .-' �, •%� P:. � ; �------; Housing & Economic Development (II!) Livabfe Communities Act (itt-A) The 1995 Legislature enacted the Livable Communities Act (LCA) � to stimulate housing and economic and community development in the metropolitan area. The act permits cities to access about $11.0 million in funding for pollution clean-up, housing and � redevelopment. As a participant, a city must adopt affordable and life cycle housing goals and a plan to achieve the goals. I� � L�7 f�J � � � Since its inception, the Metropolitan Council has been responsible for program implementation, including the completion of an annual proa ess report. The report for the 1996 calendar year indicates progress to�vard achieving the stated goals but also raises concern regarding the preservation of affordable housing, particularly the demolition of housing units. The AMM has maintained that the LCA should not be amended until there are prob ess reports and experience with the LCA. Based on the reports and experience of cities, the AMM recommends: ♦ The LCA should be continued. ♦ The LCA should be amended to eliminate the requirement that a city annually elect to be a participant in the act and require by November 15 Ehat a resolution to withdraw be approved. � ♦ The state should appropriate funds for the LCA. The appropriation should not replace the current funding sources but should be in addition to them. � � �� 1999 Legislative Poticies 9 Housing 8, Economic Development �n ��p _� State Housing Policy (III-B) To continue the expansion of the state's economy, the governor and lea slature should recob ize the importance of housing to economic vitality and family stability and should adopt policies that preserve existing housing, permit the production of safe affordable housing and provide resources to produce and preserve housing. The AMM recommends the following: Land LIse Standards and State Ince�ztives ♦ Minnesota cities are responsible for and should retain the authority to regulate the location, size and amount, and type of housing within their boundaries. The state, in an effort to encourage more affordable housing, should authorize cities on a voluntary basis and provide incentives for such concepts as density bonuses and mixes of housing types and price ranges. The incentives can be, but not be limited to, property tax class rates and sales tax exemptions for construction materials. ♦ State funding provided for the incentives should not reduce existing programs. Housing Preservation (III-C) Housing preservation includes the maintenance of the exisring rental and owner occupiecl housing, as we11 as the retention of affordable units that were formerly subsidized by federal programs. The state should: Continue and increase funding the housing preservation program for federally subsidized housing that could be converted to market rate housing. ♦ Expand efforts to provide resources for housing rehabilitation. ♦ Provide a sales tax exemption for construction supplies and materials used in the construction or substantial rehabilitation of affordabie housing. 10 1999 Legislative Poiicies � � � � Housing & Economic Development _ �r _� Exempt public agencies from paying the mortgage and deed tax when developing or providing for affordable housina and redevelopment. Minnesota Housing Finance Agency Appropriation (111-D) � The Vlinnesota Housing Finance Agency`s (MHFA) biennial general fund appropriation approximates 578.0 million. The agency � uses the funds for several housing programs including rental and homeownership. For the next biennium the agency should: � ♦ Have its appropriation increased and the increase be used primarily for housing preservation, housing production and homeless prevention programs. � L� � {..__7 � L_1 i � � L_,7 � L _ �! , �I Redesign, if �varranted and with city input, the Community Rehabilitation Program to encourage additional participation from the metropolitan area. The redesign, if needed, could include modification of the area designation, and appropriation set aside, a multiple year funding commitment, recognition of local needs, the timing of the application process, and a linkage to the LCA. Family & Elderly Housing (III-E) Demographic trends indicate that Minnesota's population is aging. For example, the Metropolitan Council projects that the region`s population age 65 and older wi11 nearly double from the year 2000 to 2020. Since most of the population owns singie family housing and they will be smaller households there could be a demand for smaller housing units. The elderly population will also be older than their predecessors wi11. In the metropolitan area, the Council reports that the number of persons age 75 and over will increase from approximately 116,000 in the year 2000 to 180,000 in 2020. Being aware of the trends, the legislature should: Pro��ide additional resources to serve the lo�e income elderly. Resources should include housing as well as related sereices. 1999 Legisiative Policies 11 � Housing & Economic Development � � ♦ Direct state agencies to provide information and technical � assistance to local governments regarding the population changes and their impacts on public ser��ices. ♦ Develop policies that encourage the development of housing for � the elderly that is affordable and provides an attractive alteznative to current housing and preserves the current housing. � Economic Development Responsibilities (lil-F} The state should continue to recognize cities as the primary unit of government responsible for implementing economic development policies and land use controls. New or amended economic development programs designed to address specific economic circumstances with cities or counties should use problem definition as the criteria rather than geographic location, city size or similar criteria. Tax Increment Financing (111-G) The legislative Recodification Tax Increment Financing (TIF) Task Force will initially have a bi11 that wi11 be absent of policy changes. Policy changes should be addressed separately from the recodification and among the changes the legislature should: PooltnQ ♦ Clarify that any tax increment districts approved between 1979 and 1982 have the same authority to pool increments as distxicts certified after 1982 and prior to Apri11,1990. Allow districts approved after April 1,1990 to pool increments for affordable housing or pollution remediation. Local Ef�'ort ♦ Eliminate the LGA/HACA penalty or allow an exception from levy limits. If the penalty is not eliminated, the restrictions on the source of payment should be removed. Authorize the use of federal grants and other locai funds for local contributions. 12 1949 Legislative Policies � � � L ] � � � Housing & Economic Development aa-Ir TrF use ♦ Exempt redevelopment districts from the five-year rule. ♦ Reaffirm Ehat cities alone should be authorized to approve city initiated tax increment districts and that counties and school districts should continue to have the ability to review and comment on TIF. ♦ Permit all cities to establish housing replacement (scattered site) districts and allow TIP to be used for historic preservation. Housin Modify the housing district income qualificarion requirements to allow the levels to vary according to individual regions of the � . � � �a � � � � � � � �� state or counties. ♦ Remove the LGA jHACA penalty imposed on housing districts established between 1990 and 1993. Reporting ♦ Authorize the publication of TIF financial information in a format so that it provides taxpayers with useful information. ♦ Clarify that the Office of State Auditor (OSA) must give cities sixty days to respond to a violation of the TIF law prior to sending a notice of the violation to the county attorney. The notice to the city must also state that at the end of the sixty-day period any resolved issues will be sent to the county attorney for possible action. Require the county attorney to decide on action regarding violation within ninetp days of receipt of the notice from the OSA. 1999 Legisiative Policies 13 Nousing & Economic Development F � � -1 ♦ Authori2e the OSA to conduct a compliance revie�v of a tax inaement district within fcvelve months of Ehe date the district is decertified or the increment is completely expended �vhichever is later. The State Auditor, upon completion of the review and resolution of outstanding issues, must issue a certification that the district is complete and not subject to further actions by the Office. ♦ Make statutory changes to simplify the TIF reporting forms submitted annually to the State Auditor. Property Tax Reform Impact on TIF (ili-H) During the past two legislative sessions, the property tax class rates have been compressed and as a result commercial industrial property taxes should decrease. The decrease could also result in revenue shortfalls in TIF districts. The shortfalls could impact bond payments and other contractual obligations. Being aware of the impact, the 1997 Legislature authorized a$2.0 million grant program to be administered by the Minnesota Department of Revenue and the 1998 Legislature authorized cities to establish special service districts to offset possibie shortfalls. Being aware of the impacts, the legislature should: ♦ Authorize the grant program for 1998 tax change impacts in addition to the 1997 tax changes. ♦ Provide additional funding for the program and extend the sunset to the year 2003. ♦ Include the changes in class rate definitions such as maximum market value limits and number of parcels per class in the calculations to determine class rate compression iinpacts. ♦ Move the application and payment dates to coincide with the city budget time frames. ♦ Permit city councils to transfer funds from one city development agency to another to prevent shortfalls due to property tax changes or TIF law changes that ti�ould result in a deficit in paying outstanding contracts ar obiigations. 14 1499 l,egislative Policies � � � � � � Housing & Economic Development °t`� Development Tools (III-I) Over the past several sessions, the legislature has provided cities with development tools to redevelop property, clean up polluted siEes and encourage business retention and expansion. The tools include, but are not limited, to TIF, tax expenditures and loans and grants. Many of the state tools have supplemented local efforts. To continue this state local relationship, the legislature should: ♦ Continue the Minnesota Investment Fund. � ♦ Support increased funding for the pollution clean-up program administered by the Minnesota Department of Trade and Economic Development (DTED). � � � f� !�J � � � !'� E� � � � ♦ Require condemnation commissioners to consider the cost of correcting pollution problems in determining the final value of property. ♦ Establish an indemnification fund to provide financial security for institutions and individuals as they invest in developing and clean-up of polluted sites. ♦ Eliminate Ehe requirement to match a portion of the clean-up grant program with local general funds. ♦ Continue and increase funding for the Redevelopment Fund established in 1998. Weifare Reform/Workforce Readiness (ill-J) With the passage of federal welfare reform and enactment of Minnesota's new welfare program - the Minnesota Family Investment Program (MFIP), public policy is placing an emphasis on work and job readiness. The purpose of MFIP is intended to support �vork and not to replace income when people are not working. To accomplish the goal of get�ing people to work Minnesota has adopted a work first program that expects, supports, and rewards wark. 1999 �egislative Polides 15 .�6 Housing & Economic Oeve�opment �q �t0 Among the program elements established b}� the legislature to implement MFIP are jobs training, transportation, medical assistance, and housina. � !� � As MFIP is being implemented statecvide, the state is experiencing [ record lo�v unemployment and economic growth and as a result � there are now employment opportunities. If the economy, however, declines, employment opportunities for MFIP participants will � decrease and the state's human service system could be over exEended. Being aware that a trained work force is a major part of � an economic development strategy the legislarixre should: ♦ Provide state funding to match the maximum amount of available federal training funds. ♦ Continue and increase funding for state job training programs including Pathways and the Job Training Partnership. ♦ Modify the Pathw�ays Program to provide public agencies with the flexibility to contract with training programs of employers, as well as those of public institutions. ♦ Continue and increase funding for the transportaEion and childcare programs including siiding fee daycare. ♦ Examine the delivery system for state services (training, daycare) to determine and ensure that administrative procedures are implemented uniformly throughout the state. Business Subsidy (Iil-K) The Minnesota Department of Trade and Economic Development (DTED) and local governments provide financial incentives to businesses to relocate, expand or remain in the state or specific city. The provision of the incentives is usually part of a development agreement between the business and the public entity. The ab eement contains a description of the incentive and the type of development to be completed in terms of market value or square footage and penalties for non-performance. The agreements also contain job and wage goals as required by current Minnesota 1aw. 16 1999 Legislative Policies �� Housing & Economic Development /�Q. �� In reviewing the issue of corporate subsidy the legisiature should: � 6:� � � L�! � LJ � � LJ 1� 1� 1� � � � � ♦ Clarify the reporting requirements in terms of time frames and reporting entity. ♦ Exclude redevelopment and housing TIF districts from the reporting requirements of current law. ♦ Maintain the reporting of job and wage goals in current law but do not require a specific wage amount. Building Permit Fee Surcharge (111-L) Local governments collect a half-percent surcharge on building permits. The proceeds of the surcharge are paid to the state and are used to support the State Suilding Codes and Standards Division. Prior to 1991, any excess proceeds were remitted on a prorate basis to the local governments. To help with the development of affordable housing it is recommended that: ♦ The proceeds from the building permit surcharge fee be paid to the MHFA for the support of affordable housing and that the building codes and standards division be funded from the state generalfund. Group Homes (ill-M) ♦ State and county agencies must provide timely notification to cities of facility license requesEs and renewals and provide adequate opportunity to respond. Cities must also be aware of the special care needed by residents of such facilities in case of public safety emergencies. Clustering of community residential facilities because of economic, geographic or other factors shoutd be avoided. Standards of non-concentration for state or county-issued Requests for Proposals (RFPs) should be established. 1494 teg�siative Policies 17 Housing & Economic Development �Q � ♦ There must be an ongoing screening process, particularly in the correction area, to insure that persons placed in a residentiaI facility will benefit from such an environment and will not be a danger to themselves or others. The licensina authority must be responsible for removing any person found incapable of living peacefully in such an environment. Facilities licensed by the corrections department should not be exempt from reasonable local land use regulations. ♦ A fair share concept should be considered within the metropolitan area. However, this concept should consider other £actors induding transpartation facilities, job availability and other needed support services. ♦ The licensing authority and/or legislature should allow cities Yo participate in the search for facility locations in order to meet needs of the providers, facility residents and the neighborhood. 18 1999 Legislative Policies � �1 � 0 � � LJ C� � � � L-1 � 1 ; I _I � I; -a � � Metropolitan Agencies (IV) q 9 -18' Introduction: Metropolitan Governance Structure The Metropolitan Council was established in 1967 to coordinate "the planning and development" of the seven county metropolitan area. To fulfill its responsibilities, the Council has worked with local governments to establish policies regarding growth and development in the region. Over the years, the Council has been authorized by the legislature to be involved in the development of regional parks and in the operation of regional services. In 1994, two independent agencies responsible for transit and waste water disposal were merged into the Council. In the following years the Council was mosEly advisory, but was given responsibility for regionai policy development and coordination in the areas of wastewater treatment, transportation and airports. The Council was given limited approval authority for development proposals, which were of inetropolitan (regional) significance but was not given direct operational authority. The Metropolitan Council's responsibilities have been expanded over the years. The Council was given direct operational responsibility for regional transit and wastewater treatment in 1994. In the following year, the legislature directed the Council to implement the Livable Communities Act (LCA). The Council's role with the LCA is to negotiate affordable and life cycle housing goals for cities and provide grant funds for the clean-up of polluted lands and demonstration projects that foster a mix of land uses and housing types. The Council's role has evolved since its inception to long-range planning and the operation of regional services. 1999 Legislative Policies 19 Metropolitan Agencies q9 - � Metropolitan Council Principles (IV-A) The MetropoliEan Council is a planning and operating entity. The Council is not only responsible for guiding the growth of the region but also operates the region`s wastewater disposal and transit systems. As a planning and operating agency, the Council's policies and guidelines impact local units of governxnents particularly cities. The AMM, in framing its relationship with the Metropolitan Councii, has developed several principles that are incorporated into the following policy areas. Purpose Qf Metropolitan Governance (IV-B) The AMM affirms its support for the existence of a metropolitan governance system to deal with appropriate regional issues and concerns. The purpose of the metropolitan governance system should be: ♦ To facilitate region-wide planning �vith the cooperation and consideration of the affected local units. ♦ To provide certain region-wide services that do not dupl'acate those that can be provided by local governmental units, either individually or jointly. To fulfill other specific responsibilities mandated by the state and federal governments. Criteria for Extension of Metropolitan Governance Authority (IV-C) The legislature, if granting the metropolitan governance structure E additional responsibility or authority, should be specific in the � grant. Additional new or expanded authority should be considered only when one or more of the following exist: The seroice, function or activity has been shown to be needed and it can be demonstrated that it cannot or is not being effectively or efficiently provided through existing general purpose units of goverrunent. Z� 1999 Legislative Policies ,� �� J � � {�..:, � r � L� 4� � � ■_ ; � � �' f � � Metropolitan Agencies qq.l� ♦ The service, funcfion or activity is not an appropriate state level or local government level acEiviry or function. ♦ Regional intervention is needed for protection of the region's investment in an exisring metropolitan system. Restructuring of Metropolitan Agencies (IV-D) The Sports Facilities Commission and the Metropolitan Airports Commission (MAC) are currently metropolitan commissions. The legislatuxe should make the spozEs facility commission a local commission if the back-up tax is limited to one city or is expanded to additional cities. If the tax is extended to other cities, the commission should be restructured to have membership from those cities. The legislature should clarify the status of the MAC so that it becomes either a metropolitan or state directed agency. The determining factor in the agency decision is the nature of the commissiori s back-up tax. If the tax will be a metropolitan area tax, its membership should come from the metropolitan area. If the back-up tax is statewide, then the MAC should have statewide representation. Regionally Provided Services: Funding (IV-E) The Metropolitan Council should continue to fund its regional services and activities through the existing combination of user fees, property taxes, and state and federal grants. The current revenue system provides better visibility to the customers of the expenditures and efforts to move toward a single revenue source should be opposed. The Metropolitan Council, in conjunction with the operating entities and not the legaslature, should be responsible for determining user fees. The fees should be consistent with regional system plans and goals and be established by an open, visible procedure including, but noE limited to, pubiic notice and hearings. A clear linkage between revenue and service should be maintained. 1999 Legislotive Polici2s 21 Metropolitan Agencies c�q _l� Coordination of Local 8� Regional Plans (IV-F) The regional inveshnent in metropolitan systems must be maintained and preserved by preventing adverse impact because of the lack of integration and coordination between regional and local planning. Regional system desib ation should only be approved if there is a compelling metropolitan problem or concern that can best be addressed through the designation. The regional planning process must, on a continual basis, have the input of local government officials. To ensure input, the Council should hold hearings and provide public notice and copies of proposals regarding amendments to the Metropolitan Development Guide. Metropolitan system plans must be specific in terms of locations, capacities and timing to allow for consideration in local comprehensive planning. System plans should clearly state the criteria by which the local plans will be judged for consistency. The system plans should also clearly state the criteria that will be used to find that a local plan has a subsEantial impact on or contains a substantial departure from the metropolitan system plans. The Metropolitan Council should continue to offer assistance to cities. The assistance should include but not be limited to staff support, research, policy guidelines, system statements and procedures for the review and evaluation of plans and amendments. The Metropolitan Council, in its review of local plan amendments, must have a procedure that will: Recognize that the Council's role is to review and comment, unless there is a substantial impact on or departure from the system plans. ♦ Establish an open ciialogue between cities and the Council, including public meetings and public hearings. 22 1999 Legislative Policies Metropolitan Agencies aq- �s Be a�vare of the sfatutory time consiraints imposed by the legislature on plan amendments and development applications. ♦ Provide for immediate effectuation of plan amendments, which have no potential for substantial impact on systems plans. � Require the information needed for the Council to complete its review, but not prescribe additional content or format beyond that is required by the Metropolitan Land Planning Act (MLPA). Metropolitan Councii Focus on Planning (IV-G) For cities to meet their planning mandates, the Council must ensure � that its planning, data collection and dissemination functions are fulfilled in a timely manner and are consistent with its statutory � � 4 '' � � � � � � � � obligations. Growth Management Strategy (IV-H) The Council should continue its discussions with officials in western Wisconsin to encourage their adoption of effective growth control measures. Further investment in transportation infrastructure with Wisconsin should be conEingent upon Wisconsin local governments and their implementation of such controls. The legislature should devise effective methods of ensuring responsible and controlled development in counties surrounding the metropolitan area. The Metropolitan Council should continue its flexible guided growth policy regarding Metropolitan Urban Sereice Area (MUSA) expansion requests as outlined in the Regional BIueprint. However, the Metropolitan Council must recognize that until there are effective growth management strategies and tools beyond the metropolitan area, tightening of MUSA expansion criteria within the metropolitan area will cause one or more of the following: ♦ Increased leapfrog development into adjacent counties and 4�'isconsin. 1999 Legislaiiv� Policies 23 Metropolitan Agencies q`i- I�' ♦ Increased housing cosEs within the metro}��lit�:. area. ♦ Decreased economic growth due to incre.l��d �°'velopment costs. ♦ Increased development activity in the Rw.i1 Ser��ice Area. Local Plan fmpiementation (IV-I) Local governments are responsible for zonin�;. ThE�'>� zoning decisions should not be conditioned upon apf�rov<�ls by the Council or other governmental agency. The AMM is open t�� the use of alternative dispute resolution procedures pri��r to j�ldicial remedies. Alternative dispute resolution could reduce cc�sts r� nd time for all parties involved in the dispute. The AMM strungly �PPoses the creation of an appeals board that could supersede ��ty planning or zoning decisions. Budget Process & Work Program Evaluation (IV-J) Mandated and non-discretionary projects shc�uld l�� identified, along with their funding sources and pro}ects and ,�ctivities which are discretionary but totally or mostly funde�l by s(ate or federal funds should be identified. Previous year's e�pencliture history should also be provided. The annual budget should deiineate the services fc �nnerly provided by the operating agencies and the expenses and revenue for those services should be clearly identified and linkages l�etween expense and revenue maintained. Further, the funds or res�•rve funds raised for a particular service should not be used or com�ilingled with the funds raised for any other service or activity. The CounciI's work program should meet four tes1�: The issue or problem identified is important tn the region s well being. ♦ Council intervention or activity will prod uce a positive result. 24 � qqq �egislative Pollcies � � � � � � � � � � � E: _' � Metropolitan Agencies � � -, ♦ The Council's action does not duplicate or serve as a substitute for a state level program or effort or what should be a state level activity. The Council is the most appropriate agency to intervene or perform the activity. Metropolitan Counci(: Method to Select Members (IV-K) The legislature has debated proposals to amend the process to select Metropolitan Council members. Proposals to elect the members directly or to elect county commissioners as council members have been discussed but not enacted into law. The AMM has siudied the governance issue and has released a separate "Metropolitan Governance Report" (October 1998). The report notes that there is no regional crisis that requires a governance change, but did recommend that council members serve fixed, staggered terms. The AMM further recommends that no changes be made to the metropolitan council unless a governance proposal meets a set of criteria. The intent of the criteria is to fashion a regional governance structure that has a distinct mission, but does not establish a political subdivision with local government powers or one that is a state agency. The Council should have a distinct mission of long- range planning and operation of legislaEively-authorized regional services. The criteria include: Terms o�0 ice 1 � L.� � L� � � Members should serve fixed, staggered terms. Councii Powers The Council should continue to be a long-range, pianning agency and potentially an operator or oversight agency for regional services. As such, the Met Council must maintain planning, coordinating and local assistance as a high priority. 1999 Legislative Policies �5 Mefiropolitan Agencies qq - lY AdditionaI Powers New powers must not expand or override city responsibilities, especially land use reb lation authority. The Met Council must not become an agency with general Iocal government powers. State Role The legislature should focus on broad oversight of the Met Council's mission and services. Local Govennnent Local elected officials must be involved in the selection process of Met Council members and there must be a mechanism to facilitate meaningful dialogue and input between the Met Council and cities. Collar Counties The metropolitan region clearly includes the seven designated counties and the adjacent eleven Minnesota counties, as well as three Wisconsin counties. The needs of the entire metropolitan region beyond the current seven county region must be addressed. Mef Courzcii Members The selection process must strive to appoint Met Council members who have an understanding of and wilI be responsive to the district represented, as well as be responsive to the best interests of the region. The selection process should limit the potential influence and support (including financial) of special interests. Parks 8� Open Space: Operation & Maintenance Capital Funding (tV-L) The governor and Ehe legislature should continue to appropriate funding for the operation and maintenance of regional parks. The Ievel of funding should be equal to the stahztory goal of 40 percent of the total budget. Regional parks essentially serve the role of state parks in the metro area and the acquisition, development and improvement of the parks should continue to be funded, in part, with state resources. 26 1999 Legislative Policies , Metropolitan Agencies qq-lY Surface 8� Groundwater Water Management (IV-M} If legislation is considered for surface water management, it should be based on the following principles: ♦ The legislature should provide full funding if it mandates additional water management planning or implemenring activities by local units of government. �� Local units of government should continue to be responsible for surface and groundwater management, since they are the closest to the problem. ♦ Ne�v state requirements should not add to Iocal costs and duplicate revie�vs/approvals should be reduced or eliminated. The AMM wouid support the following iniEiatives/action: A thorough assessment of the Board and Water and Soil Resources (BWSR) structure and authorities to ascertain if it should continue to be the approval and oversight agency for surface water management planning and activities in the metropolitan area. A thorough assessment of the metropolitan area surface water management planning and permitting process with the objective of developing improvements in conflict resolution, better coordination between state and local agencies, and streamlining the project permit approvals process. Compliance by local units of government located outside of Yhe metropolitan area with the same standards and requirements for surface water management as those imposed on local units within the metropolitan area. � ♦ A technical evaluation of the impact of 2:1 wetland replacement in the urbanized area on the goal of greater urban densities as stated in the Metropolitan Council's Regional Blueprint. � � � 1949 Leg+s!ativP Polic;as 27 Metropolitan Agencies � � r � � Water Supply (IV-N) Addirional legislation pertaining to local or re� onal water supply planning is not warranted. If legislation, however, is proposed it should be based on the following principles: L� !� ♦ Local units should retain the basic responsibility for water [� supply planning and management as in current law. � ♦ The state should fund additional mandates. ♦ Potable water should not be designated a regional system. Regional Wastewater (Sewer) Treatment System (IV-O) The regional wastewater ireatment system has improved the water quality of the regiori s major river and iakes. The system should not be permitted to break up or to diminish its effectiveness. Since all users benefit equally, the regional rates should be uniform by type of user. Waste Stream Management (IV-P) The legislature should enact leaislation, which will: ♦ Establish goals to reduce, recycle and reuse packaging materials and establish fees, taxes or deposits to encourage accomplishment of the goals. The revenues would be waived when the goals are met. Available revenues would be used to promote or enhance Iocal programs to achieve the goals. Continue the Office of Environmental Assistance (OEA} as an agency that primarily assists local governments to manage waste effectively. ♦ Continue the role of cities in waste stream management unless a state or metropolitan system is established to achieve the same goal. ♦ Distribute all proceeds from any funding system for solid waste management activities and require distribution of funds to all entities involved in tite system 28 1999 Legislative Policies � � � L�� .�1 � � � � � � L�J � � � L�1 Metropolitan Agencies � -'� Q ♦ Provide that host communities £or solid waste facilities will not have a financialliabiliEy for costs associated with operating and monitoring the facility. Such costs shouId be borne by the operator and in the absence of regulations should be assumed by the state. Maintain, at a minimum, the current compensation level permitted through surcharge fees and increase the level as well as making the compensation available to all types of solid waste facilities. ♦ Define municipal solid waste not to be a hazardous substance. The definition would enhance the ability of local governments involved in clean-ups to settle potential liability. 1999 Legisfative Policies 29 � Metropolitan Agencies o� 9 -1�' [ � � � � � �� 30 1999 Legislative Policies � =�_._._ :-.... _:�-� o c Transportation Funding (V-A) Transportation (V) The AMM strongly supports increased funding for transit and highways, both of which are a critical need in the metropolitan area. In addition, funding for mass transit including transit ways, light rail or heavy rail in existing corridors should be dedicated in a manner consistent with current highway funding. Funds allocated to the metropolitan area should be flexible so that the most efficient and cost effective transportation solution may be chosen. � � Funding needs in the next two decades far outstrip current funding sources and rates. Therefore, the legislature should consider additional funding and alternatives such as an increase in the gas tax, future indexing of the gas tax, use of the motor vehicle sales tax (formerly MVET), use of a certain percentage of the state general fund, a dedicated porEion of the general sales tax, a sales tax on gasoline at the pump, state bonding authority for major projects, or a combination of these. If an aiternative to the transit property tax in the metropolitan area � is adopted, current opt-out transit systems should continue to be funded at comparable levels. ��' � r � � r� Regionai 7ransit System (V-B) The Regional Transit System should be a combination of integrated traffic management systems which include use of HOV lanes, express buses, exclusive transit ways, light rail transit, and commuter rail corridors built to connect residents to job, retail and commercial centers, plus a variety of oEher transit modes, including taxi, bus, pedestrian and bicycle. 1999 Legislative Policies 3� Transporfation �� p� �q . Park-and-ride facilities for mass transit modes adequate to connect the regional centers, major trip generators and communities, both urban and suburban, should have integrated feeder systems to accommodate local buses, automobiles, van pools, bicycles, as well as walking facilities. The Metropolitan Council should work with local units of governmenE to encourage appropriate Iand use controls along designated transit corridors to promote transit ridership. Transportation Incentives & Disincentives (V-C) The AMM supports the development of a comprehensive system that will facilitate an increase in the occupancy level of cars, reduce commuter trips and enhance the use of transit within the metropolitan area through the use of tax incentives and f or impact fees that encourages multiple occupancy transit use, the exclusion from gross income the value of commuter transportation benefits provided by an employer, and/or a tax deduction and tax credit for employers who provide commuter transportation benefits to employees. Transportation Utility (V-D) The AMM requests the legislature to authorize cities to establish a transportation utility £or street maintenance and reconstruction of aging infrastructure, similar to the existing storm water utility, so that costs of improved facilities can be more fairly charged to the users rather than the general population as a whole. Highway Turnbacks & Funding (V-E) The AMM supports jurisdictional reassigiunent or turnback of roads on a phased basis using functional classification and other appropriate criteria subject to a corresponding mechanism for adequate funding of roadway improvements and continuing maintenance. Cities do not currently have the financial capacity other than significant property tax increase to absorb the additional roadway responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated tumbacks. 32 1999 Legislative Policies � � � LJ � � L�:J � � �' � i � -i � � � iransportation qq-t�' '3C' Transportation Planning Process: Elected Officials Rote (V-F) The AMM supports continuation of the Transportation Advisory Board (TAB), a majority of local elected officials membership on the TAB itself and the TAB process, wl�ich was developed to meet federal requirements for desib ation of the Metropolitan Council as the Metropolitan Planning Organization that is responsible for the continuous, comprehensive and cooperative (3C) transportation planning process to allocate federal funds among mefro area projects. This process requirement �vas reinforced by the ISTEA Act of 1991 and the 1998 Transportation Efficiency Act for the 21st Century (TEA21). Motion Imaging Recording System (M.I.R.S.): Traffic Law Compiiance (V-G) The AMM requests legislative action authorizing utilizaEion of motion imaging recording system technology for governmental units, inciuding cities, on streets and hibhways to assist promotion of safety and traffic law compliance enforcement. The technology has been proven and is currently used for 1aw enforcement by numerous states, municipalities and other countries. The state should consider a pilot project on municipal streets in the Airport Noise Mitigation (V-H) metropolitan area. In 1996, the Metropolitan Airports Commission (MAC) was charged with developing a mitigation package for legislative consideration in 1997, but the package was never developed. Costs associated �n�ith noise mitigation should be borne by the airport (MAC) and the state since the airport is considered a statewide facility. Noise mitigation programs need to be enhanced to beyond the current 60 DNL contours for existing and future impacted areas. Impacts, including envirorunental and low frequency noise, must � be identified at all MAC airparts and applicable mitigation measures implemented ty MAC. By the year 2000, the Environmental Quality Board (EQB) should establish o idelines for � airport noise (including low frequenc� ) in consultation with the v1aC, �Ietropolitan Council, MSP Noise Mitigation Committee and � aftected cities_ This mav include expansion of the sound insulation program to the 5� DNL. � 1999 �egisiative ?olicies 33 Transportation qb ��r 7 The MAC should establish a plan to assure funding for required environmental impact mitigation for Iegislative action by the conclusion of the 2000 Session and levy a property tax on MAC- owned and leased property if it is not approved. Due to an operations increase of 27 percent b5� 2010, noise impact fees should be created to encourage conversion to real stage III aircraft. This policy is not intended to impact airport development or construction decisions. Road Access Charge (V-i) In order to fairly provide for major street improvements of primary benefit to a particular subdivision development but not directly assessable and to allocate cost so that new growth pays its fair share, the legislature should authorize cities to establish at their option a road access charge to be levied on an area or per lot basis at the time that subdivisions are approved or at the time building permits are issued similar to park dedication fees. 34 1999 Legislative Policies � � r 0 � � � � �J � � � � � � � � ' ' � �. �. a �� i , Commitfiee Rosters (Vf) dq-rr Housing & Economic Development Craig Waldron (Chair), Administrator, Oakdale Beverly Aplikowski, Councilmember, Arden Hills Kirstin Barsness, Director of Economic Development, Cottage Grove Janis Callison, Councilmember, Minnetonka Dennis Cavanaugh, Councilmember, St. Anthony Dan Donahue, Manager, New Hope Gail Dorfman, Mayor, St. Louis Park Mike Ericson, Assistant Manager, Maplewood Mike Freeburg, Councilmember, Anoka john Goedeke, Councilmember, Roseville Regina Harris, HRA Director, Bloomington Andrea Hart Kajer, IGR Director, Minneapolis Coral Houle, Mayor, Bloomington Gordon Hughes, Assistant Manager, Edina Marvin Johnson, Vlayox, Independence Dwight Johnson, Manager, Plymouth Jane Kansier, Plazuting Coordinator, Prior Lake Kathy Lantry, Councilmember, St. Paul Jan LeSuer, Councilmembei, Golden Valley Joan tilolenaaz, Councilmember, Champlin 1999 Legislativ� Polici2s 35 Committee Rosters ��I Ron Rankin, Community Development Director, Minnetonka Mark Sather, Manager, White Bear Lake Cari Sclunidt, Assistant to City Manager, Mounds View Mark Senn, Councilmember, Chanhassen Kathy Thurber, Councilmember, Minneapolis JeTry Tumquist, Councilmember, Oak Park Heights Liz Workman, Councilmember, Bumsville Metropolitan Agencies Terry Schneider (Chair), Councilxnember, Minnetonka Bi11 Bamhart, Government Relations Representative, Minneapolis Kevin Batchelder, Adnunistrator, Mendota Heights Bob Bruton, Councilmember, North St. Paul Cathy Busho, Mayor, Rosemount Sharon Feess, Councilmember, Brooklyn Park Matt Fulton, Manager, New Brighton Thomas Goodwin, Councilmember, Apple Valley Tom Harren, Planner, St. Paul Ken Hartung, Adnunisirator, Bayport Susan Hoyt, Administrator, Falcon Heights Anne HurlburC, D'uector of Community Development, Plymouth Barbara Johnson, Councilmember, D4inneapolis E Gary Joselyn, Councilmember, Crystal Rick Kelley, Community Development Director, Apple Valley Larry Lee, Director of Community Development, Bloomington Tom Link, Director of Development & Prot. Serv., Inver Grove Heights 36 1999 Legislative Policies � I � � Committee Rosters �►9 -�r Paul Malone, Councilmember, Arden Hills Niary Helen Mische, IGR AssisEant, St. Paul Mark Nagel, Manager, Anoka Jim Norman, Administrator, Ramsey Don Rye, Planning Director, Prior Lake Dave Schaaf, Mayor, Oak Park Heights Charlotte Shover, Councilmember, Burnsville Jill Smith, Councilmember, Mendota Heights James Smith, Councilmember, Independence Russ Susag, Councilmember, Richfield Eric Thole, Councilmember, Srillwater Joy Tierney,l�layor, Plymouth � � � � � � � � � � � � � � � � Sherry Timmerman, CouncIlmember, Oakdale Kurt Ulrich, Administratar, Champlin Chuck YVhiting, Adinuiistrator, Mounds View Donn Wiski, Councilmember, Roseville Municipal Revenue 8� Taxation Frank Boyles (Chair), Manager, Piior Lake Leslie Anderson, Director of Finance, Burnsville Gene Anderson, Councilmember, St. Paul Park Karen Anderson, Mayor, Minnetonka Curt Boganey, Manager, Brooklyn Park Edward Burreil, Treasurer & Finance Director, Roseville Thomas Burt, Administratoi, Rosemount Dave Cailister, Clerk-Administrator, Osseo joan Campbell, Councilmember, Minneapolis 1999 Legislaiive Policies 37 Committee Rosters A9 -t P' Tom Cran, Budget Analysis, St. Paul Steve Devich, Administrafive Services Director, Richfield Terry Dussault, Asst. to Manager, Blaine blargaret Egan, Finance Director, New Brighton Dan Faust, Finance D"uector, Maplewood John Gretz, Admuuster, Apple Vailey Terri Heaton, Chief Finance Officer, Bloomington Jon Hohenstein, Administrator, Mahtomedi Bill Huepenbecker, IGR Director, St. Paul James Keinath, Administrator, Circle Pines jim Knutson, Finance Director, Anoka Bob Larson, Administrator, Deephaven Tom Melena, Administrator, Oak Park Heights Steve Mielke, Manager, Hopkins John Moir, Finance Officer, Minneapolis Mike Mornson, Manager, St. Anthony Steve O'Maliey, Deputy City Manager, Burnsville Douglas Reeder, Adminstrator, South St. Paul Janet Robert, Councilmember, Oak Park Heights Ryan Schroeder, Administratoz, Cottage Grove James Smith, Councilmember, Independence Jerry Splinter, Manager, Coon Rapids Joy Tierney, Mayor, Plymouth Kurt Ulrich, Admizustrator, Champlin Gene Van Overbeke, Finance Director, Eagan John Wallin, Finance Director, Edina 3$ 1999 Legislative Policies � � � t � � � �' � � � LJ � � � � � Committee Rosters �� John Weaver, Councilmember, Anoka Jim Willis, Admulstrator, Inver Grove Heights Transportation & General Government Veid Muiznieks (Chau), Councilmember, St. Paul Park Gene Anderson, Councilmember, St. Paul Park Bill Bamhart, Govemment Relations Representative, Minneapolis Geralyn Barone, Assistant City Manager, Minnetonka Lyle Berg, Engineer Traffic & Transportation, Bloomington David Childs, Manager, Minnetonka Charlie Crichton, Councilmember, Burnsville Jerry Dulgar, Manager, Cxystal Dale Gusafson, Councilmember, Brooklyn Park Natalie Haas Steffen, Councilmember, Ramsey Gary Humphrey, Mayor, Apple Valley Gloria Johnson, Councilmember, Golden Valley Mike IClassen, Traffic Engineer, St. Paul Sandra Krebsbach, Councilmember, Mendota Heights Charles Lenthe, Director of Public Works, Blaine Dennis Maetzold, Councilmember, Edina Sandra Masin, CouncIlmember, Eagan Mark McNeill, Administrator, Shakopee Dore Mead, Councilmember, Minneapolis Charlie Meyer, Manager, St. Louis Park 1tilary Helen �lische, IGR Assistant, St. Paul Lynn �3oratzka, Councilmember, Hastings Dave Schaaf, �Sayor, Oak Park Heights 1999 Legislative Po6cies 39 Commifitee Rosters �Q -� �I Mazk Senn, Councilmember, Chanhassen Ceil Smith, Assistant to City Manager, Edina Dawn Weitzel, Community/Special Project Assistant, Richfield Donn Wiski, Councilmember, Roseville Bret Woodson, Assistant City Manager, Prior Lake 40 1999 Legisiative Policies October 1998 �� t � n 0 T �; � Association of Metropolitan Municipalifies 145 University Ave. W. ♦ St. Paul, Minnesota 55103-2044 Phone: (651 J 215-Q000 � Fax: (65I J 281-1299 E-mail: amm@amm 145.org . . � . q9-lP" Table of Contents 1. Introduction 2. Principles & Options 1 � 3. General Observations of the Committee 5 4. Issues Related to the Selection Method of Metropolitan Council Members 7 5. Recommendation on Changing the Selection Method of Metropolitan Council Members 8 6. AMM Metropolitan Agencies Coinmittee 10 1998 Metropolitan Governance Report �Tq - lP' 1. Introduction The Metropolitan Council was originally established to be a regional planning agency. However, the Met Council has evolved into an agency that also operates iransit and wastewater disposal and administers several federal, state and regional grant programs for parks, pollution clean-up, housing and redevelopment. In addition, the Met Council has a functioning housing and redevelopment authority. The Met Council's activities and annual budget, which is about $400.0 million, are the responsibility of a 17-member board. The board is appointed by and serves at the pleasure of the governor. 4Vhile the functions of the Met Council have changed, the Met Council's governance structure has basically remained unchanged. The evolving functions and the unchanged governing structure have prompted several legislative proposals regarding the Met Council's governing structure. The legislative proposals have included a directly elected Met Council, a Met Council composed of county commissioners elected to the Council, and the abolition of the Met Council. All the governance proposals have either been vetoed or have failed to gain legislative approval. As the 1999 Legislative Session approaches, there will probably be similar proposals introduced. The Association of Metropolitan Municipaliries (AMM) has been studying the Met Council, its governance structure and roles and responsibilities. The AMM's Metropolitan Agencies Committee began meeting in May 1998 and has developed several observations, principles and criteria to evaluate governance proposals. The following sections include the committee's principles and options, general observations and recommendations. 1998 Metropoiitan Governance Reporf 2. Principles & Options As defined in statute, the Met Council is a public corporation and a political subdivision of the state. The Met Council, however, is not like most political subdivisions. It may appear to function as a general-purpose unit of government, For example, ehe Met Council can authorize a property tax levy and it receives its authority from the legislature. The Met Council, unlike other general-purpose units, has a reporting relationship with the governor who appoints all Met CounciI members and approves IegisIa6ve initiatives. To others, the Met Council may function as a state agency. The governor s role with the Met Council and the need for legislative authority to conduct most activiries suggest that the Met Council is similar to a state agency. Being aware of the discussion regarding the status of the Met Council - government or state agency - the coizunittee offers the following advantages and disadvantages of three metropolitan governance models. Metropolitan Governance Model #1 If the Met Council is a state agency. AdvantaQes ♦ Budget review and approval and setting of fee amounts should be a state (legislative) function. ♦ An advisory council of appointed members similar to the board of the Pollution Controi Agency (PCA) could be established. ♦ The operating functions of the Met Council could become part of existzng state agencies, Disadvanta�es ♦ iVlany regional issues including budget approval, land use planning, and user fees for regional services should be made by a regional body. 1999 Metropolitan Governance Reporf aq -18' ♦ The comprehensive planning review and growth strategies need local govemment and citizen input. ♦ Review at the state level further distances the customers from the decision-makers. Metropolitan Governance Model #2 If the Met Council is viezued as a regional operating agency zvith an elected board and a planning agency zt�ith a separate appointed board. ♦ The board would be similar in size to the Met Council and could be responsible for regional long-range planning and coordinating. ♦ The operaiing agency could also be initially responsible for wastewater treatment and transit, but also be legislatively authorized to assume such services as airports or sports facilities. AdvantaQes ♦ The organization would be more directly accountable to the electorate. ♦ Regional planning and growth management would be separate from operation of regional services. ♦ There would be less involvement by the governor. ♦ There would be less involvement in operating issues by the state legislature and the governor. ♦ The organization may provide for more clear direction from the electorate. DisadvantaQes ♦ Planning and service delivery are separate. ♦ The organizational shucture could dilute the importance and impact of long-range planning. ♦ Another layer of elected government has been established. 1998 Metropolitan Governance Reporf ♦ The organization could be more costly than the current Met Council. The elected operating agency of the Met Council could be subject to greater influence from special interests or vendors providing campaign financing. Metropolitan Governance Model #3 If the Met Counczl is a political subdivision and a planning and operafing agenn� zvifh an elected govertting body. ♦ The governing body could be elected direcfly by the voters or by local government officials representing the district, ♦ The latter procedure is similar to the selection process used to select the University of Minnesota Board of Regents. AdvantaQes ♦ The system would be mare directly accountable to the electorate. ♦ There wouId be less direct invoIvement by the governor and legislature. ♦ The system may provide for mare cIear direction from the electorate. Disadvanta�es s Another layer of elected goverrunent has been established. An elected Met Council could be granEed expanded authority by the legislature to include activities currently provided by other political subdivisions, such as land use plaruling and zoning or offer new services. ♦ An elected Met Council could be subject to greater inEluence from special interests that could provide campaign financing. 1999 Metropolitan Govemance Report aq-«- The committee did not adopt any of the proposed alternatives but in listing the advantages and disadvantages was able to develop a list of criteria that ate essential for the fraining of an acceptable legislative proposal. 3. Generat Observations of the Committee The committee met with several elected and appointed officials to discuss previous reports and express their views on the issue of metropolitan governance. The following are the corrunittee's observations along with a general recommendation for each finding. Regional Problem Observation The presence or perception of a crisis did not motivate the study. The committee did observe that no regional issue is evident that requires a change in governance. General Recommendation The region should examine the role and function of the Met Council and its relationship with local government. Metropolitan Council Reorganization Act Observation The 1994 Metropolitan Council Reorganization Act merged the transit and wastewater functions into the Met Council. To date there has been no evaluation of the merger to assess the reorganization. General Recommendafion The Legislative Auditor should examine the new structure to determine if the region has been better served by the new structure and if the Met Council is the best agency to deliver the services. 1998 Metropolitan Govemance Report Collar Counties Observation The region s impact extends beyond the seven counties. The collar counties are growing in population and many residents of the collar counties commute into the metro area for work. Generai Recommendation The region should be recognized to be more than the current seven counties. There should a means to involve local goveriunents from the collar counties with the Met Council. Local Government Involvement Observation City and county officials expressed a lack o# comfort with the Met Council. Many officials believe that the relationship has improved but want to have more involvement of the Met Council with their local government. General Recommendntion There should •be a more fozmalized,process for local government involvement, including the selection of Met Council members. Basic Operations Observation The Met CounciI functions with many governmental responsibilities including but not limited to fee setting, making a fax Ievy and adopting regulations and also operates as a state agency. For example, the Met Council must request a state appropriation for the transit system. Therefore, it is difficult to determine what is the most appropriate governance sixucture. General Recommendafron Because of the unique nature of its tasks and duties, the Met Council's structure should not be limited to one form or the other. Refer to section five for specific recommendations. 1999 Metropolitan Governance Report q 9 - I�' 4. issues Related ta the Selection Method of Metropolitan Council Members The committee discussed the various methods of selecting Met Council members. While not favaring a particular method, the committee developed an issues list for several alternatives. The list is as follows: If the procedure for Met Council member selection remains as is: ♦ Concern that representatives of a district may represent the governor's interests rather than the interests of the district. ♦ Not adequate involvement of local elected officials in the selection process. ♦ If a representative is unresponsive to requests for dialogue with local officials, there is no meaningful recourse. ♦ There is no direct participation in the selection process by the general public, although not everyone felt that the general public wants to be involved in the process. If Met Council members are elected bu a direct election of the �eneral public: ♦ Concern that selection process would be unduly politicized. ♦ Concern for campaign funding and undue influence by special interests. ♦ Concern for creation of another formal level of government, and the possibility that once elected, the Met Council would be given more authority over local governments, especially in relation to land use decisions. IfMet Council snembers are appointed bU the �overnor from a Iist of candidates provided bU local e2ected o icials: ♦ Would address the issue of involvement of local officials in the selection process, but may not bring forward the best candidate that has a regional perspective. 1998 Metropolitan Governance Report May not allow for representation of ali stakeholders in the region (including the perspective of the development commc�nity). IfMetCouncil members are elected by Tocal elected o'cials• ♦ WouId address the issue of inaoIvement of local officials in the selection process, but may not bring forward the best candidate that has a regional perspective. ♦ May not allow for representation of all stakeholders in the region (including the perspective of the development community). 5. Recommendation on Changing the Setection Method of Metropolitan Council Members A. The committee recommends that fixed, staggered terms be established for Met Council members. B. The committee recommends that no changes should be made to the Met Council unless a governance proposal meets the following criteria: Ternzs o�0 ce Members of the Met CounciI should be selected to serve a fixed term of office. The terms of the members should be staggered. Met Council Pozoers The Met Council should continue to be a long-range planning agency and potentially an operator or oversight agency for regional services. As such, the Met Council must maintain planning, coordinating and local assistance as a high priority. Additional Poz��ers New powers must not expand or override city responsibilities, especially land use regulation authority. The Met Council must not become an agency with general local government powers. i999 MeTropo(itan Govemance Reporf R'9 -l� State Role The legislature should focus on broad oversight of the Met Council's mission and services. Loca1 Government Local elected officials must be involved in the selection process of Met Council members and there must be a mechanism to facilitate meaningful dialogue and input between the Met Council and cities. Collar Counties The metropolitan region clearly includes the seven designated counties and the adjacent eleven Minnesota counties, as well as three Wisconsin counties. The needs of the collar counties and the entire metropolitan region beyond the current seven county region must be addressed. Met Council Members The selection process must strive to appoint Met Council members who have an understanding of and will be responsive to the district represented, as well as be responsive to the best interest of the region as a whole. The selection process should limit the potential influence and support (including financial) of special interests. The above criteria attempt to fashion a regional governance structure that has a distinct mission but does not establish a political subdivision with local government powers or one Ehat is a state agency. The Met Council should not be a super government that could override local powers or be a state agency. Rather, Ehe Met Council should have a distinct mission of long-range plamting and operation of legislatively authorized regional services. 1998 Metropolitan Governance Report 6. AMM Metropolitan Agencies Committee Terry Schneider (Chair), Councilmember, Minnetonka Bill Barnhazt, Goverrunent Relations Representative, Minneapolis Kevin Batchelder, Administrator, Mendota Heights Bob Bruton, Councilmember, North St. Paul Cathy Busho, Mayor, Rosemount Sharon Feess, Councilmember, Brooklyn Pazk Matt Fulton, Manager, New Brighton Thomas Goodwin, Councilmember, Apple Valley Tom Harren, Planner, St. Paul Ken Hartung, Actministrator, Bayport Susan Hoyt, Administrator, Falcon Heights Anne Hurlburt, Duector of Community Development, Plymouth Barbara Johnson, Councilmember, Muuteapolis E Gary Joselyn, Councilmember, Crystal Rick Keltey, Community Development Director, Apple VaIIey Lazry Lee, Duector of Community Development, Bloomington Tom Link, Director of Development & Prot. Serv., Inver Grove Heights Paul Malone, Councilmember, Arden Hills Mary Helen Mische, IGR Assistant, St. Paul Mazk NageI, Manager, Anoka Jim Norman, Adinulistrator, Ramsey Don Rye, Plazuiutg Duector, Prior Lake Dave Schaaf, Mayor, Oak Pazk Heights Charlotte Shover, Councilmember, Bumsville JiII Smith, Councilmember, Mendota Heights � � 1999 Metropolitan Governance Reporf Qq - td' James Smith, Councilmember, Independence Russ Susag, Councilmembei, Richfield Eric Thole, Councilmember, Stillwater Joy Tierney, Mayor, Plymouth Sherry Timmeruzan, Councilmember, Oakdale Kurt Ulrich, Administrator, Champlin Chuck Whiting, Admuristrator, Mounds View Donn Wiski, Councilmember, Roseville 1998 Metropolitan Governance Report i l