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Presented By
Referred To
Committee: Date
i WHEREAS, the Association of Metropolitan Municipalities has adopted its 2000
z Policies and Legislative Proposals to be considered by the Miiuiesota Legislature during the
s 2000 session; and
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s WHEREAS, the City of Saint Paul was an active participant in the development of these
6 policies and legislative proposals and the City concurs generally on these policies and proposals.
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NOW, THEREFORE, BE IT RESOLVED that the Saint Paul City Council does
hereby recommend for consideration by the Minnesota Legislature the 2000 Policies and
Legislative Proposals submitted by the Association of Metropolitan Municipalities and does
hereby request that these issues be addressed by the Legislature during the 2000 session.
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itequested by Department of:
By:
Adopted by Council: Date ���
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Adoption Certified by Council Secretary
By: � \�� � ac.�
Approved by Mayor: Date � �( �
By: ���ly?��'v�/vt� �/
council File # A� —y�
Green sheet # Ib30a3
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
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Form Approved by City Attorney
BY � !/�7/�" P • � /1
Approved by Mayor for Submission to
Council
B �_�
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Mayor Coleman's Office
Bill Huepenbecker (266-8517)
�,� W�„�
1/12/2000
lnn� fOR
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TOTAL # OF SIGNATURE PAGES
City Council approval of the Association of Metropolitan Municipalities
2000 Policies and Legislative Proposals.
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PLANNING COMMISSION
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CIVIL SERVICE CAMMISSION
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Daes thie G&�rm G� a sidll not nolmalND�eseE M' anv curtent cilY employee?
YES NO
Is this persoNfirm a tarpetetl vendoR
YES NO
9zin all ves a�v�e�s on seoarete sheet arM attach W areen sheet �
�TING PRO&.EM ISSUE, OPPORTUNITY (Who, What, When, Where, W�y) �
Saint Paul is an active member of the AMM and was a participant in the effort tb
develop this year's legislative policies.
IFAPPROVED
The City shows support for the Association of Metropolitan Municipalities, an association
we work closely with om m�ay issues during the session and throughout the year.
None
AMOUNT OF TRANSACTION
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COSTIREVENUEBUDGETED(GRCLEON� YES NO
ACTIVT'NUMBER
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January 2000
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Association of Metropolitan Municipalities
945 Unive�sityAve. W. ♦ St. Paul, Minnesota 55903-2044
Phone: (6511215-4000 � Fax: (6511281-1299
E-mail.• amm @amm 145. o�g
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Table of Contents °° � y �
Municipal Revenue 8� Taxation (I)
Levy L'units (I-A)
Local Government Aid (I-B)
Homestead & A�icultural Credit Aid (I-C)
Tax Exempt Property (I-D)
Sales Tax on Local Government Purchases (I-E)
Development Access Fees (I-F)
Price of Government (I-G)
Fiscal Disparity Fund Distribution (I-H)
Personal Property Taxation: Electric Uiility (I-I)
Revenue Diversification (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 (il)
Mandates & Local Authority (II-A)
Public Right-of-Way (II-B)
County Plat Approval Authority (II-C)
911 Telephone Tax (II-D)
800 MHz Radio System (II-E)
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2000 Legislative Policies i
Table of Contents
Pemut Approval: Zoning (II-F)
Witness Fee Costs (II-G)
Elections: Alley System Authority (II-I-n
Housing & Economic Development (Iil)
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/Workforce Readiness (III-J)
Business Subsidy (III-I�
Building Permit Fee Surcharge (III-L)
Group Homes (III-Ivn
Metropolitan Agencies (IV)
Introduction: Metropolitan Governance Structure
Purpose of Metropolitan Governance (IV-A)
RegionaIty Provided Services: Funding (IV-B)
Regional Systems (IV-C)
Coordination of Local & Regional Plans (IV-D)
Growth Management Sirategy (IV-�
Local Pian Implementation (IV-F)
Metropolitan Council Focus on Planning (IV-G)
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ii 2000 Legislative Policies
Tabfe of Contents Ob -�{1
Budget Process & Work Program Evaluation (IV-I-�
Criteria for Extension of Metropolitan
Governance Authority (IV-I)
Restructuring of Metropolitan Agencies (N-J)
Metropolitan Council: Method to Select Members (IV-I�
Pazks & Open Space:
Operation & Maintenance Capital Funding (IV-L)
Suxface & 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)
Motion Imaging Recording System (M.I.R.S.):
Traffic Law Compliance (V-C)
Transportation Utility (V-D)
Highway Turnbacks & Funding (V-E)
'3C' Transportation Planning Process:
Elected Officials Role (V-F)
Airport Noise Mitigation (V-G)
Committee Rosters (VI)
1999-�0 Housing & Economic Development Committee
1999-00 Metropolitan Agencies Committee
1999-00 Municipal Revenue & Taxation Committee
1999-00 Transportation & General Government Committee
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2000 Legisiative Policies iii
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Levy Limits (I-A)
Municipal Revenue &
Taxation (I)
The AMM strongly opposes levy limits and urges the legislature
to not re-enact them for 2001 or beyond. The AMM also opposes
the imposition of artificial mechanisms such as valuation freezes,
payroll freezes, reverse referenda, super majority requirements for
levy, or other limitations to the local government budget and taxing
process.
Local Government Aid (I-B)
Local Government Aid (LGA) returns a portion of statewide
resources to supplement locai property taxes. The AMM supports
its continuation with an annual inflation index, along with
additionaT 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 impact on the metropolitan
area.
Homestead & Agricultural Credit Aid (I-C)
The Homestead and Agricultural Credit Aid (HACA) equals about
40 percent of the total local aid and should be continued as part of
the local fiscal relationship, with an inflation or increased
household growth factor restored for cities. The AMM strongly
opposes the conversion of city HACA to school aid.
7ax Exempt Property (I-D)
The AMM encourages the legislature to authorize cities to establish
a program of payments in lieu of taxes by tax exempt governmental
and non-governmental organizations, except constitutionally
exempt property (churches and schools) for the cost of services
such as police, fire and streets to their facilities.
20001egislative Policies �
Revenue 8 7axation
Sales Tax on Local Government Purchases (t-Ej
The IegisIature shouId reinstate fihe saies tax exemption for aIl local
government purchases without requiring a retiuction in other aids.
Development Access Fees (I-F)
The AMM supports aufihorization for cities to unpose Development
Access Fees for roads and stormwater control.
In order to fairly provide for major sixeet and stormwater
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 and/ or stormwater
development access charge to be collected at the fime Ehat
subdivisions are approved and/or at the time building pemuts are
issued similar to park dedicarion fees.
Price of Government (1-G)
The price of governnient calcuIation in regard to local governrnents
should be based on (1) changes in the sum of Ehe Ievy 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 goverrunental units, increased demand
for services by citizens and legislative mandates or tax rate
changes.
Fiscal Disparity Fund Distribution (t-Nj
The AMM opposes the use of fiscal disparities to fund social
or physical metropolitan programs since it results in a
mefropolitan-wide property tax increase hidden from the public.
Personal Property Taxation: E(ectric Utifify (I-Ij
The AMM opposes proposals for exempting the Investor Owned
Utilities (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.
2 2000 Legislative Policies
Revenue & 7axation OO — 4,
The personal property tax is a significant portion of the
metropolitan fiscal disparity pool and, if eliminated, would have a
metropolitan-wide property tax impact.
Revenue Diversification (I-J)
The AMM supports revenue diversification for cities to reduce
the reliance on locai property taxes. Some examples include
authorization for local sales taxes, paymenEs in lieu of taxes,
franchise fees, deed taxes to remain with city, development unpact
fees, or the creation of a separate income/sales tax fund that would
grow with the economy.
The AMM opposes legislated reduction or limitation on various
license fees, development fees, or other general fees which would
force increased property tax to pay for related services.
Class 42ate Tax System (1-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 strongly opposes further 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 rate will cause various property tax system
problems. Similar properties will 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 will be polirically difficult as well
as costly to persons owning long-term capped properties when it
becomes necessary to sunset due to vast diffexences 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.
2000 Legislative Policies 3
Revenue & Taxation
Funding SbifEs (i-M)
The AMM requests the legislature to continue to reduce the
unbalance of aids versus revenue between metropolitan and
outstate cities and to consider how this distribution of resources
affects the economic growth and vitality of the metropolitan area,
and thus the entire state. Currently in the metropolitan azea, about
66 percent of the state revenue is collected, while only about 49
percent of the aids and credits aze redistribnted.
City Revenue Stability & Fund Balance (i-N)
The legislature should not attempt to control or restrict city fund
balances. These funds are necessary to maintain fiscal viability to
meet unexpected or emergency resource needs of city govermnents,
to purchase capital goods and infrastructure, provide adequate
cash flow and to maintain high-levei bond ratings.
4 2000 Legislative Policies
� �� General Legislation (II)
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Mandates 8� Local Authority (II-A)
The AMM opposes statutory changes which erode local control and
authority or create mandated additional tasks requiring new or
added local costs without a corresponding state appropriation or
funding mechanism. New unfunded mandates cause increased
property taxes which impedes the ability to fund traditional service
needs.
Public Right-of-Way (II-B)
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 obtain 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. YVhile counties
have a valid interest in right-of-way and access decisions, this does
not warrant a transfer of approval authority.
911 Telephone Tax (il-D)
The AMM supports the current distriburion 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 granted
legislatively in excess of 30 cents should be returned directiy to the
municipality or public safety answering provider (PSAP) where
collected. Fee increases granted by the legisiature 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 chazge to cell phone users.
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2000 Legislative Policies 5
General Legislation
800 MHz Radio System (il-E)
The AMM supports the continuation of the Metropolitan 800 MHz
Radio System legislation and board, as long as cities aze not forced
to modify their current systems or become pazt of the 800 MHz
Radio System uniil they so choose. The system should provide a
phased transition guazanteeing uninterrupted service and be
technically capable of allowing communities the flexibility to form
various coordinated arrangements for dispatching and service
provision. In that one of fihe prune advantages of this system is the
fact that local public safety agencies and other units of local
government throughout the region will be able to communicate
with each other, regional funding of the entire system should be
considered. Any such funding should take into account the
reasonable useful life of current systems.
Permit Approval: Zoning (11-F)
The permit approval statute delineating time limit requirements
should be modified so that in the case of a rezoning application, a
morion 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 automatic approval if
no action is taken.
Witness Fee Costs (II-G)
Since one-third of fines for city-related prosecutions remain with
the county and adequately fund this cost, the AMM opposes
shif ting witness' fees from counties to cities for these actions.
Elections: Alley System Authority (II-H)
The AMM supports permissive authority for statutory cities to
adopt an alley system for filing for city council seats.
6 2000 Legisiative Policies
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Housing & Economic
Development (III)
Livabie Communities Act (III-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 affordabie and
life cycle housing goais and a plan to achieve the goals.
Since its inception, the Metropolitan Council has been responsible
for program implementation, including the completion of an
annual progress report. The report for the 1996 calendar y ear
indicates progress toward achieving the stated goals but also raises
concern regarding the preservation of affordable housing,
paxticularly the demolition of housing units.
The AMM has maintained that the LCA should not be amended
until there are progress reports and experience with the LCA.
Based on the reports and experience of cities, the AMM
recommends:
♦ The LCA should be continued.
♦ The LCA shouid be amended to eliminate the requirement that
a ciry annually elect to be a participant in the act and require by
November 15 that a resolution to withdraw be approved.
♦ The state shouid appropriate funds for the LCA. The
appropriation should not replace the current funding sources
but should be in addition to them.
♦ The Metropolitan Council, in cooperation with the LCA
participants, should develop a benchmark to measure a city's
efforts to provide affordable housing. The benchmark shouid
Oo-yl
2000 Legislative Policies �
Housing & Economic Development
replace the Affotdable Life Cycle Housing Opportunity
Amount (ALHOA).
State Housing Policy (III-B)
The AMM recognizes and is encouraged by the efforts of the
legislature regazding the production and preservation of affordable
housing. Over the past several sessions the legislature has provided
the Minnesota Housing Finance Agency (IvIHFA) with additional
funds to address housing issues. For example, the 1999 Legislature
significanfly increased the MHFA's biennial appropriation for
housing production programs.
While the state of Minnesota continues as a paztner with local
government in addressing housing issues the federal government,
the traditional leader in housing policy development, has
decreased its involvement in the issue. The federal govemment's
lack of commitrnent has caused the other partners -- state and local
governments — to increase their housing comnutments. The state
and local efforts have made an impact but without a strong federal
presence, the state and local efforts will be limited. Therefore, the
AMM strongiy encourages the federal government to be actively
' engaged in housing policy and programming-
To continue the expansion of the state s economy, the governor and
legislature should recognize the iznportance of housing to economic
vitality and family stability and should adopt policies that preserve
existing housing, pemut the production of safe affordable housing
and provide resources to produce and preserve housing. The AMM
recommends the following.
Land Use Standnrds and Stnte Incenfives
♦ Minnesota cities are responsible for and should retain the
authority fo regulate the location, size and amount, and type of
housing within their boundaries. Minnesota cities, where the
county has capacity, should partner with the county to provide
affordable housing.
♦ 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 inceniives can be, but not
$ 2000 Legislative Poticies
Housing & Economic DevelopmenS o 0 _ y `
be limited to, property tax class rates and sales tax exemptions
for construction materiaLs.
State funding provided for the incentives should not reduce
exisiing programs.
♦ Historically, the federal government has provided funding for
housing production and rent subsidies. Over the last decade the
federal goverrunent has reduced its funding conunitment and
has caused a shortage of affordable housing. Therefore, the
AMM recommends that the federal government increase its
participation and funding in housing.
Housing Preservation (lil-C)
Housing preservation includes the maintenance of the existing
rental and owner occupied housing, as weil as the retention of
affordable units that were formeriy subsidized by federal
programs. The state should:
♦ Continue and increase funding the housing preservation
program for federally subsidized housing that cou]d be
converted to market rate housing.
♦ Expand efforts to provide resources for housing rehabilitarion.
♦ Provide a sales tax exemption for construction supplies and
materials used in the construction or substantial rehabilitation
of affordable housing.
♦ Exempt public agencies from paying the mortgage and deed tvc
when developing or providing for affordable housing and
redevelopment.
Minnesota Housing Finance Agency Appropriation (III-D)
The Minnesota Housing Finance Agency's (MHFA) biennial
general fund appropriation approximates $78.0 million. (The 1999
Legislature increased the general fund appropriation to $115.0
million.) The agency uses the funds for several housing programs
including rental and homeownership. For the next bienraum the
agency should:
2000 Legislative Poiicies 9
Housing 8 Economic Development
♦ Have its appropriation increased and the increase be used
primarily for housing preservation, housing produciion and
homeless prevention programs.
Redesign, if warranted and with city input, the Community
Rehabilitation Program to encourage additional participation
from the meiropolitan area. The redesign, if needed, could
include modification of the azea 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 & Elderiy Housing (lll-E)
Demographic trends indicate that Minnesota s population is aging.
_ For example, the Metropolitan Council projects that the regiori s
population age 65 and older will neazly double from the year 2000
to 2020. Since most of the population owns singie family hous'vng
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.
In the metropolitan area, the Metropolitan Council reports that the
number of persons age 75 and over will increase from
approximately 110,000 in the yeaz 2000 to 180,000 in 2020. Being
aware of the trends, the legislature should:
Provide additional resources to serve the low income elderly.
Resources should include housing as well as related services.
♦ Direct state agencies to provide information and technical
assistance to local governments regazding the population
changes and their impacts on public services.
♦ Develop policies that encourage the development of housing for
the elderly that is affordable and provides an attractive
alternative to current housing and preserves the current
housing.
Economic Development Responsibitities (III-F)
The state should continue to recognize cities as the primary unit of
government responsible for implementing economic development
10 2000 Legislative Policies
Housing & Economic Developme�t � Q—�{,
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 1999 Minnesota Legislature made several changes to the Tax
Increment Financing (TIF) Act. Among them were amendments
relating to pooling, the use of increment for public facilities and the
impact of property tax changes on TIF.
Poolin
♦ Clarify that any tax increment districts approved between 1979
and 1982 have the same authority to pool increments as districts
certified after 1982 and prior to Apri11,1990.
♦ Allow districts approved after April 1,1990 to pool increments
for affordable housing or polluiion remediation.
Ln�ai E ort
♦ Eliminate the LGA/HACA penalty or aliow 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 local funds for
local contributions.
TIF Lise
♦ Exempt redevelopment districts from the five-year rule.
♦ Reaffirm that 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 TIF to be used for historic preservation.
2000 Legislative Policies i l
Housing & Economic Development
Housin
♦ Modify the housing district income qualification requirements
to allow the levels to vary according to individual regions of the
state or counties.
♦ Remove the LGA/HACA penalty imposed on housing disiricts
established between 1990 and 1993.
__ �orfinQ
y ♦ 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 cifies 60
days to respond to a violation of the TIF law prior to sending a
notice of the violation to the county attomey. The notice to the
city must also state that at the end of the 60-day period any
resolved issues will be sent to the county attorney for possible
aciion.
♦ Require the county afitomey to decide on action regarding
violation within ninety days of receipt of the notice from the
OSA.
♦ Authorize the OSA to conduct a compliance review of a tax
increment district within 12 months of the date the district is
decertified or the increment is completely expended, whichever
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.
Clarify that an error of a non-substantive manner is not a
violation of the law and therefore the city should not be
formally cited for a violation of the reporting provisions of the
TIF Act.
♦ Require that the OSA provide reporting entities with a checklist
of specific items that will be part of a compliance or final review
of a disfrict.
12 2000 Legisiative Policies
Housing 8� Economic Development
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♦ Redraft the reporting section of the TIF law to sunplify the TIF
reporting forms, consolidate reports and request similaz
information for the reports submitEed annually to the State
Auditor.
Property Tax Reform Impact on TIF (III-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 decxease could aiso result in
revenue shortfalls in TTF dislricts. The shortfalls could impact bond
payments and other contractual obiigations. 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 possible 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 2603.
♦ 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 impacts.
♦ 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 would result in a
deficit in paying outstanding contracts or obligations.
Deve�opment Tools (III-I)
Over the past several sessions, the legislature has provided cities
with development tools to redevelop property, clean up polIuted
sites and encourage business retention and expansion. The tools
include, but are not limited to, TIF, tax expenditures and loans and
2000 Legislative Policies 13
Nousing 8 Economic Development
grants. Many of the state tools have supplemented local efforts, To
continue this state local relationship, the legislature should:
♦ Continue the Minnesota Investrnent Fund.
♦ Support increased funding for the pollution clean-up program
administered by the Minnesota Departrnent of Trade and
Economic Development (DTED).
♦ Require condemnation commissioners to consider the cost of
conecting pollution probiems in deternuning 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 poliuted sites.
♦ Eliminate the requirement to match a portion of the clean-up
grant program with local general funds.
'. ♦ Make permanent the Redevelopment Fund established in 1998.
� Welfare ReformlWorkforce Readiness (III-J)
In developing workforce policies, the legislature has considered the
impact of such factors as the robust economy and federal welfare
reform. The economy has produced empioyment opportunities in
several business sectors that are not being satisfied due to the lack
of skilled workers. To address this issue the legislature has
responded by restructuring and expanding its workforce programs
to meet the needs of the state's employees.
With the passage of federal welfare reform and enactment of
Minnesota s new welfaze program - the Minnesota Family
Investrnent Program (MFIP), public policy is placing an emphasis
on work and job readiness. The purpose of MFIP is intended to
support work and not to replace income when people are not
working. To accomplish the goal of getting people to work
Minnesota has adopfed a work first program that expecEs, supports
and rewards work.
� 4 2000 Legislative Policies
Housing & Economic Development
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Among the program elements eseablished by the legislature to
implement MFIP aze jobs training, transportation, medical
assistance and housing.
As MFIP is being implemented statewide, the state is experiencing
record low unemployment and economic growth, and as a result
there are now employment opportunities. If the economy, however,
declines, empioyment opportunities for MFIP participants will
decrease and the state s human service system could be over
extended. Being awaze that a trained work force is a major part of
an economic development strategy the legislature should:
♦ Provide state funding to match the maximum amount of
availabie federal training funds.
♦ Continue and increase funding for state job training programs
including Pathways and the Job Training Partnership.
♦ 1Vlodify the Pathways Program to provide public agencies with
the flexibility to contract with training programs of employers,
as well as those of public institutions.
♦ Continue and incxease funding for the transportation and
childcare programs including sliding fee daycare.
♦ Examine the delivery system for state services (training,
daycare) to determine and ensure that administrative
procedures are implemented uniformly throughout the state.
♦ Continue the policy of nor reducing a person's or household's
MFIP monthly grant if they are residents of the public or section
8 housing.
Business Subsidy (111-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. `I`he
agreement contains a description of the incentive and the type of
development to be completed in terms of market value or square
2000 Legislative Policies 15
Housing 8 Economic Devefopmenf
footage and penalties for non-performance. The agreements also
contain job and wage goals as required by current Minnesota law.
In reviewing the issue of corporate subsidy the legislature should:
♦ Clarify the reporting requirements in terms of time frames and
reporking entity.
♦- Exclude redevelopment and housing TIF districts from the
reporting requirements of current law.
♦ Maintain the reporting of job and wage goals in currene law but
do not require a specific wage amount.
♦ The Business Subsidy Law approved by the 1999 Legislature
will need to be amended during the 2000 Session. The
amendments are needed so that DTED and the cities can
implement the act. Among the amendments that should be
adopted by the Iegislature are:
1. The exclusion of tax exempt revenue bonds issued on behalf
of a non-profit entity. The bonds are used to finance such
facilities as health caze and housing and the bonds are not
included in the existing federal bond limits.
2. Clarify that poIlution clean-up, soiLs projects and
rehabilitation of buildings exempted as a business subsidy
does not need to submit a report to DTED.
3. Define that the rehabilitation of buitdings does not include
the rehabilitation of housing.
4. Eluninate the requirement that the business receiving the
subsidy must continue to operate at the same site fox at least
five years.
5. Provide DTED with an appropriation to implement the law.
Building Permit Fee Surcharge (II!-L)
Local governments collect a halE-percent surcharge on building
permits. The proceeds of the surcharge are paid to the state and aze
used to support the State BuiIding Codes and Standards Division.
� 6 2000 Legislative Policies
Housing & Economic Developmenfi 00 -�{\
Prior to 1991, any excess proceeds were remitted on a prorate basis
to the local governments. To help with the development of
affordabie housing it is recommended that:
♦ The proceeds from the building permit surcharge fee be paid to
the MI�A for the support of affordable housing and that the
building codes and standards division be funded from the state
general fund.
Group Homes (111-M)
State and county agencies must provide timely notification to
cities of facility license requests and renewals and provide
adequate opporiuniry to respond. Cities must also be aware of
the special caxe needed by residents of such facilities in case of
public safety emergencies.
♦ Clustering of conununity residential facilities because of
economic, geographic or other factors should be avoided.
Standards of non-concentration for state or county-issued
Requests for Proposals (RFPs) should be established.
There must be an ongoing screening process, particularly in the
correction area, to insure that persons placed in a residential
facility will benefit from such an environxnent and will not be a
danger to themselves or others. The licensing 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
factors including transpoxtation facilities, job availability and
other needed support services.
♦ The licensing authority and/or legislature should allow cities to
participate in the search for facility locations in order to meet
needs of the providers, facility residents and the neighborhood.
2000 Legislative Policies 17
00-N�
Metropolitan Agencies ((V)
Introduction: Metropolitan Governance Structure
The Metropolitan Council was established in 1967 to coordinate
"the planning and development" of the seven county metropolitan
area. To fizifill its responsibiliries, the Metropolitan Council has
worked with local governments to establish policies regarding
growth and development in the region. Over the years, the
Metropolitan Council has been authorized by the legislature to be
involved in the development of regional parks and the operation of
regional services.
In the foilowing years the Metropolitan Council was mostly
advisory, but was given responsibility for regional policy
development and coordination in the areas of wastewater
treatment, transportation and airports. The Metropolitan Council
was given limited approval authority for development proposals,
which were of inetropolitan (regional) significance but was not
given direct operational authority.
The MetropoliEan Council's responsibilities have been expanded
over the years. The Metropolitan Council was given direct
operational xesponsibility for regional ixansit and wastewater
treatment in 1994. In the following year, the legislature directed the
Metropolitan Council to -unplement the Livable Communities Act
(LCA). The Metropolitan 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 Metropolitan Council's role has evolved since its
inception to long-range planning and the operation of regional
services.
2000 Legislative Policies 19
Metropolitan Agencies
Purpose of Metropolitan Governance (IV-A)
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 metropoIitan govemance system
should be:
♦ To facilitate region-wide planning with the cooperation and
consideration of the affected local units.
� To pxovide certain region-wide services that do not duplicate
those that can be provided by locai govemmental units, either
individually or jointly.
♦ To fulfill other specific responsibilities mandated by the state
and federal govemments.
Regionally Provided Services: Funding (IV-B)
The Metropolitan Council shouId continue to fund its regional
services and activities through the eacisting combination of user
fees, property taxes, and state and federal grants. The current
_ revenue system provides better visibflity to the customers.
The MetropoIitan Council should be responsible for deterinining
user fees. The fees should be consistent with regional system plans
and goals assure that the service quality can be of high quality as
measured by industry or public policy standards and be
established by an open, visible procedure including, but not limited
to, public notice and hearings.
A clear linkage between revenue and service should be maintained.
Fee proceeds from one service should not be used to fund another
regional service.
Regional Systems (IV-C)
The regional investrnent in metropolitan systems must be
maintained and preserved by preventing adverse unpact because of
the Iack of integration and coordination between regional and local
planning.
20 2000 Legislative Policies
Metropolitan Agencies �O _r.{,
Regional system designation shouid only be approved if there is a
compelling metropolitan problem or concem that can best be
addressed through the designation. Prior to requesting legislative
approval for a system, the Metropolitan Council must discuss the
proposal with the region.
Coordination of Local & Regionai Pians (IV-D)
The regional plamzing process must, on a continual basis, have the
input of local government officials. To ensure input, the
Metropolitan 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 considerarion in local
comprehensive pianning. 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 substantial 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 sta£f
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,
znust have a procedure that will:
♦ Recognize that the Metropolitan Council's role is to review and
comment, unless there is a substantial impact on or departuze
from the system plans.
♦ Establish an open dialogue between cities and the Metropolitan
Council, including public meetings and public hearings.
♦ Be aware of the statutory time constraints imposed by the
legislature on pian amendments and development applications.
2000 Legislative Policies 21
Metropolifan Agencies
Provide for immediate effectuation of plan amendments, which
have no poteniial for substantial impact on systems plans.
Require the information needed for the Metropolitan Council to
complete its review, but not prescribe additional content or
format beyond that is required by the Metropolitan Land
Planning Act (MLPA).
Growth Management Strategy (IV-E)
The Metropolitan Council should continue its flexible guided
growth policy regazding Metropolitan Urban Service Area (MUSA)
expansion requests as ouflined in the Regional Blueprint.
The Metropolitan Council in cooperation with State Planning and
the counties adjacent to the region should develop growth
management strategies for the colIaz counties. The strategies should
focus on policies that can be implemented by local governments
within the adjacent counties and state agencies rather than
extending the jurisdiction of the Metropolitan Council to additional
counties. All strategies should complement and recognize growth
poIicies being implemented within the region.
- ♦ If regional services aze to be extended to the collar counties, the
services shouid only be extended if there is a speci£ic problem
(environment or transportation) that can be best resolved by
extending the service. The area receiving the services must pay
for the service extension and agree to growth management
strategies consistent with those of the metropolitan area.
♦ In developing and providing incentives for implementing its
regional objectives, the Metropolitan Council should consider
and give credit for a city's experience in unplementing its
comprehensive plan and the Metropolitan Council's Regional
BIueprint.
Local Plan Implementation (IV-F)
Local governments are responsible for zoning. These zoning
decisions should not be conditioned upon approvals by the
Metropolitan Council or other govemmental agency. The AMM is
open to the use. of alternative dispute resolution procedures prior to
judicial remedies.
22 2000 Legislative Policies
Mehopolitan Agencies O 0 ..��
Altemative dispute resolution could reduce costs and time for all
parties involved in the dispute. The AMM strongly opposes the
creation of an appeals board that could supersede city planning or
zoning decisions.
Metropolitan Council Focus on Planning (IV-G)
Long-range planning should continue to be the primary function of
the Metropolitan Coixncil. In conducting long-range planning, the
Metropolitan Council should periodically update and revise the
vision for the region. As part of its long-range planning, the
Metropolitan Council should include analysis of trends, plans,
policies and programs that could impact or link the regional
growth centers in Greater Minnesota to the metropolitan azea.
In addition to its long-range planning function, the Metropolitan
Council should maintain and expand its technical and research
services to cities. The services should assist cities in completing its
pianning mandates but also in conducting special studies and
projects.
For cities to meet Eheir planning mandates, the MeY�:�politar.
Council must ensure that its planning, data collection and
dissemination functions are fulfilled in a timely manner and are
consistent with its statutory obligations.
Budget Process & Work Program Eva4uation (IV-H)
The Metropolitan Council's annual budget shouid present revenue
and expenditure budgets by the services provided. Mandated and
non-discretionary projects should be identified along with their
funding sources. Previous year's history should also be provided.
The annual budget should maintain linkages between expenses and
revenues. In addition, the funds or reserve £unds raised for a
particular service should not be used or commingled with the
funds raised for any other service or activity.
The Metropolitan Council's work program should meet four tests:
♦ The issue or problem identified is important to the regiori s
well-being.
2000 Legislative Policies 23
Mehopolitan Agencies
♦ Metropolitan Council intervention or activity will produce a
positive result.
♦ The Metropolitan 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 activify.
♦ The Metropolitan Council is the most appropriate agency to
intervene or perform the activity.
Criteria for Extension of Metropolitan Governance Authority (IV-1)
The legislature, if granting the meixopolitan governance structure
additional responsibitity or authority, should be specific in the
grant. New or expanded authority should be considered only when
one or more of the folIowing exist:
T'he service, function or activity has been shown to be needed
and it can be demonstrated that it cannot or is not being
effectively or efficienfly provided through existing general
purpose units of government.
- ♦ The service, function or activity is not an appropriate state level
' or local government level activity or function.
♦ Regional intervention is needed for protection of the regiori s
investrnent in an existing metropolitan system.
Restructuring of Metropolitan Agencies (IV-J)
The Sports Facilities Commission and the Metropolitan Airports
Commission (MAC� aze currently metropolitan commissions. The
legislature should make the sports facility commission a local
commission if the back-up tax is limited to one city or is expanded
to additional cities. If the tau is extended tn other cities, the
commission should be restructured to have membership from those
cities.
The legislature should ciarify the status of Ehe MAC so that it
becomes either a metropolitan or state directed agency. The
determining factor in the agency decision is the nature of the
commission's back-up tax. If the tax wi11 be a metropolitan area tax,
its membership should come from the metropolitan area. If the
24 2000 Legislative Policies
Metropolitan Agencies � � �`
back-up tax is statewide, then the MAC should have statewide
representation.
In seleciing membership on the MAC boazd, the govemor should
give prunary consideration for representation from communities
unpacted by the operations of the MAC airports.
Metropolitan Council: 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 Metropolitan
Council members have been discussed but not enacted into law.
The AMM has studied 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 Metropolitan 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 Metropolitan Council should have a distinct
mission of long-range planning and operation of legislatively-
authorized regional services. The criteria include:
Terms of O{fiice
Members should serve fixed, staggered terms.
Metro�olitan Councit Pozvers
The Metropolitan Couneil should continue to be a long-range,
planning agency and potentially an operator or oversight agency
for regional services. As such, the Metropolitan Council must
maintain pianning, coordinating and local assistance as a high
priority.
2000 Legislative Policies 25
Metropolitan Age�cies
Additionul Pozvers
New powers must not expand or override city responsibilities,
especially land use regulation authority. The Metropolitan Council
must not becorne an agency with generallocaI govemment powers.
State Role
The Iegislature shouId focus on broad oversight of the Meixopolitan
Council's mission and services.
Local Government
Local elected officials must be involved in ttte selection process of
Meisopolitan Council members and there must be a mechanism to
faciIitate meaningful dialogue and input between the Metropolitan
Council and cities.
Collar Counties
The metropolitan region clearly includes the seven designated
counties and the adjacent eleven ivlinnesota counties, as well as
three Wisconsin counties. The needs of the entire metropolitan
region beyond the current seven county region must be addressed.
Metropolitan Council Members
The seleciion process must strive to appoint MetropoIitan Council
members who have an understanding of and will 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 & Open Space: Operation � Maintenance Capitaf Funding (IV-L)
The governor and the legislature should continue to appropriate
funding for the operation and maintenance of regional parks. The
level of funding should be equal to the statutory goal of 40 percent
of the total budget. Regional parks essentially serve the rote of state
parks in the meiropolitan azea and the acquisition, development
and improvement of the parks shouId continue to be funded, in
part, with state resources.
� - 2000 Legisiative Policies
Metropolitan Agencies �O � y�
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 implementing
activities by local units of govemment.
Local units of government should continue to be responsible for
the organization and operation of surface and groundwater
management, since they are the closest to the problem.
Therefore, legislation enacted in 19991imiting representation on
boards of Water Management Organizations (WMOs) should be
repealed.
♦ New state requirements should not add to local costs and
duplicate reviews/approvals should be reduced or eliminated.
The AMM would support the following initiatives/action:
♦ A state grant program similar to those currentiy administered
by the Board of Water and Soil Resources (BOWSR) should be
established to assist WMOs in the metropolitan area to
implement their plans.
♦ The legislature should clarify that the joint power WMOs can,
with the approval of its participating governments, separately
levy a tax for its programs.
♦ A thorough assessment of the BOWSR 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 pernutting process with the
objective of developing improvements in conflict resolution,
better coordination between state and local agencies, and
streamlining the project pernut approvals process.
♦ Compliance Uy local units of government located outside of the
metropolitan area with the same standards and requirements
2000 Legislative Policies 27
Metropolitan Agencies
�or surface water management as those unposed on local units
within the metropolitan azea.
A technical evaluation of the impact of 2:1 wefland replacement
in the urbanized azea on the goai of greater urban densities as
stated in the Metropolitan Council's Regional Blueprint.
Water Supply (IV-N)
Additional legislation pertaining to local or regional water supply
planning is not warranted. If legislation, however, is proposed it
should be based on the following principles:
♦ Local units should retain the basic responsibility for water
supply planning and management as in current law.
♦ The state shouId fund additionaI 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 lakes. The system should not
be pernutEed to break up or to diminish its effectiveness. Since all
users benefit equally, the regional user rates should be uniform by
type of user.
Waste Stream Management (IV-P)
The legislature should enact legislation which wili:
Establish goals to reduce, recycle and reuse packaging materials
and estabIish fees, taxes or deposits to encourage
accomplishment of the goals. The revenues would be waived
when the goals aze met, Available revenues would be used to
promote or enhance locat programs to achieve the goals.
♦ Continue the Office of Environmental Assistance (OEA) as an
agency that primarily assists local governments to manage
waste effectively.
28 2000 legisiative Policies
Metropolitan Agencies bo � y\
♦ Continue the role of cities in waste siseam 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 the system.
♦ Provide that host communities for solid waste facilities will not
have a financiai liability for costs associated with operating and
monitoring the facility. Such costs should 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.
2000 Legislative Policies 29
�
!� es �s
__. ���
- _ C
Transportation Funding (V-A)
Transportation (V) a°
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 consisEent 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 and the
main metropolitan probiem {congestion relie� can be addressed.
'The AMM opposes any reduction to the sources of current
constitutionally dedicated transportation funds including auto
license tab fees, unless equivalent replacement funding is aiso
constitutionally dedicated to the current or a new multimodal
transportation fund.
If an alternative to the transit property tax in the metropolitan area
is adopted, current opt-out transit systems should continue to be
funded at comparable levels.
Regional Transit System (V-B)
In order to reduce congestion and automobile dependency 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 other transit modes, including
taxi, bus, pedestrian and bicycle.
The AMM supports an increase in Metropolitan Transit Funding of
at least $3.7 million for the current biennium so that the present
system can be maintained.
2000 Legislative Policies 31
7ransportation
Park-and-ride facilities for mass transit modes adequate to connect
the regional centers, major trip generators and communities, both
urban and suburban, shoald have integrated feeder systems to
accommodate local buses, automobiles, van pools, bicycles, as well
as walking faciliries.
The Metropolitan Council should work with local units of
government to encourage appropriate land use controls along
designated transit corridors to promoee transit ridership.
Motion Imaging Recording System (M.I.R.S.): Tra�c Law Compliance (V-C)
The AMM requests legislative action authorizing utilization of
motion imaging recording system technology for govemmental
units, including cities, on streets and highways to assist promotion
of safety and traffic law compliance enforcement. The technology
has been proven and is currently used for law enforcement by
numerous states, municipalities and other countries. The state
should consider a pilot project on municipal sireets in the
metropoIitan area.
,, Transportation Utitity (V-Dj
The AMM requests the legislature to authorize cities to estabIish a
, transportation utility for street maintenance and reconstruction of
aging infrastructure, simiIar 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 AIvIM supports jurisdictional reassignment or tumback of
roads on a phased basis using functional classification and other
appropriate criteria subject to a conesponding mechanism for
adequate funding of roadway unprovements and continuing
maintenance.
Cities do not currendy have the financial capacity other than
significant property tax increase to absorb the additional roadway
responsibilities without new funding sources. The existing
municipat turnback fund is not adequate based on contempiated
turnbacks.
32 2000 Legislative Policies
Transportation
Oa -��
'3C' Transportation Pianning Process: Elected Officials Role (V-F)
The AMM supports continuation of the Transportation Advisory
Boazd (T'AB), a majority of local elected officials membership on the
TAB itself and the TAB process, which was developed to meet
federal requirements for designation of fihe 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 metropolitan azea
projects. This process requirement was reinforced by the 1991
Intermodal Surface Transportation Efficiency Act (ISTEA) and the
1998 Transportation Efficiency Act for the 21st Century (TEA21).
Airport Noise Mitigation (V-G)
In 1996, the Metropolitan Airports Coirunission (MAC} was
charged with developing a mitigation package for legislative
consideration in 1997, but the package was never developed. Costs
associated with all types of noise mitigation should be borne by the
airport (MAC) and the state since the airport is considered a
statewide facility and provides tremendous economic benefit to the
region. That benefit does not come without responsibility to those
adversely impacted. The airport and state should seek additionai
funding mechanisms on a yearly basis. Funding may include, but is
not limited to, those funds recommended by the 1999-2000
Governor's Community Stability Punding Task Force.
Equitable noise mitigation programs need to be developed to
address the increased traffic and noise due to the expansion of the
MSP International Airport. Impacts, including environmental and
low frequency noise, must be identified at all MAC airports and
applicable mitigation measures implemented by MAC. By 2003, the
year the new North/South runway will be operational, the
Environmental Quality Board should establish guidelines for
airport noise (including low frequency) in consultation with the
MAC, MetropoIitan Council, MSP Noise Mitigation Committee and
affected cities. Noise mitigation programs should not only be
implemented as soon as possible to the 60 DNL—as enacted by the
legislatuxe in 1996, but extended as far as the 55 BNL.
2000 Legislative Poiicies 33
Committee Rosters (VI)
Housing 8� Economic Development
Craig Waldron (Chair), Adnunistrator, Oakdale
janis Callison, Councilmember, Minnetonka
Dave Callister, Clerk-Administrator, Osseo
Mike Campbell, IGR Director, St. Paui
Tom Goodwin, Councilmember, Apple Valley
Regina Harris, HRA Director, Bloomington
Andrea Hart Kajer, IGR Director, Muuteapolis
Brian Herror�, CouncIlmember, Muineapolis
Nancy Mancino, Mayor, Chanhassen
Lonni McCauley, Mayor, Coon Rapids
Joan Molenaar, Councilmember, Champlin
Ron Rankin, Community Development Director, Miruietonka
Don Rye, Planning Director, Prior Lake
Char Samuelson, Councilmember, New Brighton
Mazk Sather, Manager, White Bear Lake
Beriy Sindt, Councilmember, Lakeville
Kathy Thurber, Councilmember, Minneapolis
Jerry Turnquist, CouncIlmember, Oak Park Heights
Liz Workman, CouncIlmember, Burnsville
po-4l
2000 Legislat+ve Policies 35
Committee Rosters
Metropolitan Agencies
Sandra Krebsbach (Chair), Councilmember, Mendota Heights
Mary Anderson, Mayor, Golden Valtey
Bill Bamhart, Govemment Retations Representative, Minneapolis
Kevin Batcheider, Admuustrator, Mendota Heights
Cathy Busho, Mayor, Rosemount
Joan Campbell, Counciimember, Minneapolis
W. Peter Enck, Mayor, New Hope
Matt Fulton, Manager, New Brighton
Ken Haztung, Administrator, Bayport
Susan Hoyt, Admuustrator, Falcon Heights
Anne Hurlburt, D'uector of Community Development, Plymouth
Marvin Johnson, Mayor, Independence
Jane Kansier, Planning Coordinator, Prior Lake
Larry Lee, D'uector of Community Development, Bloomington
Tom Link, D'uector of Development & Prot. Serv., Inver Grove Heights
Paul Malone, Councilmember, Arden Iiills
Lynn Moratzka, Councilmember, Hastings
Mark Nagel, Manager, Anoka
Dave Schaaf, Mayor, Oak Park Heights -
Terry Schneider, Councilmember, Minnetonka
Chazlotte Shover, Councilmember, Burnsville
Russ Susag, Councilmember, Richfield
Chuck Whiting, Administrator, Mounds View
Donn Wiski, Councilmember, Roseville
36 2000 Legisiative Policies
Committee Rosters
Municipal Revenue 8� Taxation
Frank Boyles {Chair), Managet, Prior Lake
Karen Anderson, Mayor, Minnetonka
Leslie Anderson, Director of Finance, Bumsville
Larry Bakken, Councilmember, Golden Valley
Curt Boganey, Manager, Brooklyn Park
Edward Burrell, Treasurer & Finance D'uector, Roseville
Thomas Burt, Administrator, Rosemount
Dave Childs, Manager, Minnetonka
Tom Cran, Budget Analysis, St. Paul
Dan Faust, Finance Director, Maplewood
John Gretz, Admulistrator Apple Valley
Terri Heaton, Chief Finance Officer, Bloomington
Jon Hohenstein, Administrator, Mahtomedi
James Keinath, Adnunistrator, Circle Pines
Nancy Mancino, Mayor, Chanhassen
Peter Meintsma, Mayor, Crystal
Tom Melena, Admuristrator, Oak Park Heights
John Moir, Finance Officer, Minneapolis
Mike Mornson, Manager, St. Anthony
Jim Norman, Admutistrator, Ramsey
Steve O'Malley, Deputy City Manager, Bumsville
Ryan Schroeder, Admulistrator, Cottage Grove
Jerry Splinter, Manager, Coon Rapids
Deb Sturdevant, Counciimember, Champlin
Kathy Thurber, Councilmember, Minneapolis
Gene Van Overbeke, Finance Director, Eagan
�p-W�
2000 Legislative Policies 37
Committee Rosters
John Wallin, Finance Director, Edina
John Weaver, Councilmember, Anoka
jim Willis, Administrator, Inver Grove Heights
Transportation � General Government
Veid Muiznieks (Chair), Councilmember, St Paul Pazk
Dick Allendorf, Councilmember, Minnetonka
Gene Anderson, Councilmember, St. Paul Park
Bill Bamhart, Government Relations Representative, Minneapolis
Lyle Berg, Engineer Traffic & Transportation, Bloomington
Scott Botcher, Manager, Chanhassen
Bob Bruton, Counc_ilmember, North St Paul
Mike Campbell, IGR Director, St. Paul
Char&e Crichton, Counci2member, Bumsville
Dan Donahue, Manager, New Hope
Jerry Dulgaz, Manager, Crystal
Wayne Houle, Assistant Engineer, Edina
Barbara Johnson, Councilmember, Minneapolis
Steve Lazson, Councilmember, New Brighton
Chazles Lenthe, Director of Public Works, Blaine
Jan LeSuer, Cowttcilmember, Golden Valley
Sandra Masin, Councilmember, Eagan
Mark McNeill, Admu�istrator, Shakopee
Dore Mead, Councilmember, Miruieapolis
Jerry Newton, CounciImember, Coon Rapids
Dave Schaaf, Mayor, Oak Park Heights
Ceil Smith, Assistant to City Manager, Edina
James Smith, Councilmember, Independence
� 2000 Legisiative Policies
Committee Rosters
John Weaver, Councilmember, Anoka
Dawn Weitzel, Community jSpecial Project Assistant, Richfield
Donn Wiski, Councilmember, RosevilIe
Bret Woodson, Assistant City Manager, Prior Lake
Duan Zaun, Mayor, Lakeville
D o _y�
2000 Legislative Policies 39
_ -- RIGINAL
a
9
io
ii
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Presented By
Referred To
Committee: Date
i WHEREAS, the Association of Metropolitan Municipalities has adopted its 2000
z Policies and Legislative Proposals to be considered by the Miiuiesota Legislature during the
s 2000 session; and
4
s WHEREAS, the City of Saint Paul was an active participant in the development of these
6 policies and legislative proposals and the City concurs generally on these policies and proposals.
�
NOW, THEREFORE, BE IT RESOLVED that the Saint Paul City Council does
hereby recommend for consideration by the Minnesota Legislature the 2000 Policies and
Legislative Proposals submitted by the Association of Metropolitan Municipalities and does
hereby request that these issues be addressed by the Legislature during the 2000 session.
15
itequested by Department of:
By:
Adopted by Council: Date ���
--�
Adoption Certified by Council Secretary
By: � \�� � ac.�
Approved by Mayor: Date � �( �
By: ���ly?��'v�/vt� �/
council File # A� —y�
Green sheet # Ib30a3
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
��
Form Approved by City Attorney
BY � !/�7/�" P • � /1
Approved by Mayor for Submission to
Council
B �_�
�
0
Mayor Coleman's Office
Bill Huepenbecker (266-8517)
�,� W�„�
1/12/2000
lnn� fOR
RdRHi�
�
TOTAL # OF SIGNATURE PAGES
City Council approval of the Association of Metropolitan Municipalities
2000 Policies and Legislative Proposals.
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PLANNING COMMISSION
CIB CAMMITTEE
CIVIL SERVICE CAMMISSION
GREEN SHEET
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(CLIP ALL LOCATIONS FOR SIGNATURE)
Has ih� Gers�rm euer vrorkeC uMer a conhact far this dePertmeM?
YES NO
Hes mie P�soMrm ewr been a citY empbyee4
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Daes thie G&�rm G� a sidll not nolmalND�eseE M' anv curtent cilY employee?
YES NO
Is this persoNfirm a tarpetetl vendoR
YES NO
9zin all ves a�v�e�s on seoarete sheet arM attach W areen sheet �
�TING PRO&.EM ISSUE, OPPORTUNITY (Who, What, When, Where, W�y) �
Saint Paul is an active member of the AMM and was a participant in the effort tb
develop this year's legislative policies.
IFAPPROVED
The City shows support for the Association of Metropolitan Municipalities, an association
we work closely with om m�ay issues during the session and throughout the year.
None
AMOUNT OF TRANSACTION
iHFOaMnnoN (o�wr�
COSTIREVENUEBUDGETED(GRCLEON� YES NO
ACTIVT'NUMBER
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January 2000
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Association of Metropolitan Municipalities
945 Unive�sityAve. W. ♦ St. Paul, Minnesota 55903-2044
Phone: (6511215-4000 � Fax: (6511281-1299
E-mail.• amm @amm 145. o�g
���
Table of Contents °° � y �
Municipal Revenue 8� Taxation (I)
Levy L'units (I-A)
Local Government Aid (I-B)
Homestead & A�icultural Credit Aid (I-C)
Tax Exempt Property (I-D)
Sales Tax on Local Government Purchases (I-E)
Development Access Fees (I-F)
Price of Government (I-G)
Fiscal Disparity Fund Distribution (I-H)
Personal Property Taxation: Electric Uiility (I-I)
Revenue Diversification (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 (il)
Mandates & Local Authority (II-A)
Public Right-of-Way (II-B)
County Plat Approval Authority (II-C)
911 Telephone Tax (II-D)
800 MHz Radio System (II-E)
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2000 Legislative Policies i
Table of Contents
Pemut Approval: Zoning (II-F)
Witness Fee Costs (II-G)
Elections: Alley System Authority (II-I-n
Housing & Economic Development (Iil)
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/Workforce Readiness (III-J)
Business Subsidy (III-I�
Building Permit Fee Surcharge (III-L)
Group Homes (III-Ivn
Metropolitan Agencies (IV)
Introduction: Metropolitan Governance Structure
Purpose of Metropolitan Governance (IV-A)
RegionaIty Provided Services: Funding (IV-B)
Regional Systems (IV-C)
Coordination of Local & Regional Plans (IV-D)
Growth Management Sirategy (IV-�
Local Pian Implementation (IV-F)
Metropolitan Council Focus on Planning (IV-G)
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ii 2000 Legislative Policies
Tabfe of Contents Ob -�{1
Budget Process & Work Program Evaluation (IV-I-�
Criteria for Extension of Metropolitan
Governance Authority (IV-I)
Restructuring of Metropolitan Agencies (N-J)
Metropolitan Council: Method to Select Members (IV-I�
Pazks & Open Space:
Operation & Maintenance Capital Funding (IV-L)
Suxface & 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)
Motion Imaging Recording System (M.I.R.S.):
Traffic Law Compliance (V-C)
Transportation Utility (V-D)
Highway Turnbacks & Funding (V-E)
'3C' Transportation Planning Process:
Elected Officials Role (V-F)
Airport Noise Mitigation (V-G)
Committee Rosters (VI)
1999-�0 Housing & Economic Development Committee
1999-00 Metropolitan Agencies Committee
1999-00 Municipal Revenue & Taxation Committee
1999-00 Transportation & General Government Committee
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2000 Legisiative Policies iii
Oa -`t\
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Levy Limits (I-A)
Municipal Revenue &
Taxation (I)
The AMM strongly opposes levy limits and urges the legislature
to not re-enact them for 2001 or beyond. The AMM also opposes
the imposition of artificial mechanisms such as valuation freezes,
payroll freezes, reverse referenda, super majority requirements for
levy, or other limitations to the local government budget and taxing
process.
Local Government Aid (I-B)
Local Government Aid (LGA) returns a portion of statewide
resources to supplement locai property taxes. The AMM supports
its continuation with an annual inflation index, along with
additionaT 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 impact on the metropolitan
area.
Homestead & Agricultural Credit Aid (I-C)
The Homestead and Agricultural Credit Aid (HACA) equals about
40 percent of the total local aid and should be continued as part of
the local fiscal relationship, with an inflation or increased
household growth factor restored for cities. The AMM strongly
opposes the conversion of city HACA to school aid.
7ax Exempt Property (I-D)
The AMM encourages the legislature to authorize cities to establish
a program of payments in lieu of taxes by tax exempt governmental
and non-governmental organizations, except constitutionally
exempt property (churches and schools) for the cost of services
such as police, fire and streets to their facilities.
20001egislative Policies �
Revenue 8 7axation
Sales Tax on Local Government Purchases (t-Ej
The IegisIature shouId reinstate fihe saies tax exemption for aIl local
government purchases without requiring a retiuction in other aids.
Development Access Fees (I-F)
The AMM supports aufihorization for cities to unpose Development
Access Fees for roads and stormwater control.
In order to fairly provide for major sixeet and stormwater
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 and/ or stormwater
development access charge to be collected at the fime Ehat
subdivisions are approved and/or at the time building pemuts are
issued similar to park dedicarion fees.
Price of Government (1-G)
The price of governnient calcuIation in regard to local governrnents
should be based on (1) changes in the sum of Ehe Ievy 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 goverrunental units, increased demand
for services by citizens and legislative mandates or tax rate
changes.
Fiscal Disparity Fund Distribution (t-Nj
The AMM opposes the use of fiscal disparities to fund social
or physical metropolitan programs since it results in a
mefropolitan-wide property tax increase hidden from the public.
Personal Property Taxation: E(ectric Utifify (I-Ij
The AMM opposes proposals for exempting the Investor Owned
Utilities (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.
2 2000 Legislative Policies
Revenue & 7axation OO — 4,
The personal property tax is a significant portion of the
metropolitan fiscal disparity pool and, if eliminated, would have a
metropolitan-wide property tax impact.
Revenue Diversification (I-J)
The AMM supports revenue diversification for cities to reduce
the reliance on locai property taxes. Some examples include
authorization for local sales taxes, paymenEs in lieu of taxes,
franchise fees, deed taxes to remain with city, development unpact
fees, or the creation of a separate income/sales tax fund that would
grow with the economy.
The AMM opposes legislated reduction or limitation on various
license fees, development fees, or other general fees which would
force increased property tax to pay for related services.
Class 42ate Tax System (1-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 strongly opposes further 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 rate will cause various property tax system
problems. Similar properties will 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 will be polirically difficult as well
as costly to persons owning long-term capped properties when it
becomes necessary to sunset due to vast diffexences 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.
2000 Legislative Policies 3
Revenue & Taxation
Funding SbifEs (i-M)
The AMM requests the legislature to continue to reduce the
unbalance of aids versus revenue between metropolitan and
outstate cities and to consider how this distribution of resources
affects the economic growth and vitality of the metropolitan area,
and thus the entire state. Currently in the metropolitan azea, about
66 percent of the state revenue is collected, while only about 49
percent of the aids and credits aze redistribnted.
City Revenue Stability & Fund Balance (i-N)
The legislature should not attempt to control or restrict city fund
balances. These funds are necessary to maintain fiscal viability to
meet unexpected or emergency resource needs of city govermnents,
to purchase capital goods and infrastructure, provide adequate
cash flow and to maintain high-levei bond ratings.
4 2000 Legislative Policies
� �� General Legislation (II)
��
Mandates 8� Local Authority (II-A)
The AMM opposes statutory changes which erode local control and
authority or create mandated additional tasks requiring new or
added local costs without a corresponding state appropriation or
funding mechanism. New unfunded mandates cause increased
property taxes which impedes the ability to fund traditional service
needs.
Public Right-of-Way (II-B)
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 obtain 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. YVhile counties
have a valid interest in right-of-way and access decisions, this does
not warrant a transfer of approval authority.
911 Telephone Tax (il-D)
The AMM supports the current distriburion 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 granted
legislatively in excess of 30 cents should be returned directiy to the
municipality or public safety answering provider (PSAP) where
collected. Fee increases granted by the legisiature 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 chazge to cell phone users.
00-�1
2000 Legislative Policies 5
General Legislation
800 MHz Radio System (il-E)
The AMM supports the continuation of the Metropolitan 800 MHz
Radio System legislation and board, as long as cities aze not forced
to modify their current systems or become pazt of the 800 MHz
Radio System uniil they so choose. The system should provide a
phased transition guazanteeing uninterrupted service and be
technically capable of allowing communities the flexibility to form
various coordinated arrangements for dispatching and service
provision. In that one of fihe prune advantages of this system is the
fact that local public safety agencies and other units of local
government throughout the region will be able to communicate
with each other, regional funding of the entire system should be
considered. Any such funding should take into account the
reasonable useful life of current systems.
Permit Approval: Zoning (11-F)
The permit approval statute delineating time limit requirements
should be modified so that in the case of a rezoning application, a
morion 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 automatic approval if
no action is taken.
Witness Fee Costs (II-G)
Since one-third of fines for city-related prosecutions remain with
the county and adequately fund this cost, the AMM opposes
shif ting witness' fees from counties to cities for these actions.
Elections: Alley System Authority (II-H)
The AMM supports permissive authority for statutory cities to
adopt an alley system for filing for city council seats.
6 2000 Legisiative Policies
.�'' �,
�ij jv
�_�
Housing & Economic
Development (III)
Livabie Communities Act (III-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 affordabie and
life cycle housing goais and a plan to achieve the goals.
Since its inception, the Metropolitan Council has been responsible
for program implementation, including the completion of an
annual progress report. The report for the 1996 calendar y ear
indicates progress toward achieving the stated goals but also raises
concern regarding the preservation of affordable housing,
paxticularly the demolition of housing units.
The AMM has maintained that the LCA should not be amended
until there are progress reports and experience with the LCA.
Based on the reports and experience of cities, the AMM
recommends:
♦ The LCA should be continued.
♦ The LCA shouid be amended to eliminate the requirement that
a ciry annually elect to be a participant in the act and require by
November 15 that a resolution to withdraw be approved.
♦ The state shouid appropriate funds for the LCA. The
appropriation should not replace the current funding sources
but should be in addition to them.
♦ The Metropolitan Council, in cooperation with the LCA
participants, should develop a benchmark to measure a city's
efforts to provide affordable housing. The benchmark shouid
Oo-yl
2000 Legislative Policies �
Housing & Economic Development
replace the Affotdable Life Cycle Housing Opportunity
Amount (ALHOA).
State Housing Policy (III-B)
The AMM recognizes and is encouraged by the efforts of the
legislature regazding the production and preservation of affordable
housing. Over the past several sessions the legislature has provided
the Minnesota Housing Finance Agency (IvIHFA) with additional
funds to address housing issues. For example, the 1999 Legislature
significanfly increased the MHFA's biennial appropriation for
housing production programs.
While the state of Minnesota continues as a paztner with local
government in addressing housing issues the federal government,
the traditional leader in housing policy development, has
decreased its involvement in the issue. The federal govemment's
lack of commitrnent has caused the other partners -- state and local
governments — to increase their housing comnutments. The state
and local efforts have made an impact but without a strong federal
presence, the state and local efforts will be limited. Therefore, the
AMM strongiy encourages the federal government to be actively
' engaged in housing policy and programming-
To continue the expansion of the state s economy, the governor and
legislature should recognize the iznportance of housing to economic
vitality and family stability and should adopt policies that preserve
existing housing, pemut the production of safe affordable housing
and provide resources to produce and preserve housing. The AMM
recommends the following.
Land Use Standnrds and Stnte Incenfives
♦ Minnesota cities are responsible for and should retain the
authority fo regulate the location, size and amount, and type of
housing within their boundaries. Minnesota cities, where the
county has capacity, should partner with the county to provide
affordable housing.
♦ 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 inceniives can be, but not
$ 2000 Legislative Poticies
Housing & Economic DevelopmenS o 0 _ y `
be limited to, property tax class rates and sales tax exemptions
for construction materiaLs.
State funding provided for the incentives should not reduce
exisiing programs.
♦ Historically, the federal government has provided funding for
housing production and rent subsidies. Over the last decade the
federal goverrunent has reduced its funding conunitment and
has caused a shortage of affordable housing. Therefore, the
AMM recommends that the federal government increase its
participation and funding in housing.
Housing Preservation (lil-C)
Housing preservation includes the maintenance of the existing
rental and owner occupied housing, as weil as the retention of
affordable units that were formeriy subsidized by federal
programs. The state should:
♦ Continue and increase funding the housing preservation
program for federally subsidized housing that cou]d be
converted to market rate housing.
♦ Expand efforts to provide resources for housing rehabilitarion.
♦ Provide a sales tax exemption for construction supplies and
materials used in the construction or substantial rehabilitation
of affordable housing.
♦ Exempt public agencies from paying the mortgage and deed tvc
when developing or providing for affordable housing and
redevelopment.
Minnesota Housing Finance Agency Appropriation (III-D)
The Minnesota Housing Finance Agency's (MHFA) biennial
general fund appropriation approximates $78.0 million. (The 1999
Legislature increased the general fund appropriation to $115.0
million.) The agency uses the funds for several housing programs
including rental and homeownership. For the next bienraum the
agency should:
2000 Legislative Poiicies 9
Housing 8 Economic Development
♦ Have its appropriation increased and the increase be used
primarily for housing preservation, housing produciion and
homeless prevention programs.
Redesign, if warranted and with city input, the Community
Rehabilitation Program to encourage additional participation
from the meiropolitan area. The redesign, if needed, could
include modification of the azea 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 & Elderiy Housing (lll-E)
Demographic trends indicate that Minnesota s population is aging.
_ For example, the Metropolitan Council projects that the regiori s
population age 65 and older will neazly double from the year 2000
to 2020. Since most of the population owns singie family hous'vng
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.
In the metropolitan area, the Metropolitan Council reports that the
number of persons age 75 and over will increase from
approximately 110,000 in the yeaz 2000 to 180,000 in 2020. Being
aware of the trends, the legislature should:
Provide additional resources to serve the low income elderly.
Resources should include housing as well as related services.
♦ Direct state agencies to provide information and technical
assistance to local governments regazding the population
changes and their impacts on public services.
♦ Develop policies that encourage the development of housing for
the elderly that is affordable and provides an attractive
alternative to current housing and preserves the current
housing.
Economic Development Responsibitities (III-F)
The state should continue to recognize cities as the primary unit of
government responsible for implementing economic development
10 2000 Legislative Policies
Housing & Economic Developme�t � Q—�{,
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 1999 Minnesota Legislature made several changes to the Tax
Increment Financing (TIF) Act. Among them were amendments
relating to pooling, the use of increment for public facilities and the
impact of property tax changes on TIF.
Poolin
♦ Clarify that any tax increment districts approved between 1979
and 1982 have the same authority to pool increments as districts
certified after 1982 and prior to Apri11,1990.
♦ Allow districts approved after April 1,1990 to pool increments
for affordable housing or polluiion remediation.
Ln�ai E ort
♦ Eliminate the LGA/HACA penalty or aliow 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 local funds for
local contributions.
TIF Lise
♦ Exempt redevelopment districts from the five-year rule.
♦ Reaffirm that 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 TIF to be used for historic preservation.
2000 Legislative Policies i l
Housing & Economic Development
Housin
♦ Modify the housing district income qualification requirements
to allow the levels to vary according to individual regions of the
state or counties.
♦ Remove the LGA/HACA penalty imposed on housing disiricts
established between 1990 and 1993.
__ �orfinQ
y ♦ 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 cifies 60
days to respond to a violation of the TIF law prior to sending a
notice of the violation to the county attomey. The notice to the
city must also state that at the end of the 60-day period any
resolved issues will be sent to the county attorney for possible
aciion.
♦ Require the county afitomey to decide on action regarding
violation within ninety days of receipt of the notice from the
OSA.
♦ Authorize the OSA to conduct a compliance review of a tax
increment district within 12 months of the date the district is
decertified or the increment is completely expended, whichever
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.
Clarify that an error of a non-substantive manner is not a
violation of the law and therefore the city should not be
formally cited for a violation of the reporting provisions of the
TIF Act.
♦ Require that the OSA provide reporting entities with a checklist
of specific items that will be part of a compliance or final review
of a disfrict.
12 2000 Legisiative Policies
Housing 8� Economic Development
Oo-�t�
♦ Redraft the reporting section of the TIF law to sunplify the TIF
reporting forms, consolidate reports and request similaz
information for the reports submitEed annually to the State
Auditor.
Property Tax Reform Impact on TIF (III-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 decxease could aiso result in
revenue shortfalls in TTF dislricts. The shortfalls could impact bond
payments and other contractual obiigations. 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 possible 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 2603.
♦ 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 impacts.
♦ 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 would result in a
deficit in paying outstanding contracts or obligations.
Deve�opment Tools (III-I)
Over the past several sessions, the legislature has provided cities
with development tools to redevelop property, clean up polIuted
sites and encourage business retention and expansion. The tools
include, but are not limited to, TIF, tax expenditures and loans and
2000 Legislative Policies 13
Nousing 8 Economic Development
grants. Many of the state tools have supplemented local efforts, To
continue this state local relationship, the legislature should:
♦ Continue the Minnesota Investrnent Fund.
♦ Support increased funding for the pollution clean-up program
administered by the Minnesota Departrnent of Trade and
Economic Development (DTED).
♦ Require condemnation commissioners to consider the cost of
conecting pollution probiems in deternuning 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 poliuted sites.
♦ Eliminate the requirement to match a portion of the clean-up
grant program with local general funds.
'. ♦ Make permanent the Redevelopment Fund established in 1998.
� Welfare ReformlWorkforce Readiness (III-J)
In developing workforce policies, the legislature has considered the
impact of such factors as the robust economy and federal welfare
reform. The economy has produced empioyment opportunities in
several business sectors that are not being satisfied due to the lack
of skilled workers. To address this issue the legislature has
responded by restructuring and expanding its workforce programs
to meet the needs of the state's employees.
With the passage of federal welfare reform and enactment of
Minnesota s new welfaze program - the Minnesota Family
Investrnent Program (MFIP), public policy is placing an emphasis
on work and job readiness. The purpose of MFIP is intended to
support work and not to replace income when people are not
working. To accomplish the goal of getting people to work
Minnesota has adopfed a work first program that expecEs, supports
and rewards work.
� 4 2000 Legislative Policies
Housing & Economic Development
Do -�1\
Among the program elements eseablished by the legislature to
implement MFIP aze jobs training, transportation, medical
assistance and housing.
As MFIP is being implemented statewide, the state is experiencing
record low unemployment and economic growth, and as a result
there are now employment opportunities. If the economy, however,
declines, empioyment opportunities for MFIP participants will
decrease and the state s human service system could be over
extended. Being awaze that a trained work force is a major part of
an economic development strategy the legislature should:
♦ Provide state funding to match the maximum amount of
availabie federal training funds.
♦ Continue and increase funding for state job training programs
including Pathways and the Job Training Partnership.
♦ 1Vlodify the Pathways Program to provide public agencies with
the flexibility to contract with training programs of employers,
as well as those of public institutions.
♦ Continue and incxease funding for the transportation and
childcare programs including sliding fee daycare.
♦ Examine the delivery system for state services (training,
daycare) to determine and ensure that administrative
procedures are implemented uniformly throughout the state.
♦ Continue the policy of nor reducing a person's or household's
MFIP monthly grant if they are residents of the public or section
8 housing.
Business Subsidy (111-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. `I`he
agreement contains a description of the incentive and the type of
development to be completed in terms of market value or square
2000 Legislative Policies 15
Housing 8 Economic Devefopmenf
footage and penalties for non-performance. The agreements also
contain job and wage goals as required by current Minnesota law.
In reviewing the issue of corporate subsidy the legislature should:
♦ Clarify the reporting requirements in terms of time frames and
reporking entity.
♦- Exclude redevelopment and housing TIF districts from the
reporting requirements of current law.
♦ Maintain the reporting of job and wage goals in currene law but
do not require a specific wage amount.
♦ The Business Subsidy Law approved by the 1999 Legislature
will need to be amended during the 2000 Session. The
amendments are needed so that DTED and the cities can
implement the act. Among the amendments that should be
adopted by the Iegislature are:
1. The exclusion of tax exempt revenue bonds issued on behalf
of a non-profit entity. The bonds are used to finance such
facilities as health caze and housing and the bonds are not
included in the existing federal bond limits.
2. Clarify that poIlution clean-up, soiLs projects and
rehabilitation of buildings exempted as a business subsidy
does not need to submit a report to DTED.
3. Define that the rehabilitation of buitdings does not include
the rehabilitation of housing.
4. Eluninate the requirement that the business receiving the
subsidy must continue to operate at the same site fox at least
five years.
5. Provide DTED with an appropriation to implement the law.
Building Permit Fee Surcharge (II!-L)
Local governments collect a halE-percent surcharge on building
permits. The proceeds of the surcharge are paid to the state and aze
used to support the State BuiIding Codes and Standards Division.
� 6 2000 Legislative Policies
Housing & Economic Developmenfi 00 -�{\
Prior to 1991, any excess proceeds were remitted on a prorate basis
to the local governments. To help with the development of
affordabie housing it is recommended that:
♦ The proceeds from the building permit surcharge fee be paid to
the MI�A for the support of affordable housing and that the
building codes and standards division be funded from the state
general fund.
Group Homes (111-M)
State and county agencies must provide timely notification to
cities of facility license requests and renewals and provide
adequate opporiuniry to respond. Cities must also be aware of
the special caxe needed by residents of such facilities in case of
public safety emergencies.
♦ Clustering of conununity residential facilities because of
economic, geographic or other factors should be avoided.
Standards of non-concentration for state or county-issued
Requests for Proposals (RFPs) should be established.
There must be an ongoing screening process, particularly in the
correction area, to insure that persons placed in a residential
facility will benefit from such an environxnent and will not be a
danger to themselves or others. The licensing 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
factors including transpoxtation facilities, job availability and
other needed support services.
♦ The licensing authority and/or legislature should allow cities to
participate in the search for facility locations in order to meet
needs of the providers, facility residents and the neighborhood.
2000 Legislative Policies 17
00-N�
Metropolitan Agencies ((V)
Introduction: Metropolitan Governance Structure
The Metropolitan Council was established in 1967 to coordinate
"the planning and development" of the seven county metropolitan
area. To fizifill its responsibiliries, the Metropolitan Council has
worked with local governments to establish policies regarding
growth and development in the region. Over the years, the
Metropolitan Council has been authorized by the legislature to be
involved in the development of regional parks and the operation of
regional services.
In the foilowing years the Metropolitan Council was mostly
advisory, but was given responsibility for regional policy
development and coordination in the areas of wastewater
treatment, transportation and airports. The Metropolitan Council
was given limited approval authority for development proposals,
which were of inetropolitan (regional) significance but was not
given direct operational authority.
The MetropoliEan Council's responsibilities have been expanded
over the years. The Metropolitan Council was given direct
operational xesponsibility for regional ixansit and wastewater
treatment in 1994. In the following year, the legislature directed the
Metropolitan Council to -unplement the Livable Communities Act
(LCA). The Metropolitan 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 Metropolitan Council's role has evolved since its
inception to long-range planning and the operation of regional
services.
2000 Legislative Policies 19
Metropolitan Agencies
Purpose of Metropolitan Governance (IV-A)
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 metropoIitan govemance system
should be:
♦ To facilitate region-wide planning with the cooperation and
consideration of the affected local units.
� To pxovide certain region-wide services that do not duplicate
those that can be provided by locai govemmental units, either
individually or jointly.
♦ To fulfill other specific responsibilities mandated by the state
and federal govemments.
Regionally Provided Services: Funding (IV-B)
The Metropolitan Council shouId continue to fund its regional
services and activities through the eacisting combination of user
fees, property taxes, and state and federal grants. The current
_ revenue system provides better visibflity to the customers.
The MetropoIitan Council should be responsible for deterinining
user fees. The fees should be consistent with regional system plans
and goals assure that the service quality can be of high quality as
measured by industry or public policy standards and be
established by an open, visible procedure including, but not limited
to, public notice and hearings.
A clear linkage between revenue and service should be maintained.
Fee proceeds from one service should not be used to fund another
regional service.
Regional Systems (IV-C)
The regional investrnent in metropolitan systems must be
maintained and preserved by preventing adverse unpact because of
the Iack of integration and coordination between regional and local
planning.
20 2000 Legislative Policies
Metropolitan Agencies �O _r.{,
Regional system designation shouid only be approved if there is a
compelling metropolitan problem or concem that can best be
addressed through the designation. Prior to requesting legislative
approval for a system, the Metropolitan Council must discuss the
proposal with the region.
Coordination of Local & Regionai Pians (IV-D)
The regional plamzing process must, on a continual basis, have the
input of local government officials. To ensure input, the
Metropolitan 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 considerarion in local
comprehensive pianning. 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 substantial 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 sta£f
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,
znust have a procedure that will:
♦ Recognize that the Metropolitan Council's role is to review and
comment, unless there is a substantial impact on or departuze
from the system plans.
♦ Establish an open dialogue between cities and the Metropolitan
Council, including public meetings and public hearings.
♦ Be aware of the statutory time constraints imposed by the
legislature on pian amendments and development applications.
2000 Legislative Policies 21
Metropolifan Agencies
Provide for immediate effectuation of plan amendments, which
have no poteniial for substantial impact on systems plans.
Require the information needed for the Metropolitan Council to
complete its review, but not prescribe additional content or
format beyond that is required by the Metropolitan Land
Planning Act (MLPA).
Growth Management Strategy (IV-E)
The Metropolitan Council should continue its flexible guided
growth policy regazding Metropolitan Urban Service Area (MUSA)
expansion requests as ouflined in the Regional Blueprint.
The Metropolitan Council in cooperation with State Planning and
the counties adjacent to the region should develop growth
management strategies for the colIaz counties. The strategies should
focus on policies that can be implemented by local governments
within the adjacent counties and state agencies rather than
extending the jurisdiction of the Metropolitan Council to additional
counties. All strategies should complement and recognize growth
poIicies being implemented within the region.
- ♦ If regional services aze to be extended to the collar counties, the
services shouid only be extended if there is a speci£ic problem
(environment or transportation) that can be best resolved by
extending the service. The area receiving the services must pay
for the service extension and agree to growth management
strategies consistent with those of the metropolitan area.
♦ In developing and providing incentives for implementing its
regional objectives, the Metropolitan Council should consider
and give credit for a city's experience in unplementing its
comprehensive plan and the Metropolitan Council's Regional
BIueprint.
Local Plan Implementation (IV-F)
Local governments are responsible for zoning. These zoning
decisions should not be conditioned upon approvals by the
Metropolitan Council or other govemmental agency. The AMM is
open to the use. of alternative dispute resolution procedures prior to
judicial remedies.
22 2000 Legislative Policies
Mehopolitan Agencies O 0 ..��
Altemative dispute resolution could reduce costs and time for all
parties involved in the dispute. The AMM strongly opposes the
creation of an appeals board that could supersede city planning or
zoning decisions.
Metropolitan Council Focus on Planning (IV-G)
Long-range planning should continue to be the primary function of
the Metropolitan Coixncil. In conducting long-range planning, the
Metropolitan Council should periodically update and revise the
vision for the region. As part of its long-range planning, the
Metropolitan Council should include analysis of trends, plans,
policies and programs that could impact or link the regional
growth centers in Greater Minnesota to the metropolitan azea.
In addition to its long-range planning function, the Metropolitan
Council should maintain and expand its technical and research
services to cities. The services should assist cities in completing its
pianning mandates but also in conducting special studies and
projects.
For cities to meet Eheir planning mandates, the MeY�:�politar.
Council must ensure that its planning, data collection and
dissemination functions are fulfilled in a timely manner and are
consistent with its statutory obligations.
Budget Process & Work Program Eva4uation (IV-H)
The Metropolitan Council's annual budget shouid present revenue
and expenditure budgets by the services provided. Mandated and
non-discretionary projects should be identified along with their
funding sources. Previous year's history should also be provided.
The annual budget should maintain linkages between expenses and
revenues. In addition, the funds or reserve £unds raised for a
particular service should not be used or commingled with the
funds raised for any other service or activity.
The Metropolitan Council's work program should meet four tests:
♦ The issue or problem identified is important to the regiori s
well-being.
2000 Legislative Policies 23
Mehopolitan Agencies
♦ Metropolitan Council intervention or activity will produce a
positive result.
♦ The Metropolitan 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 activify.
♦ The Metropolitan Council is the most appropriate agency to
intervene or perform the activity.
Criteria for Extension of Metropolitan Governance Authority (IV-1)
The legislature, if granting the meixopolitan governance structure
additional responsibitity or authority, should be specific in the
grant. New or expanded authority should be considered only when
one or more of the folIowing exist:
T'he service, function or activity has been shown to be needed
and it can be demonstrated that it cannot or is not being
effectively or efficienfly provided through existing general
purpose units of government.
- ♦ The service, function or activity is not an appropriate state level
' or local government level activity or function.
♦ Regional intervention is needed for protection of the regiori s
investrnent in an existing metropolitan system.
Restructuring of Metropolitan Agencies (IV-J)
The Sports Facilities Commission and the Metropolitan Airports
Commission (MAC� aze currently metropolitan commissions. The
legislature should make the sports facility commission a local
commission if the back-up tax is limited to one city or is expanded
to additional cities. If the tau is extended tn other cities, the
commission should be restructured to have membership from those
cities.
The legislature should ciarify the status of Ehe MAC so that it
becomes either a metropolitan or state directed agency. The
determining factor in the agency decision is the nature of the
commission's back-up tax. If the tax wi11 be a metropolitan area tax,
its membership should come from the metropolitan area. If the
24 2000 Legislative Policies
Metropolitan Agencies � � �`
back-up tax is statewide, then the MAC should have statewide
representation.
In seleciing membership on the MAC boazd, the govemor should
give prunary consideration for representation from communities
unpacted by the operations of the MAC airports.
Metropolitan Council: 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 Metropolitan
Council members have been discussed but not enacted into law.
The AMM has studied 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 Metropolitan 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 Metropolitan Council should have a distinct
mission of long-range planning and operation of legislatively-
authorized regional services. The criteria include:
Terms of O{fiice
Members should serve fixed, staggered terms.
Metro�olitan Councit Pozvers
The Metropolitan Couneil should continue to be a long-range,
planning agency and potentially an operator or oversight agency
for regional services. As such, the Metropolitan Council must
maintain pianning, coordinating and local assistance as a high
priority.
2000 Legislative Policies 25
Metropolitan Age�cies
Additionul Pozvers
New powers must not expand or override city responsibilities,
especially land use regulation authority. The Metropolitan Council
must not becorne an agency with generallocaI govemment powers.
State Role
The Iegislature shouId focus on broad oversight of the Meixopolitan
Council's mission and services.
Local Government
Local elected officials must be involved in ttte selection process of
Meisopolitan Council members and there must be a mechanism to
faciIitate meaningful dialogue and input between the Metropolitan
Council and cities.
Collar Counties
The metropolitan region clearly includes the seven designated
counties and the adjacent eleven ivlinnesota counties, as well as
three Wisconsin counties. The needs of the entire metropolitan
region beyond the current seven county region must be addressed.
Metropolitan Council Members
The seleciion process must strive to appoint MetropoIitan Council
members who have an understanding of and will 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 & Open Space: Operation � Maintenance Capitaf Funding (IV-L)
The governor and the legislature should continue to appropriate
funding for the operation and maintenance of regional parks. The
level of funding should be equal to the statutory goal of 40 percent
of the total budget. Regional parks essentially serve the rote of state
parks in the meiropolitan azea and the acquisition, development
and improvement of the parks shouId continue to be funded, in
part, with state resources.
� - 2000 Legisiative Policies
Metropolitan Agencies �O � y�
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 implementing
activities by local units of govemment.
Local units of government should continue to be responsible for
the organization and operation of surface and groundwater
management, since they are the closest to the problem.
Therefore, legislation enacted in 19991imiting representation on
boards of Water Management Organizations (WMOs) should be
repealed.
♦ New state requirements should not add to local costs and
duplicate reviews/approvals should be reduced or eliminated.
The AMM would support the following initiatives/action:
♦ A state grant program similar to those currentiy administered
by the Board of Water and Soil Resources (BOWSR) should be
established to assist WMOs in the metropolitan area to
implement their plans.
♦ The legislature should clarify that the joint power WMOs can,
with the approval of its participating governments, separately
levy a tax for its programs.
♦ A thorough assessment of the BOWSR 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 pernutting process with the
objective of developing improvements in conflict resolution,
better coordination between state and local agencies, and
streamlining the project pernut approvals process.
♦ Compliance Uy local units of government located outside of the
metropolitan area with the same standards and requirements
2000 Legislative Policies 27
Metropolitan Agencies
�or surface water management as those unposed on local units
within the metropolitan azea.
A technical evaluation of the impact of 2:1 wefland replacement
in the urbanized azea on the goai of greater urban densities as
stated in the Metropolitan Council's Regional Blueprint.
Water Supply (IV-N)
Additional legislation pertaining to local or regional water supply
planning is not warranted. If legislation, however, is proposed it
should be based on the following principles:
♦ Local units should retain the basic responsibility for water
supply planning and management as in current law.
♦ The state shouId fund additionaI 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 lakes. The system should not
be pernutEed to break up or to diminish its effectiveness. Since all
users benefit equally, the regional user rates should be uniform by
type of user.
Waste Stream Management (IV-P)
The legislature should enact legislation which wili:
Establish goals to reduce, recycle and reuse packaging materials
and estabIish fees, taxes or deposits to encourage
accomplishment of the goals. The revenues would be waived
when the goals aze met, Available revenues would be used to
promote or enhance locat programs to achieve the goals.
♦ Continue the Office of Environmental Assistance (OEA) as an
agency that primarily assists local governments to manage
waste effectively.
28 2000 legisiative Policies
Metropolitan Agencies bo � y\
♦ Continue the role of cities in waste siseam 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 the system.
♦ Provide that host communities for solid waste facilities will not
have a financiai liability for costs associated with operating and
monitoring the facility. Such costs should 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.
2000 Legislative Policies 29
�
!� es �s
__. ���
- _ C
Transportation Funding (V-A)
Transportation (V) a°
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 consisEent 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 and the
main metropolitan probiem {congestion relie� can be addressed.
'The AMM opposes any reduction to the sources of current
constitutionally dedicated transportation funds including auto
license tab fees, unless equivalent replacement funding is aiso
constitutionally dedicated to the current or a new multimodal
transportation fund.
If an alternative to the transit property tax in the metropolitan area
is adopted, current opt-out transit systems should continue to be
funded at comparable levels.
Regional Transit System (V-B)
In order to reduce congestion and automobile dependency 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 other transit modes, including
taxi, bus, pedestrian and bicycle.
The AMM supports an increase in Metropolitan Transit Funding of
at least $3.7 million for the current biennium so that the present
system can be maintained.
2000 Legislative Policies 31
7ransportation
Park-and-ride facilities for mass transit modes adequate to connect
the regional centers, major trip generators and communities, both
urban and suburban, shoald have integrated feeder systems to
accommodate local buses, automobiles, van pools, bicycles, as well
as walking faciliries.
The Metropolitan Council should work with local units of
government to encourage appropriate land use controls along
designated transit corridors to promoee transit ridership.
Motion Imaging Recording System (M.I.R.S.): Tra�c Law Compliance (V-C)
The AMM requests legislative action authorizing utilization of
motion imaging recording system technology for govemmental
units, including cities, on streets and highways to assist promotion
of safety and traffic law compliance enforcement. The technology
has been proven and is currently used for law enforcement by
numerous states, municipalities and other countries. The state
should consider a pilot project on municipal sireets in the
metropoIitan area.
,, Transportation Utitity (V-Dj
The AMM requests the legislature to authorize cities to estabIish a
, transportation utility for street maintenance and reconstruction of
aging infrastructure, simiIar 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 AIvIM supports jurisdictional reassignment or tumback of
roads on a phased basis using functional classification and other
appropriate criteria subject to a conesponding mechanism for
adequate funding of roadway unprovements and continuing
maintenance.
Cities do not currendy have the financial capacity other than
significant property tax increase to absorb the additional roadway
responsibilities without new funding sources. The existing
municipat turnback fund is not adequate based on contempiated
turnbacks.
32 2000 Legislative Policies
Transportation
Oa -��
'3C' Transportation Pianning Process: Elected Officials Role (V-F)
The AMM supports continuation of the Transportation Advisory
Boazd (T'AB), a majority of local elected officials membership on the
TAB itself and the TAB process, which was developed to meet
federal requirements for designation of fihe 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 metropolitan azea
projects. This process requirement was reinforced by the 1991
Intermodal Surface Transportation Efficiency Act (ISTEA) and the
1998 Transportation Efficiency Act for the 21st Century (TEA21).
Airport Noise Mitigation (V-G)
In 1996, the Metropolitan Airports Coirunission (MAC} was
charged with developing a mitigation package for legislative
consideration in 1997, but the package was never developed. Costs
associated with all types of noise mitigation should be borne by the
airport (MAC) and the state since the airport is considered a
statewide facility and provides tremendous economic benefit to the
region. That benefit does not come without responsibility to those
adversely impacted. The airport and state should seek additionai
funding mechanisms on a yearly basis. Funding may include, but is
not limited to, those funds recommended by the 1999-2000
Governor's Community Stability Punding Task Force.
Equitable noise mitigation programs need to be developed to
address the increased traffic and noise due to the expansion of the
MSP International Airport. Impacts, including environmental and
low frequency noise, must be identified at all MAC airports and
applicable mitigation measures implemented by MAC. By 2003, the
year the new North/South runway will be operational, the
Environmental Quality Board should establish guidelines for
airport noise (including low frequency) in consultation with the
MAC, MetropoIitan Council, MSP Noise Mitigation Committee and
affected cities. Noise mitigation programs should not only be
implemented as soon as possible to the 60 DNL—as enacted by the
legislatuxe in 1996, but extended as far as the 55 BNL.
2000 Legislative Poiicies 33
Committee Rosters (VI)
Housing 8� Economic Development
Craig Waldron (Chair), Adnunistrator, Oakdale
janis Callison, Councilmember, Minnetonka
Dave Callister, Clerk-Administrator, Osseo
Mike Campbell, IGR Director, St. Paui
Tom Goodwin, Councilmember, Apple Valley
Regina Harris, HRA Director, Bloomington
Andrea Hart Kajer, IGR Director, Muuteapolis
Brian Herror�, CouncIlmember, Muineapolis
Nancy Mancino, Mayor, Chanhassen
Lonni McCauley, Mayor, Coon Rapids
Joan Molenaar, Councilmember, Champlin
Ron Rankin, Community Development Director, Miruietonka
Don Rye, Planning Director, Prior Lake
Char Samuelson, Councilmember, New Brighton
Mazk Sather, Manager, White Bear Lake
Beriy Sindt, Councilmember, Lakeville
Kathy Thurber, Councilmember, Minneapolis
Jerry Turnquist, CouncIlmember, Oak Park Heights
Liz Workman, CouncIlmember, Burnsville
po-4l
2000 Legislat+ve Policies 35
Committee Rosters
Metropolitan Agencies
Sandra Krebsbach (Chair), Councilmember, Mendota Heights
Mary Anderson, Mayor, Golden Valtey
Bill Bamhart, Govemment Retations Representative, Minneapolis
Kevin Batcheider, Admuustrator, Mendota Heights
Cathy Busho, Mayor, Rosemount
Joan Campbell, Counciimember, Minneapolis
W. Peter Enck, Mayor, New Hope
Matt Fulton, Manager, New Brighton
Ken Haztung, Administrator, Bayport
Susan Hoyt, Admuustrator, Falcon Heights
Anne Hurlburt, D'uector of Community Development, Plymouth
Marvin Johnson, Mayor, Independence
Jane Kansier, Planning Coordinator, Prior Lake
Larry Lee, D'uector of Community Development, Bloomington
Tom Link, D'uector of Development & Prot. Serv., Inver Grove Heights
Paul Malone, Councilmember, Arden Iiills
Lynn Moratzka, Councilmember, Hastings
Mark Nagel, Manager, Anoka
Dave Schaaf, Mayor, Oak Park Heights -
Terry Schneider, Councilmember, Minnetonka
Chazlotte Shover, Councilmember, Burnsville
Russ Susag, Councilmember, Richfield
Chuck Whiting, Administrator, Mounds View
Donn Wiski, Councilmember, Roseville
36 2000 Legisiative Policies
Committee Rosters
Municipal Revenue 8� Taxation
Frank Boyles {Chair), Managet, Prior Lake
Karen Anderson, Mayor, Minnetonka
Leslie Anderson, Director of Finance, Bumsville
Larry Bakken, Councilmember, Golden Valley
Curt Boganey, Manager, Brooklyn Park
Edward Burrell, Treasurer & Finance D'uector, Roseville
Thomas Burt, Administrator, Rosemount
Dave Childs, Manager, Minnetonka
Tom Cran, Budget Analysis, St. Paul
Dan Faust, Finance Director, Maplewood
John Gretz, Admulistrator Apple Valley
Terri Heaton, Chief Finance Officer, Bloomington
Jon Hohenstein, Administrator, Mahtomedi
James Keinath, Adnunistrator, Circle Pines
Nancy Mancino, Mayor, Chanhassen
Peter Meintsma, Mayor, Crystal
Tom Melena, Admuristrator, Oak Park Heights
John Moir, Finance Officer, Minneapolis
Mike Mornson, Manager, St. Anthony
Jim Norman, Admutistrator, Ramsey
Steve O'Malley, Deputy City Manager, Bumsville
Ryan Schroeder, Admulistrator, Cottage Grove
Jerry Splinter, Manager, Coon Rapids
Deb Sturdevant, Counciimember, Champlin
Kathy Thurber, Councilmember, Minneapolis
Gene Van Overbeke, Finance Director, Eagan
�p-W�
2000 Legislative Policies 37
Committee Rosters
John Wallin, Finance Director, Edina
John Weaver, Councilmember, Anoka
jim Willis, Administrator, Inver Grove Heights
Transportation � General Government
Veid Muiznieks (Chair), Councilmember, St Paul Pazk
Dick Allendorf, Councilmember, Minnetonka
Gene Anderson, Councilmember, St. Paul Park
Bill Bamhart, Government Relations Representative, Minneapolis
Lyle Berg, Engineer Traffic & Transportation, Bloomington
Scott Botcher, Manager, Chanhassen
Bob Bruton, Counc_ilmember, North St Paul
Mike Campbell, IGR Director, St. Paul
Char&e Crichton, Counci2member, Bumsville
Dan Donahue, Manager, New Hope
Jerry Dulgaz, Manager, Crystal
Wayne Houle, Assistant Engineer, Edina
Barbara Johnson, Councilmember, Minneapolis
Steve Lazson, Councilmember, New Brighton
Chazles Lenthe, Director of Public Works, Blaine
Jan LeSuer, Cowttcilmember, Golden Valley
Sandra Masin, Councilmember, Eagan
Mark McNeill, Admu�istrator, Shakopee
Dore Mead, Councilmember, Miruieapolis
Jerry Newton, CounciImember, Coon Rapids
Dave Schaaf, Mayor, Oak Park Heights
Ceil Smith, Assistant to City Manager, Edina
James Smith, Councilmember, Independence
� 2000 Legisiative Policies
Committee Rosters
John Weaver, Councilmember, Anoka
Dawn Weitzel, Community jSpecial Project Assistant, Richfield
Donn Wiski, Councilmember, RosevilIe
Bret Woodson, Assistant City Manager, Prior Lake
Duan Zaun, Mayor, Lakeville
D o _y�
2000 Legislative Policies 39
_ -- RIGINAL
a
9
io
ii
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Presented By
Referred To
Committee: Date
i WHEREAS, the Association of Metropolitan Municipalities has adopted its 2000
z Policies and Legislative Proposals to be considered by the Miiuiesota Legislature during the
s 2000 session; and
4
s WHEREAS, the City of Saint Paul was an active participant in the development of these
6 policies and legislative proposals and the City concurs generally on these policies and proposals.
�
NOW, THEREFORE, BE IT RESOLVED that the Saint Paul City Council does
hereby recommend for consideration by the Minnesota Legislature the 2000 Policies and
Legislative Proposals submitted by the Association of Metropolitan Municipalities and does
hereby request that these issues be addressed by the Legislature during the 2000 session.
15
itequested by Department of:
By:
Adopted by Council: Date ���
--�
Adoption Certified by Council Secretary
By: � \�� � ac.�
Approved by Mayor: Date � �( �
By: ���ly?��'v�/vt� �/
council File # A� —y�
Green sheet # Ib30a3
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
��
Form Approved by City Attorney
BY � !/�7/�" P • � /1
Approved by Mayor for Submission to
Council
B �_�
�
0
Mayor Coleman's Office
Bill Huepenbecker (266-8517)
�,� W�„�
1/12/2000
lnn� fOR
RdRHi�
�
TOTAL # OF SIGNATURE PAGES
City Council approval of the Association of Metropolitan Municipalities
2000 Policies and Legislative Proposals.
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PLANNING COMMISSION
CIB CAMMITTEE
CIVIL SERVICE CAMMISSION
GREEN SHEET
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(CLIP ALL LOCATIONS FOR SIGNATURE)
Has ih� Gers�rm euer vrorkeC uMer a conhact far this dePertmeM?
YES NO
Hes mie P�soMrm ewr been a citY empbyee4
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Daes thie G&�rm G� a sidll not nolmalND�eseE M' anv curtent cilY employee?
YES NO
Is this persoNfirm a tarpetetl vendoR
YES NO
9zin all ves a�v�e�s on seoarete sheet arM attach W areen sheet �
�TING PRO&.EM ISSUE, OPPORTUNITY (Who, What, When, Where, W�y) �
Saint Paul is an active member of the AMM and was a participant in the effort tb
develop this year's legislative policies.
IFAPPROVED
The City shows support for the Association of Metropolitan Municipalities, an association
we work closely with om m�ay issues during the session and throughout the year.
None
AMOUNT OF TRANSACTION
iHFOaMnnoN (o�wr�
COSTIREVENUEBUDGETED(GRCLEON� YES NO
ACTIVT'NUMBER
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January 2000
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Association of Metropolitan Municipalities
945 Unive�sityAve. W. ♦ St. Paul, Minnesota 55903-2044
Phone: (6511215-4000 � Fax: (6511281-1299
E-mail.• amm @amm 145. o�g
���
Table of Contents °° � y �
Municipal Revenue 8� Taxation (I)
Levy L'units (I-A)
Local Government Aid (I-B)
Homestead & A�icultural Credit Aid (I-C)
Tax Exempt Property (I-D)
Sales Tax on Local Government Purchases (I-E)
Development Access Fees (I-F)
Price of Government (I-G)
Fiscal Disparity Fund Distribution (I-H)
Personal Property Taxation: Electric Uiility (I-I)
Revenue Diversification (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 (il)
Mandates & Local Authority (II-A)
Public Right-of-Way (II-B)
County Plat Approval Authority (II-C)
911 Telephone Tax (II-D)
800 MHz Radio System (II-E)
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2000 Legislative Policies i
Table of Contents
Pemut Approval: Zoning (II-F)
Witness Fee Costs (II-G)
Elections: Alley System Authority (II-I-n
Housing & Economic Development (Iil)
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/Workforce Readiness (III-J)
Business Subsidy (III-I�
Building Permit Fee Surcharge (III-L)
Group Homes (III-Ivn
Metropolitan Agencies (IV)
Introduction: Metropolitan Governance Structure
Purpose of Metropolitan Governance (IV-A)
RegionaIty Provided Services: Funding (IV-B)
Regional Systems (IV-C)
Coordination of Local & Regional Plans (IV-D)
Growth Management Sirategy (IV-�
Local Pian Implementation (IV-F)
Metropolitan Council Focus on Planning (IV-G)
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ii 2000 Legislative Policies
Tabfe of Contents Ob -�{1
Budget Process & Work Program Evaluation (IV-I-�
Criteria for Extension of Metropolitan
Governance Authority (IV-I)
Restructuring of Metropolitan Agencies (N-J)
Metropolitan Council: Method to Select Members (IV-I�
Pazks & Open Space:
Operation & Maintenance Capital Funding (IV-L)
Suxface & 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)
Motion Imaging Recording System (M.I.R.S.):
Traffic Law Compliance (V-C)
Transportation Utility (V-D)
Highway Turnbacks & Funding (V-E)
'3C' Transportation Planning Process:
Elected Officials Role (V-F)
Airport Noise Mitigation (V-G)
Committee Rosters (VI)
1999-�0 Housing & Economic Development Committee
1999-00 Metropolitan Agencies Committee
1999-00 Municipal Revenue & Taxation Committee
1999-00 Transportation & General Government Committee
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2000 Legisiative Policies iii
Oa -`t\
►�
Levy Limits (I-A)
Municipal Revenue &
Taxation (I)
The AMM strongly opposes levy limits and urges the legislature
to not re-enact them for 2001 or beyond. The AMM also opposes
the imposition of artificial mechanisms such as valuation freezes,
payroll freezes, reverse referenda, super majority requirements for
levy, or other limitations to the local government budget and taxing
process.
Local Government Aid (I-B)
Local Government Aid (LGA) returns a portion of statewide
resources to supplement locai property taxes. The AMM supports
its continuation with an annual inflation index, along with
additionaT 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 impact on the metropolitan
area.
Homestead & Agricultural Credit Aid (I-C)
The Homestead and Agricultural Credit Aid (HACA) equals about
40 percent of the total local aid and should be continued as part of
the local fiscal relationship, with an inflation or increased
household growth factor restored for cities. The AMM strongly
opposes the conversion of city HACA to school aid.
7ax Exempt Property (I-D)
The AMM encourages the legislature to authorize cities to establish
a program of payments in lieu of taxes by tax exempt governmental
and non-governmental organizations, except constitutionally
exempt property (churches and schools) for the cost of services
such as police, fire and streets to their facilities.
20001egislative Policies �
Revenue 8 7axation
Sales Tax on Local Government Purchases (t-Ej
The IegisIature shouId reinstate fihe saies tax exemption for aIl local
government purchases without requiring a retiuction in other aids.
Development Access Fees (I-F)
The AMM supports aufihorization for cities to unpose Development
Access Fees for roads and stormwater control.
In order to fairly provide for major sixeet and stormwater
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 and/ or stormwater
development access charge to be collected at the fime Ehat
subdivisions are approved and/or at the time building pemuts are
issued similar to park dedicarion fees.
Price of Government (1-G)
The price of governnient calcuIation in regard to local governrnents
should be based on (1) changes in the sum of Ehe Ievy 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 goverrunental units, increased demand
for services by citizens and legislative mandates or tax rate
changes.
Fiscal Disparity Fund Distribution (t-Nj
The AMM opposes the use of fiscal disparities to fund social
or physical metropolitan programs since it results in a
mefropolitan-wide property tax increase hidden from the public.
Personal Property Taxation: E(ectric Utifify (I-Ij
The AMM opposes proposals for exempting the Investor Owned
Utilities (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.
2 2000 Legislative Policies
Revenue & 7axation OO — 4,
The personal property tax is a significant portion of the
metropolitan fiscal disparity pool and, if eliminated, would have a
metropolitan-wide property tax impact.
Revenue Diversification (I-J)
The AMM supports revenue diversification for cities to reduce
the reliance on locai property taxes. Some examples include
authorization for local sales taxes, paymenEs in lieu of taxes,
franchise fees, deed taxes to remain with city, development unpact
fees, or the creation of a separate income/sales tax fund that would
grow with the economy.
The AMM opposes legislated reduction or limitation on various
license fees, development fees, or other general fees which would
force increased property tax to pay for related services.
Class 42ate Tax System (1-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 strongly opposes further 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 rate will cause various property tax system
problems. Similar properties will 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 will be polirically difficult as well
as costly to persons owning long-term capped properties when it
becomes necessary to sunset due to vast diffexences 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.
2000 Legislative Policies 3
Revenue & Taxation
Funding SbifEs (i-M)
The AMM requests the legislature to continue to reduce the
unbalance of aids versus revenue between metropolitan and
outstate cities and to consider how this distribution of resources
affects the economic growth and vitality of the metropolitan area,
and thus the entire state. Currently in the metropolitan azea, about
66 percent of the state revenue is collected, while only about 49
percent of the aids and credits aze redistribnted.
City Revenue Stability & Fund Balance (i-N)
The legislature should not attempt to control or restrict city fund
balances. These funds are necessary to maintain fiscal viability to
meet unexpected or emergency resource needs of city govermnents,
to purchase capital goods and infrastructure, provide adequate
cash flow and to maintain high-levei bond ratings.
4 2000 Legislative Policies
� �� General Legislation (II)
��
Mandates 8� Local Authority (II-A)
The AMM opposes statutory changes which erode local control and
authority or create mandated additional tasks requiring new or
added local costs without a corresponding state appropriation or
funding mechanism. New unfunded mandates cause increased
property taxes which impedes the ability to fund traditional service
needs.
Public Right-of-Way (II-B)
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 obtain 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. YVhile counties
have a valid interest in right-of-way and access decisions, this does
not warrant a transfer of approval authority.
911 Telephone Tax (il-D)
The AMM supports the current distriburion 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 granted
legislatively in excess of 30 cents should be returned directiy to the
municipality or public safety answering provider (PSAP) where
collected. Fee increases granted by the legisiature 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 chazge to cell phone users.
00-�1
2000 Legislative Policies 5
General Legislation
800 MHz Radio System (il-E)
The AMM supports the continuation of the Metropolitan 800 MHz
Radio System legislation and board, as long as cities aze not forced
to modify their current systems or become pazt of the 800 MHz
Radio System uniil they so choose. The system should provide a
phased transition guazanteeing uninterrupted service and be
technically capable of allowing communities the flexibility to form
various coordinated arrangements for dispatching and service
provision. In that one of fihe prune advantages of this system is the
fact that local public safety agencies and other units of local
government throughout the region will be able to communicate
with each other, regional funding of the entire system should be
considered. Any such funding should take into account the
reasonable useful life of current systems.
Permit Approval: Zoning (11-F)
The permit approval statute delineating time limit requirements
should be modified so that in the case of a rezoning application, a
morion 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 automatic approval if
no action is taken.
Witness Fee Costs (II-G)
Since one-third of fines for city-related prosecutions remain with
the county and adequately fund this cost, the AMM opposes
shif ting witness' fees from counties to cities for these actions.
Elections: Alley System Authority (II-H)
The AMM supports permissive authority for statutory cities to
adopt an alley system for filing for city council seats.
6 2000 Legisiative Policies
.�'' �,
�ij jv
�_�
Housing & Economic
Development (III)
Livabie Communities Act (III-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 affordabie and
life cycle housing goais and a plan to achieve the goals.
Since its inception, the Metropolitan Council has been responsible
for program implementation, including the completion of an
annual progress report. The report for the 1996 calendar y ear
indicates progress toward achieving the stated goals but also raises
concern regarding the preservation of affordable housing,
paxticularly the demolition of housing units.
The AMM has maintained that the LCA should not be amended
until there are progress reports and experience with the LCA.
Based on the reports and experience of cities, the AMM
recommends:
♦ The LCA should be continued.
♦ The LCA shouid be amended to eliminate the requirement that
a ciry annually elect to be a participant in the act and require by
November 15 that a resolution to withdraw be approved.
♦ The state shouid appropriate funds for the LCA. The
appropriation should not replace the current funding sources
but should be in addition to them.
♦ The Metropolitan Council, in cooperation with the LCA
participants, should develop a benchmark to measure a city's
efforts to provide affordable housing. The benchmark shouid
Oo-yl
2000 Legislative Policies �
Housing & Economic Development
replace the Affotdable Life Cycle Housing Opportunity
Amount (ALHOA).
State Housing Policy (III-B)
The AMM recognizes and is encouraged by the efforts of the
legislature regazding the production and preservation of affordable
housing. Over the past several sessions the legislature has provided
the Minnesota Housing Finance Agency (IvIHFA) with additional
funds to address housing issues. For example, the 1999 Legislature
significanfly increased the MHFA's biennial appropriation for
housing production programs.
While the state of Minnesota continues as a paztner with local
government in addressing housing issues the federal government,
the traditional leader in housing policy development, has
decreased its involvement in the issue. The federal govemment's
lack of commitrnent has caused the other partners -- state and local
governments — to increase their housing comnutments. The state
and local efforts have made an impact but without a strong federal
presence, the state and local efforts will be limited. Therefore, the
AMM strongiy encourages the federal government to be actively
' engaged in housing policy and programming-
To continue the expansion of the state s economy, the governor and
legislature should recognize the iznportance of housing to economic
vitality and family stability and should adopt policies that preserve
existing housing, pemut the production of safe affordable housing
and provide resources to produce and preserve housing. The AMM
recommends the following.
Land Use Standnrds and Stnte Incenfives
♦ Minnesota cities are responsible for and should retain the
authority fo regulate the location, size and amount, and type of
housing within their boundaries. Minnesota cities, where the
county has capacity, should partner with the county to provide
affordable housing.
♦ 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 inceniives can be, but not
$ 2000 Legislative Poticies
Housing & Economic DevelopmenS o 0 _ y `
be limited to, property tax class rates and sales tax exemptions
for construction materiaLs.
State funding provided for the incentives should not reduce
exisiing programs.
♦ Historically, the federal government has provided funding for
housing production and rent subsidies. Over the last decade the
federal goverrunent has reduced its funding conunitment and
has caused a shortage of affordable housing. Therefore, the
AMM recommends that the federal government increase its
participation and funding in housing.
Housing Preservation (lil-C)
Housing preservation includes the maintenance of the existing
rental and owner occupied housing, as weil as the retention of
affordable units that were formeriy subsidized by federal
programs. The state should:
♦ Continue and increase funding the housing preservation
program for federally subsidized housing that cou]d be
converted to market rate housing.
♦ Expand efforts to provide resources for housing rehabilitarion.
♦ Provide a sales tax exemption for construction supplies and
materials used in the construction or substantial rehabilitation
of affordable housing.
♦ Exempt public agencies from paying the mortgage and deed tvc
when developing or providing for affordable housing and
redevelopment.
Minnesota Housing Finance Agency Appropriation (III-D)
The Minnesota Housing Finance Agency's (MHFA) biennial
general fund appropriation approximates $78.0 million. (The 1999
Legislature increased the general fund appropriation to $115.0
million.) The agency uses the funds for several housing programs
including rental and homeownership. For the next bienraum the
agency should:
2000 Legislative Poiicies 9
Housing 8 Economic Development
♦ Have its appropriation increased and the increase be used
primarily for housing preservation, housing produciion and
homeless prevention programs.
Redesign, if warranted and with city input, the Community
Rehabilitation Program to encourage additional participation
from the meiropolitan area. The redesign, if needed, could
include modification of the azea 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 & Elderiy Housing (lll-E)
Demographic trends indicate that Minnesota s population is aging.
_ For example, the Metropolitan Council projects that the regiori s
population age 65 and older will neazly double from the year 2000
to 2020. Since most of the population owns singie family hous'vng
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.
In the metropolitan area, the Metropolitan Council reports that the
number of persons age 75 and over will increase from
approximately 110,000 in the yeaz 2000 to 180,000 in 2020. Being
aware of the trends, the legislature should:
Provide additional resources to serve the low income elderly.
Resources should include housing as well as related services.
♦ Direct state agencies to provide information and technical
assistance to local governments regazding the population
changes and their impacts on public services.
♦ Develop policies that encourage the development of housing for
the elderly that is affordable and provides an attractive
alternative to current housing and preserves the current
housing.
Economic Development Responsibitities (III-F)
The state should continue to recognize cities as the primary unit of
government responsible for implementing economic development
10 2000 Legislative Policies
Housing & Economic Developme�t � Q—�{,
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 1999 Minnesota Legislature made several changes to the Tax
Increment Financing (TIF) Act. Among them were amendments
relating to pooling, the use of increment for public facilities and the
impact of property tax changes on TIF.
Poolin
♦ Clarify that any tax increment districts approved between 1979
and 1982 have the same authority to pool increments as districts
certified after 1982 and prior to Apri11,1990.
♦ Allow districts approved after April 1,1990 to pool increments
for affordable housing or polluiion remediation.
Ln�ai E ort
♦ Eliminate the LGA/HACA penalty or aliow 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 local funds for
local contributions.
TIF Lise
♦ Exempt redevelopment districts from the five-year rule.
♦ Reaffirm that 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 TIF to be used for historic preservation.
2000 Legislative Policies i l
Housing & Economic Development
Housin
♦ Modify the housing district income qualification requirements
to allow the levels to vary according to individual regions of the
state or counties.
♦ Remove the LGA/HACA penalty imposed on housing disiricts
established between 1990 and 1993.
__ �orfinQ
y ♦ 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 cifies 60
days to respond to a violation of the TIF law prior to sending a
notice of the violation to the county attomey. The notice to the
city must also state that at the end of the 60-day period any
resolved issues will be sent to the county attorney for possible
aciion.
♦ Require the county afitomey to decide on action regarding
violation within ninety days of receipt of the notice from the
OSA.
♦ Authorize the OSA to conduct a compliance review of a tax
increment district within 12 months of the date the district is
decertified or the increment is completely expended, whichever
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.
Clarify that an error of a non-substantive manner is not a
violation of the law and therefore the city should not be
formally cited for a violation of the reporting provisions of the
TIF Act.
♦ Require that the OSA provide reporting entities with a checklist
of specific items that will be part of a compliance or final review
of a disfrict.
12 2000 Legisiative Policies
Housing 8� Economic Development
Oo-�t�
♦ Redraft the reporting section of the TIF law to sunplify the TIF
reporting forms, consolidate reports and request similaz
information for the reports submitEed annually to the State
Auditor.
Property Tax Reform Impact on TIF (III-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 decxease could aiso result in
revenue shortfalls in TTF dislricts. The shortfalls could impact bond
payments and other contractual obiigations. 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 possible 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 2603.
♦ 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 impacts.
♦ 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 would result in a
deficit in paying outstanding contracts or obligations.
Deve�opment Tools (III-I)
Over the past several sessions, the legislature has provided cities
with development tools to redevelop property, clean up polIuted
sites and encourage business retention and expansion. The tools
include, but are not limited to, TIF, tax expenditures and loans and
2000 Legislative Policies 13
Nousing 8 Economic Development
grants. Many of the state tools have supplemented local efforts, To
continue this state local relationship, the legislature should:
♦ Continue the Minnesota Investrnent Fund.
♦ Support increased funding for the pollution clean-up program
administered by the Minnesota Departrnent of Trade and
Economic Development (DTED).
♦ Require condemnation commissioners to consider the cost of
conecting pollution probiems in deternuning 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 poliuted sites.
♦ Eliminate the requirement to match a portion of the clean-up
grant program with local general funds.
'. ♦ Make permanent the Redevelopment Fund established in 1998.
� Welfare ReformlWorkforce Readiness (III-J)
In developing workforce policies, the legislature has considered the
impact of such factors as the robust economy and federal welfare
reform. The economy has produced empioyment opportunities in
several business sectors that are not being satisfied due to the lack
of skilled workers. To address this issue the legislature has
responded by restructuring and expanding its workforce programs
to meet the needs of the state's employees.
With the passage of federal welfare reform and enactment of
Minnesota s new welfaze program - the Minnesota Family
Investrnent Program (MFIP), public policy is placing an emphasis
on work and job readiness. The purpose of MFIP is intended to
support work and not to replace income when people are not
working. To accomplish the goal of getting people to work
Minnesota has adopfed a work first program that expecEs, supports
and rewards work.
� 4 2000 Legislative Policies
Housing & Economic Development
Do -�1\
Among the program elements eseablished by the legislature to
implement MFIP aze jobs training, transportation, medical
assistance and housing.
As MFIP is being implemented statewide, the state is experiencing
record low unemployment and economic growth, and as a result
there are now employment opportunities. If the economy, however,
declines, empioyment opportunities for MFIP participants will
decrease and the state s human service system could be over
extended. Being awaze that a trained work force is a major part of
an economic development strategy the legislature should:
♦ Provide state funding to match the maximum amount of
availabie federal training funds.
♦ Continue and increase funding for state job training programs
including Pathways and the Job Training Partnership.
♦ 1Vlodify the Pathways Program to provide public agencies with
the flexibility to contract with training programs of employers,
as well as those of public institutions.
♦ Continue and incxease funding for the transportation and
childcare programs including sliding fee daycare.
♦ Examine the delivery system for state services (training,
daycare) to determine and ensure that administrative
procedures are implemented uniformly throughout the state.
♦ Continue the policy of nor reducing a person's or household's
MFIP monthly grant if they are residents of the public or section
8 housing.
Business Subsidy (111-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. `I`he
agreement contains a description of the incentive and the type of
development to be completed in terms of market value or square
2000 Legislative Policies 15
Housing 8 Economic Devefopmenf
footage and penalties for non-performance. The agreements also
contain job and wage goals as required by current Minnesota law.
In reviewing the issue of corporate subsidy the legislature should:
♦ Clarify the reporting requirements in terms of time frames and
reporking entity.
♦- Exclude redevelopment and housing TIF districts from the
reporting requirements of current law.
♦ Maintain the reporting of job and wage goals in currene law but
do not require a specific wage amount.
♦ The Business Subsidy Law approved by the 1999 Legislature
will need to be amended during the 2000 Session. The
amendments are needed so that DTED and the cities can
implement the act. Among the amendments that should be
adopted by the Iegislature are:
1. The exclusion of tax exempt revenue bonds issued on behalf
of a non-profit entity. The bonds are used to finance such
facilities as health caze and housing and the bonds are not
included in the existing federal bond limits.
2. Clarify that poIlution clean-up, soiLs projects and
rehabilitation of buildings exempted as a business subsidy
does not need to submit a report to DTED.
3. Define that the rehabilitation of buitdings does not include
the rehabilitation of housing.
4. Eluninate the requirement that the business receiving the
subsidy must continue to operate at the same site fox at least
five years.
5. Provide DTED with an appropriation to implement the law.
Building Permit Fee Surcharge (II!-L)
Local governments collect a halE-percent surcharge on building
permits. The proceeds of the surcharge are paid to the state and aze
used to support the State BuiIding Codes and Standards Division.
� 6 2000 Legislative Policies
Housing & Economic Developmenfi 00 -�{\
Prior to 1991, any excess proceeds were remitted on a prorate basis
to the local governments. To help with the development of
affordabie housing it is recommended that:
♦ The proceeds from the building permit surcharge fee be paid to
the MI�A for the support of affordable housing and that the
building codes and standards division be funded from the state
general fund.
Group Homes (111-M)
State and county agencies must provide timely notification to
cities of facility license requests and renewals and provide
adequate opporiuniry to respond. Cities must also be aware of
the special caxe needed by residents of such facilities in case of
public safety emergencies.
♦ Clustering of conununity residential facilities because of
economic, geographic or other factors should be avoided.
Standards of non-concentration for state or county-issued
Requests for Proposals (RFPs) should be established.
There must be an ongoing screening process, particularly in the
correction area, to insure that persons placed in a residential
facility will benefit from such an environxnent and will not be a
danger to themselves or others. The licensing 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
factors including transpoxtation facilities, job availability and
other needed support services.
♦ The licensing authority and/or legislature should allow cities to
participate in the search for facility locations in order to meet
needs of the providers, facility residents and the neighborhood.
2000 Legislative Policies 17
00-N�
Metropolitan Agencies ((V)
Introduction: Metropolitan Governance Structure
The Metropolitan Council was established in 1967 to coordinate
"the planning and development" of the seven county metropolitan
area. To fizifill its responsibiliries, the Metropolitan Council has
worked with local governments to establish policies regarding
growth and development in the region. Over the years, the
Metropolitan Council has been authorized by the legislature to be
involved in the development of regional parks and the operation of
regional services.
In the foilowing years the Metropolitan Council was mostly
advisory, but was given responsibility for regional policy
development and coordination in the areas of wastewater
treatment, transportation and airports. The Metropolitan Council
was given limited approval authority for development proposals,
which were of inetropolitan (regional) significance but was not
given direct operational authority.
The MetropoliEan Council's responsibilities have been expanded
over the years. The Metropolitan Council was given direct
operational xesponsibility for regional ixansit and wastewater
treatment in 1994. In the following year, the legislature directed the
Metropolitan Council to -unplement the Livable Communities Act
(LCA). The Metropolitan 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 Metropolitan Council's role has evolved since its
inception to long-range planning and the operation of regional
services.
2000 Legislative Policies 19
Metropolitan Agencies
Purpose of Metropolitan Governance (IV-A)
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 metropoIitan govemance system
should be:
♦ To facilitate region-wide planning with the cooperation and
consideration of the affected local units.
� To pxovide certain region-wide services that do not duplicate
those that can be provided by locai govemmental units, either
individually or jointly.
♦ To fulfill other specific responsibilities mandated by the state
and federal govemments.
Regionally Provided Services: Funding (IV-B)
The Metropolitan Council shouId continue to fund its regional
services and activities through the eacisting combination of user
fees, property taxes, and state and federal grants. The current
_ revenue system provides better visibflity to the customers.
The MetropoIitan Council should be responsible for deterinining
user fees. The fees should be consistent with regional system plans
and goals assure that the service quality can be of high quality as
measured by industry or public policy standards and be
established by an open, visible procedure including, but not limited
to, public notice and hearings.
A clear linkage between revenue and service should be maintained.
Fee proceeds from one service should not be used to fund another
regional service.
Regional Systems (IV-C)
The regional investrnent in metropolitan systems must be
maintained and preserved by preventing adverse unpact because of
the Iack of integration and coordination between regional and local
planning.
20 2000 Legislative Policies
Metropolitan Agencies �O _r.{,
Regional system designation shouid only be approved if there is a
compelling metropolitan problem or concem that can best be
addressed through the designation. Prior to requesting legislative
approval for a system, the Metropolitan Council must discuss the
proposal with the region.
Coordination of Local & Regionai Pians (IV-D)
The regional plamzing process must, on a continual basis, have the
input of local government officials. To ensure input, the
Metropolitan 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 considerarion in local
comprehensive pianning. 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 substantial 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 sta£f
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,
znust have a procedure that will:
♦ Recognize that the Metropolitan Council's role is to review and
comment, unless there is a substantial impact on or departuze
from the system plans.
♦ Establish an open dialogue between cities and the Metropolitan
Council, including public meetings and public hearings.
♦ Be aware of the statutory time constraints imposed by the
legislature on pian amendments and development applications.
2000 Legislative Policies 21
Metropolifan Agencies
Provide for immediate effectuation of plan amendments, which
have no poteniial for substantial impact on systems plans.
Require the information needed for the Metropolitan Council to
complete its review, but not prescribe additional content or
format beyond that is required by the Metropolitan Land
Planning Act (MLPA).
Growth Management Strategy (IV-E)
The Metropolitan Council should continue its flexible guided
growth policy regazding Metropolitan Urban Service Area (MUSA)
expansion requests as ouflined in the Regional Blueprint.
The Metropolitan Council in cooperation with State Planning and
the counties adjacent to the region should develop growth
management strategies for the colIaz counties. The strategies should
focus on policies that can be implemented by local governments
within the adjacent counties and state agencies rather than
extending the jurisdiction of the Metropolitan Council to additional
counties. All strategies should complement and recognize growth
poIicies being implemented within the region.
- ♦ If regional services aze to be extended to the collar counties, the
services shouid only be extended if there is a speci£ic problem
(environment or transportation) that can be best resolved by
extending the service. The area receiving the services must pay
for the service extension and agree to growth management
strategies consistent with those of the metropolitan area.
♦ In developing and providing incentives for implementing its
regional objectives, the Metropolitan Council should consider
and give credit for a city's experience in unplementing its
comprehensive plan and the Metropolitan Council's Regional
BIueprint.
Local Plan Implementation (IV-F)
Local governments are responsible for zoning. These zoning
decisions should not be conditioned upon approvals by the
Metropolitan Council or other govemmental agency. The AMM is
open to the use. of alternative dispute resolution procedures prior to
judicial remedies.
22 2000 Legislative Policies
Mehopolitan Agencies O 0 ..��
Altemative dispute resolution could reduce costs and time for all
parties involved in the dispute. The AMM strongly opposes the
creation of an appeals board that could supersede city planning or
zoning decisions.
Metropolitan Council Focus on Planning (IV-G)
Long-range planning should continue to be the primary function of
the Metropolitan Coixncil. In conducting long-range planning, the
Metropolitan Council should periodically update and revise the
vision for the region. As part of its long-range planning, the
Metropolitan Council should include analysis of trends, plans,
policies and programs that could impact or link the regional
growth centers in Greater Minnesota to the metropolitan azea.
In addition to its long-range planning function, the Metropolitan
Council should maintain and expand its technical and research
services to cities. The services should assist cities in completing its
pianning mandates but also in conducting special studies and
projects.
For cities to meet Eheir planning mandates, the MeY�:�politar.
Council must ensure that its planning, data collection and
dissemination functions are fulfilled in a timely manner and are
consistent with its statutory obligations.
Budget Process & Work Program Eva4uation (IV-H)
The Metropolitan Council's annual budget shouid present revenue
and expenditure budgets by the services provided. Mandated and
non-discretionary projects should be identified along with their
funding sources. Previous year's history should also be provided.
The annual budget should maintain linkages between expenses and
revenues. In addition, the funds or reserve £unds raised for a
particular service should not be used or commingled with the
funds raised for any other service or activity.
The Metropolitan Council's work program should meet four tests:
♦ The issue or problem identified is important to the regiori s
well-being.
2000 Legislative Policies 23
Mehopolitan Agencies
♦ Metropolitan Council intervention or activity will produce a
positive result.
♦ The Metropolitan 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 activify.
♦ The Metropolitan Council is the most appropriate agency to
intervene or perform the activity.
Criteria for Extension of Metropolitan Governance Authority (IV-1)
The legislature, if granting the meixopolitan governance structure
additional responsibitity or authority, should be specific in the
grant. New or expanded authority should be considered only when
one or more of the folIowing exist:
T'he service, function or activity has been shown to be needed
and it can be demonstrated that it cannot or is not being
effectively or efficienfly provided through existing general
purpose units of government.
- ♦ The service, function or activity is not an appropriate state level
' or local government level activity or function.
♦ Regional intervention is needed for protection of the regiori s
investrnent in an existing metropolitan system.
Restructuring of Metropolitan Agencies (IV-J)
The Sports Facilities Commission and the Metropolitan Airports
Commission (MAC� aze currently metropolitan commissions. The
legislature should make the sports facility commission a local
commission if the back-up tax is limited to one city or is expanded
to additional cities. If the tau is extended tn other cities, the
commission should be restructured to have membership from those
cities.
The legislature should ciarify the status of Ehe MAC so that it
becomes either a metropolitan or state directed agency. The
determining factor in the agency decision is the nature of the
commission's back-up tax. If the tax wi11 be a metropolitan area tax,
its membership should come from the metropolitan area. If the
24 2000 Legislative Policies
Metropolitan Agencies � � �`
back-up tax is statewide, then the MAC should have statewide
representation.
In seleciing membership on the MAC boazd, the govemor should
give prunary consideration for representation from communities
unpacted by the operations of the MAC airports.
Metropolitan Council: 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 Metropolitan
Council members have been discussed but not enacted into law.
The AMM has studied 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 Metropolitan 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 Metropolitan Council should have a distinct
mission of long-range planning and operation of legislatively-
authorized regional services. The criteria include:
Terms of O{fiice
Members should serve fixed, staggered terms.
Metro�olitan Councit Pozvers
The Metropolitan Couneil should continue to be a long-range,
planning agency and potentially an operator or oversight agency
for regional services. As such, the Metropolitan Council must
maintain pianning, coordinating and local assistance as a high
priority.
2000 Legislative Policies 25
Metropolitan Age�cies
Additionul Pozvers
New powers must not expand or override city responsibilities,
especially land use regulation authority. The Metropolitan Council
must not becorne an agency with generallocaI govemment powers.
State Role
The Iegislature shouId focus on broad oversight of the Meixopolitan
Council's mission and services.
Local Government
Local elected officials must be involved in ttte selection process of
Meisopolitan Council members and there must be a mechanism to
faciIitate meaningful dialogue and input between the Metropolitan
Council and cities.
Collar Counties
The metropolitan region clearly includes the seven designated
counties and the adjacent eleven ivlinnesota counties, as well as
three Wisconsin counties. The needs of the entire metropolitan
region beyond the current seven county region must be addressed.
Metropolitan Council Members
The seleciion process must strive to appoint MetropoIitan Council
members who have an understanding of and will 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 & Open Space: Operation � Maintenance Capitaf Funding (IV-L)
The governor and the legislature should continue to appropriate
funding for the operation and maintenance of regional parks. The
level of funding should be equal to the statutory goal of 40 percent
of the total budget. Regional parks essentially serve the rote of state
parks in the meiropolitan azea and the acquisition, development
and improvement of the parks shouId continue to be funded, in
part, with state resources.
� - 2000 Legisiative Policies
Metropolitan Agencies �O � y�
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 implementing
activities by local units of govemment.
Local units of government should continue to be responsible for
the organization and operation of surface and groundwater
management, since they are the closest to the problem.
Therefore, legislation enacted in 19991imiting representation on
boards of Water Management Organizations (WMOs) should be
repealed.
♦ New state requirements should not add to local costs and
duplicate reviews/approvals should be reduced or eliminated.
The AMM would support the following initiatives/action:
♦ A state grant program similar to those currentiy administered
by the Board of Water and Soil Resources (BOWSR) should be
established to assist WMOs in the metropolitan area to
implement their plans.
♦ The legislature should clarify that the joint power WMOs can,
with the approval of its participating governments, separately
levy a tax for its programs.
♦ A thorough assessment of the BOWSR 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 pernutting process with the
objective of developing improvements in conflict resolution,
better coordination between state and local agencies, and
streamlining the project pernut approvals process.
♦ Compliance Uy local units of government located outside of the
metropolitan area with the same standards and requirements
2000 Legislative Policies 27
Metropolitan Agencies
�or surface water management as those unposed on local units
within the metropolitan azea.
A technical evaluation of the impact of 2:1 wefland replacement
in the urbanized azea on the goai of greater urban densities as
stated in the Metropolitan Council's Regional Blueprint.
Water Supply (IV-N)
Additional legislation pertaining to local or regional water supply
planning is not warranted. If legislation, however, is proposed it
should be based on the following principles:
♦ Local units should retain the basic responsibility for water
supply planning and management as in current law.
♦ The state shouId fund additionaI 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 lakes. The system should not
be pernutEed to break up or to diminish its effectiveness. Since all
users benefit equally, the regional user rates should be uniform by
type of user.
Waste Stream Management (IV-P)
The legislature should enact legislation which wili:
Establish goals to reduce, recycle and reuse packaging materials
and estabIish fees, taxes or deposits to encourage
accomplishment of the goals. The revenues would be waived
when the goals aze met, Available revenues would be used to
promote or enhance locat programs to achieve the goals.
♦ Continue the Office of Environmental Assistance (OEA) as an
agency that primarily assists local governments to manage
waste effectively.
28 2000 legisiative Policies
Metropolitan Agencies bo � y\
♦ Continue the role of cities in waste siseam 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 the system.
♦ Provide that host communities for solid waste facilities will not
have a financiai liability for costs associated with operating and
monitoring the facility. Such costs should 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.
2000 Legislative Policies 29
�
!� es �s
__. ���
- _ C
Transportation Funding (V-A)
Transportation (V) a°
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 consisEent 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 and the
main metropolitan probiem {congestion relie� can be addressed.
'The AMM opposes any reduction to the sources of current
constitutionally dedicated transportation funds including auto
license tab fees, unless equivalent replacement funding is aiso
constitutionally dedicated to the current or a new multimodal
transportation fund.
If an alternative to the transit property tax in the metropolitan area
is adopted, current opt-out transit systems should continue to be
funded at comparable levels.
Regional Transit System (V-B)
In order to reduce congestion and automobile dependency 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 other transit modes, including
taxi, bus, pedestrian and bicycle.
The AMM supports an increase in Metropolitan Transit Funding of
at least $3.7 million for the current biennium so that the present
system can be maintained.
2000 Legislative Policies 31
7ransportation
Park-and-ride facilities for mass transit modes adequate to connect
the regional centers, major trip generators and communities, both
urban and suburban, shoald have integrated feeder systems to
accommodate local buses, automobiles, van pools, bicycles, as well
as walking faciliries.
The Metropolitan Council should work with local units of
government to encourage appropriate land use controls along
designated transit corridors to promoee transit ridership.
Motion Imaging Recording System (M.I.R.S.): Tra�c Law Compliance (V-C)
The AMM requests legislative action authorizing utilization of
motion imaging recording system technology for govemmental
units, including cities, on streets and highways to assist promotion
of safety and traffic law compliance enforcement. The technology
has been proven and is currently used for law enforcement by
numerous states, municipalities and other countries. The state
should consider a pilot project on municipal sireets in the
metropoIitan area.
,, Transportation Utitity (V-Dj
The AMM requests the legislature to authorize cities to estabIish a
, transportation utility for street maintenance and reconstruction of
aging infrastructure, simiIar 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 AIvIM supports jurisdictional reassignment or tumback of
roads on a phased basis using functional classification and other
appropriate criteria subject to a conesponding mechanism for
adequate funding of roadway unprovements and continuing
maintenance.
Cities do not currendy have the financial capacity other than
significant property tax increase to absorb the additional roadway
responsibilities without new funding sources. The existing
municipat turnback fund is not adequate based on contempiated
turnbacks.
32 2000 Legislative Policies
Transportation
Oa -��
'3C' Transportation Pianning Process: Elected Officials Role (V-F)
The AMM supports continuation of the Transportation Advisory
Boazd (T'AB), a majority of local elected officials membership on the
TAB itself and the TAB process, which was developed to meet
federal requirements for designation of fihe 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 metropolitan azea
projects. This process requirement was reinforced by the 1991
Intermodal Surface Transportation Efficiency Act (ISTEA) and the
1998 Transportation Efficiency Act for the 21st Century (TEA21).
Airport Noise Mitigation (V-G)
In 1996, the Metropolitan Airports Coirunission (MAC} was
charged with developing a mitigation package for legislative
consideration in 1997, but the package was never developed. Costs
associated with all types of noise mitigation should be borne by the
airport (MAC) and the state since the airport is considered a
statewide facility and provides tremendous economic benefit to the
region. That benefit does not come without responsibility to those
adversely impacted. The airport and state should seek additionai
funding mechanisms on a yearly basis. Funding may include, but is
not limited to, those funds recommended by the 1999-2000
Governor's Community Stability Punding Task Force.
Equitable noise mitigation programs need to be developed to
address the increased traffic and noise due to the expansion of the
MSP International Airport. Impacts, including environmental and
low frequency noise, must be identified at all MAC airports and
applicable mitigation measures implemented by MAC. By 2003, the
year the new North/South runway will be operational, the
Environmental Quality Board should establish guidelines for
airport noise (including low frequency) in consultation with the
MAC, MetropoIitan Council, MSP Noise Mitigation Committee and
affected cities. Noise mitigation programs should not only be
implemented as soon as possible to the 60 DNL—as enacted by the
legislatuxe in 1996, but extended as far as the 55 BNL.
2000 Legislative Poiicies 33
Committee Rosters (VI)
Housing 8� Economic Development
Craig Waldron (Chair), Adnunistrator, Oakdale
janis Callison, Councilmember, Minnetonka
Dave Callister, Clerk-Administrator, Osseo
Mike Campbell, IGR Director, St. Paui
Tom Goodwin, Councilmember, Apple Valley
Regina Harris, HRA Director, Bloomington
Andrea Hart Kajer, IGR Director, Muuteapolis
Brian Herror�, CouncIlmember, Muineapolis
Nancy Mancino, Mayor, Chanhassen
Lonni McCauley, Mayor, Coon Rapids
Joan Molenaar, Councilmember, Champlin
Ron Rankin, Community Development Director, Miruietonka
Don Rye, Planning Director, Prior Lake
Char Samuelson, Councilmember, New Brighton
Mazk Sather, Manager, White Bear Lake
Beriy Sindt, Councilmember, Lakeville
Kathy Thurber, Councilmember, Minneapolis
Jerry Turnquist, CouncIlmember, Oak Park Heights
Liz Workman, CouncIlmember, Burnsville
po-4l
2000 Legislat+ve Policies 35
Committee Rosters
Metropolitan Agencies
Sandra Krebsbach (Chair), Councilmember, Mendota Heights
Mary Anderson, Mayor, Golden Valtey
Bill Bamhart, Govemment Retations Representative, Minneapolis
Kevin Batcheider, Admuustrator, Mendota Heights
Cathy Busho, Mayor, Rosemount
Joan Campbell, Counciimember, Minneapolis
W. Peter Enck, Mayor, New Hope
Matt Fulton, Manager, New Brighton
Ken Haztung, Administrator, Bayport
Susan Hoyt, Admuustrator, Falcon Heights
Anne Hurlburt, D'uector of Community Development, Plymouth
Marvin Johnson, Mayor, Independence
Jane Kansier, Planning Coordinator, Prior Lake
Larry Lee, D'uector of Community Development, Bloomington
Tom Link, D'uector of Development & Prot. Serv., Inver Grove Heights
Paul Malone, Councilmember, Arden Iiills
Lynn Moratzka, Councilmember, Hastings
Mark Nagel, Manager, Anoka
Dave Schaaf, Mayor, Oak Park Heights -
Terry Schneider, Councilmember, Minnetonka
Chazlotte Shover, Councilmember, Burnsville
Russ Susag, Councilmember, Richfield
Chuck Whiting, Administrator, Mounds View
Donn Wiski, Councilmember, Roseville
36 2000 Legisiative Policies
Committee Rosters
Municipal Revenue 8� Taxation
Frank Boyles {Chair), Managet, Prior Lake
Karen Anderson, Mayor, Minnetonka
Leslie Anderson, Director of Finance, Bumsville
Larry Bakken, Councilmember, Golden Valley
Curt Boganey, Manager, Brooklyn Park
Edward Burrell, Treasurer & Finance D'uector, Roseville
Thomas Burt, Administrator, Rosemount
Dave Childs, Manager, Minnetonka
Tom Cran, Budget Analysis, St. Paul
Dan Faust, Finance Director, Maplewood
John Gretz, Admulistrator Apple Valley
Terri Heaton, Chief Finance Officer, Bloomington
Jon Hohenstein, Administrator, Mahtomedi
James Keinath, Adnunistrator, Circle Pines
Nancy Mancino, Mayor, Chanhassen
Peter Meintsma, Mayor, Crystal
Tom Melena, Admuristrator, Oak Park Heights
John Moir, Finance Officer, Minneapolis
Mike Mornson, Manager, St. Anthony
Jim Norman, Admutistrator, Ramsey
Steve O'Malley, Deputy City Manager, Bumsville
Ryan Schroeder, Admulistrator, Cottage Grove
Jerry Splinter, Manager, Coon Rapids
Deb Sturdevant, Counciimember, Champlin
Kathy Thurber, Councilmember, Minneapolis
Gene Van Overbeke, Finance Director, Eagan
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2000 Legislative Policies 37
Committee Rosters
John Wallin, Finance Director, Edina
John Weaver, Councilmember, Anoka
jim Willis, Administrator, Inver Grove Heights
Transportation � General Government
Veid Muiznieks (Chair), Councilmember, St Paul Pazk
Dick Allendorf, Councilmember, Minnetonka
Gene Anderson, Councilmember, St. Paul Park
Bill Bamhart, Government Relations Representative, Minneapolis
Lyle Berg, Engineer Traffic & Transportation, Bloomington
Scott Botcher, Manager, Chanhassen
Bob Bruton, Counc_ilmember, North St Paul
Mike Campbell, IGR Director, St. Paul
Char&e Crichton, Counci2member, Bumsville
Dan Donahue, Manager, New Hope
Jerry Dulgaz, Manager, Crystal
Wayne Houle, Assistant Engineer, Edina
Barbara Johnson, Councilmember, Minneapolis
Steve Lazson, Councilmember, New Brighton
Chazles Lenthe, Director of Public Works, Blaine
Jan LeSuer, Cowttcilmember, Golden Valley
Sandra Masin, Councilmember, Eagan
Mark McNeill, Admu�istrator, Shakopee
Dore Mead, Councilmember, Miruieapolis
Jerry Newton, CounciImember, Coon Rapids
Dave Schaaf, Mayor, Oak Park Heights
Ceil Smith, Assistant to City Manager, Edina
James Smith, Councilmember, Independence
� 2000 Legisiative Policies
Committee Rosters
John Weaver, Councilmember, Anoka
Dawn Weitzel, Community jSpecial Project Assistant, Richfield
Donn Wiski, Councilmember, RosevilIe
Bret Woodson, Assistant City Manager, Prior Lake
Duan Zaun, Mayor, Lakeville
D o _y�
2000 Legislative Policies 39