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00-42ORIGINAL Presented By Referred To Committee: Date i WF�REAS, the League of Minnesota Cities, which represents 811 of z Minnesota's 856 cities, as well as 10 urban towns and special districts, has led the s coordination of inember cities in the development of the 1999 City Policies for a Legislarive and Adininistrarive Acrion which identifies issues as priorities for action s during the 19991egislative session; and 6 � WHEREAS, the City of Saint Pau1 was an active participant in this coordinated s effort and the City approves generally of these prioriries. 9 io NOW, THEREFORE, BE IT RESOLVED that the Saint Paul City Council does ii hereby recommend for consideration by the Minnesota State Legislature, 2000 City i2 Policies for Legislative and Administrarive action, submitted by the League of Minnesota ia Ciries and does hereby request that these issues be addressed by the Legislature during ia the 2000 session. is 16 Requested by Department of: Adopted by Council: Date �0� Adoption Certified by Council Secretary B � � -� - Approved by Ma Date � By: /�/��/ �%%�/ Council File # 0�-�-(a. Green Sheet # �O'.3 O e1y RESOLUTION CITY OF SAINT PAUL, MINNESOTA �'3 By: Form Approved by City Attorney sy: li/�lI'� IN • /C� t �/' Approved by Mayor for Submission to Council By: ��(�-�i�i%C(! Mayor Goleman's Office Bill Huepenbecker (266-8517) dUST 8E ON WUPICILAGQJCN BY @47� a�w�� 1/12/2000 Rourw� oxuee TOTAL # OF SIGNATURE PAGES GREEN SHEET iumumn oE...r�rowcnrae 00 - �-1 �-- No 103024 � arv�nauEV ❑ arvncuc _ ❑ wo�rytaExxc�so�t ❑ n+�weew.amui�tttro o W��,�,� ❑ (CLJP ALL LOCATIONS FOR SIGNATURE) City Council approval of the League of Minnesota Cities 2000 City Policies for Legislative and Administrative Action. PLANNING CAMMISSION ' CIB CAMMfTTEE 'CNIL SERVICE COMMISSION Has mis persoMrtn ever w«kea unaer a comract torNis EH��eMT YFS Pl0 tias N's peisaruA�m ever heen a ary empbyee? VES NO Dces Mi6 P��m poseess a Sltlll nOt namaliYP�� bY anY artMR cilY emPbYee? YES NQ Is N� µveauTirm a ta�peted �endofl � YES NO Saint Paul is an active member of the League of Cities and a participant in the effort to develop the League's legislative policies. AN7AGESIFAPPROVED The City shows support for the League of Minnesota Cities, an association we work closely with on many issues at the Legislature and throughout the year. ADVANTAGESIFAPPROVED None ADVANTAGESIFNOTAPPROVED fALAMOUNT OFTRANSAC710Nf iDING SOURCE W C W. INFORMqT10N (IXP W I� CASTRtEVENUE BUDfiEfm (qRCLE ON� VEE NO ACt1VPfVNUMBER - _ - -�-�'. . " - - . �0�� i3�v L.a4'��¢O� 00 -�-1 � V J W •� �� . *..� U c� � 0 � � � � .,..., � � O 4� � � c� 4� � I�MC Txague nJMirsnaxata ('�tiev Cilies yromotina escel%�se Pro osed p 2000 Cit Policies � for legislative and administrative action League of Minnesota Cities 145 UniversityAvenue West St. Paul, MN 55103-2044 (651) 281-1200 (800) 925-1122 Fax (651) 281-1299 www.lmnc.org � 0 1999 L eague of Minnesota C,'ities Research Founc�ation � riehts reservea Printea in t�e United ,States o� An�terica I�MC 7,engue /MhmesntnCitiaF Cr'tias promoting asceN¢nca League o� Minnesota Cities 145 U niversity �lvenue �est St. Paul, MN 55103-2044 (651) 281-1200 (800) 925-1122 Fax (65I) 281-1299 TDD (651) 281-1290 www.lmnc.or� po -4 a- I�MC Laaguc uf M;�arsntu Ctties Cities aromof+na escn/�eace October 22, 1999 Dear League Members: 145 jTniversityAvenue West, St. Paul, MI�I 55103-2044 Pkone: (651) 281-1200 � (800) 925-1122 Fax: (651) 281-1299 � TDD (651) 281-1290 Web Site: Iittp://www.lmnc.org I am pleased to submit the accompanying draft 2000 L.egislative Policies for your consideration. These policies were developed by more than 200 city officials serving on the Lzague's policy committees and their respective policy task forces. For those of you who served on a task force or policy committee, I wouid like to thank you for your time and efforts. The hazd work and input of city officials is the necessary foundation for developing and implementing a successful legislative agenda for the League of Minnesota Cities and its members. Eor those who could not participate in the policy committee process, your input in the I,eague's policy development process is still crucial. The I,eague needs your review of the attached draft 2000 Legislative Policies and the proposed resolutions. Please plan to attend the LMC Policy Adoption Conference on November 19 at the Radisson Hotel South, Bloomington. If you cannot attend the conference and have concerns or suggestions, please contact any member of the Intergovernmental Relations staff at the League. On behalf of the Board of Directors and League staff, please accept my sincere thanks for your contribution to this most important process. Sincerely, Susan Aoyt League President Administrator, City of Falcon Heights L:igr documents/2000 PAC PresidenPs let[er AN EOUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER CONTENTS Letterfrom the League President General Policy Statement ................................. I.eague Staff ........--•-••• ..................................... Legislative Policy Comtnittee Members .......... Policy Development Process ............................ Statement of Intent ........................................... .................................. .................................. ............... .................... ................................... ................................... 2000 CITY POLICIES flti-y� ............. iv ............. v .............. vi .............. ix .............. x Advisory Committee on Improving Community Life Policy Guideline ... ImprovingFiscal Futures ................................................................................... FF-1. FF-2. FF-3. FF-4. FF-5. FF-6. FF-7. FF-8. FF-9. FF-10. FF-11. FF-12. FF-13. FF-14. FF-15. FF-16. FF-17. State-Local Fiscal Relations .................................................................................. State Shazed Kevenues ......................................................................................... Taxation of Municipal Bond Interest ................................................................... City Fiscal Year .................................................................................................... Sales Tax on Local Government Purchases ......................................................... Payments for Services to Tax-Exempt Property .................................................. Truth-in-Taxation ................................................................................................. State Administrative Deductions from State Aid ................................................. Reporting Requirements ........................................................................................ Federal Budget Cutbacks ....................................................................................... Priceof Government ............................................................................................. Capital Improvement Fees ..................................................................................... Deferred Assessments for Roads .......................................................................... Taxation of Electronic Commerce ....................................................................... LocalOption Sales Tax ........................................................................................ Limited Market V alue ........................................................................................... State Chazges for Administrative Services ........................................................... 1 E 3 4 4 4 5 5 5 5 6 6 6 6 7 7 7 8 8 Improving Local Economies ................................................................................ 9 LE-1. LE-2. LE-3. LE-4. LE-5. LE-6. LE-7. LE-8. LE-9. LE-10. LE-11. LE-12. Tax Incement Financing ....................................................................................... 9 TIF Reform ...........................................................�---............................................ 9 Impact of Property Tax Reform on Existing TIF Districts ................................... 10 Business Subsidies ............................................................................................... 10 Economic Development Programs ....................................................................... 11 Redevelopment Programs ..................................................................................... 11 Property Tax Abatement Authority ....................................................................... 11 Brownfields .......................................................................................................... 12 OSAResponse Timelines ...................................................................................... 12 OSA Time Limitations .......................................................................................... 13 Growth Management and Annexation ................................................................. 13 State and/or County Licensed Residential Facilities ............................................. 14 LE-13. I.E-14. LE-15. I,E-16. I,E-17. LE-18. LE-19. LE-20. LE-2I. LE-22. LE-23. LE-24. LE-25. LE-26. LE-27. LE-28. Housing and Economic Viabitity .......................................................................... IS Housing Preservation ............................................................................................ 15 Ciry Role in Tetecommunications ......................................................................... 16 Adeguate Funding for Transportation ................................................................... 16 State Aid for Urban Road Systems ........................................................................ 17 Turnbacks of County and State Roads .................................................................. 17 Road Funding for Cities Under 5,000 ................................................................... 17 Railroad-Related Projects ..................................................................................... 18 Access Management & Plat Approval .................................................................. 18 Rightof Way Management .................................................................................. 19 Effective TeIecommunications Competition ......................................................... 19 Local Zoning of Telecommunications Facilities ................................................... 19 Workforce Readiness ............................................................................................ 20 Platting Law Recodification .................................................................................. 20 Economic Development Authorities ..................................................................... 20 Infrastructure Funding Options ............................................................................. 21 Improving Service Delivery ................................................................................. 21 SD-l. SD-2. SD-3. SD-4. SD-5. SD-6. SD-7. SD-8. SD-9. SD-10. SD-11. SD-12. SD-13. SD-14. SD-15. SD-16. SD-17. SD-18. SD-19. SD-20. SD-21. SD-22. SD-23. SD-24. SD-25. SD-26. SD-27. SD-Z8. SD-29. Redesigning and Reinventing Government .......................................................... 21 UnfundedMandates ............................................................................................. 22 Civil Liability of L.ocal Governments .................................................................. 22 Environmental Protection ............................:........................................................ 23 ElectionIssues ...................................................................................................... 24 Local Election Authority ....................................................................................... 24 City Costs for Enforcing State and Local Laws ................................................... 25 Access to Information Technology and Services ................................................. 25 Design-Build ......................................................................................................... 25 Providing Information to Citizens ......................................................................... 26 Creating a Minnesota GIS Program ..................................................................... 26 State Regulation of Massage Therapists ............................................................... 26 Private Property Rights and Takings ..................................................................... 27 ConstructionCodes ............................................................................................... 28 Feesfor Service .................................................................................................... 28 Board of Firefighter Training ............................................................................... 29 WitnessFees ......................................................................................................... 29 State Appropriation for Govemment Training Service ........................................ 30 Year2000 Issues ................................................................................................... 30 New Public Safety Spectrum Needs ...................................................................... 30 7oint & Several Liability Reform .......................................................................... 31 Official Newspaper Designation ........................................................................... 32 CompetitiveBid Threshold .................................................................................. 32 Membership in Watershed Management Organizations ....................................... 32 I.egalization of Fireworks ..................................................................................... 33 Blection Judge Appointment ................................................................................. 33 Election Judge Compensation ............................................................................... 33 CountingWrite-in Votes ....................................................................................... 33 TelecommunicaTions Restructaring ....................................................................... 34 ll oo-y�- SD-30. 911 Funding ............. Personnel, Pensions, Labor ReIations & Data Practices ..... Personnel, Pensions & Labor Relations PP-1. Veterans' Preference ................................................................................... PP-2. Discipiine and Discharge ............................................................................ PP -3. Compensation Limits ................................................................................, PP -4. PELRA ...................................................................................................... PP -5. Essential Employees .................................................................................. PP-6. Pensions ..................................................................................................... PP-7. Age Certificates / I-9 Forms ...................................................................... PP-8. Employer Reference Immunity ................................................................. PP-9. State Paid Police and Fire Medical Insurance ........................................... PP -10. Breathalyzers ............................................................................................. PP-11. Preservation of Local Decision-Making Authority on Employment Related Issues ............................................................................................ PP-12. Drug and Alcohol Rehabilitation .............................................................. Data Practices �P-1. Public Access to Information .................................................................... DP-2. State Model Policies and Training ............................................................ �P-3. Tennessen Warning ................................................................................... DP-4. Government Data Practices Act Recodification and Conformance .......... DP-5. Alternative Dispute Resolution for Violations of Government �. DataPracticesAct ..................................................................................... DP-6 GDPA Compliance for Contracting .......................................................... DP-7. Acquisition of Electronic Surveillance Devices ........................................ Federal Employme�at Law FED-1. FLSA/Overtime Compensation .............. FED-2. Peace Officer Bill of Rights ................... FED-3. Portability of Deferred Compensation ... Electric Deregulation....... Adequate Supply and Demand ......................... Consumer Protection ........................................ Environmental Concems .................................. Fair Market Competition .................................. Local Authority ................................................ Stranded Recovery Cost ................................... Property ..................................................... 35 ... 35 ......... 35 ......... 36 ......... 36 ......... 36 ......... 37 ......... 37 ......... 37 ......... 37 ......... 38 ......... 38 � ........... 38 ........... 39 ........... 39 ........... 39 ...... 39 ...... 40 ...... 40 ...... 40 ...... 40 ...... 40 ...... 41 ............................ ............................ ............................. ............................. .............. .............. .............. ......... 42 ......... 42 ......... 42 ......... 42 ......... 43 ......... 43 ......... 43 iii ao-4� General Policy Statement The I.eague of Minnesota Cities serves as a forum for cities to define common probletns and develop policies and proposals to solve those problems. The Izague of Minnesota Cities represents 815 of Minnesota s 853 cities as well as 12 urban towns and 27 special districts. All sizes of communities are represented among the L.eague's members (the lazgest nonmember city has a population of 167) and all regions of the state are represented. The policies that follow aze directed at specific city issues. Two principles guide the development of all League policies: There is a need for a governmental system that allows flexibility and authority for cities to meet the challenges of governing and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and, 2. The financiai and technical requirements for governing and providing services necessitate a continuing and strengthened partnership with federal, state, and local governments. This partnership, pazticularly in the areas of finance, development, housing, environment and transportation, is critical for the successful operation of Minnesota s cities and the well-being of residents. iv LEAGUE STAFF WORKING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications Gary Carlson, Director of Intergovernmental Relations Aid to cities, electric utility restructuring, general revenue sources for cities, personnel, property tax system, tax increment financing, transportation Kevin Frazell, Director of Member Services Government innovation and cooperation, electric utility restrncturing Tom Grundhoefer, General Counsel General municipal governance, telecommunications 'Ann Higgins, Intergovernmentai Relations Representative Elections and ethics, housing, information policy, telecommunications, utility ` service districts, year 2000 `Andrea Stearns, Intergovernmental Relations Representative Civil liability and criminal justice, economic development and redevelopment, general government, localltribal relations, tax increment financing Remi Stone, Intergovernmental Relations Representative Civil liability, environment, general government, housing and building codes, labor relations, land use/annexation, personnel, transportarion and transit Eric Willette, Intergovernmental Relations Representative Aid to cities, general revenue sources for cities, pensions, property tax system, public safety po -4 ?- Legislative Policy Committee Members Improving Fiscal Futures Dan Vogt, Chair, City Administrator, Brainerd Tem Heaton, Vice Chair, Chief Financial Officer, Bloomington Richazd Abraham, City Adminisuator, Lake City Karen Anderson, Mayor, Minnetonka Bil! Barnhart, Intergovernmental Relations, Minneapolis Tom Burt, City Administrator, Rosemount Gino Businaro, Finance Director, Mound Gerald Butcher, Public Works Director, Maple Grove Mike Campbell, Intergovernmental Relations Director, St. Paul Jane Chambers, Assistant Ciry Manager, Brooklyn Center Tom Cran, Budget Office, Sc Paul 7ohn Erar, City Adminis[rator, Farmington Jerrcy Faust, Councilmember, St. Anthony $ob Fitson, Ciry Administrator, Worthington Roger Fraser, City Manager, Blaine Jeff Haubrich, Assistant Council Adminstrator, Red W ing Steve Helget, City Administrator, Eagle I.ake Pat Hentges, City Manager, Mankato Greg Isaackson, Cieck-Administrator, Cottonwood Joel Jamnik, City Attorney, Lindstrom Larry Juhl, Mayor, New London Elizabeth Kautz, Mayor, Burnsville James Keinath, City Administrator, Circle Pines Dennis Kraft, City Manager, Robbinsdale Bob Larson, City Administrator, Deephaven Tom Lawell, City Administrator, Apple Vatley Joe Lynch, City Administrator, Long Lake Paul McLaughlin, Councilmember, Internationa] Falls Tom Melena, City Administrator, Oak Park Heights Steve Mielke, City Manager, Hopkins David Minke, Ciry Administrator, Glenwood John Moir, Finance Director, Minneapolis Gary Neumann, Assistant Administrator, Rochester Steve O'Malley, Deputy Manager, Burnsville (alternate) Steve Okins, Finance Director, Willmaz Ro�er Peterson, Association of Metropolitan Municipalities Dou�las Reeder, City Administrator, South St. Paul Ryan Schroeder, City Administrator, Cottage Grove Alfred Schumann, Mayor, Eyota Jennifer Schwinn, Finance Director, Big Lake Jim Smith, Councilmember, Independence Gerald Sorenson, Administrative Services Direcmr, Moorhead David Smtelberg, Treasurer, North Branch Joy Tierney, Mayor, Plymouth David Mark Urbia, City Administrator, Blue Earth Gene VanOverbeke, Finance Director, Eagan Chuck Whiting, City Administrator, Mounds View Iim Wil]is, City Administrator, Inver Grove Heights Rick Wotfs[eller, City Administrator, Monticello Improving Local Economies Duane Zaun, Chair, Mayor, Lakeville Leo W. Eldred, Vice Chair, Councilmember, Moorhead David Beaudet, Councilmember, Oak Park Heights Robert Benke, Mayor, New Brighton Steve Bjork, City PlannedCoordinator, St. Francis Carolyn Blonigan, City Clerk, Avon Curt Boganey, City Manager, Brooklyn Park Jerry Bohnsack, City Administrator, New Prague Lavonne Bowman, Councilmember, Fairmont Gerald Brever, City Administrator, Staples Mike Campbell, Intergovermental Relations Director, SL Paul Kevin Carroll, Economic Development Coordinator, Mounds View David Childs, City Manager, Minnetonka Grant Fernelius, Housing Coordinator, Fridley 7ohn Flora, Public Works Direc[or, Fridley Keith Ford, Community Development Agency, Minneapolis Matt Fulton, City Manager, New Brighton Richard Fursman, City Adminiscrator, Andover Tom Goodwin, Councilmember, Apple Valley Mary Gover, Councilmember, St. Peter Robert Aaeussinger, City Administrator, Dodge Center Tom Harmening, Community Development Director, St. Louis Pazk Jon Hohenstein, City Administrator, Mahtomedi Susan Hoyt, Ciry Administrator, Falcon Aeights Curtis Jacobsen, City Administrator, Big Lake Brenda 7ohnson, Councilmember, Chatfield Marvin Johnson, Mayo, Independence Andrea Hart Kajer, Intergovernmental Relations Direcror, Minneapolis (alternate) Sandra Krebsbach, Councilmember, Mendota Helghts Larry Lee, Community Development Director, Bloomington Marcia Marcoux, Councilmember, Rochester Michae] McGuire, City Manager, Maplewood Peter Meintsma, Mayor, Crystal Mark Nagel, City Manager, Anoka Dennis Nelson, City Administrator, Windom Steve O'Malley, Deputy Manager, Burnsville David Olson, Communi[y Development Director, Fazmington Bruce Peterson, Director Planning & Development Services, Willmar vl Roger Peterson, Association of Metropolitan Muncipaliries Gene Ranieri, Associatiou of Mevopolitan Municipalities Mike Reardon, Cable Administraror, Burnsville Dan Rogness, Community Development Director, Rosemount Joe Rudberg, City Administrator, Becker Nancy Rys-Nicol, Management Assistant, Shoreview Mazk Sather, City Manager, White Beaz Lake David Schaaf, Mayor, Oak Pazk Heighu Terty Schneider, Councilmember, Minnetonka Tecry Spaeth, Administrarive Assistant, Rochester Kim Sullivan, Mayor, Lino L.akes Daniel Tempel, FIousing Coordinator, Maple Grove Robea Therres, City AdminisVaror, Sartell Craia Waldron. Ciry Administrator, Oakdale Jeff Weldon, Ciry Administra[or, Redwood Falls 7ulia Whaten, Councilmember, Champlin Myron White, PoR Authoriry Director, Red Wing Denny Wi(de, Ciry Adminisuator, Paynesville Betty Zachmann, Clerk-Treasurer, Winsted Improving Service Delivery Mark Karnowski, Chair, City Administrator, Lindstrom Judd Mowry, Councilmember, Tonka Bay Beverly Aplikowski, Councilmember, Arden Hilts Mike Campbell, Intergovernmental Relations Director, S[. Paul Diane Carlson, Mayor, Mantorville Pat Crawford, Clerk-Treasurer, Motley 7erry Dulgar, City Manager, Crystal Steve Gatlin, Public Works Director, Coon Rapids Theresa Goble, Finance Director, Brainerd Tom Hansen, Deputy Manager, Burnsville Soel Hanson, City Administrator, LitUe Canada Kay Kuhlmann, Council Administrator, Red Wing Desyl Peterson, City Attorney, Minnetonak Gene Ranieri, Association of Metropotitan Municipalities David Schaaf, Mayor, Oak Park Heigh[s David Senjem, Councilmember, Rochester Chad Shryock, City Administrator, Wabasha Joyce Twistol, Clerk/Personnel Direcror, Blaine Karen Lowery Wagner, Intergovernmental Relations, Minneapolis Rena Weber, C(erk/Coordinator, Cold Spring Phil Zietlow, Councilmember, Medina Personnet, Pensions, Labor Relations & Data Practices Joyce Twistot, Chair, Clerk/Personnel Director, Blaine Geralyn Bazone, Assis[ant City Manager, Minnetonka Patricia Crawford, Clerk, Motley Holly Duffy, Assistant to Managec, Crystal Jerry Dulgar, City Manager, Crystal Christina Frankenfield, Ciry Administrator, Howazd Lake Jean Gramling, City Administrator, Savage Terry Aaltiner, Risk Analyst, SL Paul Ken Hartung, City Administrator, Bayport Kay Kuhlmann, Council Administcator, Red Wing Kazen Kurt, Personnel Manager, Roseville Ed Lazson, City Manager, Morris Kay McA]oney, Personnel Direc[or, Anoka Tim Madigan, City Administrator, Fazibault Ceil Smith, Assistant to Manager, Edina Jerry Splin[er, City Manager, Coon Rapids Elizabeth Wheeler, Human Resources/Risk Manager, Northfield Huold Windschitl, Councilmember, Sleepy Eye Electric Deregulation Task Force Kathleen Sheran, Chair, Councilmember, Mankato Bryan Adams, General Manager, Elk River Municipal Utilities Jim Asplund; FlaheRy & Associates, St Paul Karen Baker, House Reseazch Larry Bakken, Counci(member, Go(den Valley Mike Bash, Councilmember, Long Lake David Berg, RW Beck, Minneapo]is Troy Bonkowske, Community Development Director, Caledonia Jim Brimeyer, Councilmember, St. Louis Pazk Chuck Canfield, Mayor, Roches[er AI Crowser, Director, Alexandria Public Utilities Jim Elmquist, City Adminisuator, Mora Robert Filson, City Administrator, Worthington Paul Grabitske, Ciry Administrator, Janesvilie James Gromberg, City Administator, Isanti Delvin Haag, Councilmember, Buffalo Ken Hartung, City Administrator, Bayport Jeffry Haubrich, Asst. to Council Administrator, Red Wing Richazd Johnson, Metropolitan Councit Elizabeth Kautz, Mayor, Burnsvitle Mazk Lazson, Clerk-Administrator, Glencoe Rebecca Law, Minneapolis Pam Marshall, Energy Cents Coalition Kevin Maynud, General Manager, Aus[in Utilities Charles Mertensotto, Mayor, Mendota Heights Robert Museus, City Adminishator, Hugo Mazk Nagel, City Manage[, Anoka Mike Nitchals, General Manager, Willmar Municipal Utiliues Paui Ostrow, Councilmember, Minneapolis V31 oo-W� Greg Oxiey, MN Municipal Ufilities Assceiarion Sohn Remkus, Finance Director, West St Paul Joe Rudberg, City Administrator, Becker Mazk Sather, Ciry Manager, White Bear L.ake Jerry Splinter, City Manager, Coon Rapids Jim Willis, City Administrator, Inver Grove Heights Representative Ken Wolf, Minnesota House of Representatives Wally Wysopal, City Mananer-Clerk, North St. Paul viii . League of Minnesota Cities Policy Deve[opment Process The League's policy development process has taken place over the past six months. The process began with a member survey of priority issues facing city officials. The process will not end with the Policy Adoption Conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop altemative solutions, and discuss sttategies to implement the I.eague's policies. Listed_below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. ApriVMay June The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. The I.eague President accepts apptications for committees and appoints poticy committee members. The policy committees aze: Improving Fiscal Futures Improving I.ocal Economies Improving Service Delivery Personnel, Pensions, Labor Relations & Data Practices Electric Deregulation J�ly Committees meet to discuss issues raised in the member survey. Committees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August Committees and task forces meet to discuss issues and problems, accept through testimany and develop policy statements. September October The League Board of Directors meets with the chairs of the policy committees to review policies. November Policy Adoption Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for member consideration. January Legislative session. During the session, the policy committees and task forces through will continue to meet on issues and strategies. Members can assist the League's May legislative efforts by volunteering to contact legislators on a variety of issues of interest to our cities. ix i� ■ � Statement of Intent There aze many issues affecting the effectiveness of city govemment to improve community life, improve the fiscal future and service delivery of city govemment, and improve the local economy. What follows aze statements of the issues facing cities and the League of Minnesota Cities' proposed responses to these issues. These statements of issues and proposed responses form the policy of the L.eague of Minnesota Cities. Additional and alternative responses to those issues may be proposed after the Policy Adoption Conference, and the members of the League authorize its Boazd of Directors to consider and support additional or alternative responses, if necessary, to resolve the issues identified in this policy statement. x od-N a- Proposed 2000 City Policies po -H2— i z 3 4 5 6 7 8 9 10 11 12 13 ia 15 16 17 18 IMPROVIlVG COMMUIVITY LIFE CL-1. Healthy Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance> not diminish, the ability of citizens, businesses, and locai govemments to work together in partnership to make every community "livable." ISSUE: Cities in Minnesota are at vazious stages in meeting the goal of being "livable healthy communities." RESPONSE: The definition of a"livable heaithy community" beiow will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota cities to become livable healthy communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable healthy . communities. i9 ;; A LIVABLE HEALTHY COMMUNITY IS: zo ,= zi �: WHERE PEOPLE OF ALL AGES zz ' 23 • share a core of common values including valuing diversity, respect for each other, and 24 , good citizenship 25'� 26 • feel: 27 * safe 28 * a sense of belonging 29 * welcome 30 31 • engage in life-long learning activities that: 32 * promote responsible citizenship 33 * enhance the enjoyment of life 34 * prepare them for changing job mazkets 35 36 • participate in the decision-making process with community leaders 37 38 39 40 �41 • celebrate community • want to make their home a2 • have access to: 43 * good paying jobs aa * adequate and affordable housing t t 2 3 4 5 6 7 • 8 9 • 10 tt • 12 t3 • 14 IS * choice of efficient transportation systems including transit, pedestrians, and bicycles * gathering piaces * desired information * choice of cultural and recreational activities * affordable goods and services, including health caze aze involved in the nurturing of youth care about their homes, community, and the environment get to know each other have the benefit of strong family suppoR and nurturing adults i6 WHERE LOCAL GOVERNMENT �� _ 18 y= • 19 . 20 ;: • 21 ' 22 � • 23 �� 24 �. • 25 � 26 • 27 28 29 • 30 3l � 32 33 34 . � is responsive to the needs of its citizens is actively supported by enthusiastic volunteers is open and user friendly encourages and implements cooperation and collaboration provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs educates citizens of all ages on local, regional, and state issues and govemment processes informs and communicates with citizens to foster participation in public policy decision- making participates in youth development Pa � o _ �{ �a- i IMPROVING FISCAL FUTURES 3 FF-1. State-Local Fiscal Relations 5 Issue: Minnesota's state and local govemment finance system is complex and intertwined. 6 While cities rely on their partnership with the state to provide local services, they also must 7 respond to the needs and desires of their residents. To that end, cities need discretion and 8 flexibility in deternuning how to finance needed local services. l0 In each of the past three yeazs, the legislatures made changes to Minnesota's property tax 11 system that will impact the ability of local governments to fund necessary services. The 12 reimposition of levy limits, significant class rate compression, and changes in state funding of 13 schools al1 may have unintended consequences. Now the Governor has initiated a study of the 14 property tax system with the intention of proposing additional major property tax reforms in IS 2001. 16 �7:� Response: As the Governor and legislators consider additional property tax changes, i&=; they should: 19 20 21 22 23� 24 25:' 26 z7 2s 29 30 31 32 33 • Careful{y analyze the combined impacts of the 1997,1998, and 1999 tax bills and changing economic circumstances on the taxpayer and on local governments so that Qolicy makers can better understand where the system may need further changes; • Diversify available city revenue sources by generally authorizing cities to impose a local option sales tax with voter approval; and • Reduce the property tax burden for ali classes of property by increasing the state share of school funding. Any increase in the state share of school funding must guarantee a permanent reduction in the local property tax burden. The League supports paying for the increased state costs through income and sales taxes. The Legislature should not: • Extend levy limits, which are inefficient, ineffective, interfere with local accountability, and ignore local circumstances; 34 • Impose reverse referenda requirements, which undermine the decisions of local 35 elected officials, divert focus and resources from daily operations, and can disrupt 36 the local budget process; 37 • Replace all or part of LGA or HACA with state-mandated categorical aid programs, 38 or local option taxing authority; 39 • Switch from the classification system to a market value based system, which would ao cause tremendous shifts of tax burden between classes of property. The League aiso 41 opposes applying all future levy increases to market value because this would further az complicate the property tax system; a3 • Expand the limited market value law or enact an acquisition value law; 44 • Interfere in local decision-making regarding service delivery; a5 • Impose a state-levied property tax; nor i � Cut LGA or HACA to finance an increased state role in school finance. 2 3 FF-2. State Shared Revenues 5 Issue: State revenue sharing programs address at least three problems with a stand-alone 6 local government finance system. First, the properry tax base available to communities can 7 vary dramatically. These programs use state resources to equalize the 8 ability of communities to provide essential services without undue properry tax burdens for 9 local residents. l0 11 Second, nonresidents can take advantage of local services or create additional demands for 12 services without contributing to the taxes that support these services. LGA and HACA help t3 address the free rider problem where nonpaying individuals consume services without 14 contributing to the local tax base. IS 16 Third, ailowing local units of government in Minnesota to only levy the property taac has 17 > created an over-reliance on the property taJC. LGA and HACA can reduce the overall reliance is � of local governments on the property tax. t9 � 20 '- Although historically the legislature has generally supported LGA and HACA programs, 21 �''. the 1981 legislature reduced the number of LGA and HACA payments and the 1986 22 ,. legislature delayed the payments. Under cuirent law, the first payment of LGA and HACA is 23 '-: made in July—fully 7 months into each city's fiscal year. These chaages have crea[ed cash 24 '= flow problems for some cities. 2S � 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4d 41 42 43 44 45 46 Response: LGA and HACA, or similar replacement revenues, must be continued and additional state resources greater than the rate of inflation must be allocated to prevent rapid future property tax increases. In addition, the HACA household growth factor for cities should be reinstated. The legislature should adjust the LGA and HACA payment schedule to provide cities access to LGA and HACA earlier in their fiscal year. FF-3. Taxafion of MunicipaI Bond Interest Issue: The state law that grants a[ax exemption for municipai bond interest lowers borrowing costs for cities and reduces property tax levies. Response: The state should maintain the tax exemption for municipal bond interest income. FF-4. City Fiscal Year Issue: The fiscal yeaz for cities and counties currently corresponds to ihe property tax C3+C10. 4 Pj p _4'2r 1 Response: The state shouid maintain current law and not change the city fiscal year 2 to coincide with the state fiscal year. a FF-5. Sales T� on Local Government Purchases 6 Issue: In 1992 when the state was experiencing a budget shortfall, the I,egislature 7 repealed the sales tax exemption for local government purchases. Local govemments now 8 pay state sales tax on purchases like road maintenance suppiies and equipment, wastewater 9 treatment facilities, and building materials for affordable housing. This action currendy costs t0 local property taxpayers and ratepayers an estimated $90 million annually. Because no 11 additional state aids were added to offset the additional cost, this repeal has effectively t2 increased locai property taxes to finance state operations. 13 �a Response: The state should reinstate the sales tax exemption for all local government 15 purchases. The exemption must not be coupled with cuts in LGA or HACA. 16 t� FF-6. Payments for Services to Tax-Exempt Property i s �� 19 ' Issue: Taxable property in many cities is being acquired by nonprofit and government zo': entities. Converting the property to tax-exempt status can lead to a serious tax base erosion 2 t' without any corresponding reduction in the service needs created by the property. 22 23 " Response: Cities should be allowed to collect special assessments or other payments za in lieu of property taxes (or special assessments) from statuYorily exempt property 25 owners to cover costs of service. 26; z� ' FF-7. Truth-in-Taxation Process as 29 Issue: Cities must set a preliminary levy by September 15 which, by law, becomes the 30 maximum that cities can levy for the following year. In recent years, cities have not received 3 t complete tax base and aid information in a timely manner. As a result, cities often either set a 32 preliminary levy that is artificially high or they are unable to budget for unforeseen needs that 33 azise after September 15. 34 35 36 37 38 39 ao 41 42 43 44 as 46 Response: The League supports changes to the Trnth-in-Taxation process to provide more meaningful information to citizens. Cities shouid have the authority to increase the final levy from the preliminary levy to meet unforeseen and uncontrollable needs. FF-S. State Administrative Deductions from State Aid Issue: State administrative costs aze deducted from the LGA appropriation. This reduces the property tax relief provided by LGA and creates hidden appropriations for state agencies. Response: All appropriations from LGA resources that fund state operations should be repealed. i FF-9. Reporting Requirements 2 3 Issue: Budget and financial reporting requirements imposed on cities by the state often 4 result in duplication and additional costs. 6 Response: Requirements for reporting and advertising financial and budget 7 information sfiould be carefully weighed to bafance the vatidity of the state's need for 8 additional information with the costs and burdens of compiling and submitting this 9 information. In addition, all state agencies should be aware of fhe information a[ready lo required by others to avoid duplication of reporting requirements. �1 iz t3 14 15 16 FF-10. Federal Budget Cutbacks Issue: Congressional actions to balance the federal budget or to cut taaces will reduce federal assistance to the state and to local govemments. 17 Response: The state should not reduce aids or increase fees to local governments as a 18 �< means for dealing with cutbacks in federal revenues. The state should take 19 20 21< 22� 23` 24 $ zs 26 � 27 responsibility for reductions in federal revenues rather than placing the burden on cities and their property taspayers. FF-21. Price of Government Issue: The price of govemment legistation enacted in 1944 was intended to measure the overail effect of state and locai taxation over a long period of time. The tazgets measure govemment revenues as a percent of personal income. Unfortunately, the targets have been misinterpreted and used unfairly to criticize city tax and budget decisions. 28 29 Response: The price of government statutes as they apply to local governments 3o should be repealed. If the price of government law is to continue to be applied to local 3 t governments, price of government calculations should be: 32 33 • based on the sum of levy and state aid, not just levy; and 34 • based on long trends, not single events. 35 36 FF-12. Ca�ital Improvement Fees 37 38 Issue: New development and the resulting growth create an increased demand for public 39 infraswcture and other public facilities. Severe constraints on local fiscal resources and 40 dramatic forecasts for population growth have prompted cities to critically reconsider ways to 4 t pay for the inevitable costs associated with new development. Traditional financing methods 42 tend to subsidize new development at the expense of the existing community, discourage 43 sound land use planning, place inefficient pressures on public facilities, and allow a4 underutilization of e�cisting infrastructure. .Consequently, local communities are exploring a5 methods to ensure that new development pays its fair share of the true costs of growth. Given 46 the existing authorization to impose fees on new development for water, sanitary and storm do_y� t sewer, and park purposes, it is reasonabie to extend the concept to additional public 2 infrastructure and facilities improvement also necessitated by new development. 3 4 Response: The Legislature should authorize cities to impose capital improvement 5 fees so new development pays its fair share of the off-site, as well as the on-site, costs of 6 public infrastructure and other public facilities needed to adequately serve new 7 development 9 FF-13. Deferred Assessments for Roads io i i Issue: Current law allows a city to recoup the costs for water, storm sewer, or sanitary 12 sewer improvements by levying additional assessments on the property benefiting from the 13 improvement, but not previously assessed. This authority for defened assessment has not 14 been extended to other infrastructure, such as road improvements, even though properties aze IS benefiting from the improvements. 16 t7 - 18'�` 19' zo- 21' 22: 23 24 < 25_� 26 �' 27 28 Response: Cities should be able to assess the cost of infrastructure improvements for roads. Cities should be allowed to defer assessments against property located outside the city for road improvements benefiting property abutting the improvement but not previousiy assessed for the improvement. For example, if a city makes road improvements to a road that benefits city residents and township residents, the city may defer the assessments to the township groperty until the property is brought into the city. Once the township property is brought into the city, the city may assess that newly acquired property for road improvements previously done but not assessed at the time of the improvements. FF-14. Taxation of Electronic Commerce 29 Issue: Sales over the Internet and through other electronic means are projected to increase 3o exponentially over the next several years. Because of the difficulty of assigning a location to 31 electronic sales, because many Internet "goods" are not tangible property, and due to potential 32 federal intervention, electronic transactions pose significant tax policy challenges. 33 34 Response: Federai tax policy must not put main street businesses at a competitive 35 disadvantage to electronic retailers, must not jeopardize repayment of bonds backed by 36 state and local sales tax revenues, and should ensure stability in state and local revenues. 37 38 39 40 41 42 43 44 45 FF-15. Locai Option Sales Taxes Issue: Last yeaz, the Legislature authorized local sales taxes to fund regional projects in two greater Minnesota regional centers. Most Minnesota cities would benefit from diversification of the revenue sources available to them to relieve the local property taac burden. i Response: The Legislature should generally authorize local sales taaces for cities upon 2 local approval. a FF-16. Limited Market Value 6 Issue: Rapidly rising property values in some paRS of the state have fueled legislative 7 proposals to expand the current limited mazket value law. One proposal would establish the 8 consumer price index as the macimum annual mazket value increase and extend the limit to all 9 classes of property. 10 11 12 13 14 15 16 17 . 18 � 19 20 . 2t : 22 *<. 23 .� 24 ": 25 - _, 26 - 27 28 29 �Further restricting market value increases would have several negative consequences: • It wouYd unfairly shift taxes from properties experiencing growth in value onto all other properties. • Over the long-term, similar properties would be ta�ced at widely different rates merely due to when the properties were last sold. • It could discourage the sale of property because sales would retum the property to fuil mazket value for tax purposes. • It would discourage improvements to propeRy, which would trigger a return to full mazket value for ta�c purposes. This could lead to degradation of housing and other types of property. • It could adversely affect the ability of cities to bond for infrastructure improvements or for tax increment financing since local tax bases would not reflect the growth in property values. • Once implemented, limited mazket value provisions are politically di�cult to sunset due to the potential for lazge one-year tax shifts onto properties whose values were artificially capped by the program. Resporzse: The League opposes any expansion of the limited market value law. 30 si FF-17. State Charges for Administrative Services 32 33 Issue: Currently, some state agencies have wide discretion in setting the fees for special 34 services they provide to local govemments. For example, the Minnesota Department of 35 Revenue recently increased the fee for administering local sales taxes by 80 percent in the 36 middle of a budget yeaz with less. than six weeks notice. The increase had no apparent 37 relationship to increased cost of providing the service. 38 39 ao 41 42 43 44 45 Response: State agencies should be required to demonstrate the need for increases in service fees, and should give adequate notice of increases to allow local governments to budget for the i�creases. State agencies should set administrative service fees as ciose as possible to the marginal cost of providing the service. Local government should be given the option to self-administer or contract with the private sector for the service if the state cannot provide the service at a reasonable cost p o -�I a- i IMPROVING LOCAL ECONONIIES s LE-1. Tax Increment Financing (TIF) 5 Issue: The state has effectively delegated the responsibility for economic development 6 and redevelopment to cities. Unfortunately, neighboring states have given their cities more 7 development taols and, therefore, cities in these states have a competitive advantage over 8 Minnesota cities. In Minnesota, tax increment financing is the most viable tooi available to 9 ali cities in their economic development and redevelopment efforts. Additionally, tax 10 increment allows cities to address the changing needs of their evolving communities. The 11 sta[e, whether based on a lack of information or misinformation, has been critical of cities' use 12 of the tool and has implemented a series of restrictions over the past several years, rather than 13 partnering with cities and encouraging their endeavors to improve and enhance the economic t4 well-being of Minnesota and the growth and redevelopment of its cities. Critics often claim 15 that TIF is overused. Some of these critics have proposed TIF freezes or caps. This view fails 16 , to recognize the benefits received by counties and school districts, as well as cities, upon 17 �;- district expiration while only cities are required to assume [he financial risks associated with 18 '` development decisions. Cities have used tax increment financing responsibly and exampies of t9 20'�' 21 ' 22 23 24 �. ,- 25 2b 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4I these positive uses abound. Respo�tse: To effectively compete with other states, Minnesota must provide its cities greater flexibility in the use of tax increment financing and other economic development programs. The atate should partner with cities in economic development and redevelopment activities, and encourage cities' use of tax increment in achieving the laudable goals of lona-term tax base stabilization and growth, job creation, development of low-to-moderate income housing, remediation of pollution, elimination of blight, recycling and redevelopment of the infrastructure, and redevelopment of its communities. The League opposes proposats for TIF freezes or caps. Counties and school districts are appropriately involved in cities' development decisions through current "review and commenY' requirements and should recognize the benefits they receive, without assuming any of the risk, due to cities' prudent uses of TIF. LE-2. TIF Reform Issue: It is likely that proposals to reform the tax increment financing laws will continue to be identified and debated during upcoming legislative sessions. Respo�:se: As part of any TIF reform debates, the Legislature should consider: • Authorizing any tax increment districts approved after April 1,1990, to pool increments in the same manner as districts certi6ed prior to Apri11,1990; 42 • In light of levy limits, eliminating the LGA/HACA penalty currently imposed on a3 districts or allow an exception from levy limits. If the penalty is not eliminated, the 44 restrictions on the source of payment should be removed; 45 • Expanding the use of tax increment financing to assist in the development of 1 technological infrastructure, workforce readiness, transit-oriented development, the 2 restoration of historic structures, and for nonretail commercial projects (e.g., 3 software companies, banks, and insurance companies); 4 • Exempting redevelopment districts from the "fve year rule"; 5 � Modifying the housing district income qualification level requirements to allow the 6 levels to vary according to those specific to individua[ communities; 7 • Authorizing the use of federal grants and other funds for local contributions; s • Removing the LGA/HACA penalty imposed on housing districts established between 9 the penalty years of 1990 and 1993; to • Making any necessary statutory changes to allow the Office of the State Auditor to i i simplify its TIF reporting forms in consultation with those required to complete the 12 forms; and 13 • Authorizing TIF financial information to be published in a more simplifed format so t4 it provides the average taxpayer with useful information. t5 i6 LE-3. Impact of Property Tax Reform on Existing TIF Districts i� is t 19 � ZO t: 21 <. �;� 22 :: 23 ; z4 %.. 25 a a 26 -; 27 28 29 . 30 31 32 33 -. 34 35 36 37 Issue: The 1997, 1998, and 1999 Legislatures have compressed property tax class rates which, in turn, has jeopardized the repayment of outstanding debt or other obligations in existing TIF districts. Given the long-term nature of property ta�c reform, cities could not have anticipated the impact of these class rate changes, nor can cities project the impact of future changes. The Legislature has recogniz,ed their responsibility for the impacts of their actions by creating a TIF grant program to address situations where the class rate changes cause TIF district deficits. The TIF grant program, currendy funded at $6 miliion and scheduled to expire in 2002, is likely to be insufficient to cover every deficit. Some of the worst deficit situations may not surface for a number of yeazs. Additional pooling and special ta�cing district authority might be useful in certain cities but aze only partial solutions. Response: The Legislature should provide additional state resources to the TIF grant program and extend the program indefinitely so that TIF obligations can be met and third party bondholders are protected if the TIF grant program is insufficient to cover deficits caused by the 1997 through 1999 class rate changes. The Legislature shouid also explore additional options to address deficits such as district duration extensions and eliminating or adjusting the original tax capacity rates. LE-4. Business Subsidies 38 Issue: Cities support the concepts of public notice, participation, and accountability in the 39 use of public funds contained in the business subsidies legislation enacted in 1999. However, 40 some azeas of the new law need cluification and modification. 41 42 43 44 45 46 Response: The Legislature should clarify and modify the 6usiness subsidies law so that effective implementation is achieved. For example, cities that do not award any business subsidies in a given year should not, be required to submit reports. F[�] � _ i LE-5. Economic Development Programs 3 Issue: The Minnesota Investment Fund is not adequately funded. Local govemments do 4 not have an adequate slate of tools to assist job creation, redevelop blight and decay, and 5 provide adequate housing choices. Consequently, cities are not weil equipped to compete 6 nationally and intemationally for business development. 8 Response: 9 i0 • More state resources should continue to be contributed to the Minnesota Investment il 12 l3 14 Fund. • Congress should remove the caps that have been placed on Industrial Development Bonds and acknowledge that the extensive eligibility requirements now adequately limit their use. 15 �6 LE-6. Redevelopment Programs 17' 18 ' 19;-;.., 20 -� 21= 22 `` 23 24 =' 25 26` 27 28 29 30 31 32 33 34 35 36 Issue: Communities across Minnesota are faced with the unique circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and down[owns and a lack of land for development. Redevelopment activities. usuatly require large, up-front funds to address multi-phase projects of extensive duration where site assemblage, demolition, relocation, or pollution clean up must occur before private-sectorinterest can be generated. Additionally, deterioration threatens historic structures in cities across the state. While the redevelopment account administered by the Department of Trade and Economic Development is a critical component in establishing a coherent statewide policy for redevelopment, cities do not have sufficient tools to utilize in local historic preservation efforts. Respo�zse: In recognition of the unique needs of redevetopment projects, the state should continue its commitment to reinvest in its communities by increasing and committing to permanent base budget funding for the redevelopment account administered by the Department of Trade and Economic Development._ Additionally, as part of a comprehensive approach to redevelopment needs, the Legislature should consider the state income tax credit legislation pursued by the Preservation Alliance of Minnesota, TIF subdistricts, and other tax incentives for local historic preservation efforks. s� LE-7. Property Tax Abatement Authority 38 39 Issue: In an effort to increase the number of development tools available, the 1997 4o Legislature authorized local units of government to grant property tax abatements. Although 41 TIF continues to be the primary financing mechanism for local development projects, tax 42 abatements provide a good addition to a needed list of economic development tools. In order 43 to provide maximum benefits, tax abatements shouid be less restrictive in terms of funding 44 caps and financing terms. Property tax abatements shouid not be considered a replacement for 45 tax increment financing. 46 11 t Response: TIF is still the primary viable development tool available for cities. 2 Abatement authority should continue to be available, but not offered as a rationale to 3 eliminate TIF. s LE-8. Brownfields 7 Issue: Brownfields aze lands unsuitable for development due to the presence of chemical 8 or other contaminants. Brownfields are a major cause of blight within communities across the 9 state through loss of local talc base, jobs, housing quality, public safety, and community t0 confidence. Revitalizing this land is costly and requires the cooperation of ciry, county, 11 school, regional, state, and federal governments and the assistance of local economic 12 development organizations and citizens. As we move into an era where the mass creation of 13 jobs is a necessity and where increased tax base is a requirement for local govemments to t4 adequately face growing financial pressures, efforts to revitalize brownfields must not only t5 continue but be accelerated in the upcoming years. Currently, $7 million exists in the 16 Department of Trade and Economic DevelopmenYs (DTED) base for the contaminated site 17 4 clean-up fund. Additionally, $6.2 million is appropriated annually from the Petrofund to 18 � DTED to clean up sites which contain at least some petroleum-related contamination. 19 20 21 22 23 ' 24 =_ 25 - 26'�:. 27 � Response: A comprehensive set of economic development programs must be maintained for cities and other development agencies. The Legislature should: •. Increase funding for the Department of Trade and Economic DevelopmenYs contaminated site clean-up fund and redevelopment account; • Strengthen enforcement and collection of revenues for the state contamination tax; • Continue support for and funding of local and regional programs to assist in the efforts to remediate brownfields; 28 • Establish a fully-funded program to allow cities and other development authorities 29 , to gain control of and reclaim and revitalize brownfields; 30 • Protect existing tax increment financing provisions that provide for the remediation 3 t of brownfields, and modify restrictions to allow the pooling of district revenues to 3z assist in the financing of remediation of brownfields; 33 • Establish an indemnification fund to provide financial security for institutions and 34 individuals as they invest in efforts to recycle brownfields in order to leverage 35 private investment in cities' efforts to increase their tax base and create jobs; and 36 • Continue financing mechanisms for cleaning contaminated sites. 37 ss LE-9 OSA Response Timelines 39 4o Issue: The Office of the State Auditor (OSA) is responsible for TIF oversight. As 41 part of their review of TIF districts, they identify alleged violations of the TIF laws and issue 42 non-compliance notices to TIF authorities. After responding to these non-compliance notices a3 within the required 60-day period, authorities often do not receive timely responses on the 4a matter from the OSA. Additionally,'1'� authorities are often unclear about the final 45 disposition of the matter upon receipt of a final non-compliance notice. LC] tz aa-y� 1 Response: In the event that the OSA determines to issue a final non-compliance 2 notice to a TIF authority, the Legislature should require the OSA to issue the notice 3 within 60 days of receiving the authority's response. Any final non-compliance notice a should contain the OSA's final position on the matter, the date upon which they forward 5 the matter to the county attomey, and the next steps that are required to be taken 6 according to state law. Upon expiration of the 60-day period, the authority should be 7 deemed to be in compliance with the TIF laws if no final non-compliance notice is 8 received. io LE-10 OSA Time Limitations it 12 13 14 15 16 17 18� 19 � 20 : 21 22 ` 23 24 ;. z5 � 26 "' 27 28 29 30 Issue: The Office of the State Auditor (OSA) has the authority to issue non- compliance notices for every existing TIF district in the state for alleged violations of the'I'IF laws going all the way back to the inception of the district. Accordingly, TIF authorities can receive non-compliance notices for aileged violations that occurred twenty or more yeazs ago. Often, s[aff and record-keeping procedures have changed and TIF authorities find it exceedingiy difficult to reconstruct the past in order to identify and remedy these situations. Similarly, the OSA ciaims the authority, based on the state's records retention schedule, to audit TIF dis2ricts for up to ten years after decertification which requires cities to expend staff resources to maintain files and a working knowledge of old districts for an unreasonable period of time. Respo�zse: A reasonable timeframe within which alleged violations are identified should be established. The Legisiature should restrict the OSA's ability to issue non- compliance notices to the six-year period prior to the notice's issuance date. The Legislature should also require the OSA to conduct any audits on decertified districts within one year of decertification. LE-11. Growth Management and Annexation 31 Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, 32 and governmental impact for cities, counties, and state governments because it increases the 33 cost of providing govemment services, and results in the loss of natural resource azeas and 34 prime agricultural land. 35 36 37 38 39 40 41 42 43 44 45 46 Response: The League believes the existing framework for guiding growth and development primarily through local plans and controls adopted by local governments should form the basis of a statewide planning poticy, and that the state should not adopt a mandatory comprehensive statewide planning process. Rather, the state should: • Provide additional financiai and technical assistance to local governments for cooperative planning and growth management issues, particularly where new comprehensive plans have been mandated by the Legislature; • Clearly establish the public purposes served by existing statewide controls such as shoreland zoning and wetlands conservation; clarify, simplify, and streamline these controls; eliminate duplication in their administration; and, fully defend and hold 13 1 harmless any Iocal government sued for a"taking" as a result of executing state 2 land use policies; 3 • Give cities broader authority to extend their zoning, subdivision, and other land use a controls up to two miles outside the city's boundaries, regardless of the existence of 5 county or township controLs, to ensure conformance with city facilities and services; 6 • Cleariy define and differentiate between urban and rural development and restrict 7 urban growth outside city boundaries; 8 • 9 to 11 iz 13 ]4 • IS I6 17 18 '' 19 '' 20 ' 2I .,. 22 - 23 24 25 -> 26 � 27 28 , 29 , 30 31 32 :- 33 , 34 35 36 Require the Metropolitan Council to seek cooperation from the state of Wisconsin and counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure responsible and controlled development; study expansion of Metropolitan Council authority in surrounding counties; and, examine the positive and negative impacts of mandatory regional or local (and use controls and state-imposed development standards; Facilitate the annexation of urban land to cities by amending state statutes that regulate annexation to make it easier for cities to annex developed or developing land within unincorporated areas; Oppose legislation that would reinstate the election requirement in contested annexations; and Encourage ideas consistent with the long-term goal of atlowing urban development only in urban areas. Density incentives such as sprawl reduction aid programs are more straightforward methods of rewarding and encouraging compacf urban development than using LGA or HACA for another new purpose. LE -12. State and/or County Licensed Residential Facilities (group homes) Issue: As the need for more residential-based caze facilities increases, sufficient funding is also needed to ensure residents living in group homes and licensed facilities have appropriate caze and supervision. In view of cities' responsibilities to accommodate group homes and residential-based facilities, it is important that state and county govemment work with local officials to address residential caze and public safety issues. Cities have reasonable concerns for speciai caze necessary for group home residents, particulazly in case of public safety emergencies. Since operators of certain residential facilities and services are not required to notify cities when they intend to purchase housing for group homes, cities do not have opportunity to raise concerns and reguirements regazding the special caze and public safety measures these residences may expect. 37 Response: The Legislature should provide sufficient funding for such residential- ss based services and require state and county agencies that manage those facilitxes or 39 companies licensed to operate group homes to notify cities in a timely manner when 40 licensed facility operators request to operate such facilities or to renew their license and 41 allow cities to require such agencies and licensed operators to identify and Yake 42 appropriate measures to respond to the special care residents need in case of a3 emergencies. Legislation should also require establishment of nonconcentration 4a standards for state or county-issued requests for.proposals (RFPs) and direction to a5 avoid clustering residential facilities. Licensing authorities must also be responsible for la �0-�1�- removing any residents incapable of living in such an environment, particularly if they become a danger to themselves or others. a LE -13. Housing and Economic Vitality 5 6 Issue: City officials increasingiy recognize that housing shortages threaten strong 7 neighborhoods, healthy communities, and local economic vitality. Decreased federal housing 8 assistance and insufficient state resources for housing production place statewide economic 9 expansion at risk. Changes in social services and family support, along with welfaze-to-work 10 requirements, make it pazamount for the Legislature to re-allocate state resources to � t strengthen family stability, improve workforce availability, and improve children's school 12 performance. 13 14 Response: The Legislature must maintain state investment in housing production, at 15 least doubling the current biennial housing budget, to help leverage private and local 16 resources as well as federal funds. The Legislature should continue to make additional 17 investment outside the metropolitan area for production of single-family housing 18 �� affordable to working families, along with affordable rental units. In the metropolitan t9 :r area, investing over the next biennium to carry out the goals of the Livable Communities 20 a- Act will help meet the needs of many households in which working adults must now 21 �. travel long distances to get to work. 2z - zs LE-14. Housing Preservation za 25 = Issue: Loss of federally-assisted housing in communities throughout the state remains a 26 serious threat to the well being of older city residents as well as other vulnerable populations. 27 Few cities have sufficient local resources to purchase or provide equity take-out loans to 28 owners of subsidized rental units who are considering mortgage prepayment and conversion 29 to mazket-rate rentals for properties originally built [o provide housing for low-income 30 residents. 3t Cities and neighborhood organization community development projects sometimes require 32 demolition of substandard housing, which can compound housing shortages and displace 33 occupants. 34 35 Response: The Legislature must continue to appropriate for preservation of 36 federally-subsidized housing throughout the state to provide additional resources for the 37 Minnesota Housing Finance Agency and community-based nonprofit housing 38 orgaaizations to buy units or make equity take-out loans to property owners in return 39 for maintaining rents affordable to tow-income residents and agreeing to maintain the a0 federally subsidize�' mortgage to term. 41 42 The Legislature should also continue to provide incentives to lower housing 43 construction costs and selting prices to encourage local government, builders, 44 developers, housing agencies, and organizations to address housing design and 45 construction costs, land use regulation, and other factors that could reduce housing a6 development costs. 15 i LE-15. City Role in Telecommunications 3 Issue: As cities seek the benefits of informadon technology, they face a number of 4 critical issues, particulazly availabiliry and competition for providing advanced community- 5 based telecommunications services. Cities recognize the importance of providing these 6 services for education, health care, business, and residents in their homes and work places. 7 8 Cities also play an integral role in the emergence of local competition, the zoning of 9 wireless communications facilities, and preserving cable operator support for public, l0 education, and govemment (PEG) access and institutional networks (I-Nets), and upholding I I federal requirements to treat all providers in a neutral and nondiscriminatory manner. t2 t3 Response: State and federal government should encourage cities and t4 telecommunications service providers to collaborate to take advantage of planning t5 opportunities for the development of telecommunications infrastructure and services to t6 strengthen local and regional economies. Federal and state government must also 17 strengthen city authority to: 18 � t9 • Provide telecommunications services either in partnership with other public entities, zo the private sector, or as a sole provider; 21 _• Grant additional cable TV franchises to provide the benefits of competition to zz =- subscribers; - 23 -:= • Require all multichannel providers of video programming services that use public 24 _` rights of way to comply with local PEG access and I-Net requirements; 25 _= • Exercise effecfive local zoning controls over the siting of wireless communications 26 �� facilities; and 27 • Reserve spectrum for cities to make increased use o£ wireless communications. 28 �. 29 , LE-16. Adequate Funding for Transportation so 31 Issue: Current funding for roads and transit systems across all govemment levels in the 32 state is not adequate. The League acknowledges that ali Minnesota communities benefit from 33 a sound and adequately funded transportation system. 34 35 ' Response: More resources must be dedicated to the state's fransportation system. 36 The League supports constifutionally dedicating a portion of the sales tax on motor 3� vehicles (also referred to as MVET) or other new revenue sources to a transportation 38 fund, which would it:nd bofh highway and transit projects. The Leagae also supports 39 an increase in the gas tax that would 6e dedicated under the existing highway user trust 40 fund formula. Vehicle registration taxes (known as tab fees) should not be reduced ai unless replacement revenues are constitutionally dedicated to the highway user trust a2 futtd. If funding does not come from the state, cities should have funding options 43 available to them to raise the necessary dollars to adequately fund roads and transit. 44 16 bo-yti- 1 All nontransportaYion programs should be funded Yrom sources other than the 2 highway user distribution fund or other funds dedicated to transportation, 3 a LE-17. State Aid for Urban Road Systems 6 Issue: Current rules governing municipal state aid expenditures are restricting the 7 efficient use of these funds, and do not adequately acknowledge the constraints of road 8 systems in urban city environmenYS. l0 Response: Rules affecting the municipal state aid system need to be changed to 1 t acknowledge the technical and practical restrictions on construction and reconstruction iz of urban road systems. New municipa( sfate aid design standards should not apply to 13 reconstruction of existing state aid streets originally constructed under different ta standards. Future changes to state aid rules should ensure the involvement of elected 15 officials and engineering professionals in the decision-making process. 16 »;� LE-18. Turnbacks of County and State Roads i a �: 14 � Issue: As road funding becomes increasingly inadequate, more roads are being "turned 2o back" to cities from counties and the state. 21 22 � 23 " 24 ' 25 26 ' 27 zs 29 30 31 32 Response: Turnbacks should not occur without direct funding or transfer of a funding source. A process of negotiation and mediation should govern the timiag, funding, and condition of turned-back roads. City taxpayers should receive the same treatment as township taxpayers. The requirement for a public hearing, standards abouY the conditeons of Yurnbacks, and temporary maintenance funding should also apply to county turnbacks to cities. At a minimum, roads proposed to be turned back to a lower government level should be brought up to the standards of the receiving government or should be compensated with a direct payment. Direct funding should be provided for smaller cities that are not provided with turnbac[c financing through the municipal state aid system. s3 LE-19. Road Funding for Cities Under 5,000 34 35 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their 36 collector and arterial streets. 37 38 Response: Cities under 5,000 population that are not eligible for Municipal State Aid 39 (M.S.A.) should be able to use county municipal accounts and the 5 percent account of 40 the highway user distribution fund. 41 42 43 44 45 46 Uses of county municipal accounts should be statutorily modified so counties can dedicate these funds for local arterials and collector streets within cities under 5,000 poputation. In addition, the 5 percent set-aside account in the highway user distribution fund should be used to meet this funding gap. 17 � LE-20. Railroad-Related Projects z 3 Issue: Cities are being presented with far-reaching and long-term effecu when railroad 4 expansion and related projects enter their communities. Along with the concerns related to 5 safety, environmental effects, and noise impacts on the communities, several issues have 6 greater reaching effects. They aze: 7 S � The cost-shaze ratio related to roadway crossing improvements will be bome by the public 9 sector to a substantial degree, some estimates are 80 percent public to 20 percent private 10 funding; 11 12 13 14 t5 i6 17 18 ' 19 20 ' 21 �=: 22 23 ' 24 ' 25 : 26 • The financiai burden faced by the public sector to deal with mitigation improvements, a cost that the Surface Transportation Boazd (STB) is not requiring the private sector to pay; • The issues associated with the length of trains moving through communities; • Liability associated with whistleblowing ordinances; and • Pre-emption of local authority to regulate railroad activities. Response: The private sector must be required to pay a greater share of the improvements that benefit their industry. The public sector should not be expected to underwrite the costs of improvements sought by the private sector. The state and federal govemment must participate in adequately funding the mitigation of the negative impact of railroads on local government and its citizens. The federat government must exercise greater oversight'of the STB to ensure that fair and equitable solutions are reached when dealing wifh cities in Minnesota. LE-21. Access Management & Plat Approval 27 - Issue: Increasingly, the state and some counties express a desire to exercise more control 28 over state and counry roads that lie within city boundazies. Some counties have introduced 29 , legislative proposals requiring county plat approval before pro}ects may move forwazd. The 30 Department of Transportation has studied the issue of access management, and is developing 3 t a guidance document to establish minimum standards before new access points onto roads 32 will be allowed. The League has published educational articles designed to highiight the 33 , importance of county and state involvement when cities aze involved in pianning decisions 34 that will allow new development to access roadways. 35 36 37 38 39 40 41 42 43 44 45 LC: Response: Cities support maintaining plat approval authority with each municipality for all plats located within cities. Cities do not support extending county or state authority over plat approval. Aowever, significant advantages can be gained by using a coordinated review process, already existing in state law, between cities and other affected units of government. Such advantages include better overail land use planning, site designs, and traffic management In addition, cities support the concept of statewide access management guidelines that can be ased in a coordinated review process. 18 00 -�{ �- i LE-22. Right of Way Management 2 3 Issue: Cities have fundamental responsibility for managing the safe and convenient use of 4 public rights of way. Cities hold local rights of way in trust for the pubtic as a Iimited and 5 valuable asset. As demand for right of way use increases, cities must continue to have clear 6 authority to allocate and coordinate that resource among competing uses. Local management � responsibilities vary and aze site specific, underscoring the importance of upholding local 8 authority to establish fees and standazds and to obtain fair and reasonable compensation by 9 telecommunications right of way users. t0 I1 12 13 14 t5 16 17 18 �:`s 19 20 2t 22 :-� 23 za , 25 � 26 27 28 Response: State government mast: • Uphoid local authority to manage and protect public rights of way, including reasonable zoning and subdivision regulation and the exercise of local police powers; • Recognize that municipal engineering has a paramount role in developmenf and implementation of construction and safety standards; • Support locai authority to require full recovery of actual costs of managing use of public rights-of-way; • Continue existing local authority to collect franchise fees and capital support for public, education and government (PEG) access and programming and to require provision of institutional networks (I-Nets) from providers of multi-channel video programming; and • Maintain the courts as the primary forum for resolving allegations by telecommunications service providers of arbitrary or capricious city management policies and practices. LE-23. Effective Telecommunications Competition 29 Issue: Gonsumers need protection in the Iransition to a competitive marketplace for 30 telecommunications services. Local economies can be streagthened by competitive provision 3] of services to enhance business participation in the global economy. 32 33 34 35 36 37 38 39 40 41 42 43 44 4S 46 ltesportse: Federal, state, and local government should coordinate policies to protect consumers and encourage emergence of local competition. LE-24. Local Zoning of Telecommunications Facilities Issue: Pederal intervention and restrictions on city zoning authority over the use of property by telecommunicauons service providers threaten to pre-empt basic Ioca1 land-use ragulation. Response: Federal and state government must uphold the fundamental right of local government to adopt and enforce zoning regulations reaffirmed in the federal Telecommunications Act of 1996. 19 i LE-25. Workforce Readiness 3 Issue: State and federal welfaze reform efforts have focused on the importance of the d welfaze-to-work transition, and have recognized the challenge of ensuring individuals aze 5 qualified to work. Cities have an interest in the availability of qualified workers as part of 6 their economic development efforts, and can serve as a catalyst with other public entities and 7 the private sector to address workforce readiness issues. 9' Response: The Legislature should continue to fuliy fund the job skiils partnership to and pathways programs administered by the Department of Trade and Economic t 1 Development. Flexibility shoutd be provided to accommodate small companies' needs 12 _- and provide alternatives to the Qublic trafning systems. 13 14 �s LE-26. Platting Law Recodification 16 17 Issue: The Minnesota Association of Counry Surveyors (MACS) is seeking to recodify Is _ Minnesota Statutes Chapter 505. Two issues raised by MACS that will likely impact cities t9 � are the subdivision plat requiremenu, and the creation and amendment of road right of way 20 acquisition maps. 21 > 22 : Response: The Legislature should preserve local authority over. plat approval and z3 ��,- include language in the recodification legislation that will allow. foc pedestrian easements 24 or thoroughfares to be dedicated by plat (for sidewaiks, public trails, etc.). 25 26 LE-27. Economic Development Authorities 27 z8 Issue: The state's policy regarding economic development authorities (EDAs) has been to 29 limit the specific authority and powers of EDAs to city govemments. The state has already 30 determined that city govemment most efficiently provides governmental services in azeas 3t intensively developed for residential, industrial, and governmental purposes. However, in 32 certain azeas of the scate, cfties within a county may wish to participate in the formation of a 33 county EDA 34 35 Respo�:se: The state shoutd continue to recognize the importance of using and 36 preserving the existing infrastructure in cities, and should continue to find thaf urban 3't development, and all related authority, remain within cities and managed by city 38 government. The Legislature should continue its decision to limit EDA authority to 39 cities as the primary local government responsible for the organizational and financial 4o coordination of development and redevelopment unless the cities wishing to participate ai in a county EDA jointly determine and individuatly approve the county's provision of 42 economic development services and cities not wishing to participate in the county EDA 43 are not subject to the county EDA's tax levy. 44 45 46 20 O o —y �- t LE-28. Infrastructure Funding Options z 3 Issue: Current infrastructure funding options available to cities aze inadequate. Existing a special assessment law, Chapter 429, does not meet cities f nancing needs because of the 5 benefit requirement. The law requires a minimum of 2Q percent of such a project to be 6 specially assessed against affected properties. In practice, however, proof of increased 7 property value to this degree of benefit can rarely be pYOVen from regular repair or 8 replacement of existing infrastructure, such as streets or sidewalks. Alternatives to the 9 Chapter 429 methods for financing infrastructure improvements aze neazly nonexistent. t0 I t The Legislature has given cities the authority to operate systems for waterworks, sanitary 12 sewers, and storm sewers. The storm sewer authority, established in 1983, set the precedent 13 for a workable process of charging a use fee on a utility bill for a city service infrastructure 14 that is oF value to ati those in a city. Similar to the storm sewer authority, a transportation or is sidewalk system would use tachnical, well-founded measurements, and wouid equitably 16 distribute the costs of locai infrastructure services. i� 18x 19 F' 2o M. 2 t �? 22 ;. 23 °- 24 �; , 25 . 26 27 2s 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Resporase: The Legislature should authorize cities to create, as a local option, additional systems such as a transportation or sidewalk system. Such authority would acknowledge: the effects of repeated levy limits and the general funding shift from the state to local governments £or building and maintaining necessary infrastructure; the benefits to all taxpayers of a properly maintained public infrastructure; and the limitations of existing special assessment authority. IMPROVING SERVICE DELIVERY SD-1. Redesigning and Reinventing Government Issue: Every leveI of government is reevaluating, reprioritizing, redesigning, and renewing its organizational structure and programs in response to financial realities and citizens' needs and problems. Reforms, however, must be more than change for the sake of change, or a reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and reassignments of governmental entities and services should save money where feasible, deliver improved services, serve essential needs, and be eqnitably strvctured. Cities have and will continue to pursue the use of cooperative agreements, the reevaluation of city programs and services, and changes to organizational structures. Response: The federai, state, and county governments should: • Ensure that in redesianing, reinventing, or reassigning government services and programs that the appropriate level of service to citizens is evaluated, and citizen demands and expectations are adequately addressed; • Promote local efforts through incentives, rather than mandates; 21 �_• Communicate and estab(ish a process of negotiation before shifting responsibility for 2 delivering services from one level of government to another, or seeking to reduce 3 service duplication; 4 • Transfer authority for use of revenues dedicated to such programs, or provide 5 appropriate and adequate alternatives; 6 • Identify and repeal programs or discontinue services that are no longer necessary, or 7 which can readily and fairly be provided by the private sector; and s • Employ existing government entities in redesign efforts rather than create new 9 agencies or units. 10 ii iz 13 14 15 16 17 18 ;, l9 5D-2. Unfunded Mandates Issue: The cost of federal and state mandated programs substitute the judgment of Congress, the President, the Legislature, and the govemor for local budget priorities. These mandates force cities to reduce funding for other basic services or to increase taxes and service charges. The passage by the Legislature of reporting requirements for new state mandates, and the passage by Congress of legislation restraining new federal mandates, should help address the problem, but other steps ue necessary. 2o Response: < 2 ] :; 22 �� • Existing unfunded mandates should be modified or repealed where 23 possibie. 2a :• No additional statewide mandates shoutd be enacted, untess fuli funding for the 25 mandate is provided by the level of government imposing it or a permanent stable 26 ` revenue source is established. 27 • Cities should not be forced to comply with unfunded mandates. 28 29 30 31 32 33 34 35; 36 37 38 39 40 al 42 43 44 45 [[.� • Cities should be given the greatest flexibility possible in implementing mandates to ensure their cost is minimized. SD-3. Civil Liability of Local Governments Issue: One of the barriers to the delivery of govemmental services and programs is the exposure of local govemments and their officials to civil damage claims. The state has acted to protect itself and its local governments by enacting exceptions and limitations to liability suits, and authorizing self-insurance and other mechanisms to deal with claiuu allowed by law. Additionally, the current law, which requires district court approval of settlements of claims against municipalities that exceed $10,000, has become burdensome for cities. Respo�:se: The League supports: • Creating an exception to municipal-tort indemn�cation law (MN Stat� Sec. 466.07) where an employee is defended and indemnified for claims under a contract of insurance carried by the employee. � Extending the protection of the state and municipaI tort claims act to quasi- 22 no-ya i govemmental entities when performing public services such as firefighting; 2 • Existing constitutional safeguards for protecting public and private property 3 inferests without any statutory expansion of property rights; 4 • Eliminating Yhe district court approval of settlements requirement or, in the 5 alternative, increasing the threshold amount for district court approval of 6 settlements to $100,000; and 7 • Clarifying and maintaining the appticabifity of municipaI immunify in various areas 8 including, bat not limited to, park and recreational immunity, including the 9 extension to entities providing a public service that have not traditionally been l0 included within the immunity (e.g. state traits over municipal utility easements) and 11 vicarious official immunity, and seeking immunity from claims related to providing t2 and disfributing information from geographic information systems (GIS) pursuant t 3 to the Minnesota Data PracYices Act. ta is SD-4. Environmental Protection 16 t7, Issue: State and federal environmental programs are improperly designed to meet their tS� stated goals, and impose an undue burden on local governments because of a lack of federal or state financial assistance. The refusal to finance these programs by the governments that pass them has eliminated an essential restraining feature in program design and implementation. In addition, cities face emerging issues in the areas of drainage, bio-solids, wellhead protection, and feedlots. 19 2Q 2 T; 22' 23� 24„ 25 26' 27 28 29 30 31 32 33 34 35 3'6 37 38 39 Specific problems include: • New programs or standards are continually adopted without regard to the existence, attainability, or cost of existing programs and standards. • The failure of regulatory bodies to consistently use good science and the most current and accurate data when establishing water quality standards. • Fragmented program adoption and implementation does not ensure prioritization of environmental matters or the establishment of comprehensive environmental protection strategies. •"One size fits all" implementation of programs force remedial efforts by local governments for nonexistent environmentat problems. • Permit fees and other cost transfer elements of federal and state programs do not provide an incentive for environmental agency efFiciency, policy prioritization, oz risk assessment. Response: 40 • State agencies must be mquired to provide local governments witk more flexibility in a� achieving environmental goals, such as endorsing performance based outcomes and a2 best-management practices, and these agencies must provide faster approvat of 43 waivers in order to allow municipalities to benefit from greater flexibility. 23 1 • Alternative wastewater treatment and cooperative service systems should be 2 prohibited from operating in areas that can reasonably and effectively be served by 3 existing municipal systems unless: 4 • The municipal system is proven to be: 5 ■ substantially less cost-effective and 6 ■ substantially less beneficial to the environment; and 7 • The operation of these systems will not create a stranded public investment in the 8 : exisdng system. 9 • A comprehensive effort to consolidate, reorganize, and manage state and federal l0 environmental agencies and programs should be undertaken, and a partial or full t t moratorium on new programs or requirements should be considered. tz • Permit fees should be limited to 5Q percent of the agency's direct operating costs in 13 order to promote efficient agency operation and sufficient legislative oversight t4 • Su�cient state and federal financial assistance should be provided to comply with ts state and federal infrastructure requirements, particularly with regard to t6 ;, wastewater, stormwater, and drinking water facilities. 17 • Minnesota Statutes § 115A.32-39 should be amended to reinstate the administrative fE� 19 ; 20 ` 21 : 22 -' 23 "t, 24 � 25 procedure used for the resolution of bio-solids disputes, a procedure whose function was inadvertently deleted during a re-codification of the statutes. In addition, local governments in Greater Minnesota should be.allowed to dispose of bio-solids in manners consistent with the MPCA's permits and rules and be prohibited from imposing blanket moratoriums on land application of bio-solids. This authority would be similar to the statutory protection enjoyed by metropolitan area communities (NIN Stat. § 473.516). z6 SD-5. Election Issues z� 28 Issue: Delays and lack of funding at the state level have prolonged the wait for cities to 29 have direct access to the statewide voter registration system. Lack of access increases the 30 time and cost to process new voter registrations, update voter files and verify voter 3t information in a timely manner. 32 ' 33 Respa:se: The Legislature should provide funding to allow more cities direct access 34 to the statewide voter registration system. 35 36 SD-6. Local ElecEion Authority 37 38 Issue: Previous legislatures restricted city authoriry to schedule city elections and 39 establish terms of office for local elected officials thereby diminishing regard for the role of 40 local self-govemment, particulazly when state policy preempts home rule authority governing 4t city elections. 42 43 Respor:se: The Legislature should oppose further limits on either the number or the aa length of terzns city etected officials may serve, particularly when those terms have been 2a po-ti y i established by voters in home rule charter cities. State policy on uniform elections 2 shouid confinue fo recognize and uphotd Iocal authority to schedute city elections in 3 November of either even- or odd-numbered years. 4 s SD-7. City Costs for Enforcing State and Local Laws 6 � Issue: Cities experience substantial costs enforcing state and local laws, particulazly those 8 related to traffic, controlled substances, and incazceration of prisoners. The current method in 9 our criminai justice system of recovering costs for law enforcement and prosecution through t0 fines is insufficient to meet the costs incurred by local governments. 1t t2 13 14 15 16 17 Response: The Legislature should review this issue and adopt measures that provide for complete reimbursement of the costs incurred by Ioca[ governmenfs in enforcing state and local laws. Solutions that shoutd be considered include the following: • Increasing fine amounts; • Removing or modifying county and state surcharges that conflict with cost recovery �8-� principtes; and i4 • Requiring the defendant to pay the ful! costs of enforcement and prosecution as part 20;; of any sentence. 21;� - Zzy SD-8. Access to Information Technology and Services 23 24., Issue: Cities recognize the importance of achieving world class standazds and universal 25 �:. service in order to provide quality education and opportunities for local businesses and 26=, industry to engage successfully in global competition. 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Respo�ase: The Legislature should: Expand and ensure the public's access to government meetings and information through electronic means; and Provide technical and financial assistance to make advanced technologies available and encourage collaboration among cities, schools, and libraries, health care, nonprofit organizations and businesses in its effective use. SD-9. Design-build Issue: The standard bid procedure cities are required to use in selecting contractors for municipat buildings can be quite costly. Private sector devetopment uses a process known as "design-build" in which vazious firms submit project proposals that include both a design and the construction costs for that design. The selection is then based on the total package. By �ranting specific statutory authority to use ihe design-build alternative to the Metropolitan Sports Facilities Commission and state agencies, including the Department of Revenue, the Legislature has recognized the financial savings it can provide. In documented instances, cities have saved taxpayers up to 10 percent of the Total project cost by using the design-build altemative. 25 t The design-build process also pernuu improved project management and oversight. 2 However, absent statutory authorization to use this altemative, ciries are vulnerable to 3 lawsuits from unsuccessful bidders. In addition, the design-build process for playground 4 equipment can encourage greater creativity while maintaining cost controls. Special 5 legislation was enacted for the city of Chanhassen in 1995 to experiment using this process 6 for purchasing playground equipment. T s Response: The Legislature should authorize an extension of the design-buiid 9 procedure to cities as a less expensive alternative to the standard bid procedure. to t i " SD-10. Providing Information to Citizens iz t3 Issue: To keep the public updated and informed, state law requires local units of 14 government to publish various notification documents in newspapers, and often dictates which t5 newspapers receive cities publication business. The number and variety of documents i6 required to be published and the costs of publication aze burdensome. Technological 17 advancements have expanded the ways government can provide information to citizens. In t 8 many cases, these new technologies aze more efficient and cost effective. 19 2o Response: Cities should be authorized to take advantage of new technologies to 21 increase the dissemination of information to citizens and potentialiy lower the associated z2 -°. costs. Specif cally, the Legislature should,authorize local units of government to 2s designate an appropriate daily%weekly publication, elect alternative means of 24 . communication such as city newsletters, cable television, and the Internet, and expand 25 ' the use of summaries where information is technicai or lengthy. Additionally, the z6 '; Legislature should eliminate outdated or unnecessary pub(ication requirements. 27 ` Zx ' SD-11. Creating a Minnesota GYS Program 29 30 Issue: Local governments aze finding geographic information systems (GIS) an essential 3 i tool for comprehensive land use, real estate, environmental, and other land management 32 information. In many counties, maintenance of official land records has not been automated, 33 creating a barrier to GIS development. In addition, the start-ap costs of GIS implementation 34 can be prohibitive. 35 36 _,. Response: The Legislature should encourage locat government implementation of 37 GIS through grants and/or the dedication of a revenue source such as real estate 38 transaction fees. In addition, cities should be involved in the development of county 39 land records modernization plans. 40 ai SD-12. State Regulation of Massage Therapists 42 a3 Issue: The state does not cunently regulate massage therapy, an emerging and rapidly 44 growing grofession. In order to controi prostitution and to provide for health and sanitation as standuds, several cities have entered the traditional state domain of heaith-care licensure by 46 enacting ordinances that require all massage therapists to obtain a local professional license. f�3.� 6p -�-/ 2 1 These ordinances allow local law enforcement officers to differentiate between legitimate 2 massage therapists, who have a city license, and prostitution businesses fronting as massage 3 therapy establishments. 4 5 The lack of statewide regulation of massage therapists has hampered law enforcement 6 techniques, and has caused problems for cities attempting to regulate an entire health-caze 7 profession without any statewide standards. Currently, 25 states regulate massage therapists 8 on a statewide level. Statewide regulation of massage therapists would provide a clear set of 9 educational standazds that massage therapists must meet, and would provide local law l0 enforcement agencies with an easy tool to distinguish between prostitution and legitimate 11 massage therapy. Statewide regulation would not disturb traditional powers over land use and 12 13 ta �5 16 17 18� 19;;- 20 21 22.' 23. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 a0 41 42 as 44 45 46 business licensure. Response: The League supports the statewide regulation of massage therapists in order to aid local law enforcement efforts at controlling prostitution and other criminal activity. SD-13. Private Property Rights and Takings Issue: The Legislature has been introducing an increasing number of bills designed to diminish or control local governments' abili[y to exercise traditional planning and zoning authority. I.egislation to control cities' abilities to perform regulatory acts such as shooting , range zoning and amortization received strong support from legislators. In addition, bills have been introduced to codify the property rights section of Minnesota's Constitution. The Federal Swamp Buster/Sod Buster programs, the Army Corps of Engineers' dredge and fill programs, and the State's Wetlands Conservation Act and Community Based Planning Act, appear to be the nexus for much of the property rights and takings legislation proponents. The League supports local governments' ability to balance the rights of private landowners with the interest of the public. However, the League is concerned various legislative initiatives will adversely impact cities in two ways. First, such legislative initiatives undermine the fundamental authority of cities to protect the pu(ilic health, safety, and welfaze of its citizens. Second, if the Legislature acts to codify part of the Minnesota Constitution, an argument may be made that the Legislature intended to create new causes of action against ci[ies. This wouid encourage more lawsuits and expose cities to the expense of defending those cases. Respor:se: The League encourages the state and federal governments to improve their regulatory programs by eliminating property rights issues that were caused by the adoption of such laws as the Wetlands Conservation Act or Swamp Buste;/Sod Buster. The League opposes legislation that diminishes the ability of cities to act in the best interests of the health, safety, and welfare of its citizens or that creates the possibility of additional lawsuits against cities. 27 � SD-14. Construction Codes 3 Issue: Each year the Legislature addresses construction codes issues that have some 4 impact on local govemments. The Legislature mandated bleacher safety legislation and is 5 expioring the idea of having both the fire and building o�cials approve building permits. 7 In addition, the Construction Codes Advisory Council has indicated it may be 8 recommending legislation to institute an appeals process for disagreements over the 9 application or interpretation of various construction codes and to establish a statewide t0 building code. The International Organization for Standazdization (ISO) has been evaluating t i Minnesota's building codes and enforcement. There is some expectation on the part of 12 council members that ISO will act as the catalyst for a statewide building code. 13 14 While all cities must enforce certain codes, such as the accessibility code, the electrical 15 code and the bleacher safety code, the state's building code remains a local option for cities 16 outside the metropolitan area. Many Greater Minnesota cities have adopted the state building 17 code and all cities within the seven-county metropolitan azea are required to adhere to the 18 state building code. I9 20 Response: A building code provides many benefits including uniformity of 21 construction standards in the building industry, consistency in code interpretation and 22 . enforcement, and life safety guidance. 23 24 =_ 25 '- 26 � 27 2s A statewide-enforced building code may have benefits, but requiring it would result in an unfunded mandate. The enforcement of a buitding code can be cost prohibitive for many cities due to the expenses and overhead related to staffing vs. the limited building activity occurring in some communities. 29 The League supports adoption of a state building code as long as there is not 30 mandatory enforcement at the local level. The adoption of an enforced state building 3 t code should remain a local option for municipalities outside the seven-county 32 metropolitan area, unless the state fully funds the costs of enforcement and insQection 33 ` services necessary to enforce a statewide building code. In the event the Legislature 34 - requires an enforced statewide building code, local governments must have the option to 35 hire or select a building official of their choice and setting the appropriate level of 3b service, even if the state fully funds code enforcement activities. 37 38 An appeals process would provide an excellent forum to resoive code disputes. 39 To the extent the insurance industry is concerned about insuring structures not built ao to code, the industry should drive code compliance by issuing policies or setting rates ai based on whether the structure meets various code requirements. az 43 44 45 46 SD-15. Fees for Service Issue: Interest is increasing at the I.egislature and among interest groups to mandate to local govemments specific fee limitations for various municipal services. Examples of � oo-ya- I legislation include building permit fee legislation and coin operated amusement machine 2 license fee legislation, both designed to rigorously control local fee setting authority, This 3 stems, in part, from a belief of some that plan check fees, license fees, and other municipai a fees for service do not reflect tha actual benefits received. 6 Additionaliy, other groups have begun discussing the value of fees for providing services. 7 Recendy, the Citizens Jury explored the value of fees for service and gave limited 8 acknowledgment of the value fees may have in providing core municipal services. The media 9 has entered the discussion, as weil, urging the public and policy makers to monitor fee-setting 10 processes. il t2 Response: 13 �a While the state has a role in providing a general statewide funding policy, the state t5 should not interfere in the simple budgetary decision-making functions performed by 16 clties. 17 ° 18� 19 %�" z0 ' 21 � 22 =: 23 ;. 24 25 �' 26 27 28 29 30 3i 32 33 34 35 36 The League supports the Legislature endorsing local government authority to charge fees that are reasonably related to the cost of providing the service, permit, or licettse and acknowledging there are other associated costs inherent in the provision of those services, permits, or licenses. However, cities oppose any move to legislate speci�c ruethods to pay for municipal services or place caps on license fees or other fees. General services such as permitting, inspections, or enforcement are best funded out of a city's general fund. Cities are better prepared than the state to make local budgetary decisions when providing local services. SD-16. Board of Firefighter Training Issue: The quality, availability, and affordability of firefrghter training varies greatly across the state. After several years of discussion, the fire service has endorsed a proposal to create a state board of firefighter training to ensure the quality of training and oversee state reimbursemen[ of a portion of training costs. The board would not be given authority to mandate specific training requirements or to certify firefighters. 37 Response: The League supports the fire service proposal as tong as tocal 3s governments are fairly represented on the board; the powers and duties of the board are 39 not expanded in a way that would undermine local management authority; and the 40 appropriation comes from the sfate general fund. 41 42 43 44 45 SD-17. Witness Fees Issue: Court administrators aze proposing that the Legislature shift the costs atuibutable to calling witnesses from counties to cities. The rationale behind this proposal is that city F� t prosecutors have no incentive to limit the witnesses called only to those that will actually 2 testify. Most counties cunenfly receive one-third of the fines collected at the city level. 3 4 Response: Cities oppose the shifting of costs attributable to calling witnesses from 5 counties to cities. City prosecutors responsibly call only those witnesses they expect to 6 testify. Under certain circumstances, witnesses may not ultimatety provide testimony for � a variety of reasons. The fine revenue counties receive adequately funds the costs 8 attributable to calling witnesses. 9 io ii 12 13 14 t5 16 17 SD-18. State Appropriation for Government Training Service (GT5) Issue: In 1977, the Govemment Training Service was created in order to provide a coordinated response to the training needs of state and local govemments. GTS was chazged with coordinating the needs of the state, cities, counties, townships, and school districts, with the delivery capability of the sta[e's institutions of higher leaming and other continuing educatSon service providers. 18 State financial support of GTS is unportant. 14Iany. cities and other local governments find ]9 it difficult to adequately fund official and staff training. GTS provides a cost-effective 20 mechanism for taking advantage of the efficiencies of cooperation. 21 22 >` Response: The League supports the state general fund appropriation for the z3 - Government Training Service. 24 zs 26 27 ° 2s 29 30 3t 32 33 34 35 _ 36 37 38 39 4Q 41 42 43 a4 45 46 SD-19. Year 2000 Issues Issue: Despite cities' best efforts to take reasonable actions to address threats to vital services local officials need to be able to rely on the readiness of state government to respond with additional resources and financial assistance, if necessary, to limit threats to local public health and safety or to local economies where unexpected Y2k-related problems cause serious disruptions. Cities have worked to resolve complex Y2k problems over the last yeaz, but some cities have found it necessary to expend substantial additional resources to convert or modify critical service delivery systems to overcome potential Y2k-related emergencies. Cities that have borrowed extensively or issued debt to meet those needs may find that such obligations place significant fiscal strains on local tax resources. Respor:se: State agencies and the legislature should be prepared to grant cities additional emergency financial assistance and other resources during the coming year to help local officials restore vital public services or to assist the community in overcoming the loss ef critically needed business, health care, educational or other fuactions. SD-20. New Public Safety Spectrum Needs Issue: Cities have benefited from successful efforts at the federal level to gain access to exclusive radio and wireless communications capacity for state and local public safety spectrum. Cities can now take advantage of the new radio and wireless communications 30 00 -"-��- i space set aside by the Federal Communications Commission (FCC) at the upper end of the 2 UHF television band for pubiic safety. For future interoperabiliry, cities will need additional 3 spectrum to ensure public safety agencies can communicate with each other and with a sunounding jurisdictions. 6 The U.S. Department of Commerce and the FCC Public Safety Wireless Advisory 7 Committee have recommended reallocation of 3 MHz of radio spectrum in the range of 138- 8 144 MHz radio band be made available exclusively for state and local public safety 9 interoperability. This spectrum is cunently assigned for military use and is not currently in lo use. Unless secured for public safety purposes, it is likely to be auctioned off to the highest ] 1 bidder for private use. The radio band available is adjacent to the current MHz band used for 12 13 14 i5 16 t7 t s;"'�� 19; 20 fire, police, and other public safety communications and would provide particularly good frequencies for mobile/portabie radio system communications. New spectrum in the 800 MHz range requires many more sites to cover the same geographic range and uses more expensive radio equipmeat. Although many public safety a;encies aze moving to new 800 MHz systems, others wi11 need to remain in lower frequency bands. Equipment in 800 MHz range will not communicate with many of the existing public safety systems that operate at lower frequencies. 21 Respaise: The federal government must make additional spectrum available to 22; allow public safety agencies that require multi-agency communications to respond to 23 `. ` accidents, disasters, and criminal activity that cross jurisdictional boundaries. So that it z4Y . wilt not be auctioned, the 3 MHz available for reallocation for public safety should be 2 reserved to relieve congestion on nearby public safety frequencies. 26: 27 28 29 30 31, 32 33 34 35 36 37 38 39 Immediate acTiom m�st be taken Yo secure this additional radio spectrum to advance the interoperability of public safety communications systems. SD-21. Joint & Several Liability Reform Issue: Under joint and severai liability, a party named in a lawsuit can be held liable for an entire damage awazd even if they aze not found to be substantiatly at fault. Accordingly, cities as "deep pockets" often are brought into lawsuits where it is likely that other named defendants are uninsured or otherwise unable to pay. Cities will often settle these cases due to the high degree of exposure and, at minimum, aze almost always responsible for their defense attorney's fees. Joint and severai liability results in cities paying for others' negligence. 40 Response: The Legislature should eliminate or severely restrict the application of at joint and several liability to situations where private and public entities are substantially a2 at fault for the damages incurred. 31 � SD-22. Official Newspaper Designation 2 3 Issue: State statutes currently provide a hierazchy that governs which newspaper a 4. city annually may designate as its official newspaper for legal publication. After designadon, 5 the city has no ability to change its designation to a newspaper lower in that hierazchy if the 6 selected newspaper makes errors. Errors in publication can adversely affect the city's 7 compliance with the law. For example, if ordinances are not published according to Iaw, they S ate likely invalid. 10 , Response: The Legislature should authorize cities to designate an alternative official 1 t newspaper if their current official newspaper makes significant errors in publication. tz �s SD-23. Competitive Bid Threshold Increase 14 15 Issue: Under the uniform municipal contracting law, a city must bid out ail purchases t 6 of supplies, materiais, equipment, rental of equipment, as weli as construction, alteration, 17 repair or maintenance of real of personal property when the estimated amount of the contract t 8' exceeds $25,000. The law also requires that purchases between $10,000 and $25,000 be let 19 with either sealed bids or through direct negotiation by obtaining two or more quotations. 20 21 This law has not been adjusted since 1992 when the comgetitive bid threshold was 22 <- raised from $15,000. In 1999, the House and the Senate approved and sent to the govemor a 23 . bill that would have increased the competitive bid threshotd to $50,QOQ. However, the biil was 24 -` vetoed by the governor based on concems that the threshold increase could increase the risk of 25 � unethical conduct and favoritism. 26 '� 27 28 29 " 30 31 32 33 34 Response: Raising the threshold will not increase unethical conduct and favoritism. Raising the threshold will result in better use of t� dollars by allowing more negotiation in the purchasing process. Therefore, to provide greater flexibility and to streamline the purchasing process, the Legislature should increase the competitive bid threshold. SD-24. Membership in Watershed Management Organizations 35 Issue: In 1999, the Legislature enacted a restriction that will prevent city employees 36 from serving on watershed management organization boazds. The restriction will prevent city 37 staff, who may have an interest and expertise in watershed management issues from serving 38 on a watershed management board. 39 ao 4l 42 43 44 45 46 Response: Elected city councils have ultimate oversight of the functions of watershed management organizations. The state should repeal the membership restrictions for �vatershed management organization boards. In addition, the state should provide an exception to the watershed district law to allow cities to recommend individuals who do not live in the watershed to serve on the watershed district boards when a portion of the watershed is located in the city but no one lives in that area. 32 00 -y�- t SD-25. Legalization of Fireworks 2 3 Issue: Fireworks producu can cause serious injuries and fire loss. Fireworks have 4 been illegal in Minnesota since 1941, and legalizing them would undermine fire prevention 5 efforts. Legatizing fireworks wauld increase public safety enforcetrcent, emergency response, 6 and fire-suppression cosu. 8 Response: The League opposes the legalization of fireworks. 9 �o SD-26. Election Judge Appointment �i 12 Issue: It is increasingly difficult for local election officials to comply with statutory 13 requirements that election judges serving at precinct poIling piaces be persons identified as l4 members of major political parties. The requirement presents a growing concern in obtaining 15 qualified election judges and a serious obstacle to efficient election administration at the local 16 level. » i 8�; 19 20, 2f 2z, 23 24 25 26 27 ?g 29 30 31 32 33 34 35 36 37 Respaise: The legislature should eliminate election judge appointment criteria requiring persons seeking appointment as local election judges to designate a political party. SD-27. Election Judge Compensation Issue: People willing to serve as election judges are often discouraged from doing so because the ciTy is not authorized to accept their service as a volunteer or to contribute their compensation to local chazities or community non-profit organizations. Response: The legislature should authorize cities to allow election judges to direct that their pay be donated to a local charity or community non-profit organization of their choice. SD-28. Counting Write-In Votes Issue: Requirements for recording and reporting votes cast for fictitious and undeclazed write-in candidates aze unproductive, time-consuming and do not serve to increase voter confidence in the outcome of the election. 38 Respo�:se: There should be no requirement to tabulate or report write-in votes 39 cast for fictional or celebrity write-in caadidates who have not officially declared their a0 iuterest in seeking office. Election judges should be required only to list the name of a1 each undeclared write-in candidate unless votes cast in that precinct for that candidate a2 toial more than 5 percent of votes cast in the precinct for that office. 33 i . SD-29. Telecommunications Restructuring 2 3 Issue: Cities have a unique perspective and role in shaping the delivery of a telecommunications services. While city officials recognize the significance of convergence 5 in the provision of these services, proposals currently under consideration at the state level to 6 restructure telecommunications regulation overlook critical functions that cities can more 7 effectively perform. Cities have a fundamental role in guazanteeing public access to 8 communications media, fostering a sense of community through the use of 9 telecommunications, and protecting consumer interesu. 10 i I In an era of convergence, it is also essential that cities, along with local consumers, t2 educational and health care institutions, non-profit organizations and businesses be assured t 3 that all telecommunications service providers aze held accountable for agreements [o provide 14 those services, uphold service guality and respond to community needs wherever they do 15 business. 16 t � Response: In redesigning state telecommunications policy to address the 18 convergence in delivery of telecommunications services, state agencies and tawmakers 19 should uphold local authority in the following areas: 20 2t 22 23 24 25' 26 27 2s 29' 30 31 32 33 34 35 36 37 38 39 Cable Issues • Control over cable franchise provisions:such as the collection, retention and use of cable franchise fee revenue; public, educational and government (PEG) access and institutional network (I-Net) commitments and capital funding to support those activities; • Carry out responsibilities and provide for resources to handle customer compiaints in a timely manner; • Agreements with local cable operators to make services available responsive to local policies and subject to local oversight and gbvernance, including municipal programming and access to analog and digital channei capacity; • Direct unfettered access to video channels and bandwidth free of charge fo offer public, educational and community-based information, programming and service delivery; and • In the absence of federal regulations that override local decision-making authority, recognition that cities retain control over whether to require local cable operators to provide nondiscriminatory access to unaffiliated Internet service providers (ISPs) when offering telephony, cable modem or information services, including Internet access. ao General Telecommunications Issues 41 State policy should assure that telecommunications service providers operating in a2 Minnesota are required to meet service quality and performance standards that treat all a3 areas of the state equitably in the delivery and quality of services. That policy should 4a include: a5 • Encouraging competition and broad deployment of high-speed broadband, cable tv, 46 wireless, and Intemet services; 34 0 o-4y- 1 • Authorizing cities to provide a full range of telecommunications services either in 2 public-privaYe partnerships, through joint powers agreements or as sole providers; 3 • Addressing the particular importance of telecommunications service delivery issues a in rural areas such as the provision of e#ended local call service areas, consolidated 5 schooI disfrict communications needs, and strengthening the network of health care 6 delivery service providers including local clinics, pharmacies and hospitals; 7 • Directly involving local government in determining strategies for and any 8 reallocation of resources; and 9 • Bringing together state and locai government officials on a regular basis to lo recommend changes and improvements to regulation to respond to changes in t 1 competition, technology and delivery of telecommunications services. �z is SD-30. 911 Funding 14 15 Issue: As cities struggle to afford to maintain and improve the hudwaze, software, 16 and training to provide 911 services, costs continue to rise and many cities aze forced to 17 choose between beazing all costs or making incremental improvements to their systems. 18 13� 20 2I 22 2� 24 25 26 27 28 29 30 31 32 33 34 Response: The League supports an adequate state funding source for the upgrades and modifications of 911 and related systems that will allow cities to provide effective, reliabte emergency communications services. Personnel, Pensions, Labor Relations & Data Practices Personnel, Pensions & Labor Relations Issue: Many state laws increase the cost of providing city services to residents by requiring city governments to provide certain levels of compensation or benefits to public employees, by specifying certain working conditions, or by limiting city governments' ability to effectively manage their personnel resources. For instance, existing state laws limit governments' ability to effectively address incompetence or misconduct of city employees specifying certain procedures to be followed or standards of conduct. 35 Response: The state government should refrain from passing laws that regulate 36 fhe pubiic sector workpiace, and shouid repeat or modify problematic existing laws and 37 regulations to encourage full local accountability. 38 39 40 41 42 43 44 The League of Minnesota Cities proposes the following initiatives and reforms: PP-2. Veterans' Preference • The Legislature should conduct a study of Minnesota's veYerans' preference law to determine its effectiveness and efficiency in light of today's employment laws, RF7 t statutes, and regulations. Minnesota's veterans' preference protections were created 2 at the turn of the 19`� Century. These protections were designed to assist veteran 3 employees at a time when Minnesota's and the federal government's labor and a personnel laws were in their infancy. It is likely the Legislature wili find parts of the 5 law will need modemization. � PP-2. Discipline and Discharge s 9 • Veterans' Preference. The state shouid modify veterans' preference and civil service l0 laws that restrict the ability of local governments to effectively discipline public 1 t employees. The Legislature should amend the law to: 12 13 • remove the right to multiple, duplicative disciplinary proceedings; 14 • limit any back-pay ctaims to a maximam of $100,000; t5 • limit the period in which to request a hearing to 14 days (from the current 60 �6 days); 17 . • exclude probationary period employees from veterans preference termination 18 law protections; 19 : • require parties to select their hearing panel representative within 10 days after 20 < notice has been given to the employer that the veteran employee is seeking a 2t � veterans' preference hearing;and 22 • require the panel to hear the petition within 30 days after the third panel 23 �� represenEative is selected and issue a decision within 30 days foIlowing the 24 hearing. 25 _ z6 = PP-3. Compensation limits z� 2s • The state should acknowledge that all local governments, not just schools districts, 29 must be competitive in recruiting and retaining upper level management employees. 30 Therefore, the state should repeal laws limiting the compensation of a person 3 t employed by a statutory or home rule charter city to the governor's salary. If repeal 32 is not possible, the limit should be amended to be based upon the governor's total 33 compensation level. 34 3s PP-4. PELRA 36 3� • The state should modify the definition of public employee under PELRA by 38 removing the existing 14-hour / 67 day requirement and replace it with a definition 39 in which employees must work more than an annual average of 20 hours per week. 4o Temporary or seasonal employees shouid not be included in this definition. 41 • The state should change public sector bargaining laws to require arbitrators to 42 adhere to the pay equity law with regard to consideration of internal class 43 comparisons. 44 c71 00 -y �' � PP-5. Essential Employees i 3 • Cities must balance the health, welfare, and safety of the public with the costs to 4 taxpayers. Therefore, the Legislature should carefully examine requests from 5 interest groups seeking essential employee status under iVIN Stat� §179A (PELRA). 6 The League opposes legislation that mandates arbitration that increases costs and � removes local decision-making authority. 9 PP-6. Pensions to 11 • The state should revise public employee pension laws to facilitate consolidation of t2 local pension plans. 13 • The state should study initiatives to reform and make uniform pension plans for 14 local government employees without increasing public employer contribution levels is or causing the public employer contribufion levei to exceed the confribution Ievel t6 required from employees. 17 • The state should adjust the eligibility thresholds for public pensions to reflect t8e inflation, adopt a process for automatic future adjustments, and limit eligibility for 19 defined benefit plans to employees working an average of at least 20 hours per week. 20 Current members of de�ned benefit plans who do not meet the new eligibilify 2t � threshold should be allowed to contiar�e participation in the plan until they have a z2 �.- break in service and full-time elected officials should remain eligible for defined 23 � benefit pians. 24 • The League opposes special legislation for individual employee pension benefit 2S increases unless they are initiated and approved by the city council of the impacted 26 city. 27 • The state should carefully scrutinize the proposal to increase maximum benefits for 28 volunteer firefighter pension plans to ensure that the higher benefits appropriately 29 compare to the benefits of full-time city employees and are necessary to attract and 3o retain qualified firefighters. 31 3z PP-7. Age Certificates / I-9 Forms 33 34 • The federal I-9 form requires employers and employees to report the same 35 information required by Minnesota's age certificate. The state should repeal MN 36 Stat. §181A.06 and endorse the federal I-9 form to verify age information, and 37 eliminate redundancy for employers and employees when reporting information. 38 s9 PP-8. Employer Reference Immunity ao 41 • The Legislature shonld enact legislation that provides limited immunity to cities 42 when giving accurate written disclosure of information regarding employment 43 related references. This legislation should not undermine the immuttity found in the aa Data Practices Act. 37 i PP-9. State Paid Police and Fire Medical Insurance 3 • The state should fully fund programs that pay for health insurance for police and 4 fire employees required under MN Stat §299A.465, as amended in 1997, for police 5 and fire employees hurt or killed in the line of duty. 6 • The Legislature should clarify whether MN Sta� §299A.465 applies to injuries 7 incurred prior to June 1,1997 (the effective date of the law). 8- • The Legislature should clarify the amount of an employer's contribution under NIN 9 Stat. §299A.465 and whether it changes over time. lo 1 i PP-10. Breathalyzers 12 13 • MN Stat. §181.950-.957 should be amended to permit the use of breathalyzers as an 14 acceptable technolog,y for determining alcohol use. Currently, breathalyzer use is i5 permitted under federal and state commercial drivers' laws. 16 x t� PP-11. Preservation of Local Decision-Making Authority on Employment ts 19 's°- 20 2t 22 < 23 24 `• Related Issues • The League supports local decision-making authority; and opposes legislation intended to interfere in local decisions. PP-12. Drug and Alcohol Rehabilitation 25 ' Issue: [3nder MN Stat. § 181.953, subd. 10(b), an employer cannot temunate an 26 ` employee for a positive controlled substance test without first providing the employee a 27 chance for rehabilitation and treatment. Recently, some cities have been advised that this law 28 applies to "probationazy" employees as well as permanent employees. 29 3o Response: The League supports a legislative change to clarify that the state law on 3 t drug and alcohol rehabilitation and treatment does not apply to probationary 32 employees. 33 34 35 36 37 Data Practices DP-1. Public Access to Information 38 Issue: As a result of 19991egislation, cities (and other state and local units of 39 aovernment) are required to establish policies and make cleaz to the public procedures for ao obtaining access to data classi£ed as govemment public data. 41 42 Respo�ue: These requiremenu musc accord locat officials flexibiliry to establish policies and 43 procedures that reflect the availabiliry of resources and existing forma[s in which informafion is maintained and, 44 organized. � oo-ya- i DP-2. State Model Policies and Training z 3 Issue: The 1949 I.egislature provided funding and directed the Department of 4 Administration to provide model policies and training assistance to cities in complying with 5 the Govemment Data Practices Act (GDPA). 6 7 Response: The Legislature must continue to fully fund the on-going costs of 8 GPDA compliance training and education because there are limited resources at the 9 local level. The Legislature should also require that local officials be directly involved 10 in the development and implementation of training activities. 11 �z DP-3. Tennessen Warning 13 14 15 16 17 18'� ]9 20 . 21'" 22 23 24 zs 26 Issue: The 1998 Information Policy Task Force recommended changes to existing statutory requirements regarding local governmenT responsibility to give employees notice of circumstances in which they may be required to provide information that may be pertinent to subsequent disciplinary or management decisions that affect them. Changes enacted in '99 addressed only a portion of the issues facing local government employers. Response: The Legislature shoufd Iimit compliance with nofice requirement to initial hiring procedures. The initial hiring notice will cover subsequent disciplinary or other personnel-related actions that are likely to adversely affect the individual's employment status. DP-4. Government Data Practices Act Recodi�cation and Conformance 27 Issue: The 1998 Information Policy Task Force recommended that the Legislature 28 Eliminate statutes inconsistent with the nomenclature and philosophy of the Government Data 29 Practices Act (GDPA); however, the '99 Legislature did not act on tkose recommendations. 30 3� Response: The Legislature should examine statutes inconsistent with the 32 Government Data Practices Act and require the input of local government before 33 eliminating or modifying provisions to conform to state information policy. 34 35 DP-5. Alternative Dispute Resolution for Violations of Government Data 36 Practices Act 37 38 Issue: In some circumstances, locaI government compliance with [he Govemment 39 Data Practices Act is hampered by feazs of punitive legal action against public employees 40 responsible for respondina to requests for information while also proTecting data classified as 41 private or non-public. 42 43 Response: The Legislature should limit current damage award requirements for 44 willful violations of the GDPA. Public employees and employers should be encouraged a5 but not limited to using alternative dispute resolution in resotving such disputes. m 39 i DP-6. GDPA Compliance in Contracting z 3 Issue: The '99 I.egislature imposed requirements on the private sector to comply with 4 the Govemment Data Practices Act when under conuact. Despite assurances Yo the contratv. 5 testimony in support of these new requirements generally supported imposing these 6 obiigations whenever government contracts with the private sector to provide public services. 7 8, Response: The Legislature should clarify that the '99 changes in GDPA 9. requirements for access to public government data pertain solely to the contract product l0 '. delivered by the private sector. 11 ►z DP-7. Acquisition of Electronic Surveiilance Devices 13 14 Issue: The '98 Informadon Policy Task Force recommended that cities (and other 15 local units of govemment) be required to report to the State when acquiring electronic devices 16 that improve the capacity to conduct surveiilance — other than for compelling public safety 17 18 19 20 ; 21 ;_, 22 '>. 23 '= reasons. Respw:se: The Legislature should require the involvement of local units of government in the development of recommendations for modifying current state policy. IN ADDITION TO THESE STATE REFORMS AND INITIATIVES, za THE LEAGUE SUPPORTS TAE FOLLOWING POLICIES REGARDING zs � 26 =< 27 28 FEDERAL EMPLOYMENT LAW: FED-1. FLSA/Overtime Compensation 29 • The Fair Labor Standards Act (FLSA) was de5igned for private employer - employee 3o relations. Government employees were exempt for over 100 years. Through a series 31 of court decisions, this statute is now applied to tocal governments. The exception 32 for state and local government employees should be reinstated by statute. 3s . FED-2. Peace Officer Bill of Rights 34 35 • Congress should oppose a federal peace officer bill of rights because it will only 36 compound the difficutties with internal investigations, locai enforcement and 37 diminish local accountability. 38 39 40 41 42 43 4a 45 FED-3. Portability of Deferred Compensation • Public sector employees are increasingly changing jobs between the public and private sectors. Congress shouid enact legislation that would permit tax deferred rollovers between public andlor private deferred campensation plans to improve the portability of funds. 40 �i I• � Electric Deregulation 3 Inhoduclion: Cities have a strong interest in the pablic policy debate about electric 4 restructuring or deregulation. Minnesota already enjoys some of the lowest average electric 5 rates in the nation. The case has yet to be made that deregulation will result in either lower 6 rates or improved service for consumers. 8 Issue: For many decades, electric service to Minnesota citizens has been delivered 9 through a combination of investor-owned utilities (IOUs), municipal utilities, and rural l0 electric cooperatives. This system has served Minnesota we�l, delivering reliable, universal i I service at rates among the lowest in the country. 12 13 In recent yeazs, many have begun to promote "deregulation" or "restructuring" of the 14 industry, meaning that electric service would no longer be a franchised monopoly. A number 15 of states, primarily those with high electric rates, have taken steps to move toward such t6 restructuring. In most of these cases, transmission and distribution remain regulated, with I� retail competition atlowed for generation source. ts 19 20;:' 21"` 22 _ 23_ 24�` 25 Advocates of restructuring argue that such competition will lead to lower rates. However, estimates by the federal Energy Information Agency* are that while the upper Midwest, including Minnesota, will experience slightly lower rates in the short-term, longer- term rates may actually be higher under deregulation. Concerns have also been expressed as to whether residential customers, and those in rural and other hazder-to-serve areas will actually experience decreased retiability and increased rates. z6 Local elected officials have the primary responsibility to the citizens of their cities to 27 make certain restructuring that allows retail competition is as beneficial to the citizens as zs it is to the industry. Beneficial to the citizen means that all Minnesotans experience the same 29 reliable, high-quality, universal, and low-cost service they experience under the current system 30 of electric power delivery. 31 32 City residents have a strong interest in the outcome of this important public poIicy 33 debate. Cities are substantial consumers of electric power. Over 180 cities have 10 percent or 34 more of thezr property tax base in electric industry property, while others collect franchise fees 35 and/or sales taxes on electric purchases within their boundaries. Citizens in 126 Minnesota 36 communities currently receive economical electric service from municipal utiliCies, which 37 make payments-in-lieu of taxes to help support city services. Significant increases in the cost 38 of electric power for city operations or losses of these traditional sources of revenue will result 39 in property tax increases. 40 41 a2 43 44 45 Itesponse: The federal government should aot mandate restructuriag; the decision should be left to the sYates. * EIA is the nonpartisan reseazch azm of the U.S. Department of Energy 41 1 The Legislature shoutd follaw a slow, deliberative approach, taking time to 2 consider how alternative models for delivering etectric power wiil affect the state's 3 traditional benefifs of reliable, universal, high-quality and low-cost service. The public 4 policy discussion should be focused on actual benefits to citizens, rather than on s ideological arguments, stakeholder interests, and over-reliance on simplistic objectives 6 like "consumer choice:' Those advocating a change should bear the burden of proof to 7 demonstrate that restructuring and deregulation will, at a minimum, maintain s Minnesota's high-quality, low-cost, and reliable service. Only when that burden of 9- proof has been met should restructuring occur. io °� 11 - The following pubiic policy goals should be incorporated into any legislation 12 restructuring the electric industry: 13 ia Adequate Suppiy and Demand is 16 t7 IS 19 20 = 21 � 22 The states's current generation and transmission capacity is inadequate to meet projected future needs. No new significanc capacity has been built since the 1980's (Sherco 3). Current regulatory and other governmental policies serve as a disincentive to meet customer demand. The state should review and amend these policies as necessary to encourage development of adequate capacity and reliability. Consumer Protection 23 2a :. Consumer interests must continue to be protected, especially for the most 25 ;, vulnerable populations. Reliable service must be universally available and programs 26 ` such as cotd-weather shut-off rules shouid be continued either as requirements for all 27 market participants or as separate state programs. 28 �. z9 Environmental Concerns 30 3 t The environment must be adequately protected, with conservation and renewable 32 energy efforts maintained. The federal government must review the appropriateness of 33 current environmental regulations and their effect in a deregulated market; for 34 example, exemptions from the Clean Air Act for some generation facilities. 35 35 37 38 39 40 Fair Market Competition To ensure fair market competition, the federal and state govemments must have the authority to review mergers to prevent abuse of market power. at Cities must remain viabie competitors in the electric market Municipal utilities a2 must be granted exemptions from rules like the open meeting law and data practices 43 requirements where they hamper the ability to effectively compete with private aa companies. To ensure adequate service to every citizen, cities and other local 45 governments must maintain their ability to issue tax-exempt bonds for construction of a2 Oo —�1 �— 1 electric infrastructure, and be given explicit authority to aggregate or municipalize 2 provision of electriciLy. a Local Authority 6 Cities must maintain their traditional authority over land use, zoning, rights of 7 way management and cost recovery, as well as the ability to franchise providers and to 8 receive payments-in-lieu of taxes from municipal utilities. Cities' authority to negotiate 9 siting fees and agreements for proposed generating facilities should be enhanced. l0 To avoid unnecessary demand for the limited space in public rights of way, open i� access to transmission and distribution facilities should be maintained through 12 regulation. 13 la As the electric market is opened to interstate competition, the federal government � 5 must preserve the application of Minnesota's state and local sales taxes to the sale of i6 electricity, regardless of the place of origin. t7 ia Stranded Cost Recovery 19 20 Issue: Regulated utilities have traditionally made operating decisions based on needs 21 of consumers within their service territories. Many decisions, therefore, have been based 22 more on need than on economics. In the transition from a regulated to a restruc±ured 23 competitive environment, electric generators' investments in fixed assets and other obligations 24 may or may not remain as economicaily viable. Estimates of these "stranded costs" vary 25 greatly, wi[h some indicating no stranded costs or possibly even negative stranded costs 26 resulting from increased prices after deregulation in Minnesota. 27 28 Response: If regulatory actions have contributed to investment by existing 29 regulated utilities that are not economically viable in a competitive market, and if 30 restructuring occurs, the League supports transition mechanisms that will allow utilities 31 to collect revenues for those particular stranded costs. However, these charges must be 32 carefully monitored to ensure that only eligible and verif�able costs are covered and that 33 over-collections do not occur. Taxpayers and ratepayers should not be expected to cover 34 the cost of investments that were made for business reasons, apart from the requirement 35 to serve under the regulated system. 36 37 If negative stranded costs for the regulated utility as a whole can be established, 38 and are solely the result of transition to a restructured environment, these regulated 39 utilities should be required to contribnte some limited percentage of established amounts ao to offset tax breaks given to these utilities as a result of restructuring. 41 az Property Tax 43 44 Issue: Part of the discussion regazding possible deregulation of the electric power 45 industry has centered on electric utility taxation. Proponents of deregulation assert that if 46 effective free market competition is to replace governmental regulation, state tax policy must 43 t be changed. The main focus of the Investor Owned Utilities (IOUs) so far has been removal 2 of the attached machinery or personal property tax. Utilities subject to the tax azgue it places 3 them at a competitive disadvan[age to non-Minnesota companies, rural electric cooperatives 4 (co-ops), and municipals. However, accurate comparisons of tax burden aze difficult, as other 5 states use completely different ta�cing systems. Additionally, co-ops and municipals do pay 6 direct taYes on some of their property and indirecUy when they purchase wholesale power 7 from sources that aze taxed, such as IOUs. Municipa[s make substantial paymenu-in-lieu of s taxes. t0 Utility personal property can be a significant portion of [he local talc base in all cifies. 1 t Most obviously affected are cities that have power plants; however, transmission and t2 distribution equipment account for over half of the personal property taxes paid by the IOUs 13 and exist in neazly every city. Replacing the revenue that would be lost to cities, counties, t4 school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the 15 mechanics and funding sources of such a replacement revenue would be difficult to develop 16 and administer, and could be subject to reductions or elimination over time. Furthermore, 17 replacement revenues or aids may not fully address the problems created by a large tax base 18 reductio�. 19 20 Response: Cities oppose proposals for exempting the IOUs from the personal 21 properfy tax, apart from the decision to restructure the electric industry in Minnesota. z2 23 If and when deregulation occurs, a truly independent review of the overall talt 24 burden should be conducted to detecmine whether Minnesota utilities are at a 25 competitive disadvantage. If an overall tax disadvantage is identified, the state should 26 correct it. Under no circumstances should local units of government or their citizens be z� required to shoulder the burden of tax relief for IOUs. � ORIGINAL Presented By Referred To Committee: Date i WF�REAS, the League of Minnesota Cities, which represents 811 of z Minnesota's 856 cities, as well as 10 urban towns and special districts, has led the s coordination of inember cities in the development of the 1999 City Policies for a Legislarive and Adininistrarive Acrion which identifies issues as priorities for action s during the 19991egislative session; and 6 � WHEREAS, the City of Saint Pau1 was an active participant in this coordinated s effort and the City approves generally of these prioriries. 9 io NOW, THEREFORE, BE IT RESOLVED that the Saint Paul City Council does ii hereby recommend for consideration by the Minnesota State Legislature, 2000 City i2 Policies for Legislative and Administrarive action, submitted by the League of Minnesota ia Ciries and does hereby request that these issues be addressed by the Legislature during ia the 2000 session. is 16 Requested by Department of: Adopted by Council: Date �0� Adoption Certified by Council Secretary B � � -� - Approved by Ma Date � By: /�/��/ �%%�/ Council File # 0�-�-(a. Green Sheet # �O'.3 O e1y RESOLUTION CITY OF SAINT PAUL, MINNESOTA �'3 By: Form Approved by City Attorney sy: li/�lI'� IN • /C� t �/' Approved by Mayor for Submission to Council By: ��(�-�i�i%C(! Mayor Goleman's Office Bill Huepenbecker (266-8517) dUST 8E ON WUPICILAGQJCN BY @47� a�w�� 1/12/2000 Rourw� oxuee TOTAL # OF SIGNATURE PAGES GREEN SHEET iumumn oE...r�rowcnrae 00 - �-1 �-- No 103024 � arv�nauEV ❑ arvncuc _ ❑ wo�rytaExxc�so�t ❑ n+�weew.amui�tttro o W��,�,� ❑ (CLJP ALL LOCATIONS FOR SIGNATURE) City Council approval of the League of Minnesota Cities 2000 City Policies for Legislative and Administrative Action. PLANNING CAMMISSION ' CIB CAMMfTTEE 'CNIL SERVICE COMMISSION Has mis persoMrtn ever w«kea unaer a comract torNis EH��eMT YFS Pl0 tias N's peisaruA�m ever heen a ary empbyee? VES NO Dces Mi6 P��m poseess a Sltlll nOt namaliYP�� bY anY artMR cilY emPbYee? YES NQ Is N� µveauTirm a ta�peted �endofl � YES NO Saint Paul is an active member of the League of Cities and a participant in the effort to develop the League's legislative policies. AN7AGESIFAPPROVED The City shows support for the League of Minnesota Cities, an association we work closely with on many issues at the Legislature and throughout the year. ADVANTAGESIFAPPROVED None ADVANTAGESIFNOTAPPROVED fALAMOUNT OFTRANSAC710Nf iDING SOURCE W C W. INFORMqT10N (IXP W I� CASTRtEVENUE BUDfiEfm (qRCLE ON� VEE NO ACt1VPfVNUMBER - _ - -�-�'. . " - - . �0�� i3�v L.a4'��¢O� 00 -�-1 � V J W •� �� . *..� U c� � 0 � � � � .,..., � � O 4� � � c� 4� � I�MC Txague nJMirsnaxata ('�tiev Cilies yromotina escel%�se Pro osed p 2000 Cit Policies � for legislative and administrative action League of Minnesota Cities 145 UniversityAvenue West St. Paul, MN 55103-2044 (651) 281-1200 (800) 925-1122 Fax (651) 281-1299 www.lmnc.org � 0 1999 L eague of Minnesota C,'ities Research Founc�ation � riehts reservea Printea in t�e United ,States o� An�terica I�MC 7,engue /MhmesntnCitiaF Cr'tias promoting asceN¢nca League o� Minnesota Cities 145 U niversity �lvenue �est St. Paul, MN 55103-2044 (651) 281-1200 (800) 925-1122 Fax (65I) 281-1299 TDD (651) 281-1290 www.lmnc.or� po -4 a- I�MC Laaguc uf M;�arsntu Ctties Cities aromof+na escn/�eace October 22, 1999 Dear League Members: 145 jTniversityAvenue West, St. Paul, MI�I 55103-2044 Pkone: (651) 281-1200 � (800) 925-1122 Fax: (651) 281-1299 � TDD (651) 281-1290 Web Site: Iittp://www.lmnc.org I am pleased to submit the accompanying draft 2000 L.egislative Policies for your consideration. These policies were developed by more than 200 city officials serving on the Lzague's policy committees and their respective policy task forces. For those of you who served on a task force or policy committee, I wouid like to thank you for your time and efforts. The hazd work and input of city officials is the necessary foundation for developing and implementing a successful legislative agenda for the League of Minnesota Cities and its members. Eor those who could not participate in the policy committee process, your input in the I,eague's policy development process is still crucial. The I,eague needs your review of the attached draft 2000 Legislative Policies and the proposed resolutions. Please plan to attend the LMC Policy Adoption Conference on November 19 at the Radisson Hotel South, Bloomington. If you cannot attend the conference and have concerns or suggestions, please contact any member of the Intergovernmental Relations staff at the League. On behalf of the Board of Directors and League staff, please accept my sincere thanks for your contribution to this most important process. Sincerely, Susan Aoyt League President Administrator, City of Falcon Heights L:igr documents/2000 PAC PresidenPs let[er AN EOUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER CONTENTS Letterfrom the League President General Policy Statement ................................. I.eague Staff ........--•-••• ..................................... Legislative Policy Comtnittee Members .......... Policy Development Process ............................ Statement of Intent ........................................... .................................. .................................. ............... .................... ................................... ................................... 2000 CITY POLICIES flti-y� ............. iv ............. v .............. vi .............. ix .............. x Advisory Committee on Improving Community Life Policy Guideline ... ImprovingFiscal Futures ................................................................................... FF-1. FF-2. FF-3. FF-4. FF-5. FF-6. FF-7. FF-8. FF-9. FF-10. FF-11. FF-12. FF-13. FF-14. FF-15. FF-16. FF-17. State-Local Fiscal Relations .................................................................................. State Shazed Kevenues ......................................................................................... Taxation of Municipal Bond Interest ................................................................... City Fiscal Year .................................................................................................... Sales Tax on Local Government Purchases ......................................................... Payments for Services to Tax-Exempt Property .................................................. Truth-in-Taxation ................................................................................................. State Administrative Deductions from State Aid ................................................. Reporting Requirements ........................................................................................ Federal Budget Cutbacks ....................................................................................... Priceof Government ............................................................................................. Capital Improvement Fees ..................................................................................... Deferred Assessments for Roads .......................................................................... Taxation of Electronic Commerce ....................................................................... LocalOption Sales Tax ........................................................................................ Limited Market V alue ........................................................................................... State Chazges for Administrative Services ........................................................... 1 E 3 4 4 4 5 5 5 5 6 6 6 6 7 7 7 8 8 Improving Local Economies ................................................................................ 9 LE-1. LE-2. LE-3. LE-4. LE-5. LE-6. LE-7. LE-8. LE-9. LE-10. LE-11. LE-12. Tax Incement Financing ....................................................................................... 9 TIF Reform ...........................................................�---............................................ 9 Impact of Property Tax Reform on Existing TIF Districts ................................... 10 Business Subsidies ............................................................................................... 10 Economic Development Programs ....................................................................... 11 Redevelopment Programs ..................................................................................... 11 Property Tax Abatement Authority ....................................................................... 11 Brownfields .......................................................................................................... 12 OSAResponse Timelines ...................................................................................... 12 OSA Time Limitations .......................................................................................... 13 Growth Management and Annexation ................................................................. 13 State and/or County Licensed Residential Facilities ............................................. 14 LE-13. I.E-14. LE-15. I,E-16. I,E-17. LE-18. LE-19. LE-20. LE-2I. LE-22. LE-23. LE-24. LE-25. LE-26. LE-27. LE-28. Housing and Economic Viabitity .......................................................................... IS Housing Preservation ............................................................................................ 15 Ciry Role in Tetecommunications ......................................................................... 16 Adeguate Funding for Transportation ................................................................... 16 State Aid for Urban Road Systems ........................................................................ 17 Turnbacks of County and State Roads .................................................................. 17 Road Funding for Cities Under 5,000 ................................................................... 17 Railroad-Related Projects ..................................................................................... 18 Access Management & Plat Approval .................................................................. 18 Rightof Way Management .................................................................................. 19 Effective TeIecommunications Competition ......................................................... 19 Local Zoning of Telecommunications Facilities ................................................... 19 Workforce Readiness ............................................................................................ 20 Platting Law Recodification .................................................................................. 20 Economic Development Authorities ..................................................................... 20 Infrastructure Funding Options ............................................................................. 21 Improving Service Delivery ................................................................................. 21 SD-l. SD-2. SD-3. SD-4. SD-5. SD-6. SD-7. SD-8. SD-9. SD-10. SD-11. SD-12. SD-13. SD-14. SD-15. SD-16. SD-17. SD-18. SD-19. SD-20. SD-21. SD-22. SD-23. SD-24. SD-25. SD-26. SD-27. SD-Z8. SD-29. Redesigning and Reinventing Government .......................................................... 21 UnfundedMandates ............................................................................................. 22 Civil Liability of L.ocal Governments .................................................................. 22 Environmental Protection ............................:........................................................ 23 ElectionIssues ...................................................................................................... 24 Local Election Authority ....................................................................................... 24 City Costs for Enforcing State and Local Laws ................................................... 25 Access to Information Technology and Services ................................................. 25 Design-Build ......................................................................................................... 25 Providing Information to Citizens ......................................................................... 26 Creating a Minnesota GIS Program ..................................................................... 26 State Regulation of Massage Therapists ............................................................... 26 Private Property Rights and Takings ..................................................................... 27 ConstructionCodes ............................................................................................... 28 Feesfor Service .................................................................................................... 28 Board of Firefighter Training ............................................................................... 29 WitnessFees ......................................................................................................... 29 State Appropriation for Govemment Training Service ........................................ 30 Year2000 Issues ................................................................................................... 30 New Public Safety Spectrum Needs ...................................................................... 30 7oint & Several Liability Reform .......................................................................... 31 Official Newspaper Designation ........................................................................... 32 CompetitiveBid Threshold .................................................................................. 32 Membership in Watershed Management Organizations ....................................... 32 I.egalization of Fireworks ..................................................................................... 33 Blection Judge Appointment ................................................................................. 33 Election Judge Compensation ............................................................................... 33 CountingWrite-in Votes ....................................................................................... 33 TelecommunicaTions Restructaring ....................................................................... 34 ll oo-y�- SD-30. 911 Funding ............. Personnel, Pensions, Labor ReIations & Data Practices ..... Personnel, Pensions & Labor Relations PP-1. Veterans' Preference ................................................................................... PP-2. Discipiine and Discharge ............................................................................ PP -3. Compensation Limits ................................................................................, PP -4. PELRA ...................................................................................................... PP -5. Essential Employees .................................................................................. PP-6. Pensions ..................................................................................................... PP-7. Age Certificates / I-9 Forms ...................................................................... PP-8. Employer Reference Immunity ................................................................. PP-9. State Paid Police and Fire Medical Insurance ........................................... PP -10. Breathalyzers ............................................................................................. PP-11. Preservation of Local Decision-Making Authority on Employment Related Issues ............................................................................................ PP-12. Drug and Alcohol Rehabilitation .............................................................. Data Practices �P-1. Public Access to Information .................................................................... DP-2. State Model Policies and Training ............................................................ �P-3. Tennessen Warning ................................................................................... DP-4. Government Data Practices Act Recodification and Conformance .......... DP-5. Alternative Dispute Resolution for Violations of Government �. DataPracticesAct ..................................................................................... DP-6 GDPA Compliance for Contracting .......................................................... DP-7. Acquisition of Electronic Surveillance Devices ........................................ Federal Employme�at Law FED-1. FLSA/Overtime Compensation .............. FED-2. Peace Officer Bill of Rights ................... FED-3. Portability of Deferred Compensation ... Electric Deregulation....... Adequate Supply and Demand ......................... Consumer Protection ........................................ Environmental Concems .................................. Fair Market Competition .................................. Local Authority ................................................ Stranded Recovery Cost ................................... Property ..................................................... 35 ... 35 ......... 35 ......... 36 ......... 36 ......... 36 ......... 37 ......... 37 ......... 37 ......... 37 ......... 38 ......... 38 � ........... 38 ........... 39 ........... 39 ........... 39 ...... 39 ...... 40 ...... 40 ...... 40 ...... 40 ...... 40 ...... 41 ............................ ............................ ............................. ............................. .............. .............. .............. ......... 42 ......... 42 ......... 42 ......... 42 ......... 43 ......... 43 ......... 43 iii ao-4� General Policy Statement The I.eague of Minnesota Cities serves as a forum for cities to define common probletns and develop policies and proposals to solve those problems. The Izague of Minnesota Cities represents 815 of Minnesota s 853 cities as well as 12 urban towns and 27 special districts. All sizes of communities are represented among the L.eague's members (the lazgest nonmember city has a population of 167) and all regions of the state are represented. The policies that follow aze directed at specific city issues. Two principles guide the development of all League policies: There is a need for a governmental system that allows flexibility and authority for cities to meet the challenges of governing and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and, 2. The financiai and technical requirements for governing and providing services necessitate a continuing and strengthened partnership with federal, state, and local governments. This partnership, pazticularly in the areas of finance, development, housing, environment and transportation, is critical for the successful operation of Minnesota s cities and the well-being of residents. iv LEAGUE STAFF WORKING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications Gary Carlson, Director of Intergovernmental Relations Aid to cities, electric utility restructuring, general revenue sources for cities, personnel, property tax system, tax increment financing, transportation Kevin Frazell, Director of Member Services Government innovation and cooperation, electric utility restrncturing Tom Grundhoefer, General Counsel General municipal governance, telecommunications 'Ann Higgins, Intergovernmentai Relations Representative Elections and ethics, housing, information policy, telecommunications, utility ` service districts, year 2000 `Andrea Stearns, Intergovernmental Relations Representative Civil liability and criminal justice, economic development and redevelopment, general government, localltribal relations, tax increment financing Remi Stone, Intergovernmental Relations Representative Civil liability, environment, general government, housing and building codes, labor relations, land use/annexation, personnel, transportarion and transit Eric Willette, Intergovernmental Relations Representative Aid to cities, general revenue sources for cities, pensions, property tax system, public safety po -4 ?- Legislative Policy Committee Members Improving Fiscal Futures Dan Vogt, Chair, City Administrator, Brainerd Tem Heaton, Vice Chair, Chief Financial Officer, Bloomington Richazd Abraham, City Adminisuator, Lake City Karen Anderson, Mayor, Minnetonka Bil! Barnhart, Intergovernmental Relations, Minneapolis Tom Burt, City Administrator, Rosemount Gino Businaro, Finance Director, Mound Gerald Butcher, Public Works Director, Maple Grove Mike Campbell, Intergovernmental Relations Director, St. Paul Jane Chambers, Assistant Ciry Manager, Brooklyn Center Tom Cran, Budget Office, Sc Paul 7ohn Erar, City Adminis[rator, Farmington Jerrcy Faust, Councilmember, St. Anthony $ob Fitson, Ciry Administrator, Worthington Roger Fraser, City Manager, Blaine Jeff Haubrich, Assistant Council Adminstrator, Red W ing Steve Helget, City Administrator, Eagle I.ake Pat Hentges, City Manager, Mankato Greg Isaackson, Cieck-Administrator, Cottonwood Joel Jamnik, City Attorney, Lindstrom Larry Juhl, Mayor, New London Elizabeth Kautz, Mayor, Burnsville James Keinath, City Administrator, Circle Pines Dennis Kraft, City Manager, Robbinsdale Bob Larson, City Administrator, Deephaven Tom Lawell, City Administrator, Apple Vatley Joe Lynch, City Administrator, Long Lake Paul McLaughlin, Councilmember, Internationa] Falls Tom Melena, City Administrator, Oak Park Heights Steve Mielke, City Manager, Hopkins David Minke, Ciry Administrator, Glenwood John Moir, Finance Director, Minneapolis Gary Neumann, Assistant Administrator, Rochester Steve O'Malley, Deputy Manager, Burnsville (alternate) Steve Okins, Finance Director, Willmaz Ro�er Peterson, Association of Metropolitan Municipalities Dou�las Reeder, City Administrator, South St. Paul Ryan Schroeder, City Administrator, Cottage Grove Alfred Schumann, Mayor, Eyota Jennifer Schwinn, Finance Director, Big Lake Jim Smith, Councilmember, Independence Gerald Sorenson, Administrative Services Direcmr, Moorhead David Smtelberg, Treasurer, North Branch Joy Tierney, Mayor, Plymouth David Mark Urbia, City Administrator, Blue Earth Gene VanOverbeke, Finance Director, Eagan Chuck Whiting, City Administrator, Mounds View Iim Wil]is, City Administrator, Inver Grove Heights Rick Wotfs[eller, City Administrator, Monticello Improving Local Economies Duane Zaun, Chair, Mayor, Lakeville Leo W. Eldred, Vice Chair, Councilmember, Moorhead David Beaudet, Councilmember, Oak Park Heights Robert Benke, Mayor, New Brighton Steve Bjork, City PlannedCoordinator, St. Francis Carolyn Blonigan, City Clerk, Avon Curt Boganey, City Manager, Brooklyn Park Jerry Bohnsack, City Administrator, New Prague Lavonne Bowman, Councilmember, Fairmont Gerald Brever, City Administrator, Staples Mike Campbell, Intergovermental Relations Director, SL Paul Kevin Carroll, Economic Development Coordinator, Mounds View David Childs, City Manager, Minnetonka Grant Fernelius, Housing Coordinator, Fridley 7ohn Flora, Public Works Direc[or, Fridley Keith Ford, Community Development Agency, Minneapolis Matt Fulton, City Manager, New Brighton Richard Fursman, City Adminiscrator, Andover Tom Goodwin, Councilmember, Apple Valley Mary Gover, Councilmember, St. Peter Robert Aaeussinger, City Administrator, Dodge Center Tom Harmening, Community Development Director, St. Louis Pazk Jon Hohenstein, City Administrator, Mahtomedi Susan Hoyt, Ciry Administrator, Falcon Aeights Curtis Jacobsen, City Administrator, Big Lake Brenda 7ohnson, Councilmember, Chatfield Marvin Johnson, Mayo, Independence Andrea Hart Kajer, Intergovernmental Relations Direcror, Minneapolis (alternate) Sandra Krebsbach, Councilmember, Mendota Helghts Larry Lee, Community Development Director, Bloomington Marcia Marcoux, Councilmember, Rochester Michae] McGuire, City Manager, Maplewood Peter Meintsma, Mayor, Crystal Mark Nagel, City Manager, Anoka Dennis Nelson, City Administrator, Windom Steve O'Malley, Deputy Manager, Burnsville David Olson, Communi[y Development Director, Fazmington Bruce Peterson, Director Planning & Development Services, Willmar vl Roger Peterson, Association of Metropolitan Muncipaliries Gene Ranieri, Associatiou of Mevopolitan Municipalities Mike Reardon, Cable Administraror, Burnsville Dan Rogness, Community Development Director, Rosemount Joe Rudberg, City Administrator, Becker Nancy Rys-Nicol, Management Assistant, Shoreview Mazk Sather, City Manager, White Beaz Lake David Schaaf, Mayor, Oak Pazk Heighu Terty Schneider, Councilmember, Minnetonka Tecry Spaeth, Administrarive Assistant, Rochester Kim Sullivan, Mayor, Lino L.akes Daniel Tempel, FIousing Coordinator, Maple Grove Robea Therres, City AdminisVaror, Sartell Craia Waldron. Ciry Administrator, Oakdale Jeff Weldon, Ciry Administra[or, Redwood Falls 7ulia Whaten, Councilmember, Champlin Myron White, PoR Authoriry Director, Red Wing Denny Wi(de, Ciry Adminisuator, Paynesville Betty Zachmann, Clerk-Treasurer, Winsted Improving Service Delivery Mark Karnowski, Chair, City Administrator, Lindstrom Judd Mowry, Councilmember, Tonka Bay Beverly Aplikowski, Councilmember, Arden Hilts Mike Campbell, Intergovernmental Relations Director, S[. Paul Diane Carlson, Mayor, Mantorville Pat Crawford, Clerk-Treasurer, Motley 7erry Dulgar, City Manager, Crystal Steve Gatlin, Public Works Director, Coon Rapids Theresa Goble, Finance Director, Brainerd Tom Hansen, Deputy Manager, Burnsville Soel Hanson, City Administrator, LitUe Canada Kay Kuhlmann, Council Administrator, Red Wing Desyl Peterson, City Attorney, Minnetonak Gene Ranieri, Association of Metropotitan Municipalities David Schaaf, Mayor, Oak Park Heigh[s David Senjem, Councilmember, Rochester Chad Shryock, City Administrator, Wabasha Joyce Twistol, Clerk/Personnel Direcror, Blaine Karen Lowery Wagner, Intergovernmental Relations, Minneapolis Rena Weber, C(erk/Coordinator, Cold Spring Phil Zietlow, Councilmember, Medina Personnet, Pensions, Labor Relations & Data Practices Joyce Twistot, Chair, Clerk/Personnel Director, Blaine Geralyn Bazone, Assis[ant City Manager, Minnetonka Patricia Crawford, Clerk, Motley Holly Duffy, Assistant to Managec, Crystal Jerry Dulgar, City Manager, Crystal Christina Frankenfield, Ciry Administrator, Howazd Lake Jean Gramling, City Administrator, Savage Terry Aaltiner, Risk Analyst, SL Paul Ken Hartung, City Administrator, Bayport Kay Kuhlmann, Council Administcator, Red Wing Kazen Kurt, Personnel Manager, Roseville Ed Lazson, City Manager, Morris Kay McA]oney, Personnel Direc[or, Anoka Tim Madigan, City Administrator, Fazibault Ceil Smith, Assistant to Manager, Edina Jerry Splin[er, City Manager, Coon Rapids Elizabeth Wheeler, Human Resources/Risk Manager, Northfield Huold Windschitl, Councilmember, Sleepy Eye Electric Deregulation Task Force Kathleen Sheran, Chair, Councilmember, Mankato Bryan Adams, General Manager, Elk River Municipal Utilities Jim Asplund; FlaheRy & Associates, St Paul Karen Baker, House Reseazch Larry Bakken, Counci(member, Go(den Valley Mike Bash, Councilmember, Long Lake David Berg, RW Beck, Minneapo]is Troy Bonkowske, Community Development Director, Caledonia Jim Brimeyer, Councilmember, St. Louis Pazk Chuck Canfield, Mayor, Roches[er AI Crowser, Director, Alexandria Public Utilities Jim Elmquist, City Adminisuator, Mora Robert Filson, City Administrator, Worthington Paul Grabitske, Ciry Administrator, Janesvilie James Gromberg, City Administator, Isanti Delvin Haag, Councilmember, Buffalo Ken Hartung, City Administrator, Bayport Jeffry Haubrich, Asst. to Council Administrator, Red Wing Richazd Johnson, Metropolitan Councit Elizabeth Kautz, Mayor, Burnsvitle Mazk Lazson, Clerk-Administrator, Glencoe Rebecca Law, Minneapolis Pam Marshall, Energy Cents Coalition Kevin Maynud, General Manager, Aus[in Utilities Charles Mertensotto, Mayor, Mendota Heights Robert Museus, City Adminishator, Hugo Mazk Nagel, City Manage[, Anoka Mike Nitchals, General Manager, Willmar Municipal Utiliues Paui Ostrow, Councilmember, Minneapolis V31 oo-W� Greg Oxiey, MN Municipal Ufilities Assceiarion Sohn Remkus, Finance Director, West St Paul Joe Rudberg, City Administrator, Becker Mazk Sather, Ciry Manager, White Bear L.ake Jerry Splinter, City Manager, Coon Rapids Jim Willis, City Administrator, Inver Grove Heights Representative Ken Wolf, Minnesota House of Representatives Wally Wysopal, City Mananer-Clerk, North St. Paul viii . League of Minnesota Cities Policy Deve[opment Process The League's policy development process has taken place over the past six months. The process began with a member survey of priority issues facing city officials. The process will not end with the Policy Adoption Conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop altemative solutions, and discuss sttategies to implement the I.eague's policies. Listed_below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. ApriVMay June The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. The I.eague President accepts apptications for committees and appoints poticy committee members. The policy committees aze: Improving Fiscal Futures Improving I.ocal Economies Improving Service Delivery Personnel, Pensions, Labor Relations & Data Practices Electric Deregulation J�ly Committees meet to discuss issues raised in the member survey. Committees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August Committees and task forces meet to discuss issues and problems, accept through testimany and develop policy statements. September October The League Board of Directors meets with the chairs of the policy committees to review policies. November Policy Adoption Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for member consideration. January Legislative session. During the session, the policy committees and task forces through will continue to meet on issues and strategies. Members can assist the League's May legislative efforts by volunteering to contact legislators on a variety of issues of interest to our cities. ix i� ■ � Statement of Intent There aze many issues affecting the effectiveness of city govemment to improve community life, improve the fiscal future and service delivery of city govemment, and improve the local economy. What follows aze statements of the issues facing cities and the League of Minnesota Cities' proposed responses to these issues. These statements of issues and proposed responses form the policy of the L.eague of Minnesota Cities. Additional and alternative responses to those issues may be proposed after the Policy Adoption Conference, and the members of the League authorize its Boazd of Directors to consider and support additional or alternative responses, if necessary, to resolve the issues identified in this policy statement. x od-N a- Proposed 2000 City Policies po -H2— i z 3 4 5 6 7 8 9 10 11 12 13 ia 15 16 17 18 IMPROVIlVG COMMUIVITY LIFE CL-1. Healthy Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance> not diminish, the ability of citizens, businesses, and locai govemments to work together in partnership to make every community "livable." ISSUE: Cities in Minnesota are at vazious stages in meeting the goal of being "livable healthy communities." RESPONSE: The definition of a"livable heaithy community" beiow will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota cities to become livable healthy communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable healthy . communities. i9 ;; A LIVABLE HEALTHY COMMUNITY IS: zo ,= zi �: WHERE PEOPLE OF ALL AGES zz ' 23 • share a core of common values including valuing diversity, respect for each other, and 24 , good citizenship 25'� 26 • feel: 27 * safe 28 * a sense of belonging 29 * welcome 30 31 • engage in life-long learning activities that: 32 * promote responsible citizenship 33 * enhance the enjoyment of life 34 * prepare them for changing job mazkets 35 36 • participate in the decision-making process with community leaders 37 38 39 40 �41 • celebrate community • want to make their home a2 • have access to: 43 * good paying jobs aa * adequate and affordable housing t t 2 3 4 5 6 7 • 8 9 • 10 tt • 12 t3 • 14 IS * choice of efficient transportation systems including transit, pedestrians, and bicycles * gathering piaces * desired information * choice of cultural and recreational activities * affordable goods and services, including health caze aze involved in the nurturing of youth care about their homes, community, and the environment get to know each other have the benefit of strong family suppoR and nurturing adults i6 WHERE LOCAL GOVERNMENT �� _ 18 y= • 19 . 20 ;: • 21 ' 22 � • 23 �� 24 �. • 25 � 26 • 27 28 29 • 30 3l � 32 33 34 . � is responsive to the needs of its citizens is actively supported by enthusiastic volunteers is open and user friendly encourages and implements cooperation and collaboration provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs educates citizens of all ages on local, regional, and state issues and govemment processes informs and communicates with citizens to foster participation in public policy decision- making participates in youth development Pa � o _ �{ �a- i IMPROVING FISCAL FUTURES 3 FF-1. State-Local Fiscal Relations 5 Issue: Minnesota's state and local govemment finance system is complex and intertwined. 6 While cities rely on their partnership with the state to provide local services, they also must 7 respond to the needs and desires of their residents. To that end, cities need discretion and 8 flexibility in deternuning how to finance needed local services. l0 In each of the past three yeazs, the legislatures made changes to Minnesota's property tax 11 system that will impact the ability of local governments to fund necessary services. The 12 reimposition of levy limits, significant class rate compression, and changes in state funding of 13 schools al1 may have unintended consequences. Now the Governor has initiated a study of the 14 property tax system with the intention of proposing additional major property tax reforms in IS 2001. 16 �7:� Response: As the Governor and legislators consider additional property tax changes, i&=; they should: 19 20 21 22 23� 24 25:' 26 z7 2s 29 30 31 32 33 • Careful{y analyze the combined impacts of the 1997,1998, and 1999 tax bills and changing economic circumstances on the taxpayer and on local governments so that Qolicy makers can better understand where the system may need further changes; • Diversify available city revenue sources by generally authorizing cities to impose a local option sales tax with voter approval; and • Reduce the property tax burden for ali classes of property by increasing the state share of school funding. Any increase in the state share of school funding must guarantee a permanent reduction in the local property tax burden. The League supports paying for the increased state costs through income and sales taxes. The Legislature should not: • Extend levy limits, which are inefficient, ineffective, interfere with local accountability, and ignore local circumstances; 34 • Impose reverse referenda requirements, which undermine the decisions of local 35 elected officials, divert focus and resources from daily operations, and can disrupt 36 the local budget process; 37 • Replace all or part of LGA or HACA with state-mandated categorical aid programs, 38 or local option taxing authority; 39 • Switch from the classification system to a market value based system, which would ao cause tremendous shifts of tax burden between classes of property. The League aiso 41 opposes applying all future levy increases to market value because this would further az complicate the property tax system; a3 • Expand the limited market value law or enact an acquisition value law; 44 • Interfere in local decision-making regarding service delivery; a5 • Impose a state-levied property tax; nor i � Cut LGA or HACA to finance an increased state role in school finance. 2 3 FF-2. State Shared Revenues 5 Issue: State revenue sharing programs address at least three problems with a stand-alone 6 local government finance system. First, the properry tax base available to communities can 7 vary dramatically. These programs use state resources to equalize the 8 ability of communities to provide essential services without undue properry tax burdens for 9 local residents. l0 11 Second, nonresidents can take advantage of local services or create additional demands for 12 services without contributing to the taxes that support these services. LGA and HACA help t3 address the free rider problem where nonpaying individuals consume services without 14 contributing to the local tax base. IS 16 Third, ailowing local units of government in Minnesota to only levy the property taac has 17 > created an over-reliance on the property taJC. LGA and HACA can reduce the overall reliance is � of local governments on the property tax. t9 � 20 '- Although historically the legislature has generally supported LGA and HACA programs, 21 �''. the 1981 legislature reduced the number of LGA and HACA payments and the 1986 22 ,. legislature delayed the payments. Under cuirent law, the first payment of LGA and HACA is 23 '-: made in July—fully 7 months into each city's fiscal year. These chaages have crea[ed cash 24 '= flow problems for some cities. 2S � 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4d 41 42 43 44 45 46 Response: LGA and HACA, or similar replacement revenues, must be continued and additional state resources greater than the rate of inflation must be allocated to prevent rapid future property tax increases. In addition, the HACA household growth factor for cities should be reinstated. The legislature should adjust the LGA and HACA payment schedule to provide cities access to LGA and HACA earlier in their fiscal year. FF-3. Taxafion of MunicipaI Bond Interest Issue: The state law that grants a[ax exemption for municipai bond interest lowers borrowing costs for cities and reduces property tax levies. Response: The state should maintain the tax exemption for municipal bond interest income. FF-4. City Fiscal Year Issue: The fiscal yeaz for cities and counties currently corresponds to ihe property tax C3+C10. 4 Pj p _4'2r 1 Response: The state shouid maintain current law and not change the city fiscal year 2 to coincide with the state fiscal year. a FF-5. Sales T� on Local Government Purchases 6 Issue: In 1992 when the state was experiencing a budget shortfall, the I,egislature 7 repealed the sales tax exemption for local government purchases. Local govemments now 8 pay state sales tax on purchases like road maintenance suppiies and equipment, wastewater 9 treatment facilities, and building materials for affordable housing. This action currendy costs t0 local property taxpayers and ratepayers an estimated $90 million annually. Because no 11 additional state aids were added to offset the additional cost, this repeal has effectively t2 increased locai property taxes to finance state operations. 13 �a Response: The state should reinstate the sales tax exemption for all local government 15 purchases. The exemption must not be coupled with cuts in LGA or HACA. 16 t� FF-6. Payments for Services to Tax-Exempt Property i s �� 19 ' Issue: Taxable property in many cities is being acquired by nonprofit and government zo': entities. Converting the property to tax-exempt status can lead to a serious tax base erosion 2 t' without any corresponding reduction in the service needs created by the property. 22 23 " Response: Cities should be allowed to collect special assessments or other payments za in lieu of property taxes (or special assessments) from statuYorily exempt property 25 owners to cover costs of service. 26; z� ' FF-7. Truth-in-Taxation Process as 29 Issue: Cities must set a preliminary levy by September 15 which, by law, becomes the 30 maximum that cities can levy for the following year. In recent years, cities have not received 3 t complete tax base and aid information in a timely manner. As a result, cities often either set a 32 preliminary levy that is artificially high or they are unable to budget for unforeseen needs that 33 azise after September 15. 34 35 36 37 38 39 ao 41 42 43 44 as 46 Response: The League supports changes to the Trnth-in-Taxation process to provide more meaningful information to citizens. Cities shouid have the authority to increase the final levy from the preliminary levy to meet unforeseen and uncontrollable needs. FF-S. State Administrative Deductions from State Aid Issue: State administrative costs aze deducted from the LGA appropriation. This reduces the property tax relief provided by LGA and creates hidden appropriations for state agencies. Response: All appropriations from LGA resources that fund state operations should be repealed. i FF-9. Reporting Requirements 2 3 Issue: Budget and financial reporting requirements imposed on cities by the state often 4 result in duplication and additional costs. 6 Response: Requirements for reporting and advertising financial and budget 7 information sfiould be carefully weighed to bafance the vatidity of the state's need for 8 additional information with the costs and burdens of compiling and submitting this 9 information. In addition, all state agencies should be aware of fhe information a[ready lo required by others to avoid duplication of reporting requirements. �1 iz t3 14 15 16 FF-10. Federal Budget Cutbacks Issue: Congressional actions to balance the federal budget or to cut taaces will reduce federal assistance to the state and to local govemments. 17 Response: The state should not reduce aids or increase fees to local governments as a 18 �< means for dealing with cutbacks in federal revenues. The state should take 19 20 21< 22� 23` 24 $ zs 26 � 27 responsibility for reductions in federal revenues rather than placing the burden on cities and their property taspayers. FF-21. Price of Government Issue: The price of govemment legistation enacted in 1944 was intended to measure the overail effect of state and locai taxation over a long period of time. The tazgets measure govemment revenues as a percent of personal income. Unfortunately, the targets have been misinterpreted and used unfairly to criticize city tax and budget decisions. 28 29 Response: The price of government statutes as they apply to local governments 3o should be repealed. If the price of government law is to continue to be applied to local 3 t governments, price of government calculations should be: 32 33 • based on the sum of levy and state aid, not just levy; and 34 • based on long trends, not single events. 35 36 FF-12. Ca�ital Improvement Fees 37 38 Issue: New development and the resulting growth create an increased demand for public 39 infraswcture and other public facilities. Severe constraints on local fiscal resources and 40 dramatic forecasts for population growth have prompted cities to critically reconsider ways to 4 t pay for the inevitable costs associated with new development. Traditional financing methods 42 tend to subsidize new development at the expense of the existing community, discourage 43 sound land use planning, place inefficient pressures on public facilities, and allow a4 underutilization of e�cisting infrastructure. .Consequently, local communities are exploring a5 methods to ensure that new development pays its fair share of the true costs of growth. Given 46 the existing authorization to impose fees on new development for water, sanitary and storm do_y� t sewer, and park purposes, it is reasonabie to extend the concept to additional public 2 infrastructure and facilities improvement also necessitated by new development. 3 4 Response: The Legislature should authorize cities to impose capital improvement 5 fees so new development pays its fair share of the off-site, as well as the on-site, costs of 6 public infrastructure and other public facilities needed to adequately serve new 7 development 9 FF-13. Deferred Assessments for Roads io i i Issue: Current law allows a city to recoup the costs for water, storm sewer, or sanitary 12 sewer improvements by levying additional assessments on the property benefiting from the 13 improvement, but not previously assessed. This authority for defened assessment has not 14 been extended to other infrastructure, such as road improvements, even though properties aze IS benefiting from the improvements. 16 t7 - 18'�` 19' zo- 21' 22: 23 24 < 25_� 26 �' 27 28 Response: Cities should be able to assess the cost of infrastructure improvements for roads. Cities should be allowed to defer assessments against property located outside the city for road improvements benefiting property abutting the improvement but not previousiy assessed for the improvement. For example, if a city makes road improvements to a road that benefits city residents and township residents, the city may defer the assessments to the township groperty until the property is brought into the city. Once the township property is brought into the city, the city may assess that newly acquired property for road improvements previously done but not assessed at the time of the improvements. FF-14. Taxation of Electronic Commerce 29 Issue: Sales over the Internet and through other electronic means are projected to increase 3o exponentially over the next several years. Because of the difficulty of assigning a location to 31 electronic sales, because many Internet "goods" are not tangible property, and due to potential 32 federal intervention, electronic transactions pose significant tax policy challenges. 33 34 Response: Federai tax policy must not put main street businesses at a competitive 35 disadvantage to electronic retailers, must not jeopardize repayment of bonds backed by 36 state and local sales tax revenues, and should ensure stability in state and local revenues. 37 38 39 40 41 42 43 44 45 FF-15. Locai Option Sales Taxes Issue: Last yeaz, the Legislature authorized local sales taxes to fund regional projects in two greater Minnesota regional centers. Most Minnesota cities would benefit from diversification of the revenue sources available to them to relieve the local property taac burden. i Response: The Legislature should generally authorize local sales taaces for cities upon 2 local approval. a FF-16. Limited Market Value 6 Issue: Rapidly rising property values in some paRS of the state have fueled legislative 7 proposals to expand the current limited mazket value law. One proposal would establish the 8 consumer price index as the macimum annual mazket value increase and extend the limit to all 9 classes of property. 10 11 12 13 14 15 16 17 . 18 � 19 20 . 2t : 22 *<. 23 .� 24 ": 25 - _, 26 - 27 28 29 �Further restricting market value increases would have several negative consequences: • It wouYd unfairly shift taxes from properties experiencing growth in value onto all other properties. • Over the long-term, similar properties would be ta�ced at widely different rates merely due to when the properties were last sold. • It could discourage the sale of property because sales would retum the property to fuil mazket value for tax purposes. • It would discourage improvements to propeRy, which would trigger a return to full mazket value for ta�c purposes. This could lead to degradation of housing and other types of property. • It could adversely affect the ability of cities to bond for infrastructure improvements or for tax increment financing since local tax bases would not reflect the growth in property values. • Once implemented, limited mazket value provisions are politically di�cult to sunset due to the potential for lazge one-year tax shifts onto properties whose values were artificially capped by the program. Resporzse: The League opposes any expansion of the limited market value law. 30 si FF-17. State Charges for Administrative Services 32 33 Issue: Currently, some state agencies have wide discretion in setting the fees for special 34 services they provide to local govemments. For example, the Minnesota Department of 35 Revenue recently increased the fee for administering local sales taxes by 80 percent in the 36 middle of a budget yeaz with less. than six weeks notice. The increase had no apparent 37 relationship to increased cost of providing the service. 38 39 ao 41 42 43 44 45 Response: State agencies should be required to demonstrate the need for increases in service fees, and should give adequate notice of increases to allow local governments to budget for the i�creases. State agencies should set administrative service fees as ciose as possible to the marginal cost of providing the service. Local government should be given the option to self-administer or contract with the private sector for the service if the state cannot provide the service at a reasonable cost p o -�I a- i IMPROVING LOCAL ECONONIIES s LE-1. Tax Increment Financing (TIF) 5 Issue: The state has effectively delegated the responsibility for economic development 6 and redevelopment to cities. Unfortunately, neighboring states have given their cities more 7 development taols and, therefore, cities in these states have a competitive advantage over 8 Minnesota cities. In Minnesota, tax increment financing is the most viable tooi available to 9 ali cities in their economic development and redevelopment efforts. Additionally, tax 10 increment allows cities to address the changing needs of their evolving communities. The 11 sta[e, whether based on a lack of information or misinformation, has been critical of cities' use 12 of the tool and has implemented a series of restrictions over the past several years, rather than 13 partnering with cities and encouraging their endeavors to improve and enhance the economic t4 well-being of Minnesota and the growth and redevelopment of its cities. Critics often claim 15 that TIF is overused. Some of these critics have proposed TIF freezes or caps. This view fails 16 , to recognize the benefits received by counties and school districts, as well as cities, upon 17 �;- district expiration while only cities are required to assume [he financial risks associated with 18 '` development decisions. Cities have used tax increment financing responsibly and exampies of t9 20'�' 21 ' 22 23 24 �. ,- 25 2b 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4I these positive uses abound. Respo�tse: To effectively compete with other states, Minnesota must provide its cities greater flexibility in the use of tax increment financing and other economic development programs. The atate should partner with cities in economic development and redevelopment activities, and encourage cities' use of tax increment in achieving the laudable goals of lona-term tax base stabilization and growth, job creation, development of low-to-moderate income housing, remediation of pollution, elimination of blight, recycling and redevelopment of the infrastructure, and redevelopment of its communities. The League opposes proposats for TIF freezes or caps. Counties and school districts are appropriately involved in cities' development decisions through current "review and commenY' requirements and should recognize the benefits they receive, without assuming any of the risk, due to cities' prudent uses of TIF. LE-2. TIF Reform Issue: It is likely that proposals to reform the tax increment financing laws will continue to be identified and debated during upcoming legislative sessions. Respo�:se: As part of any TIF reform debates, the Legislature should consider: • Authorizing any tax increment districts approved after April 1,1990, to pool increments in the same manner as districts certi6ed prior to Apri11,1990; 42 • In light of levy limits, eliminating the LGA/HACA penalty currently imposed on a3 districts or allow an exception from levy limits. If the penalty is not eliminated, the 44 restrictions on the source of payment should be removed; 45 • Expanding the use of tax increment financing to assist in the development of 1 technological infrastructure, workforce readiness, transit-oriented development, the 2 restoration of historic structures, and for nonretail commercial projects (e.g., 3 software companies, banks, and insurance companies); 4 • Exempting redevelopment districts from the "fve year rule"; 5 � Modifying the housing district income qualification level requirements to allow the 6 levels to vary according to those specific to individua[ communities; 7 • Authorizing the use of federal grants and other funds for local contributions; s • Removing the LGA/HACA penalty imposed on housing districts established between 9 the penalty years of 1990 and 1993; to • Making any necessary statutory changes to allow the Office of the State Auditor to i i simplify its TIF reporting forms in consultation with those required to complete the 12 forms; and 13 • Authorizing TIF financial information to be published in a more simplifed format so t4 it provides the average taxpayer with useful information. t5 i6 LE-3. Impact of Property Tax Reform on Existing TIF Districts i� is t 19 � ZO t: 21 <. �;� 22 :: 23 ; z4 %.. 25 a a 26 -; 27 28 29 . 30 31 32 33 -. 34 35 36 37 Issue: The 1997, 1998, and 1999 Legislatures have compressed property tax class rates which, in turn, has jeopardized the repayment of outstanding debt or other obligations in existing TIF districts. Given the long-term nature of property ta�c reform, cities could not have anticipated the impact of these class rate changes, nor can cities project the impact of future changes. The Legislature has recogniz,ed their responsibility for the impacts of their actions by creating a TIF grant program to address situations where the class rate changes cause TIF district deficits. The TIF grant program, currendy funded at $6 miliion and scheduled to expire in 2002, is likely to be insufficient to cover every deficit. Some of the worst deficit situations may not surface for a number of yeazs. Additional pooling and special ta�cing district authority might be useful in certain cities but aze only partial solutions. Response: The Legislature should provide additional state resources to the TIF grant program and extend the program indefinitely so that TIF obligations can be met and third party bondholders are protected if the TIF grant program is insufficient to cover deficits caused by the 1997 through 1999 class rate changes. The Legislature shouid also explore additional options to address deficits such as district duration extensions and eliminating or adjusting the original tax capacity rates. LE-4. Business Subsidies 38 Issue: Cities support the concepts of public notice, participation, and accountability in the 39 use of public funds contained in the business subsidies legislation enacted in 1999. However, 40 some azeas of the new law need cluification and modification. 41 42 43 44 45 46 Response: The Legislature should clarify and modify the 6usiness subsidies law so that effective implementation is achieved. For example, cities that do not award any business subsidies in a given year should not, be required to submit reports. F[�] � _ i LE-5. Economic Development Programs 3 Issue: The Minnesota Investment Fund is not adequately funded. Local govemments do 4 not have an adequate slate of tools to assist job creation, redevelop blight and decay, and 5 provide adequate housing choices. Consequently, cities are not weil equipped to compete 6 nationally and intemationally for business development. 8 Response: 9 i0 • More state resources should continue to be contributed to the Minnesota Investment il 12 l3 14 Fund. • Congress should remove the caps that have been placed on Industrial Development Bonds and acknowledge that the extensive eligibility requirements now adequately limit their use. 15 �6 LE-6. Redevelopment Programs 17' 18 ' 19;-;.., 20 -� 21= 22 `` 23 24 =' 25 26` 27 28 29 30 31 32 33 34 35 36 Issue: Communities across Minnesota are faced with the unique circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and down[owns and a lack of land for development. Redevelopment activities. usuatly require large, up-front funds to address multi-phase projects of extensive duration where site assemblage, demolition, relocation, or pollution clean up must occur before private-sectorinterest can be generated. Additionally, deterioration threatens historic structures in cities across the state. While the redevelopment account administered by the Department of Trade and Economic Development is a critical component in establishing a coherent statewide policy for redevelopment, cities do not have sufficient tools to utilize in local historic preservation efforts. Respo�zse: In recognition of the unique needs of redevetopment projects, the state should continue its commitment to reinvest in its communities by increasing and committing to permanent base budget funding for the redevelopment account administered by the Department of Trade and Economic Development._ Additionally, as part of a comprehensive approach to redevelopment needs, the Legislature should consider the state income tax credit legislation pursued by the Preservation Alliance of Minnesota, TIF subdistricts, and other tax incentives for local historic preservation efforks. s� LE-7. Property Tax Abatement Authority 38 39 Issue: In an effort to increase the number of development tools available, the 1997 4o Legislature authorized local units of government to grant property tax abatements. Although 41 TIF continues to be the primary financing mechanism for local development projects, tax 42 abatements provide a good addition to a needed list of economic development tools. In order 43 to provide maximum benefits, tax abatements shouid be less restrictive in terms of funding 44 caps and financing terms. Property tax abatements shouid not be considered a replacement for 45 tax increment financing. 46 11 t Response: TIF is still the primary viable development tool available for cities. 2 Abatement authority should continue to be available, but not offered as a rationale to 3 eliminate TIF. s LE-8. Brownfields 7 Issue: Brownfields aze lands unsuitable for development due to the presence of chemical 8 or other contaminants. Brownfields are a major cause of blight within communities across the 9 state through loss of local talc base, jobs, housing quality, public safety, and community t0 confidence. Revitalizing this land is costly and requires the cooperation of ciry, county, 11 school, regional, state, and federal governments and the assistance of local economic 12 development organizations and citizens. As we move into an era where the mass creation of 13 jobs is a necessity and where increased tax base is a requirement for local govemments to t4 adequately face growing financial pressures, efforts to revitalize brownfields must not only t5 continue but be accelerated in the upcoming years. Currently, $7 million exists in the 16 Department of Trade and Economic DevelopmenYs (DTED) base for the contaminated site 17 4 clean-up fund. Additionally, $6.2 million is appropriated annually from the Petrofund to 18 � DTED to clean up sites which contain at least some petroleum-related contamination. 19 20 21 22 23 ' 24 =_ 25 - 26'�:. 27 � Response: A comprehensive set of economic development programs must be maintained for cities and other development agencies. The Legislature should: •. Increase funding for the Department of Trade and Economic DevelopmenYs contaminated site clean-up fund and redevelopment account; • Strengthen enforcement and collection of revenues for the state contamination tax; • Continue support for and funding of local and regional programs to assist in the efforts to remediate brownfields; 28 • Establish a fully-funded program to allow cities and other development authorities 29 , to gain control of and reclaim and revitalize brownfields; 30 • Protect existing tax increment financing provisions that provide for the remediation 3 t of brownfields, and modify restrictions to allow the pooling of district revenues to 3z assist in the financing of remediation of brownfields; 33 • Establish an indemnification fund to provide financial security for institutions and 34 individuals as they invest in efforts to recycle brownfields in order to leverage 35 private investment in cities' efforts to increase their tax base and create jobs; and 36 • Continue financing mechanisms for cleaning contaminated sites. 37 ss LE-9 OSA Response Timelines 39 4o Issue: The Office of the State Auditor (OSA) is responsible for TIF oversight. As 41 part of their review of TIF districts, they identify alleged violations of the TIF laws and issue 42 non-compliance notices to TIF authorities. After responding to these non-compliance notices a3 within the required 60-day period, authorities often do not receive timely responses on the 4a matter from the OSA. Additionally,'1'� authorities are often unclear about the final 45 disposition of the matter upon receipt of a final non-compliance notice. LC] tz aa-y� 1 Response: In the event that the OSA determines to issue a final non-compliance 2 notice to a TIF authority, the Legislature should require the OSA to issue the notice 3 within 60 days of receiving the authority's response. Any final non-compliance notice a should contain the OSA's final position on the matter, the date upon which they forward 5 the matter to the county attomey, and the next steps that are required to be taken 6 according to state law. Upon expiration of the 60-day period, the authority should be 7 deemed to be in compliance with the TIF laws if no final non-compliance notice is 8 received. io LE-10 OSA Time Limitations it 12 13 14 15 16 17 18� 19 � 20 : 21 22 ` 23 24 ;. z5 � 26 "' 27 28 29 30 Issue: The Office of the State Auditor (OSA) has the authority to issue non- compliance notices for every existing TIF district in the state for alleged violations of the'I'IF laws going all the way back to the inception of the district. Accordingly, TIF authorities can receive non-compliance notices for aileged violations that occurred twenty or more yeazs ago. Often, s[aff and record-keeping procedures have changed and TIF authorities find it exceedingiy difficult to reconstruct the past in order to identify and remedy these situations. Similarly, the OSA ciaims the authority, based on the state's records retention schedule, to audit TIF dis2ricts for up to ten years after decertification which requires cities to expend staff resources to maintain files and a working knowledge of old districts for an unreasonable period of time. Respo�zse: A reasonable timeframe within which alleged violations are identified should be established. The Legisiature should restrict the OSA's ability to issue non- compliance notices to the six-year period prior to the notice's issuance date. The Legislature should also require the OSA to conduct any audits on decertified districts within one year of decertification. LE-11. Growth Management and Annexation 31 Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, 32 and governmental impact for cities, counties, and state governments because it increases the 33 cost of providing govemment services, and results in the loss of natural resource azeas and 34 prime agricultural land. 35 36 37 38 39 40 41 42 43 44 45 46 Response: The League believes the existing framework for guiding growth and development primarily through local plans and controls adopted by local governments should form the basis of a statewide planning poticy, and that the state should not adopt a mandatory comprehensive statewide planning process. Rather, the state should: • Provide additional financiai and technical assistance to local governments for cooperative planning and growth management issues, particularly where new comprehensive plans have been mandated by the Legislature; • Clearly establish the public purposes served by existing statewide controls such as shoreland zoning and wetlands conservation; clarify, simplify, and streamline these controls; eliminate duplication in their administration; and, fully defend and hold 13 1 harmless any Iocal government sued for a"taking" as a result of executing state 2 land use policies; 3 • Give cities broader authority to extend their zoning, subdivision, and other land use a controls up to two miles outside the city's boundaries, regardless of the existence of 5 county or township controLs, to ensure conformance with city facilities and services; 6 • Cleariy define and differentiate between urban and rural development and restrict 7 urban growth outside city boundaries; 8 • 9 to 11 iz 13 ]4 • IS I6 17 18 '' 19 '' 20 ' 2I .,. 22 - 23 24 25 -> 26 � 27 28 , 29 , 30 31 32 :- 33 , 34 35 36 Require the Metropolitan Council to seek cooperation from the state of Wisconsin and counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure responsible and controlled development; study expansion of Metropolitan Council authority in surrounding counties; and, examine the positive and negative impacts of mandatory regional or local (and use controls and state-imposed development standards; Facilitate the annexation of urban land to cities by amending state statutes that regulate annexation to make it easier for cities to annex developed or developing land within unincorporated areas; Oppose legislation that would reinstate the election requirement in contested annexations; and Encourage ideas consistent with the long-term goal of atlowing urban development only in urban areas. Density incentives such as sprawl reduction aid programs are more straightforward methods of rewarding and encouraging compacf urban development than using LGA or HACA for another new purpose. LE -12. State and/or County Licensed Residential Facilities (group homes) Issue: As the need for more residential-based caze facilities increases, sufficient funding is also needed to ensure residents living in group homes and licensed facilities have appropriate caze and supervision. In view of cities' responsibilities to accommodate group homes and residential-based facilities, it is important that state and county govemment work with local officials to address residential caze and public safety issues. Cities have reasonable concerns for speciai caze necessary for group home residents, particulazly in case of public safety emergencies. Since operators of certain residential facilities and services are not required to notify cities when they intend to purchase housing for group homes, cities do not have opportunity to raise concerns and reguirements regazding the special caze and public safety measures these residences may expect. 37 Response: The Legislature should provide sufficient funding for such residential- ss based services and require state and county agencies that manage those facilitxes or 39 companies licensed to operate group homes to notify cities in a timely manner when 40 licensed facility operators request to operate such facilities or to renew their license and 41 allow cities to require such agencies and licensed operators to identify and Yake 42 appropriate measures to respond to the special care residents need in case of a3 emergencies. Legislation should also require establishment of nonconcentration 4a standards for state or county-issued requests for.proposals (RFPs) and direction to a5 avoid clustering residential facilities. Licensing authorities must also be responsible for la �0-�1�- removing any residents incapable of living in such an environment, particularly if they become a danger to themselves or others. a LE -13. Housing and Economic Vitality 5 6 Issue: City officials increasingiy recognize that housing shortages threaten strong 7 neighborhoods, healthy communities, and local economic vitality. Decreased federal housing 8 assistance and insufficient state resources for housing production place statewide economic 9 expansion at risk. Changes in social services and family support, along with welfaze-to-work 10 requirements, make it pazamount for the Legislature to re-allocate state resources to � t strengthen family stability, improve workforce availability, and improve children's school 12 performance. 13 14 Response: The Legislature must maintain state investment in housing production, at 15 least doubling the current biennial housing budget, to help leverage private and local 16 resources as well as federal funds. The Legislature should continue to make additional 17 investment outside the metropolitan area for production of single-family housing 18 �� affordable to working families, along with affordable rental units. In the metropolitan t9 :r area, investing over the next biennium to carry out the goals of the Livable Communities 20 a- Act will help meet the needs of many households in which working adults must now 21 �. travel long distances to get to work. 2z - zs LE-14. Housing Preservation za 25 = Issue: Loss of federally-assisted housing in communities throughout the state remains a 26 serious threat to the well being of older city residents as well as other vulnerable populations. 27 Few cities have sufficient local resources to purchase or provide equity take-out loans to 28 owners of subsidized rental units who are considering mortgage prepayment and conversion 29 to mazket-rate rentals for properties originally built [o provide housing for low-income 30 residents. 3t Cities and neighborhood organization community development projects sometimes require 32 demolition of substandard housing, which can compound housing shortages and displace 33 occupants. 34 35 Response: The Legislature must continue to appropriate for preservation of 36 federally-subsidized housing throughout the state to provide additional resources for the 37 Minnesota Housing Finance Agency and community-based nonprofit housing 38 orgaaizations to buy units or make equity take-out loans to property owners in return 39 for maintaining rents affordable to tow-income residents and agreeing to maintain the a0 federally subsidize�' mortgage to term. 41 42 The Legislature should also continue to provide incentives to lower housing 43 construction costs and selting prices to encourage local government, builders, 44 developers, housing agencies, and organizations to address housing design and 45 construction costs, land use regulation, and other factors that could reduce housing a6 development costs. 15 i LE-15. City Role in Telecommunications 3 Issue: As cities seek the benefits of informadon technology, they face a number of 4 critical issues, particulazly availabiliry and competition for providing advanced community- 5 based telecommunications services. Cities recognize the importance of providing these 6 services for education, health care, business, and residents in their homes and work places. 7 8 Cities also play an integral role in the emergence of local competition, the zoning of 9 wireless communications facilities, and preserving cable operator support for public, l0 education, and govemment (PEG) access and institutional networks (I-Nets), and upholding I I federal requirements to treat all providers in a neutral and nondiscriminatory manner. t2 t3 Response: State and federal government should encourage cities and t4 telecommunications service providers to collaborate to take advantage of planning t5 opportunities for the development of telecommunications infrastructure and services to t6 strengthen local and regional economies. Federal and state government must also 17 strengthen city authority to: 18 � t9 • Provide telecommunications services either in partnership with other public entities, zo the private sector, or as a sole provider; 21 _• Grant additional cable TV franchises to provide the benefits of competition to zz =- subscribers; - 23 -:= • Require all multichannel providers of video programming services that use public 24 _` rights of way to comply with local PEG access and I-Net requirements; 25 _= • Exercise effecfive local zoning controls over the siting of wireless communications 26 �� facilities; and 27 • Reserve spectrum for cities to make increased use o£ wireless communications. 28 �. 29 , LE-16. Adequate Funding for Transportation so 31 Issue: Current funding for roads and transit systems across all govemment levels in the 32 state is not adequate. The League acknowledges that ali Minnesota communities benefit from 33 a sound and adequately funded transportation system. 34 35 ' Response: More resources must be dedicated to the state's fransportation system. 36 The League supports constifutionally dedicating a portion of the sales tax on motor 3� vehicles (also referred to as MVET) or other new revenue sources to a transportation 38 fund, which would it:nd bofh highway and transit projects. The Leagae also supports 39 an increase in the gas tax that would 6e dedicated under the existing highway user trust 40 fund formula. Vehicle registration taxes (known as tab fees) should not be reduced ai unless replacement revenues are constitutionally dedicated to the highway user trust a2 futtd. If funding does not come from the state, cities should have funding options 43 available to them to raise the necessary dollars to adequately fund roads and transit. 44 16 bo-yti- 1 All nontransportaYion programs should be funded Yrom sources other than the 2 highway user distribution fund or other funds dedicated to transportation, 3 a LE-17. State Aid for Urban Road Systems 6 Issue: Current rules governing municipal state aid expenditures are restricting the 7 efficient use of these funds, and do not adequately acknowledge the constraints of road 8 systems in urban city environmenYS. l0 Response: Rules affecting the municipal state aid system need to be changed to 1 t acknowledge the technical and practical restrictions on construction and reconstruction iz of urban road systems. New municipa( sfate aid design standards should not apply to 13 reconstruction of existing state aid streets originally constructed under different ta standards. Future changes to state aid rules should ensure the involvement of elected 15 officials and engineering professionals in the decision-making process. 16 »;� LE-18. Turnbacks of County and State Roads i a �: 14 � Issue: As road funding becomes increasingly inadequate, more roads are being "turned 2o back" to cities from counties and the state. 21 22 � 23 " 24 ' 25 26 ' 27 zs 29 30 31 32 Response: Turnbacks should not occur without direct funding or transfer of a funding source. A process of negotiation and mediation should govern the timiag, funding, and condition of turned-back roads. City taxpayers should receive the same treatment as township taxpayers. The requirement for a public hearing, standards abouY the conditeons of Yurnbacks, and temporary maintenance funding should also apply to county turnbacks to cities. At a minimum, roads proposed to be turned back to a lower government level should be brought up to the standards of the receiving government or should be compensated with a direct payment. Direct funding should be provided for smaller cities that are not provided with turnbac[c financing through the municipal state aid system. s3 LE-19. Road Funding for Cities Under 5,000 34 35 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their 36 collector and arterial streets. 37 38 Response: Cities under 5,000 population that are not eligible for Municipal State Aid 39 (M.S.A.) should be able to use county municipal accounts and the 5 percent account of 40 the highway user distribution fund. 41 42 43 44 45 46 Uses of county municipal accounts should be statutorily modified so counties can dedicate these funds for local arterials and collector streets within cities under 5,000 poputation. In addition, the 5 percent set-aside account in the highway user distribution fund should be used to meet this funding gap. 17 � LE-20. Railroad-Related Projects z 3 Issue: Cities are being presented with far-reaching and long-term effecu when railroad 4 expansion and related projects enter their communities. Along with the concerns related to 5 safety, environmental effects, and noise impacts on the communities, several issues have 6 greater reaching effects. They aze: 7 S � The cost-shaze ratio related to roadway crossing improvements will be bome by the public 9 sector to a substantial degree, some estimates are 80 percent public to 20 percent private 10 funding; 11 12 13 14 t5 i6 17 18 ' 19 20 ' 21 �=: 22 23 ' 24 ' 25 : 26 • The financiai burden faced by the public sector to deal with mitigation improvements, a cost that the Surface Transportation Boazd (STB) is not requiring the private sector to pay; • The issues associated with the length of trains moving through communities; • Liability associated with whistleblowing ordinances; and • Pre-emption of local authority to regulate railroad activities. Response: The private sector must be required to pay a greater share of the improvements that benefit their industry. The public sector should not be expected to underwrite the costs of improvements sought by the private sector. The state and federal govemment must participate in adequately funding the mitigation of the negative impact of railroads on local government and its citizens. The federat government must exercise greater oversight'of the STB to ensure that fair and equitable solutions are reached when dealing wifh cities in Minnesota. LE-21. Access Management & Plat Approval 27 - Issue: Increasingly, the state and some counties express a desire to exercise more control 28 over state and counry roads that lie within city boundazies. Some counties have introduced 29 , legislative proposals requiring county plat approval before pro}ects may move forwazd. The 30 Department of Transportation has studied the issue of access management, and is developing 3 t a guidance document to establish minimum standards before new access points onto roads 32 will be allowed. The League has published educational articles designed to highiight the 33 , importance of county and state involvement when cities aze involved in pianning decisions 34 that will allow new development to access roadways. 35 36 37 38 39 40 41 42 43 44 45 LC: Response: Cities support maintaining plat approval authority with each municipality for all plats located within cities. Cities do not support extending county or state authority over plat approval. Aowever, significant advantages can be gained by using a coordinated review process, already existing in state law, between cities and other affected units of government. Such advantages include better overail land use planning, site designs, and traffic management In addition, cities support the concept of statewide access management guidelines that can be ased in a coordinated review process. 18 00 -�{ �- i LE-22. Right of Way Management 2 3 Issue: Cities have fundamental responsibility for managing the safe and convenient use of 4 public rights of way. Cities hold local rights of way in trust for the pubtic as a Iimited and 5 valuable asset. As demand for right of way use increases, cities must continue to have clear 6 authority to allocate and coordinate that resource among competing uses. Local management � responsibilities vary and aze site specific, underscoring the importance of upholding local 8 authority to establish fees and standazds and to obtain fair and reasonable compensation by 9 telecommunications right of way users. t0 I1 12 13 14 t5 16 17 18 �:`s 19 20 2t 22 :-� 23 za , 25 � 26 27 28 Response: State government mast: • Uphoid local authority to manage and protect public rights of way, including reasonable zoning and subdivision regulation and the exercise of local police powers; • Recognize that municipal engineering has a paramount role in developmenf and implementation of construction and safety standards; • Support locai authority to require full recovery of actual costs of managing use of public rights-of-way; • Continue existing local authority to collect franchise fees and capital support for public, education and government (PEG) access and programming and to require provision of institutional networks (I-Nets) from providers of multi-channel video programming; and • Maintain the courts as the primary forum for resolving allegations by telecommunications service providers of arbitrary or capricious city management policies and practices. LE-23. Effective Telecommunications Competition 29 Issue: Gonsumers need protection in the Iransition to a competitive marketplace for 30 telecommunications services. Local economies can be streagthened by competitive provision 3] of services to enhance business participation in the global economy. 32 33 34 35 36 37 38 39 40 41 42 43 44 4S 46 ltesportse: Federal, state, and local government should coordinate policies to protect consumers and encourage emergence of local competition. LE-24. Local Zoning of Telecommunications Facilities Issue: Pederal intervention and restrictions on city zoning authority over the use of property by telecommunicauons service providers threaten to pre-empt basic Ioca1 land-use ragulation. Response: Federal and state government must uphold the fundamental right of local government to adopt and enforce zoning regulations reaffirmed in the federal Telecommunications Act of 1996. 19 i LE-25. Workforce Readiness 3 Issue: State and federal welfaze reform efforts have focused on the importance of the d welfaze-to-work transition, and have recognized the challenge of ensuring individuals aze 5 qualified to work. Cities have an interest in the availability of qualified workers as part of 6 their economic development efforts, and can serve as a catalyst with other public entities and 7 the private sector to address workforce readiness issues. 9' Response: The Legislature should continue to fuliy fund the job skiils partnership to and pathways programs administered by the Department of Trade and Economic t 1 Development. Flexibility shoutd be provided to accommodate small companies' needs 12 _- and provide alternatives to the Qublic trafning systems. 13 14 �s LE-26. Platting Law Recodification 16 17 Issue: The Minnesota Association of Counry Surveyors (MACS) is seeking to recodify Is _ Minnesota Statutes Chapter 505. Two issues raised by MACS that will likely impact cities t9 � are the subdivision plat requiremenu, and the creation and amendment of road right of way 20 acquisition maps. 21 > 22 : Response: The Legislature should preserve local authority over. plat approval and z3 ��,- include language in the recodification legislation that will allow. foc pedestrian easements 24 or thoroughfares to be dedicated by plat (for sidewaiks, public trails, etc.). 25 26 LE-27. Economic Development Authorities 27 z8 Issue: The state's policy regarding economic development authorities (EDAs) has been to 29 limit the specific authority and powers of EDAs to city govemments. The state has already 30 determined that city govemment most efficiently provides governmental services in azeas 3t intensively developed for residential, industrial, and governmental purposes. However, in 32 certain azeas of the scate, cfties within a county may wish to participate in the formation of a 33 county EDA 34 35 Respo�:se: The state shoutd continue to recognize the importance of using and 36 preserving the existing infrastructure in cities, and should continue to find thaf urban 3't development, and all related authority, remain within cities and managed by city 38 government. The Legislature should continue its decision to limit EDA authority to 39 cities as the primary local government responsible for the organizational and financial 4o coordination of development and redevelopment unless the cities wishing to participate ai in a county EDA jointly determine and individuatly approve the county's provision of 42 economic development services and cities not wishing to participate in the county EDA 43 are not subject to the county EDA's tax levy. 44 45 46 20 O o —y �- t LE-28. Infrastructure Funding Options z 3 Issue: Current infrastructure funding options available to cities aze inadequate. Existing a special assessment law, Chapter 429, does not meet cities f nancing needs because of the 5 benefit requirement. The law requires a minimum of 2Q percent of such a project to be 6 specially assessed against affected properties. In practice, however, proof of increased 7 property value to this degree of benefit can rarely be pYOVen from regular repair or 8 replacement of existing infrastructure, such as streets or sidewalks. Alternatives to the 9 Chapter 429 methods for financing infrastructure improvements aze neazly nonexistent. t0 I t The Legislature has given cities the authority to operate systems for waterworks, sanitary 12 sewers, and storm sewers. The storm sewer authority, established in 1983, set the precedent 13 for a workable process of charging a use fee on a utility bill for a city service infrastructure 14 that is oF value to ati those in a city. Similar to the storm sewer authority, a transportation or is sidewalk system would use tachnical, well-founded measurements, and wouid equitably 16 distribute the costs of locai infrastructure services. i� 18x 19 F' 2o M. 2 t �? 22 ;. 23 °- 24 �; , 25 . 26 27 2s 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Resporase: The Legislature should authorize cities to create, as a local option, additional systems such as a transportation or sidewalk system. Such authority would acknowledge: the effects of repeated levy limits and the general funding shift from the state to local governments £or building and maintaining necessary infrastructure; the benefits to all taxpayers of a properly maintained public infrastructure; and the limitations of existing special assessment authority. IMPROVING SERVICE DELIVERY SD-1. Redesigning and Reinventing Government Issue: Every leveI of government is reevaluating, reprioritizing, redesigning, and renewing its organizational structure and programs in response to financial realities and citizens' needs and problems. Reforms, however, must be more than change for the sake of change, or a reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and reassignments of governmental entities and services should save money where feasible, deliver improved services, serve essential needs, and be eqnitably strvctured. Cities have and will continue to pursue the use of cooperative agreements, the reevaluation of city programs and services, and changes to organizational structures. Response: The federai, state, and county governments should: • Ensure that in redesianing, reinventing, or reassigning government services and programs that the appropriate level of service to citizens is evaluated, and citizen demands and expectations are adequately addressed; • Promote local efforts through incentives, rather than mandates; 21 �_• Communicate and estab(ish a process of negotiation before shifting responsibility for 2 delivering services from one level of government to another, or seeking to reduce 3 service duplication; 4 • Transfer authority for use of revenues dedicated to such programs, or provide 5 appropriate and adequate alternatives; 6 • Identify and repeal programs or discontinue services that are no longer necessary, or 7 which can readily and fairly be provided by the private sector; and s • Employ existing government entities in redesign efforts rather than create new 9 agencies or units. 10 ii iz 13 14 15 16 17 18 ;, l9 5D-2. Unfunded Mandates Issue: The cost of federal and state mandated programs substitute the judgment of Congress, the President, the Legislature, and the govemor for local budget priorities. These mandates force cities to reduce funding for other basic services or to increase taxes and service charges. The passage by the Legislature of reporting requirements for new state mandates, and the passage by Congress of legislation restraining new federal mandates, should help address the problem, but other steps ue necessary. 2o Response: < 2 ] :; 22 �� • Existing unfunded mandates should be modified or repealed where 23 possibie. 2a :• No additional statewide mandates shoutd be enacted, untess fuli funding for the 25 mandate is provided by the level of government imposing it or a permanent stable 26 ` revenue source is established. 27 • Cities should not be forced to comply with unfunded mandates. 28 29 30 31 32 33 34 35; 36 37 38 39 40 al 42 43 44 45 [[.� • Cities should be given the greatest flexibility possible in implementing mandates to ensure their cost is minimized. SD-3. Civil Liability of Local Governments Issue: One of the barriers to the delivery of govemmental services and programs is the exposure of local govemments and their officials to civil damage claims. The state has acted to protect itself and its local governments by enacting exceptions and limitations to liability suits, and authorizing self-insurance and other mechanisms to deal with claiuu allowed by law. Additionally, the current law, which requires district court approval of settlements of claims against municipalities that exceed $10,000, has become burdensome for cities. Respo�:se: The League supports: • Creating an exception to municipal-tort indemn�cation law (MN Stat� Sec. 466.07) where an employee is defended and indemnified for claims under a contract of insurance carried by the employee. � Extending the protection of the state and municipaI tort claims act to quasi- 22 no-ya i govemmental entities when performing public services such as firefighting; 2 • Existing constitutional safeguards for protecting public and private property 3 inferests without any statutory expansion of property rights; 4 • Eliminating Yhe district court approval of settlements requirement or, in the 5 alternative, increasing the threshold amount for district court approval of 6 settlements to $100,000; and 7 • Clarifying and maintaining the appticabifity of municipaI immunify in various areas 8 including, bat not limited to, park and recreational immunity, including the 9 extension to entities providing a public service that have not traditionally been l0 included within the immunity (e.g. state traits over municipal utility easements) and 11 vicarious official immunity, and seeking immunity from claims related to providing t2 and disfributing information from geographic information systems (GIS) pursuant t 3 to the Minnesota Data PracYices Act. ta is SD-4. Environmental Protection 16 t7, Issue: State and federal environmental programs are improperly designed to meet their tS� stated goals, and impose an undue burden on local governments because of a lack of federal or state financial assistance. The refusal to finance these programs by the governments that pass them has eliminated an essential restraining feature in program design and implementation. In addition, cities face emerging issues in the areas of drainage, bio-solids, wellhead protection, and feedlots. 19 2Q 2 T; 22' 23� 24„ 25 26' 27 28 29 30 31 32 33 34 35 3'6 37 38 39 Specific problems include: • New programs or standards are continually adopted without regard to the existence, attainability, or cost of existing programs and standards. • The failure of regulatory bodies to consistently use good science and the most current and accurate data when establishing water quality standards. • Fragmented program adoption and implementation does not ensure prioritization of environmental matters or the establishment of comprehensive environmental protection strategies. •"One size fits all" implementation of programs force remedial efforts by local governments for nonexistent environmentat problems. • Permit fees and other cost transfer elements of federal and state programs do not provide an incentive for environmental agency efFiciency, policy prioritization, oz risk assessment. Response: 40 • State agencies must be mquired to provide local governments witk more flexibility in a� achieving environmental goals, such as endorsing performance based outcomes and a2 best-management practices, and these agencies must provide faster approvat of 43 waivers in order to allow municipalities to benefit from greater flexibility. 23 1 • Alternative wastewater treatment and cooperative service systems should be 2 prohibited from operating in areas that can reasonably and effectively be served by 3 existing municipal systems unless: 4 • The municipal system is proven to be: 5 ■ substantially less cost-effective and 6 ■ substantially less beneficial to the environment; and 7 • The operation of these systems will not create a stranded public investment in the 8 : exisdng system. 9 • A comprehensive effort to consolidate, reorganize, and manage state and federal l0 environmental agencies and programs should be undertaken, and a partial or full t t moratorium on new programs or requirements should be considered. tz • Permit fees should be limited to 5Q percent of the agency's direct operating costs in 13 order to promote efficient agency operation and sufficient legislative oversight t4 • Su�cient state and federal financial assistance should be provided to comply with ts state and federal infrastructure requirements, particularly with regard to t6 ;, wastewater, stormwater, and drinking water facilities. 17 • Minnesota Statutes § 115A.32-39 should be amended to reinstate the administrative fE� 19 ; 20 ` 21 : 22 -' 23 "t, 24 � 25 procedure used for the resolution of bio-solids disputes, a procedure whose function was inadvertently deleted during a re-codification of the statutes. In addition, local governments in Greater Minnesota should be.allowed to dispose of bio-solids in manners consistent with the MPCA's permits and rules and be prohibited from imposing blanket moratoriums on land application of bio-solids. This authority would be similar to the statutory protection enjoyed by metropolitan area communities (NIN Stat. § 473.516). z6 SD-5. Election Issues z� 28 Issue: Delays and lack of funding at the state level have prolonged the wait for cities to 29 have direct access to the statewide voter registration system. Lack of access increases the 30 time and cost to process new voter registrations, update voter files and verify voter 3t information in a timely manner. 32 ' 33 Respa:se: The Legislature should provide funding to allow more cities direct access 34 to the statewide voter registration system. 35 36 SD-6. Local ElecEion Authority 37 38 Issue: Previous legislatures restricted city authoriry to schedule city elections and 39 establish terms of office for local elected officials thereby diminishing regard for the role of 40 local self-govemment, particulazly when state policy preempts home rule authority governing 4t city elections. 42 43 Respor:se: The Legislature should oppose further limits on either the number or the aa length of terzns city etected officials may serve, particularly when those terms have been 2a po-ti y i established by voters in home rule charter cities. State policy on uniform elections 2 shouid confinue fo recognize and uphotd Iocal authority to schedute city elections in 3 November of either even- or odd-numbered years. 4 s SD-7. City Costs for Enforcing State and Local Laws 6 � Issue: Cities experience substantial costs enforcing state and local laws, particulazly those 8 related to traffic, controlled substances, and incazceration of prisoners. The current method in 9 our criminai justice system of recovering costs for law enforcement and prosecution through t0 fines is insufficient to meet the costs incurred by local governments. 1t t2 13 14 15 16 17 Response: The Legislature should review this issue and adopt measures that provide for complete reimbursement of the costs incurred by Ioca[ governmenfs in enforcing state and local laws. Solutions that shoutd be considered include the following: • Increasing fine amounts; • Removing or modifying county and state surcharges that conflict with cost recovery �8-� principtes; and i4 • Requiring the defendant to pay the ful! costs of enforcement and prosecution as part 20;; of any sentence. 21;� - Zzy SD-8. Access to Information Technology and Services 23 24., Issue: Cities recognize the importance of achieving world class standazds and universal 25 �:. service in order to provide quality education and opportunities for local businesses and 26=, industry to engage successfully in global competition. 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Respo�ase: The Legislature should: Expand and ensure the public's access to government meetings and information through electronic means; and Provide technical and financial assistance to make advanced technologies available and encourage collaboration among cities, schools, and libraries, health care, nonprofit organizations and businesses in its effective use. SD-9. Design-build Issue: The standard bid procedure cities are required to use in selecting contractors for municipat buildings can be quite costly. Private sector devetopment uses a process known as "design-build" in which vazious firms submit project proposals that include both a design and the construction costs for that design. The selection is then based on the total package. By �ranting specific statutory authority to use ihe design-build alternative to the Metropolitan Sports Facilities Commission and state agencies, including the Department of Revenue, the Legislature has recognized the financial savings it can provide. In documented instances, cities have saved taxpayers up to 10 percent of the Total project cost by using the design-build altemative. 25 t The design-build process also pernuu improved project management and oversight. 2 However, absent statutory authorization to use this altemative, ciries are vulnerable to 3 lawsuits from unsuccessful bidders. In addition, the design-build process for playground 4 equipment can encourage greater creativity while maintaining cost controls. Special 5 legislation was enacted for the city of Chanhassen in 1995 to experiment using this process 6 for purchasing playground equipment. T s Response: The Legislature should authorize an extension of the design-buiid 9 procedure to cities as a less expensive alternative to the standard bid procedure. to t i " SD-10. Providing Information to Citizens iz t3 Issue: To keep the public updated and informed, state law requires local units of 14 government to publish various notification documents in newspapers, and often dictates which t5 newspapers receive cities publication business. The number and variety of documents i6 required to be published and the costs of publication aze burdensome. Technological 17 advancements have expanded the ways government can provide information to citizens. In t 8 many cases, these new technologies aze more efficient and cost effective. 19 2o Response: Cities should be authorized to take advantage of new technologies to 21 increase the dissemination of information to citizens and potentialiy lower the associated z2 -°. costs. Specif cally, the Legislature should,authorize local units of government to 2s designate an appropriate daily%weekly publication, elect alternative means of 24 . communication such as city newsletters, cable television, and the Internet, and expand 25 ' the use of summaries where information is technicai or lengthy. Additionally, the z6 '; Legislature should eliminate outdated or unnecessary pub(ication requirements. 27 ` Zx ' SD-11. Creating a Minnesota GYS Program 29 30 Issue: Local governments aze finding geographic information systems (GIS) an essential 3 i tool for comprehensive land use, real estate, environmental, and other land management 32 information. In many counties, maintenance of official land records has not been automated, 33 creating a barrier to GIS development. In addition, the start-ap costs of GIS implementation 34 can be prohibitive. 35 36 _,. Response: The Legislature should encourage locat government implementation of 37 GIS through grants and/or the dedication of a revenue source such as real estate 38 transaction fees. In addition, cities should be involved in the development of county 39 land records modernization plans. 40 ai SD-12. State Regulation of Massage Therapists 42 a3 Issue: The state does not cunently regulate massage therapy, an emerging and rapidly 44 growing grofession. In order to controi prostitution and to provide for health and sanitation as standuds, several cities have entered the traditional state domain of heaith-care licensure by 46 enacting ordinances that require all massage therapists to obtain a local professional license. f�3.� 6p -�-/ 2 1 These ordinances allow local law enforcement officers to differentiate between legitimate 2 massage therapists, who have a city license, and prostitution businesses fronting as massage 3 therapy establishments. 4 5 The lack of statewide regulation of massage therapists has hampered law enforcement 6 techniques, and has caused problems for cities attempting to regulate an entire health-caze 7 profession without any statewide standards. Currently, 25 states regulate massage therapists 8 on a statewide level. Statewide regulation of massage therapists would provide a clear set of 9 educational standazds that massage therapists must meet, and would provide local law l0 enforcement agencies with an easy tool to distinguish between prostitution and legitimate 11 massage therapy. Statewide regulation would not disturb traditional powers over land use and 12 13 ta �5 16 17 18� 19;;- 20 21 22.' 23. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 a0 41 42 as 44 45 46 business licensure. Response: The League supports the statewide regulation of massage therapists in order to aid local law enforcement efforts at controlling prostitution and other criminal activity. SD-13. Private Property Rights and Takings Issue: The Legislature has been introducing an increasing number of bills designed to diminish or control local governments' abili[y to exercise traditional planning and zoning authority. I.egislation to control cities' abilities to perform regulatory acts such as shooting , range zoning and amortization received strong support from legislators. In addition, bills have been introduced to codify the property rights section of Minnesota's Constitution. The Federal Swamp Buster/Sod Buster programs, the Army Corps of Engineers' dredge and fill programs, and the State's Wetlands Conservation Act and Community Based Planning Act, appear to be the nexus for much of the property rights and takings legislation proponents. The League supports local governments' ability to balance the rights of private landowners with the interest of the public. However, the League is concerned various legislative initiatives will adversely impact cities in two ways. First, such legislative initiatives undermine the fundamental authority of cities to protect the pu(ilic health, safety, and welfaze of its citizens. Second, if the Legislature acts to codify part of the Minnesota Constitution, an argument may be made that the Legislature intended to create new causes of action against ci[ies. This wouid encourage more lawsuits and expose cities to the expense of defending those cases. Respor:se: The League encourages the state and federal governments to improve their regulatory programs by eliminating property rights issues that were caused by the adoption of such laws as the Wetlands Conservation Act or Swamp Buste;/Sod Buster. The League opposes legislation that diminishes the ability of cities to act in the best interests of the health, safety, and welfare of its citizens or that creates the possibility of additional lawsuits against cities. 27 � SD-14. Construction Codes 3 Issue: Each year the Legislature addresses construction codes issues that have some 4 impact on local govemments. The Legislature mandated bleacher safety legislation and is 5 expioring the idea of having both the fire and building o�cials approve building permits. 7 In addition, the Construction Codes Advisory Council has indicated it may be 8 recommending legislation to institute an appeals process for disagreements over the 9 application or interpretation of various construction codes and to establish a statewide t0 building code. The International Organization for Standazdization (ISO) has been evaluating t i Minnesota's building codes and enforcement. There is some expectation on the part of 12 council members that ISO will act as the catalyst for a statewide building code. 13 14 While all cities must enforce certain codes, such as the accessibility code, the electrical 15 code and the bleacher safety code, the state's building code remains a local option for cities 16 outside the metropolitan area. Many Greater Minnesota cities have adopted the state building 17 code and all cities within the seven-county metropolitan azea are required to adhere to the 18 state building code. I9 20 Response: A building code provides many benefits including uniformity of 21 construction standards in the building industry, consistency in code interpretation and 22 . enforcement, and life safety guidance. 23 24 =_ 25 '- 26 � 27 2s A statewide-enforced building code may have benefits, but requiring it would result in an unfunded mandate. The enforcement of a buitding code can be cost prohibitive for many cities due to the expenses and overhead related to staffing vs. the limited building activity occurring in some communities. 29 The League supports adoption of a state building code as long as there is not 30 mandatory enforcement at the local level. The adoption of an enforced state building 3 t code should remain a local option for municipalities outside the seven-county 32 metropolitan area, unless the state fully funds the costs of enforcement and insQection 33 ` services necessary to enforce a statewide building code. In the event the Legislature 34 - requires an enforced statewide building code, local governments must have the option to 35 hire or select a building official of their choice and setting the appropriate level of 3b service, even if the state fully funds code enforcement activities. 37 38 An appeals process would provide an excellent forum to resoive code disputes. 39 To the extent the insurance industry is concerned about insuring structures not built ao to code, the industry should drive code compliance by issuing policies or setting rates ai based on whether the structure meets various code requirements. az 43 44 45 46 SD-15. Fees for Service Issue: Interest is increasing at the I.egislature and among interest groups to mandate to local govemments specific fee limitations for various municipal services. Examples of � oo-ya- I legislation include building permit fee legislation and coin operated amusement machine 2 license fee legislation, both designed to rigorously control local fee setting authority, This 3 stems, in part, from a belief of some that plan check fees, license fees, and other municipai a fees for service do not reflect tha actual benefits received. 6 Additionaliy, other groups have begun discussing the value of fees for providing services. 7 Recendy, the Citizens Jury explored the value of fees for service and gave limited 8 acknowledgment of the value fees may have in providing core municipal services. The media 9 has entered the discussion, as weil, urging the public and policy makers to monitor fee-setting 10 processes. il t2 Response: 13 �a While the state has a role in providing a general statewide funding policy, the state t5 should not interfere in the simple budgetary decision-making functions performed by 16 clties. 17 ° 18� 19 %�" z0 ' 21 � 22 =: 23 ;. 24 25 �' 26 27 28 29 30 3i 32 33 34 35 36 The League supports the Legislature endorsing local government authority to charge fees that are reasonably related to the cost of providing the service, permit, or licettse and acknowledging there are other associated costs inherent in the provision of those services, permits, or licenses. However, cities oppose any move to legislate speci�c ruethods to pay for municipal services or place caps on license fees or other fees. General services such as permitting, inspections, or enforcement are best funded out of a city's general fund. Cities are better prepared than the state to make local budgetary decisions when providing local services. SD-16. Board of Firefighter Training Issue: The quality, availability, and affordability of firefrghter training varies greatly across the state. After several years of discussion, the fire service has endorsed a proposal to create a state board of firefighter training to ensure the quality of training and oversee state reimbursemen[ of a portion of training costs. The board would not be given authority to mandate specific training requirements or to certify firefighters. 37 Response: The League supports the fire service proposal as tong as tocal 3s governments are fairly represented on the board; the powers and duties of the board are 39 not expanded in a way that would undermine local management authority; and the 40 appropriation comes from the sfate general fund. 41 42 43 44 45 SD-17. Witness Fees Issue: Court administrators aze proposing that the Legislature shift the costs atuibutable to calling witnesses from counties to cities. The rationale behind this proposal is that city F� t prosecutors have no incentive to limit the witnesses called only to those that will actually 2 testify. Most counties cunenfly receive one-third of the fines collected at the city level. 3 4 Response: Cities oppose the shifting of costs attributable to calling witnesses from 5 counties to cities. City prosecutors responsibly call only those witnesses they expect to 6 testify. Under certain circumstances, witnesses may not ultimatety provide testimony for � a variety of reasons. The fine revenue counties receive adequately funds the costs 8 attributable to calling witnesses. 9 io ii 12 13 14 t5 16 17 SD-18. State Appropriation for Government Training Service (GT5) Issue: In 1977, the Govemment Training Service was created in order to provide a coordinated response to the training needs of state and local govemments. GTS was chazged with coordinating the needs of the state, cities, counties, townships, and school districts, with the delivery capability of the sta[e's institutions of higher leaming and other continuing educatSon service providers. 18 State financial support of GTS is unportant. 14Iany. cities and other local governments find ]9 it difficult to adequately fund official and staff training. GTS provides a cost-effective 20 mechanism for taking advantage of the efficiencies of cooperation. 21 22 >` Response: The League supports the state general fund appropriation for the z3 - Government Training Service. 24 zs 26 27 ° 2s 29 30 3t 32 33 34 35 _ 36 37 38 39 4Q 41 42 43 a4 45 46 SD-19. Year 2000 Issues Issue: Despite cities' best efforts to take reasonable actions to address threats to vital services local officials need to be able to rely on the readiness of state government to respond with additional resources and financial assistance, if necessary, to limit threats to local public health and safety or to local economies where unexpected Y2k-related problems cause serious disruptions. Cities have worked to resolve complex Y2k problems over the last yeaz, but some cities have found it necessary to expend substantial additional resources to convert or modify critical service delivery systems to overcome potential Y2k-related emergencies. Cities that have borrowed extensively or issued debt to meet those needs may find that such obligations place significant fiscal strains on local tax resources. Respor:se: State agencies and the legislature should be prepared to grant cities additional emergency financial assistance and other resources during the coming year to help local officials restore vital public services or to assist the community in overcoming the loss ef critically needed business, health care, educational or other fuactions. SD-20. New Public Safety Spectrum Needs Issue: Cities have benefited from successful efforts at the federal level to gain access to exclusive radio and wireless communications capacity for state and local public safety spectrum. Cities can now take advantage of the new radio and wireless communications 30 00 -"-��- i space set aside by the Federal Communications Commission (FCC) at the upper end of the 2 UHF television band for pubiic safety. For future interoperabiliry, cities will need additional 3 spectrum to ensure public safety agencies can communicate with each other and with a sunounding jurisdictions. 6 The U.S. Department of Commerce and the FCC Public Safety Wireless Advisory 7 Committee have recommended reallocation of 3 MHz of radio spectrum in the range of 138- 8 144 MHz radio band be made available exclusively for state and local public safety 9 interoperability. This spectrum is cunently assigned for military use and is not currently in lo use. Unless secured for public safety purposes, it is likely to be auctioned off to the highest ] 1 bidder for private use. The radio band available is adjacent to the current MHz band used for 12 13 14 i5 16 t7 t s;"'�� 19; 20 fire, police, and other public safety communications and would provide particularly good frequencies for mobile/portabie radio system communications. New spectrum in the 800 MHz range requires many more sites to cover the same geographic range and uses more expensive radio equipmeat. Although many public safety a;encies aze moving to new 800 MHz systems, others wi11 need to remain in lower frequency bands. Equipment in 800 MHz range will not communicate with many of the existing public safety systems that operate at lower frequencies. 21 Respaise: The federal government must make additional spectrum available to 22; allow public safety agencies that require multi-agency communications to respond to 23 `. ` accidents, disasters, and criminal activity that cross jurisdictional boundaries. So that it z4Y . wilt not be auctioned, the 3 MHz available for reallocation for public safety should be 2 reserved to relieve congestion on nearby public safety frequencies. 26: 27 28 29 30 31, 32 33 34 35 36 37 38 39 Immediate acTiom m�st be taken Yo secure this additional radio spectrum to advance the interoperability of public safety communications systems. SD-21. Joint & Several Liability Reform Issue: Under joint and severai liability, a party named in a lawsuit can be held liable for an entire damage awazd even if they aze not found to be substantiatly at fault. Accordingly, cities as "deep pockets" often are brought into lawsuits where it is likely that other named defendants are uninsured or otherwise unable to pay. Cities will often settle these cases due to the high degree of exposure and, at minimum, aze almost always responsible for their defense attorney's fees. Joint and severai liability results in cities paying for others' negligence. 40 Response: The Legislature should eliminate or severely restrict the application of at joint and several liability to situations where private and public entities are substantially a2 at fault for the damages incurred. 31 � SD-22. Official Newspaper Designation 2 3 Issue: State statutes currently provide a hierazchy that governs which newspaper a 4. city annually may designate as its official newspaper for legal publication. After designadon, 5 the city has no ability to change its designation to a newspaper lower in that hierazchy if the 6 selected newspaper makes errors. Errors in publication can adversely affect the city's 7 compliance with the law. For example, if ordinances are not published according to Iaw, they S ate likely invalid. 10 , Response: The Legislature should authorize cities to designate an alternative official 1 t newspaper if their current official newspaper makes significant errors in publication. tz �s SD-23. Competitive Bid Threshold Increase 14 15 Issue: Under the uniform municipal contracting law, a city must bid out ail purchases t 6 of supplies, materiais, equipment, rental of equipment, as weli as construction, alteration, 17 repair or maintenance of real of personal property when the estimated amount of the contract t 8' exceeds $25,000. The law also requires that purchases between $10,000 and $25,000 be let 19 with either sealed bids or through direct negotiation by obtaining two or more quotations. 20 21 This law has not been adjusted since 1992 when the comgetitive bid threshold was 22 <- raised from $15,000. In 1999, the House and the Senate approved and sent to the govemor a 23 . bill that would have increased the competitive bid threshotd to $50,QOQ. However, the biil was 24 -` vetoed by the governor based on concems that the threshold increase could increase the risk of 25 � unethical conduct and favoritism. 26 '� 27 28 29 " 30 31 32 33 34 Response: Raising the threshold will not increase unethical conduct and favoritism. Raising the threshold will result in better use of t� dollars by allowing more negotiation in the purchasing process. Therefore, to provide greater flexibility and to streamline the purchasing process, the Legislature should increase the competitive bid threshold. SD-24. Membership in Watershed Management Organizations 35 Issue: In 1999, the Legislature enacted a restriction that will prevent city employees 36 from serving on watershed management organization boazds. The restriction will prevent city 37 staff, who may have an interest and expertise in watershed management issues from serving 38 on a watershed management board. 39 ao 4l 42 43 44 45 46 Response: Elected city councils have ultimate oversight of the functions of watershed management organizations. The state should repeal the membership restrictions for �vatershed management organization boards. In addition, the state should provide an exception to the watershed district law to allow cities to recommend individuals who do not live in the watershed to serve on the watershed district boards when a portion of the watershed is located in the city but no one lives in that area. 32 00 -y�- t SD-25. Legalization of Fireworks 2 3 Issue: Fireworks producu can cause serious injuries and fire loss. Fireworks have 4 been illegal in Minnesota since 1941, and legalizing them would undermine fire prevention 5 efforts. Legatizing fireworks wauld increase public safety enforcetrcent, emergency response, 6 and fire-suppression cosu. 8 Response: The League opposes the legalization of fireworks. 9 �o SD-26. Election Judge Appointment �i 12 Issue: It is increasingly difficult for local election officials to comply with statutory 13 requirements that election judges serving at precinct poIling piaces be persons identified as l4 members of major political parties. The requirement presents a growing concern in obtaining 15 qualified election judges and a serious obstacle to efficient election administration at the local 16 level. » i 8�; 19 20, 2f 2z, 23 24 25 26 27 ?g 29 30 31 32 33 34 35 36 37 Respaise: The legislature should eliminate election judge appointment criteria requiring persons seeking appointment as local election judges to designate a political party. SD-27. Election Judge Compensation Issue: People willing to serve as election judges are often discouraged from doing so because the ciTy is not authorized to accept their service as a volunteer or to contribute their compensation to local chazities or community non-profit organizations. Response: The legislature should authorize cities to allow election judges to direct that their pay be donated to a local charity or community non-profit organization of their choice. SD-28. Counting Write-In Votes Issue: Requirements for recording and reporting votes cast for fictitious and undeclazed write-in candidates aze unproductive, time-consuming and do not serve to increase voter confidence in the outcome of the election. 38 Respo�:se: There should be no requirement to tabulate or report write-in votes 39 cast for fictional or celebrity write-in caadidates who have not officially declared their a0 iuterest in seeking office. Election judges should be required only to list the name of a1 each undeclared write-in candidate unless votes cast in that precinct for that candidate a2 toial more than 5 percent of votes cast in the precinct for that office. 33 i . SD-29. Telecommunications Restructuring 2 3 Issue: Cities have a unique perspective and role in shaping the delivery of a telecommunications services. While city officials recognize the significance of convergence 5 in the provision of these services, proposals currently under consideration at the state level to 6 restructure telecommunications regulation overlook critical functions that cities can more 7 effectively perform. Cities have a fundamental role in guazanteeing public access to 8 communications media, fostering a sense of community through the use of 9 telecommunications, and protecting consumer interesu. 10 i I In an era of convergence, it is also essential that cities, along with local consumers, t2 educational and health care institutions, non-profit organizations and businesses be assured t 3 that all telecommunications service providers aze held accountable for agreements [o provide 14 those services, uphold service guality and respond to community needs wherever they do 15 business. 16 t � Response: In redesigning state telecommunications policy to address the 18 convergence in delivery of telecommunications services, state agencies and tawmakers 19 should uphold local authority in the following areas: 20 2t 22 23 24 25' 26 27 2s 29' 30 31 32 33 34 35 36 37 38 39 Cable Issues • Control over cable franchise provisions:such as the collection, retention and use of cable franchise fee revenue; public, educational and government (PEG) access and institutional network (I-Net) commitments and capital funding to support those activities; • Carry out responsibilities and provide for resources to handle customer compiaints in a timely manner; • Agreements with local cable operators to make services available responsive to local policies and subject to local oversight and gbvernance, including municipal programming and access to analog and digital channei capacity; • Direct unfettered access to video channels and bandwidth free of charge fo offer public, educational and community-based information, programming and service delivery; and • In the absence of federal regulations that override local decision-making authority, recognition that cities retain control over whether to require local cable operators to provide nondiscriminatory access to unaffiliated Internet service providers (ISPs) when offering telephony, cable modem or information services, including Internet access. ao General Telecommunications Issues 41 State policy should assure that telecommunications service providers operating in a2 Minnesota are required to meet service quality and performance standards that treat all a3 areas of the state equitably in the delivery and quality of services. That policy should 4a include: a5 • Encouraging competition and broad deployment of high-speed broadband, cable tv, 46 wireless, and Intemet services; 34 0 o-4y- 1 • Authorizing cities to provide a full range of telecommunications services either in 2 public-privaYe partnerships, through joint powers agreements or as sole providers; 3 • Addressing the particular importance of telecommunications service delivery issues a in rural areas such as the provision of e#ended local call service areas, consolidated 5 schooI disfrict communications needs, and strengthening the network of health care 6 delivery service providers including local clinics, pharmacies and hospitals; 7 • Directly involving local government in determining strategies for and any 8 reallocation of resources; and 9 • Bringing together state and locai government officials on a regular basis to lo recommend changes and improvements to regulation to respond to changes in t 1 competition, technology and delivery of telecommunications services. �z is SD-30. 911 Funding 14 15 Issue: As cities struggle to afford to maintain and improve the hudwaze, software, 16 and training to provide 911 services, costs continue to rise and many cities aze forced to 17 choose between beazing all costs or making incremental improvements to their systems. 18 13� 20 2I 22 2� 24 25 26 27 28 29 30 31 32 33 34 Response: The League supports an adequate state funding source for the upgrades and modifications of 911 and related systems that will allow cities to provide effective, reliabte emergency communications services. Personnel, Pensions, Labor Relations & Data Practices Personnel, Pensions & Labor Relations Issue: Many state laws increase the cost of providing city services to residents by requiring city governments to provide certain levels of compensation or benefits to public employees, by specifying certain working conditions, or by limiting city governments' ability to effectively manage their personnel resources. For instance, existing state laws limit governments' ability to effectively address incompetence or misconduct of city employees specifying certain procedures to be followed or standards of conduct. 35 Response: The state government should refrain from passing laws that regulate 36 fhe pubiic sector workpiace, and shouid repeat or modify problematic existing laws and 37 regulations to encourage full local accountability. 38 39 40 41 42 43 44 The League of Minnesota Cities proposes the following initiatives and reforms: PP-2. Veterans' Preference • The Legislature should conduct a study of Minnesota's veYerans' preference law to determine its effectiveness and efficiency in light of today's employment laws, RF7 t statutes, and regulations. Minnesota's veterans' preference protections were created 2 at the turn of the 19`� Century. These protections were designed to assist veteran 3 employees at a time when Minnesota's and the federal government's labor and a personnel laws were in their infancy. It is likely the Legislature wili find parts of the 5 law will need modemization. � PP-2. Discipline and Discharge s 9 • Veterans' Preference. The state shouid modify veterans' preference and civil service l0 laws that restrict the ability of local governments to effectively discipline public 1 t employees. The Legislature should amend the law to: 12 13 • remove the right to multiple, duplicative disciplinary proceedings; 14 • limit any back-pay ctaims to a maximam of $100,000; t5 • limit the period in which to request a hearing to 14 days (from the current 60 �6 days); 17 . • exclude probationary period employees from veterans preference termination 18 law protections; 19 : • require parties to select their hearing panel representative within 10 days after 20 < notice has been given to the employer that the veteran employee is seeking a 2t � veterans' preference hearing;and 22 • require the panel to hear the petition within 30 days after the third panel 23 �� represenEative is selected and issue a decision within 30 days foIlowing the 24 hearing. 25 _ z6 = PP-3. Compensation limits z� 2s • The state should acknowledge that all local governments, not just schools districts, 29 must be competitive in recruiting and retaining upper level management employees. 30 Therefore, the state should repeal laws limiting the compensation of a person 3 t employed by a statutory or home rule charter city to the governor's salary. If repeal 32 is not possible, the limit should be amended to be based upon the governor's total 33 compensation level. 34 3s PP-4. PELRA 36 3� • The state should modify the definition of public employee under PELRA by 38 removing the existing 14-hour / 67 day requirement and replace it with a definition 39 in which employees must work more than an annual average of 20 hours per week. 4o Temporary or seasonal employees shouid not be included in this definition. 41 • The state should change public sector bargaining laws to require arbitrators to 42 adhere to the pay equity law with regard to consideration of internal class 43 comparisons. 44 c71 00 -y �' � PP-5. Essential Employees i 3 • Cities must balance the health, welfare, and safety of the public with the costs to 4 taxpayers. Therefore, the Legislature should carefully examine requests from 5 interest groups seeking essential employee status under iVIN Stat� §179A (PELRA). 6 The League opposes legislation that mandates arbitration that increases costs and � removes local decision-making authority. 9 PP-6. Pensions to 11 • The state should revise public employee pension laws to facilitate consolidation of t2 local pension plans. 13 • The state should study initiatives to reform and make uniform pension plans for 14 local government employees without increasing public employer contribution levels is or causing the public employer contribufion levei to exceed the confribution Ievel t6 required from employees. 17 • The state should adjust the eligibility thresholds for public pensions to reflect t8e inflation, adopt a process for automatic future adjustments, and limit eligibility for 19 defined benefit plans to employees working an average of at least 20 hours per week. 20 Current members of de�ned benefit plans who do not meet the new eligibilify 2t � threshold should be allowed to contiar�e participation in the plan until they have a z2 �.- break in service and full-time elected officials should remain eligible for defined 23 � benefit pians. 24 • The League opposes special legislation for individual employee pension benefit 2S increases unless they are initiated and approved by the city council of the impacted 26 city. 27 • The state should carefully scrutinize the proposal to increase maximum benefits for 28 volunteer firefighter pension plans to ensure that the higher benefits appropriately 29 compare to the benefits of full-time city employees and are necessary to attract and 3o retain qualified firefighters. 31 3z PP-7. Age Certificates / I-9 Forms 33 34 • The federal I-9 form requires employers and employees to report the same 35 information required by Minnesota's age certificate. The state should repeal MN 36 Stat. §181A.06 and endorse the federal I-9 form to verify age information, and 37 eliminate redundancy for employers and employees when reporting information. 38 s9 PP-8. Employer Reference Immunity ao 41 • The Legislature shonld enact legislation that provides limited immunity to cities 42 when giving accurate written disclosure of information regarding employment 43 related references. This legislation should not undermine the immuttity found in the aa Data Practices Act. 37 i PP-9. State Paid Police and Fire Medical Insurance 3 • The state should fully fund programs that pay for health insurance for police and 4 fire employees required under MN Stat §299A.465, as amended in 1997, for police 5 and fire employees hurt or killed in the line of duty. 6 • The Legislature should clarify whether MN Sta� §299A.465 applies to injuries 7 incurred prior to June 1,1997 (the effective date of the law). 8- • The Legislature should clarify the amount of an employer's contribution under NIN 9 Stat. §299A.465 and whether it changes over time. lo 1 i PP-10. Breathalyzers 12 13 • MN Stat. §181.950-.957 should be amended to permit the use of breathalyzers as an 14 acceptable technolog,y for determining alcohol use. Currently, breathalyzer use is i5 permitted under federal and state commercial drivers' laws. 16 x t� PP-11. Preservation of Local Decision-Making Authority on Employment ts 19 's°- 20 2t 22 < 23 24 `• Related Issues • The League supports local decision-making authority; and opposes legislation intended to interfere in local decisions. PP-12. Drug and Alcohol Rehabilitation 25 ' Issue: [3nder MN Stat. § 181.953, subd. 10(b), an employer cannot temunate an 26 ` employee for a positive controlled substance test without first providing the employee a 27 chance for rehabilitation and treatment. Recently, some cities have been advised that this law 28 applies to "probationazy" employees as well as permanent employees. 29 3o Response: The League supports a legislative change to clarify that the state law on 3 t drug and alcohol rehabilitation and treatment does not apply to probationary 32 employees. 33 34 35 36 37 Data Practices DP-1. Public Access to Information 38 Issue: As a result of 19991egislation, cities (and other state and local units of 39 aovernment) are required to establish policies and make cleaz to the public procedures for ao obtaining access to data classi£ed as govemment public data. 41 42 Respo�ue: These requiremenu musc accord locat officials flexibiliry to establish policies and 43 procedures that reflect the availabiliry of resources and existing forma[s in which informafion is maintained and, 44 organized. � oo-ya- i DP-2. State Model Policies and Training z 3 Issue: The 1949 I.egislature provided funding and directed the Department of 4 Administration to provide model policies and training assistance to cities in complying with 5 the Govemment Data Practices Act (GDPA). 6 7 Response: The Legislature must continue to fully fund the on-going costs of 8 GPDA compliance training and education because there are limited resources at the 9 local level. The Legislature should also require that local officials be directly involved 10 in the development and implementation of training activities. 11 �z DP-3. Tennessen Warning 13 14 15 16 17 18'� ]9 20 . 21'" 22 23 24 zs 26 Issue: The 1998 Information Policy Task Force recommended changes to existing statutory requirements regarding local governmenT responsibility to give employees notice of circumstances in which they may be required to provide information that may be pertinent to subsequent disciplinary or management decisions that affect them. Changes enacted in '99 addressed only a portion of the issues facing local government employers. Response: The Legislature shoufd Iimit compliance with nofice requirement to initial hiring procedures. The initial hiring notice will cover subsequent disciplinary or other personnel-related actions that are likely to adversely affect the individual's employment status. DP-4. Government Data Practices Act Recodi�cation and Conformance 27 Issue: The 1998 Information Policy Task Force recommended that the Legislature 28 Eliminate statutes inconsistent with the nomenclature and philosophy of the Government Data 29 Practices Act (GDPA); however, the '99 Legislature did not act on tkose recommendations. 30 3� Response: The Legislature should examine statutes inconsistent with the 32 Government Data Practices Act and require the input of local government before 33 eliminating or modifying provisions to conform to state information policy. 34 35 DP-5. Alternative Dispute Resolution for Violations of Government Data 36 Practices Act 37 38 Issue: In some circumstances, locaI government compliance with [he Govemment 39 Data Practices Act is hampered by feazs of punitive legal action against public employees 40 responsible for respondina to requests for information while also proTecting data classified as 41 private or non-public. 42 43 Response: The Legislature should limit current damage award requirements for 44 willful violations of the GDPA. Public employees and employers should be encouraged a5 but not limited to using alternative dispute resolution in resotving such disputes. m 39 i DP-6. GDPA Compliance in Contracting z 3 Issue: The '99 I.egislature imposed requirements on the private sector to comply with 4 the Govemment Data Practices Act when under conuact. Despite assurances Yo the contratv. 5 testimony in support of these new requirements generally supported imposing these 6 obiigations whenever government contracts with the private sector to provide public services. 7 8, Response: The Legislature should clarify that the '99 changes in GDPA 9. requirements for access to public government data pertain solely to the contract product l0 '. delivered by the private sector. 11 ►z DP-7. Acquisition of Electronic Surveiilance Devices 13 14 Issue: The '98 Informadon Policy Task Force recommended that cities (and other 15 local units of govemment) be required to report to the State when acquiring electronic devices 16 that improve the capacity to conduct surveiilance — other than for compelling public safety 17 18 19 20 ; 21 ;_, 22 '>. 23 '= reasons. Respw:se: The Legislature should require the involvement of local units of government in the development of recommendations for modifying current state policy. IN ADDITION TO THESE STATE REFORMS AND INITIATIVES, za THE LEAGUE SUPPORTS TAE FOLLOWING POLICIES REGARDING zs � 26 =< 27 28 FEDERAL EMPLOYMENT LAW: FED-1. FLSA/Overtime Compensation 29 • The Fair Labor Standards Act (FLSA) was de5igned for private employer - employee 3o relations. Government employees were exempt for over 100 years. Through a series 31 of court decisions, this statute is now applied to tocal governments. The exception 32 for state and local government employees should be reinstated by statute. 3s . FED-2. Peace Officer Bill of Rights 34 35 • Congress should oppose a federal peace officer bill of rights because it will only 36 compound the difficutties with internal investigations, locai enforcement and 37 diminish local accountability. 38 39 40 41 42 43 4a 45 FED-3. Portability of Deferred Compensation • Public sector employees are increasingly changing jobs between the public and private sectors. Congress shouid enact legislation that would permit tax deferred rollovers between public andlor private deferred campensation plans to improve the portability of funds. 40 �i I• � Electric Deregulation 3 Inhoduclion: Cities have a strong interest in the pablic policy debate about electric 4 restructuring or deregulation. Minnesota already enjoys some of the lowest average electric 5 rates in the nation. The case has yet to be made that deregulation will result in either lower 6 rates or improved service for consumers. 8 Issue: For many decades, electric service to Minnesota citizens has been delivered 9 through a combination of investor-owned utilities (IOUs), municipal utilities, and rural l0 electric cooperatives. This system has served Minnesota we�l, delivering reliable, universal i I service at rates among the lowest in the country. 12 13 In recent yeazs, many have begun to promote "deregulation" or "restructuring" of the 14 industry, meaning that electric service would no longer be a franchised monopoly. A number 15 of states, primarily those with high electric rates, have taken steps to move toward such t6 restructuring. In most of these cases, transmission and distribution remain regulated, with I� retail competition atlowed for generation source. ts 19 20;:' 21"` 22 _ 23_ 24�` 25 Advocates of restructuring argue that such competition will lead to lower rates. However, estimates by the federal Energy Information Agency* are that while the upper Midwest, including Minnesota, will experience slightly lower rates in the short-term, longer- term rates may actually be higher under deregulation. Concerns have also been expressed as to whether residential customers, and those in rural and other hazder-to-serve areas will actually experience decreased retiability and increased rates. z6 Local elected officials have the primary responsibility to the citizens of their cities to 27 make certain restructuring that allows retail competition is as beneficial to the citizens as zs it is to the industry. Beneficial to the citizen means that all Minnesotans experience the same 29 reliable, high-quality, universal, and low-cost service they experience under the current system 30 of electric power delivery. 31 32 City residents have a strong interest in the outcome of this important public poIicy 33 debate. Cities are substantial consumers of electric power. Over 180 cities have 10 percent or 34 more of thezr property tax base in electric industry property, while others collect franchise fees 35 and/or sales taxes on electric purchases within their boundaries. Citizens in 126 Minnesota 36 communities currently receive economical electric service from municipal utiliCies, which 37 make payments-in-lieu of taxes to help support city services. Significant increases in the cost 38 of electric power for city operations or losses of these traditional sources of revenue will result 39 in property tax increases. 40 41 a2 43 44 45 Itesponse: The federal government should aot mandate restructuriag; the decision should be left to the sYates. * EIA is the nonpartisan reseazch azm of the U.S. Department of Energy 41 1 The Legislature shoutd follaw a slow, deliberative approach, taking time to 2 consider how alternative models for delivering etectric power wiil affect the state's 3 traditional benefifs of reliable, universal, high-quality and low-cost service. The public 4 policy discussion should be focused on actual benefits to citizens, rather than on s ideological arguments, stakeholder interests, and over-reliance on simplistic objectives 6 like "consumer choice:' Those advocating a change should bear the burden of proof to 7 demonstrate that restructuring and deregulation will, at a minimum, maintain s Minnesota's high-quality, low-cost, and reliable service. Only when that burden of 9- proof has been met should restructuring occur. io °� 11 - The following pubiic policy goals should be incorporated into any legislation 12 restructuring the electric industry: 13 ia Adequate Suppiy and Demand is 16 t7 IS 19 20 = 21 � 22 The states's current generation and transmission capacity is inadequate to meet projected future needs. No new significanc capacity has been built since the 1980's (Sherco 3). Current regulatory and other governmental policies serve as a disincentive to meet customer demand. The state should review and amend these policies as necessary to encourage development of adequate capacity and reliability. Consumer Protection 23 2a :. Consumer interests must continue to be protected, especially for the most 25 ;, vulnerable populations. Reliable service must be universally available and programs 26 ` such as cotd-weather shut-off rules shouid be continued either as requirements for all 27 market participants or as separate state programs. 28 �. z9 Environmental Concerns 30 3 t The environment must be adequately protected, with conservation and renewable 32 energy efforts maintained. The federal government must review the appropriateness of 33 current environmental regulations and their effect in a deregulated market; for 34 example, exemptions from the Clean Air Act for some generation facilities. 35 35 37 38 39 40 Fair Market Competition To ensure fair market competition, the federal and state govemments must have the authority to review mergers to prevent abuse of market power. at Cities must remain viabie competitors in the electric market Municipal utilities a2 must be granted exemptions from rules like the open meeting law and data practices 43 requirements where they hamper the ability to effectively compete with private aa companies. To ensure adequate service to every citizen, cities and other local 45 governments must maintain their ability to issue tax-exempt bonds for construction of a2 Oo —�1 �— 1 electric infrastructure, and be given explicit authority to aggregate or municipalize 2 provision of electriciLy. a Local Authority 6 Cities must maintain their traditional authority over land use, zoning, rights of 7 way management and cost recovery, as well as the ability to franchise providers and to 8 receive payments-in-lieu of taxes from municipal utilities. Cities' authority to negotiate 9 siting fees and agreements for proposed generating facilities should be enhanced. l0 To avoid unnecessary demand for the limited space in public rights of way, open i� access to transmission and distribution facilities should be maintained through 12 regulation. 13 la As the electric market is opened to interstate competition, the federal government � 5 must preserve the application of Minnesota's state and local sales taxes to the sale of i6 electricity, regardless of the place of origin. t7 ia Stranded Cost Recovery 19 20 Issue: Regulated utilities have traditionally made operating decisions based on needs 21 of consumers within their service territories. Many decisions, therefore, have been based 22 more on need than on economics. In the transition from a regulated to a restruc±ured 23 competitive environment, electric generators' investments in fixed assets and other obligations 24 may or may not remain as economicaily viable. Estimates of these "stranded costs" vary 25 greatly, wi[h some indicating no stranded costs or possibly even negative stranded costs 26 resulting from increased prices after deregulation in Minnesota. 27 28 Response: If regulatory actions have contributed to investment by existing 29 regulated utilities that are not economically viable in a competitive market, and if 30 restructuring occurs, the League supports transition mechanisms that will allow utilities 31 to collect revenues for those particular stranded costs. However, these charges must be 32 carefully monitored to ensure that only eligible and verif�able costs are covered and that 33 over-collections do not occur. Taxpayers and ratepayers should not be expected to cover 34 the cost of investments that were made for business reasons, apart from the requirement 35 to serve under the regulated system. 36 37 If negative stranded costs for the regulated utility as a whole can be established, 38 and are solely the result of transition to a restructured environment, these regulated 39 utilities should be required to contribnte some limited percentage of established amounts ao to offset tax breaks given to these utilities as a result of restructuring. 41 az Property Tax 43 44 Issue: Part of the discussion regazding possible deregulation of the electric power 45 industry has centered on electric utility taxation. Proponents of deregulation assert that if 46 effective free market competition is to replace governmental regulation, state tax policy must 43 t be changed. The main focus of the Investor Owned Utilities (IOUs) so far has been removal 2 of the attached machinery or personal property tax. Utilities subject to the tax azgue it places 3 them at a competitive disadvan[age to non-Minnesota companies, rural electric cooperatives 4 (co-ops), and municipals. However, accurate comparisons of tax burden aze difficult, as other 5 states use completely different ta�cing systems. Additionally, co-ops and municipals do pay 6 direct taYes on some of their property and indirecUy when they purchase wholesale power 7 from sources that aze taxed, such as IOUs. Municipa[s make substantial paymenu-in-lieu of s taxes. t0 Utility personal property can be a significant portion of [he local talc base in all cifies. 1 t Most obviously affected are cities that have power plants; however, transmission and t2 distribution equipment account for over half of the personal property taxes paid by the IOUs 13 and exist in neazly every city. Replacing the revenue that would be lost to cities, counties, t4 school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the 15 mechanics and funding sources of such a replacement revenue would be difficult to develop 16 and administer, and could be subject to reductions or elimination over time. Furthermore, 17 replacement revenues or aids may not fully address the problems created by a large tax base 18 reductio�. 19 20 Response: Cities oppose proposals for exempting the IOUs from the personal 21 properfy tax, apart from the decision to restructure the electric industry in Minnesota. z2 23 If and when deregulation occurs, a truly independent review of the overall talt 24 burden should be conducted to detecmine whether Minnesota utilities are at a 25 competitive disadvantage. If an overall tax disadvantage is identified, the state should 26 correct it. Under no circumstances should local units of government or their citizens be z� required to shoulder the burden of tax relief for IOUs. � ORIGINAL Presented By Referred To Committee: Date i WF�REAS, the League of Minnesota Cities, which represents 811 of z Minnesota's 856 cities, as well as 10 urban towns and special districts, has led the s coordination of inember cities in the development of the 1999 City Policies for a Legislarive and Adininistrarive Acrion which identifies issues as priorities for action s during the 19991egislative session; and 6 � WHEREAS, the City of Saint Pau1 was an active participant in this coordinated s effort and the City approves generally of these prioriries. 9 io NOW, THEREFORE, BE IT RESOLVED that the Saint Paul City Council does ii hereby recommend for consideration by the Minnesota State Legislature, 2000 City i2 Policies for Legislative and Administrarive action, submitted by the League of Minnesota ia Ciries and does hereby request that these issues be addressed by the Legislature during ia the 2000 session. is 16 Requested by Department of: Adopted by Council: Date �0� Adoption Certified by Council Secretary B � � -� - Approved by Ma Date � By: /�/��/ �%%�/ Council File # 0�-�-(a. Green Sheet # �O'.3 O e1y RESOLUTION CITY OF SAINT PAUL, MINNESOTA �'3 By: Form Approved by City Attorney sy: li/�lI'� IN • /C� t �/' Approved by Mayor for Submission to Council By: ��(�-�i�i%C(! Mayor Goleman's Office Bill Huepenbecker (266-8517) dUST 8E ON WUPICILAGQJCN BY @47� a�w�� 1/12/2000 Rourw� oxuee TOTAL # OF SIGNATURE PAGES GREEN SHEET iumumn oE...r�rowcnrae 00 - �-1 �-- No 103024 � arv�nauEV ❑ arvncuc _ ❑ wo�rytaExxc�so�t ❑ n+�weew.amui�tttro o W��,�,� ❑ (CLJP ALL LOCATIONS FOR SIGNATURE) City Council approval of the League of Minnesota Cities 2000 City Policies for Legislative and Administrative Action. PLANNING CAMMISSION ' CIB CAMMfTTEE 'CNIL SERVICE COMMISSION Has mis persoMrtn ever w«kea unaer a comract torNis EH��eMT YFS Pl0 tias N's peisaruA�m ever heen a ary empbyee? VES NO Dces Mi6 P��m poseess a Sltlll nOt namaliYP�� bY anY artMR cilY emPbYee? YES NQ Is N� µveauTirm a ta�peted �endofl � YES NO Saint Paul is an active member of the League of Cities and a participant in the effort to develop the League's legislative policies. AN7AGESIFAPPROVED The City shows support for the League of Minnesota Cities, an association we work closely with on many issues at the Legislature and throughout the year. ADVANTAGESIFAPPROVED None ADVANTAGESIFNOTAPPROVED fALAMOUNT OFTRANSAC710Nf iDING SOURCE W C W. INFORMqT10N (IXP W I� CASTRtEVENUE BUDfiEfm (qRCLE ON� VEE NO ACt1VPfVNUMBER - _ - -�-�'. . " - - . �0�� i3�v L.a4'��¢O� 00 -�-1 � V J W •� �� . *..� U c� � 0 � � � � .,..., � � O 4� � � c� 4� � I�MC Txague nJMirsnaxata ('�tiev Cilies yromotina escel%�se Pro osed p 2000 Cit Policies � for legislative and administrative action League of Minnesota Cities 145 UniversityAvenue West St. Paul, MN 55103-2044 (651) 281-1200 (800) 925-1122 Fax (651) 281-1299 www.lmnc.org � 0 1999 L eague of Minnesota C,'ities Research Founc�ation � riehts reservea Printea in t�e United ,States o� An�terica I�MC 7,engue /MhmesntnCitiaF Cr'tias promoting asceN¢nca League o� Minnesota Cities 145 U niversity �lvenue �est St. Paul, MN 55103-2044 (651) 281-1200 (800) 925-1122 Fax (65I) 281-1299 TDD (651) 281-1290 www.lmnc.or� po -4 a- I�MC Laaguc uf M;�arsntu Ctties Cities aromof+na escn/�eace October 22, 1999 Dear League Members: 145 jTniversityAvenue West, St. Paul, MI�I 55103-2044 Pkone: (651) 281-1200 � (800) 925-1122 Fax: (651) 281-1299 � TDD (651) 281-1290 Web Site: Iittp://www.lmnc.org I am pleased to submit the accompanying draft 2000 L.egislative Policies for your consideration. These policies were developed by more than 200 city officials serving on the Lzague's policy committees and their respective policy task forces. For those of you who served on a task force or policy committee, I wouid like to thank you for your time and efforts. The hazd work and input of city officials is the necessary foundation for developing and implementing a successful legislative agenda for the League of Minnesota Cities and its members. Eor those who could not participate in the policy committee process, your input in the I,eague's policy development process is still crucial. The I,eague needs your review of the attached draft 2000 Legislative Policies and the proposed resolutions. Please plan to attend the LMC Policy Adoption Conference on November 19 at the Radisson Hotel South, Bloomington. If you cannot attend the conference and have concerns or suggestions, please contact any member of the Intergovernmental Relations staff at the League. On behalf of the Board of Directors and League staff, please accept my sincere thanks for your contribution to this most important process. Sincerely, Susan Aoyt League President Administrator, City of Falcon Heights L:igr documents/2000 PAC PresidenPs let[er AN EOUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER CONTENTS Letterfrom the League President General Policy Statement ................................. I.eague Staff ........--•-••• ..................................... Legislative Policy Comtnittee Members .......... Policy Development Process ............................ Statement of Intent ........................................... .................................. .................................. ............... .................... ................................... ................................... 2000 CITY POLICIES flti-y� ............. iv ............. v .............. vi .............. ix .............. x Advisory Committee on Improving Community Life Policy Guideline ... ImprovingFiscal Futures ................................................................................... FF-1. FF-2. FF-3. FF-4. FF-5. FF-6. FF-7. FF-8. FF-9. FF-10. FF-11. FF-12. FF-13. FF-14. FF-15. FF-16. FF-17. State-Local Fiscal Relations .................................................................................. State Shazed Kevenues ......................................................................................... Taxation of Municipal Bond Interest ................................................................... City Fiscal Year .................................................................................................... Sales Tax on Local Government Purchases ......................................................... Payments for Services to Tax-Exempt Property .................................................. Truth-in-Taxation ................................................................................................. State Administrative Deductions from State Aid ................................................. Reporting Requirements ........................................................................................ Federal Budget Cutbacks ....................................................................................... Priceof Government ............................................................................................. Capital Improvement Fees ..................................................................................... Deferred Assessments for Roads .......................................................................... Taxation of Electronic Commerce ....................................................................... LocalOption Sales Tax ........................................................................................ Limited Market V alue ........................................................................................... State Chazges for Administrative Services ........................................................... 1 E 3 4 4 4 5 5 5 5 6 6 6 6 7 7 7 8 8 Improving Local Economies ................................................................................ 9 LE-1. LE-2. LE-3. LE-4. LE-5. LE-6. LE-7. LE-8. LE-9. LE-10. LE-11. LE-12. Tax Incement Financing ....................................................................................... 9 TIF Reform ...........................................................�---............................................ 9 Impact of Property Tax Reform on Existing TIF Districts ................................... 10 Business Subsidies ............................................................................................... 10 Economic Development Programs ....................................................................... 11 Redevelopment Programs ..................................................................................... 11 Property Tax Abatement Authority ....................................................................... 11 Brownfields .......................................................................................................... 12 OSAResponse Timelines ...................................................................................... 12 OSA Time Limitations .......................................................................................... 13 Growth Management and Annexation ................................................................. 13 State and/or County Licensed Residential Facilities ............................................. 14 LE-13. I.E-14. LE-15. I,E-16. I,E-17. LE-18. LE-19. LE-20. LE-2I. LE-22. LE-23. LE-24. LE-25. LE-26. LE-27. LE-28. Housing and Economic Viabitity .......................................................................... IS Housing Preservation ............................................................................................ 15 Ciry Role in Tetecommunications ......................................................................... 16 Adeguate Funding for Transportation ................................................................... 16 State Aid for Urban Road Systems ........................................................................ 17 Turnbacks of County and State Roads .................................................................. 17 Road Funding for Cities Under 5,000 ................................................................... 17 Railroad-Related Projects ..................................................................................... 18 Access Management & Plat Approval .................................................................. 18 Rightof Way Management .................................................................................. 19 Effective TeIecommunications Competition ......................................................... 19 Local Zoning of Telecommunications Facilities ................................................... 19 Workforce Readiness ............................................................................................ 20 Platting Law Recodification .................................................................................. 20 Economic Development Authorities ..................................................................... 20 Infrastructure Funding Options ............................................................................. 21 Improving Service Delivery ................................................................................. 21 SD-l. SD-2. SD-3. SD-4. SD-5. SD-6. SD-7. SD-8. SD-9. SD-10. SD-11. SD-12. SD-13. SD-14. SD-15. SD-16. SD-17. SD-18. SD-19. SD-20. SD-21. SD-22. SD-23. SD-24. SD-25. SD-26. SD-27. SD-Z8. SD-29. Redesigning and Reinventing Government .......................................................... 21 UnfundedMandates ............................................................................................. 22 Civil Liability of L.ocal Governments .................................................................. 22 Environmental Protection ............................:........................................................ 23 ElectionIssues ...................................................................................................... 24 Local Election Authority ....................................................................................... 24 City Costs for Enforcing State and Local Laws ................................................... 25 Access to Information Technology and Services ................................................. 25 Design-Build ......................................................................................................... 25 Providing Information to Citizens ......................................................................... 26 Creating a Minnesota GIS Program ..................................................................... 26 State Regulation of Massage Therapists ............................................................... 26 Private Property Rights and Takings ..................................................................... 27 ConstructionCodes ............................................................................................... 28 Feesfor Service .................................................................................................... 28 Board of Firefighter Training ............................................................................... 29 WitnessFees ......................................................................................................... 29 State Appropriation for Govemment Training Service ........................................ 30 Year2000 Issues ................................................................................................... 30 New Public Safety Spectrum Needs ...................................................................... 30 7oint & Several Liability Reform .......................................................................... 31 Official Newspaper Designation ........................................................................... 32 CompetitiveBid Threshold .................................................................................. 32 Membership in Watershed Management Organizations ....................................... 32 I.egalization of Fireworks ..................................................................................... 33 Blection Judge Appointment ................................................................................. 33 Election Judge Compensation ............................................................................... 33 CountingWrite-in Votes ....................................................................................... 33 TelecommunicaTions Restructaring ....................................................................... 34 ll oo-y�- SD-30. 911 Funding ............. Personnel, Pensions, Labor ReIations & Data Practices ..... Personnel, Pensions & Labor Relations PP-1. Veterans' Preference ................................................................................... PP-2. Discipiine and Discharge ............................................................................ PP -3. Compensation Limits ................................................................................, PP -4. PELRA ...................................................................................................... PP -5. Essential Employees .................................................................................. PP-6. Pensions ..................................................................................................... PP-7. Age Certificates / I-9 Forms ...................................................................... PP-8. Employer Reference Immunity ................................................................. PP-9. State Paid Police and Fire Medical Insurance ........................................... PP -10. Breathalyzers ............................................................................................. PP-11. Preservation of Local Decision-Making Authority on Employment Related Issues ............................................................................................ PP-12. Drug and Alcohol Rehabilitation .............................................................. Data Practices �P-1. Public Access to Information .................................................................... DP-2. State Model Policies and Training ............................................................ �P-3. Tennessen Warning ................................................................................... DP-4. Government Data Practices Act Recodification and Conformance .......... DP-5. Alternative Dispute Resolution for Violations of Government �. DataPracticesAct ..................................................................................... DP-6 GDPA Compliance for Contracting .......................................................... DP-7. Acquisition of Electronic Surveillance Devices ........................................ Federal Employme�at Law FED-1. FLSA/Overtime Compensation .............. FED-2. Peace Officer Bill of Rights ................... FED-3. Portability of Deferred Compensation ... Electric Deregulation....... Adequate Supply and Demand ......................... Consumer Protection ........................................ Environmental Concems .................................. Fair Market Competition .................................. Local Authority ................................................ Stranded Recovery Cost ................................... Property ..................................................... 35 ... 35 ......... 35 ......... 36 ......... 36 ......... 36 ......... 37 ......... 37 ......... 37 ......... 37 ......... 38 ......... 38 � ........... 38 ........... 39 ........... 39 ........... 39 ...... 39 ...... 40 ...... 40 ...... 40 ...... 40 ...... 40 ...... 41 ............................ ............................ ............................. ............................. .............. .............. .............. ......... 42 ......... 42 ......... 42 ......... 42 ......... 43 ......... 43 ......... 43 iii ao-4� General Policy Statement The I.eague of Minnesota Cities serves as a forum for cities to define common probletns and develop policies and proposals to solve those problems. The Izague of Minnesota Cities represents 815 of Minnesota s 853 cities as well as 12 urban towns and 27 special districts. All sizes of communities are represented among the L.eague's members (the lazgest nonmember city has a population of 167) and all regions of the state are represented. The policies that follow aze directed at specific city issues. Two principles guide the development of all League policies: There is a need for a governmental system that allows flexibility and authority for cities to meet the challenges of governing and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and, 2. The financiai and technical requirements for governing and providing services necessitate a continuing and strengthened partnership with federal, state, and local governments. This partnership, pazticularly in the areas of finance, development, housing, environment and transportation, is critical for the successful operation of Minnesota s cities and the well-being of residents. iv LEAGUE STAFF WORKING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications Gary Carlson, Director of Intergovernmental Relations Aid to cities, electric utility restructuring, general revenue sources for cities, personnel, property tax system, tax increment financing, transportation Kevin Frazell, Director of Member Services Government innovation and cooperation, electric utility restrncturing Tom Grundhoefer, General Counsel General municipal governance, telecommunications 'Ann Higgins, Intergovernmentai Relations Representative Elections and ethics, housing, information policy, telecommunications, utility ` service districts, year 2000 `Andrea Stearns, Intergovernmental Relations Representative Civil liability and criminal justice, economic development and redevelopment, general government, localltribal relations, tax increment financing Remi Stone, Intergovernmental Relations Representative Civil liability, environment, general government, housing and building codes, labor relations, land use/annexation, personnel, transportarion and transit Eric Willette, Intergovernmental Relations Representative Aid to cities, general revenue sources for cities, pensions, property tax system, public safety po -4 ?- Legislative Policy Committee Members Improving Fiscal Futures Dan Vogt, Chair, City Administrator, Brainerd Tem Heaton, Vice Chair, Chief Financial Officer, Bloomington Richazd Abraham, City Adminisuator, Lake City Karen Anderson, Mayor, Minnetonka Bil! Barnhart, Intergovernmental Relations, Minneapolis Tom Burt, City Administrator, Rosemount Gino Businaro, Finance Director, Mound Gerald Butcher, Public Works Director, Maple Grove Mike Campbell, Intergovernmental Relations Director, St. Paul Jane Chambers, Assistant Ciry Manager, Brooklyn Center Tom Cran, Budget Office, Sc Paul 7ohn Erar, City Adminis[rator, Farmington Jerrcy Faust, Councilmember, St. Anthony $ob Fitson, Ciry Administrator, Worthington Roger Fraser, City Manager, Blaine Jeff Haubrich, Assistant Council Adminstrator, Red W ing Steve Helget, City Administrator, Eagle I.ake Pat Hentges, City Manager, Mankato Greg Isaackson, Cieck-Administrator, Cottonwood Joel Jamnik, City Attorney, Lindstrom Larry Juhl, Mayor, New London Elizabeth Kautz, Mayor, Burnsville James Keinath, City Administrator, Circle Pines Dennis Kraft, City Manager, Robbinsdale Bob Larson, City Administrator, Deephaven Tom Lawell, City Administrator, Apple Vatley Joe Lynch, City Administrator, Long Lake Paul McLaughlin, Councilmember, Internationa] Falls Tom Melena, City Administrator, Oak Park Heights Steve Mielke, City Manager, Hopkins David Minke, Ciry Administrator, Glenwood John Moir, Finance Director, Minneapolis Gary Neumann, Assistant Administrator, Rochester Steve O'Malley, Deputy Manager, Burnsville (alternate) Steve Okins, Finance Director, Willmaz Ro�er Peterson, Association of Metropolitan Municipalities Dou�las Reeder, City Administrator, South St. Paul Ryan Schroeder, City Administrator, Cottage Grove Alfred Schumann, Mayor, Eyota Jennifer Schwinn, Finance Director, Big Lake Jim Smith, Councilmember, Independence Gerald Sorenson, Administrative Services Direcmr, Moorhead David Smtelberg, Treasurer, North Branch Joy Tierney, Mayor, Plymouth David Mark Urbia, City Administrator, Blue Earth Gene VanOverbeke, Finance Director, Eagan Chuck Whiting, City Administrator, Mounds View Iim Wil]is, City Administrator, Inver Grove Heights Rick Wotfs[eller, City Administrator, Monticello Improving Local Economies Duane Zaun, Chair, Mayor, Lakeville Leo W. Eldred, Vice Chair, Councilmember, Moorhead David Beaudet, Councilmember, Oak Park Heights Robert Benke, Mayor, New Brighton Steve Bjork, City PlannedCoordinator, St. Francis Carolyn Blonigan, City Clerk, Avon Curt Boganey, City Manager, Brooklyn Park Jerry Bohnsack, City Administrator, New Prague Lavonne Bowman, Councilmember, Fairmont Gerald Brever, City Administrator, Staples Mike Campbell, Intergovermental Relations Director, SL Paul Kevin Carroll, Economic Development Coordinator, Mounds View David Childs, City Manager, Minnetonka Grant Fernelius, Housing Coordinator, Fridley 7ohn Flora, Public Works Direc[or, Fridley Keith Ford, Community Development Agency, Minneapolis Matt Fulton, City Manager, New Brighton Richard Fursman, City Adminiscrator, Andover Tom Goodwin, Councilmember, Apple Valley Mary Gover, Councilmember, St. Peter Robert Aaeussinger, City Administrator, Dodge Center Tom Harmening, Community Development Director, St. Louis Pazk Jon Hohenstein, City Administrator, Mahtomedi Susan Hoyt, Ciry Administrator, Falcon Aeights Curtis Jacobsen, City Administrator, Big Lake Brenda 7ohnson, Councilmember, Chatfield Marvin Johnson, Mayo, Independence Andrea Hart Kajer, Intergovernmental Relations Direcror, Minneapolis (alternate) Sandra Krebsbach, Councilmember, Mendota Helghts Larry Lee, Community Development Director, Bloomington Marcia Marcoux, Councilmember, Rochester Michae] McGuire, City Manager, Maplewood Peter Meintsma, Mayor, Crystal Mark Nagel, City Manager, Anoka Dennis Nelson, City Administrator, Windom Steve O'Malley, Deputy Manager, Burnsville David Olson, Communi[y Development Director, Fazmington Bruce Peterson, Director Planning & Development Services, Willmar vl Roger Peterson, Association of Metropolitan Muncipaliries Gene Ranieri, Associatiou of Mevopolitan Municipalities Mike Reardon, Cable Administraror, Burnsville Dan Rogness, Community Development Director, Rosemount Joe Rudberg, City Administrator, Becker Nancy Rys-Nicol, Management Assistant, Shoreview Mazk Sather, City Manager, White Beaz Lake David Schaaf, Mayor, Oak Pazk Heighu Terty Schneider, Councilmember, Minnetonka Tecry Spaeth, Administrarive Assistant, Rochester Kim Sullivan, Mayor, Lino L.akes Daniel Tempel, FIousing Coordinator, Maple Grove Robea Therres, City AdminisVaror, Sartell Craia Waldron. Ciry Administrator, Oakdale Jeff Weldon, Ciry Administra[or, Redwood Falls 7ulia Whaten, Councilmember, Champlin Myron White, PoR Authoriry Director, Red Wing Denny Wi(de, Ciry Adminisuator, Paynesville Betty Zachmann, Clerk-Treasurer, Winsted Improving Service Delivery Mark Karnowski, Chair, City Administrator, Lindstrom Judd Mowry, Councilmember, Tonka Bay Beverly Aplikowski, Councilmember, Arden Hilts Mike Campbell, Intergovernmental Relations Director, S[. Paul Diane Carlson, Mayor, Mantorville Pat Crawford, Clerk-Treasurer, Motley 7erry Dulgar, City Manager, Crystal Steve Gatlin, Public Works Director, Coon Rapids Theresa Goble, Finance Director, Brainerd Tom Hansen, Deputy Manager, Burnsville Soel Hanson, City Administrator, LitUe Canada Kay Kuhlmann, Council Administrator, Red Wing Desyl Peterson, City Attorney, Minnetonak Gene Ranieri, Association of Metropotitan Municipalities David Schaaf, Mayor, Oak Park Heigh[s David Senjem, Councilmember, Rochester Chad Shryock, City Administrator, Wabasha Joyce Twistol, Clerk/Personnel Direcror, Blaine Karen Lowery Wagner, Intergovernmental Relations, Minneapolis Rena Weber, C(erk/Coordinator, Cold Spring Phil Zietlow, Councilmember, Medina Personnet, Pensions, Labor Relations & Data Practices Joyce Twistot, Chair, Clerk/Personnel Director, Blaine Geralyn Bazone, Assis[ant City Manager, Minnetonka Patricia Crawford, Clerk, Motley Holly Duffy, Assistant to Managec, Crystal Jerry Dulgar, City Manager, Crystal Christina Frankenfield, Ciry Administrator, Howazd Lake Jean Gramling, City Administrator, Savage Terry Aaltiner, Risk Analyst, SL Paul Ken Hartung, City Administrator, Bayport Kay Kuhlmann, Council Administcator, Red Wing Kazen Kurt, Personnel Manager, Roseville Ed Lazson, City Manager, Morris Kay McA]oney, Personnel Direc[or, Anoka Tim Madigan, City Administrator, Fazibault Ceil Smith, Assistant to Manager, Edina Jerry Splin[er, City Manager, Coon Rapids Elizabeth Wheeler, Human Resources/Risk Manager, Northfield Huold Windschitl, Councilmember, Sleepy Eye Electric Deregulation Task Force Kathleen Sheran, Chair, Councilmember, Mankato Bryan Adams, General Manager, Elk River Municipal Utilities Jim Asplund; FlaheRy & Associates, St Paul Karen Baker, House Reseazch Larry Bakken, Counci(member, Go(den Valley Mike Bash, Councilmember, Long Lake David Berg, RW Beck, Minneapo]is Troy Bonkowske, Community Development Director, Caledonia Jim Brimeyer, Councilmember, St. Louis Pazk Chuck Canfield, Mayor, Roches[er AI Crowser, Director, Alexandria Public Utilities Jim Elmquist, City Adminisuator, Mora Robert Filson, City Administrator, Worthington Paul Grabitske, Ciry Administrator, Janesvilie James Gromberg, City Administator, Isanti Delvin Haag, Councilmember, Buffalo Ken Hartung, City Administrator, Bayport Jeffry Haubrich, Asst. to Council Administrator, Red Wing Richazd Johnson, Metropolitan Councit Elizabeth Kautz, Mayor, Burnsvitle Mazk Lazson, Clerk-Administrator, Glencoe Rebecca Law, Minneapolis Pam Marshall, Energy Cents Coalition Kevin Maynud, General Manager, Aus[in Utilities Charles Mertensotto, Mayor, Mendota Heights Robert Museus, City Adminishator, Hugo Mazk Nagel, City Manage[, Anoka Mike Nitchals, General Manager, Willmar Municipal Utiliues Paui Ostrow, Councilmember, Minneapolis V31 oo-W� Greg Oxiey, MN Municipal Ufilities Assceiarion Sohn Remkus, Finance Director, West St Paul Joe Rudberg, City Administrator, Becker Mazk Sather, Ciry Manager, White Bear L.ake Jerry Splinter, City Manager, Coon Rapids Jim Willis, City Administrator, Inver Grove Heights Representative Ken Wolf, Minnesota House of Representatives Wally Wysopal, City Mananer-Clerk, North St. Paul viii . League of Minnesota Cities Policy Deve[opment Process The League's policy development process has taken place over the past six months. The process began with a member survey of priority issues facing city officials. The process will not end with the Policy Adoption Conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop altemative solutions, and discuss sttategies to implement the I.eague's policies. Listed_below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. ApriVMay June The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. The I.eague President accepts apptications for committees and appoints poticy committee members. The policy committees aze: Improving Fiscal Futures Improving I.ocal Economies Improving Service Delivery Personnel, Pensions, Labor Relations & Data Practices Electric Deregulation J�ly Committees meet to discuss issues raised in the member survey. Committees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August Committees and task forces meet to discuss issues and problems, accept through testimany and develop policy statements. September October The League Board of Directors meets with the chairs of the policy committees to review policies. November Policy Adoption Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for member consideration. January Legislative session. During the session, the policy committees and task forces through will continue to meet on issues and strategies. Members can assist the League's May legislative efforts by volunteering to contact legislators on a variety of issues of interest to our cities. ix i� ■ � Statement of Intent There aze many issues affecting the effectiveness of city govemment to improve community life, improve the fiscal future and service delivery of city govemment, and improve the local economy. What follows aze statements of the issues facing cities and the League of Minnesota Cities' proposed responses to these issues. These statements of issues and proposed responses form the policy of the L.eague of Minnesota Cities. Additional and alternative responses to those issues may be proposed after the Policy Adoption Conference, and the members of the League authorize its Boazd of Directors to consider and support additional or alternative responses, if necessary, to resolve the issues identified in this policy statement. x od-N a- Proposed 2000 City Policies po -H2— i z 3 4 5 6 7 8 9 10 11 12 13 ia 15 16 17 18 IMPROVIlVG COMMUIVITY LIFE CL-1. Healthy Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance> not diminish, the ability of citizens, businesses, and locai govemments to work together in partnership to make every community "livable." ISSUE: Cities in Minnesota are at vazious stages in meeting the goal of being "livable healthy communities." RESPONSE: The definition of a"livable heaithy community" beiow will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota cities to become livable healthy communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable healthy . communities. i9 ;; A LIVABLE HEALTHY COMMUNITY IS: zo ,= zi �: WHERE PEOPLE OF ALL AGES zz ' 23 • share a core of common values including valuing diversity, respect for each other, and 24 , good citizenship 25'� 26 • feel: 27 * safe 28 * a sense of belonging 29 * welcome 30 31 • engage in life-long learning activities that: 32 * promote responsible citizenship 33 * enhance the enjoyment of life 34 * prepare them for changing job mazkets 35 36 • participate in the decision-making process with community leaders 37 38 39 40 �41 • celebrate community • want to make their home a2 • have access to: 43 * good paying jobs aa * adequate and affordable housing t t 2 3 4 5 6 7 • 8 9 • 10 tt • 12 t3 • 14 IS * choice of efficient transportation systems including transit, pedestrians, and bicycles * gathering piaces * desired information * choice of cultural and recreational activities * affordable goods and services, including health caze aze involved in the nurturing of youth care about their homes, community, and the environment get to know each other have the benefit of strong family suppoR and nurturing adults i6 WHERE LOCAL GOVERNMENT �� _ 18 y= • 19 . 20 ;: • 21 ' 22 � • 23 �� 24 �. • 25 � 26 • 27 28 29 • 30 3l � 32 33 34 . � is responsive to the needs of its citizens is actively supported by enthusiastic volunteers is open and user friendly encourages and implements cooperation and collaboration provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs educates citizens of all ages on local, regional, and state issues and govemment processes informs and communicates with citizens to foster participation in public policy decision- making participates in youth development Pa � o _ �{ �a- i IMPROVING FISCAL FUTURES 3 FF-1. State-Local Fiscal Relations 5 Issue: Minnesota's state and local govemment finance system is complex and intertwined. 6 While cities rely on their partnership with the state to provide local services, they also must 7 respond to the needs and desires of their residents. To that end, cities need discretion and 8 flexibility in deternuning how to finance needed local services. l0 In each of the past three yeazs, the legislatures made changes to Minnesota's property tax 11 system that will impact the ability of local governments to fund necessary services. The 12 reimposition of levy limits, significant class rate compression, and changes in state funding of 13 schools al1 may have unintended consequences. Now the Governor has initiated a study of the 14 property tax system with the intention of proposing additional major property tax reforms in IS 2001. 16 �7:� Response: As the Governor and legislators consider additional property tax changes, i&=; they should: 19 20 21 22 23� 24 25:' 26 z7 2s 29 30 31 32 33 • Careful{y analyze the combined impacts of the 1997,1998, and 1999 tax bills and changing economic circumstances on the taxpayer and on local governments so that Qolicy makers can better understand where the system may need further changes; • Diversify available city revenue sources by generally authorizing cities to impose a local option sales tax with voter approval; and • Reduce the property tax burden for ali classes of property by increasing the state share of school funding. Any increase in the state share of school funding must guarantee a permanent reduction in the local property tax burden. The League supports paying for the increased state costs through income and sales taxes. The Legislature should not: • Extend levy limits, which are inefficient, ineffective, interfere with local accountability, and ignore local circumstances; 34 • Impose reverse referenda requirements, which undermine the decisions of local 35 elected officials, divert focus and resources from daily operations, and can disrupt 36 the local budget process; 37 • Replace all or part of LGA or HACA with state-mandated categorical aid programs, 38 or local option taxing authority; 39 • Switch from the classification system to a market value based system, which would ao cause tremendous shifts of tax burden between classes of property. The League aiso 41 opposes applying all future levy increases to market value because this would further az complicate the property tax system; a3 • Expand the limited market value law or enact an acquisition value law; 44 • Interfere in local decision-making regarding service delivery; a5 • Impose a state-levied property tax; nor i � Cut LGA or HACA to finance an increased state role in school finance. 2 3 FF-2. State Shared Revenues 5 Issue: State revenue sharing programs address at least three problems with a stand-alone 6 local government finance system. First, the properry tax base available to communities can 7 vary dramatically. These programs use state resources to equalize the 8 ability of communities to provide essential services without undue properry tax burdens for 9 local residents. l0 11 Second, nonresidents can take advantage of local services or create additional demands for 12 services without contributing to the taxes that support these services. LGA and HACA help t3 address the free rider problem where nonpaying individuals consume services without 14 contributing to the local tax base. IS 16 Third, ailowing local units of government in Minnesota to only levy the property taac has 17 > created an over-reliance on the property taJC. LGA and HACA can reduce the overall reliance is � of local governments on the property tax. t9 � 20 '- Although historically the legislature has generally supported LGA and HACA programs, 21 �''. the 1981 legislature reduced the number of LGA and HACA payments and the 1986 22 ,. legislature delayed the payments. Under cuirent law, the first payment of LGA and HACA is 23 '-: made in July—fully 7 months into each city's fiscal year. These chaages have crea[ed cash 24 '= flow problems for some cities. 2S � 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4d 41 42 43 44 45 46 Response: LGA and HACA, or similar replacement revenues, must be continued and additional state resources greater than the rate of inflation must be allocated to prevent rapid future property tax increases. In addition, the HACA household growth factor for cities should be reinstated. The legislature should adjust the LGA and HACA payment schedule to provide cities access to LGA and HACA earlier in their fiscal year. FF-3. Taxafion of MunicipaI Bond Interest Issue: The state law that grants a[ax exemption for municipai bond interest lowers borrowing costs for cities and reduces property tax levies. Response: The state should maintain the tax exemption for municipal bond interest income. FF-4. City Fiscal Year Issue: The fiscal yeaz for cities and counties currently corresponds to ihe property tax C3+C10. 4 Pj p _4'2r 1 Response: The state shouid maintain current law and not change the city fiscal year 2 to coincide with the state fiscal year. a FF-5. Sales T� on Local Government Purchases 6 Issue: In 1992 when the state was experiencing a budget shortfall, the I,egislature 7 repealed the sales tax exemption for local government purchases. Local govemments now 8 pay state sales tax on purchases like road maintenance suppiies and equipment, wastewater 9 treatment facilities, and building materials for affordable housing. This action currendy costs t0 local property taxpayers and ratepayers an estimated $90 million annually. Because no 11 additional state aids were added to offset the additional cost, this repeal has effectively t2 increased locai property taxes to finance state operations. 13 �a Response: The state should reinstate the sales tax exemption for all local government 15 purchases. The exemption must not be coupled with cuts in LGA or HACA. 16 t� FF-6. Payments for Services to Tax-Exempt Property i s �� 19 ' Issue: Taxable property in many cities is being acquired by nonprofit and government zo': entities. Converting the property to tax-exempt status can lead to a serious tax base erosion 2 t' without any corresponding reduction in the service needs created by the property. 22 23 " Response: Cities should be allowed to collect special assessments or other payments za in lieu of property taxes (or special assessments) from statuYorily exempt property 25 owners to cover costs of service. 26; z� ' FF-7. Truth-in-Taxation Process as 29 Issue: Cities must set a preliminary levy by September 15 which, by law, becomes the 30 maximum that cities can levy for the following year. In recent years, cities have not received 3 t complete tax base and aid information in a timely manner. As a result, cities often either set a 32 preliminary levy that is artificially high or they are unable to budget for unforeseen needs that 33 azise after September 15. 34 35 36 37 38 39 ao 41 42 43 44 as 46 Response: The League supports changes to the Trnth-in-Taxation process to provide more meaningful information to citizens. Cities shouid have the authority to increase the final levy from the preliminary levy to meet unforeseen and uncontrollable needs. FF-S. State Administrative Deductions from State Aid Issue: State administrative costs aze deducted from the LGA appropriation. This reduces the property tax relief provided by LGA and creates hidden appropriations for state agencies. Response: All appropriations from LGA resources that fund state operations should be repealed. i FF-9. Reporting Requirements 2 3 Issue: Budget and financial reporting requirements imposed on cities by the state often 4 result in duplication and additional costs. 6 Response: Requirements for reporting and advertising financial and budget 7 information sfiould be carefully weighed to bafance the vatidity of the state's need for 8 additional information with the costs and burdens of compiling and submitting this 9 information. In addition, all state agencies should be aware of fhe information a[ready lo required by others to avoid duplication of reporting requirements. �1 iz t3 14 15 16 FF-10. Federal Budget Cutbacks Issue: Congressional actions to balance the federal budget or to cut taaces will reduce federal assistance to the state and to local govemments. 17 Response: The state should not reduce aids or increase fees to local governments as a 18 �< means for dealing with cutbacks in federal revenues. The state should take 19 20 21< 22� 23` 24 $ zs 26 � 27 responsibility for reductions in federal revenues rather than placing the burden on cities and their property taspayers. FF-21. Price of Government Issue: The price of govemment legistation enacted in 1944 was intended to measure the overail effect of state and locai taxation over a long period of time. The tazgets measure govemment revenues as a percent of personal income. Unfortunately, the targets have been misinterpreted and used unfairly to criticize city tax and budget decisions. 28 29 Response: The price of government statutes as they apply to local governments 3o should be repealed. If the price of government law is to continue to be applied to local 3 t governments, price of government calculations should be: 32 33 • based on the sum of levy and state aid, not just levy; and 34 • based on long trends, not single events. 35 36 FF-12. Ca�ital Improvement Fees 37 38 Issue: New development and the resulting growth create an increased demand for public 39 infraswcture and other public facilities. Severe constraints on local fiscal resources and 40 dramatic forecasts for population growth have prompted cities to critically reconsider ways to 4 t pay for the inevitable costs associated with new development. Traditional financing methods 42 tend to subsidize new development at the expense of the existing community, discourage 43 sound land use planning, place inefficient pressures on public facilities, and allow a4 underutilization of e�cisting infrastructure. .Consequently, local communities are exploring a5 methods to ensure that new development pays its fair share of the true costs of growth. Given 46 the existing authorization to impose fees on new development for water, sanitary and storm do_y� t sewer, and park purposes, it is reasonabie to extend the concept to additional public 2 infrastructure and facilities improvement also necessitated by new development. 3 4 Response: The Legislature should authorize cities to impose capital improvement 5 fees so new development pays its fair share of the off-site, as well as the on-site, costs of 6 public infrastructure and other public facilities needed to adequately serve new 7 development 9 FF-13. Deferred Assessments for Roads io i i Issue: Current law allows a city to recoup the costs for water, storm sewer, or sanitary 12 sewer improvements by levying additional assessments on the property benefiting from the 13 improvement, but not previously assessed. This authority for defened assessment has not 14 been extended to other infrastructure, such as road improvements, even though properties aze IS benefiting from the improvements. 16 t7 - 18'�` 19' zo- 21' 22: 23 24 < 25_� 26 �' 27 28 Response: Cities should be able to assess the cost of infrastructure improvements for roads. Cities should be allowed to defer assessments against property located outside the city for road improvements benefiting property abutting the improvement but not previousiy assessed for the improvement. For example, if a city makes road improvements to a road that benefits city residents and township residents, the city may defer the assessments to the township groperty until the property is brought into the city. Once the township property is brought into the city, the city may assess that newly acquired property for road improvements previously done but not assessed at the time of the improvements. FF-14. Taxation of Electronic Commerce 29 Issue: Sales over the Internet and through other electronic means are projected to increase 3o exponentially over the next several years. Because of the difficulty of assigning a location to 31 electronic sales, because many Internet "goods" are not tangible property, and due to potential 32 federal intervention, electronic transactions pose significant tax policy challenges. 33 34 Response: Federai tax policy must not put main street businesses at a competitive 35 disadvantage to electronic retailers, must not jeopardize repayment of bonds backed by 36 state and local sales tax revenues, and should ensure stability in state and local revenues. 37 38 39 40 41 42 43 44 45 FF-15. Locai Option Sales Taxes Issue: Last yeaz, the Legislature authorized local sales taxes to fund regional projects in two greater Minnesota regional centers. Most Minnesota cities would benefit from diversification of the revenue sources available to them to relieve the local property taac burden. i Response: The Legislature should generally authorize local sales taaces for cities upon 2 local approval. a FF-16. Limited Market Value 6 Issue: Rapidly rising property values in some paRS of the state have fueled legislative 7 proposals to expand the current limited mazket value law. One proposal would establish the 8 consumer price index as the macimum annual mazket value increase and extend the limit to all 9 classes of property. 10 11 12 13 14 15 16 17 . 18 � 19 20 . 2t : 22 *<. 23 .� 24 ": 25 - _, 26 - 27 28 29 �Further restricting market value increases would have several negative consequences: • It wouYd unfairly shift taxes from properties experiencing growth in value onto all other properties. • Over the long-term, similar properties would be ta�ced at widely different rates merely due to when the properties were last sold. • It could discourage the sale of property because sales would retum the property to fuil mazket value for tax purposes. • It would discourage improvements to propeRy, which would trigger a return to full mazket value for ta�c purposes. This could lead to degradation of housing and other types of property. • It could adversely affect the ability of cities to bond for infrastructure improvements or for tax increment financing since local tax bases would not reflect the growth in property values. • Once implemented, limited mazket value provisions are politically di�cult to sunset due to the potential for lazge one-year tax shifts onto properties whose values were artificially capped by the program. Resporzse: The League opposes any expansion of the limited market value law. 30 si FF-17. State Charges for Administrative Services 32 33 Issue: Currently, some state agencies have wide discretion in setting the fees for special 34 services they provide to local govemments. For example, the Minnesota Department of 35 Revenue recently increased the fee for administering local sales taxes by 80 percent in the 36 middle of a budget yeaz with less. than six weeks notice. The increase had no apparent 37 relationship to increased cost of providing the service. 38 39 ao 41 42 43 44 45 Response: State agencies should be required to demonstrate the need for increases in service fees, and should give adequate notice of increases to allow local governments to budget for the i�creases. State agencies should set administrative service fees as ciose as possible to the marginal cost of providing the service. Local government should be given the option to self-administer or contract with the private sector for the service if the state cannot provide the service at a reasonable cost p o -�I a- i IMPROVING LOCAL ECONONIIES s LE-1. Tax Increment Financing (TIF) 5 Issue: The state has effectively delegated the responsibility for economic development 6 and redevelopment to cities. Unfortunately, neighboring states have given their cities more 7 development taols and, therefore, cities in these states have a competitive advantage over 8 Minnesota cities. In Minnesota, tax increment financing is the most viable tooi available to 9 ali cities in their economic development and redevelopment efforts. Additionally, tax 10 increment allows cities to address the changing needs of their evolving communities. The 11 sta[e, whether based on a lack of information or misinformation, has been critical of cities' use 12 of the tool and has implemented a series of restrictions over the past several years, rather than 13 partnering with cities and encouraging their endeavors to improve and enhance the economic t4 well-being of Minnesota and the growth and redevelopment of its cities. Critics often claim 15 that TIF is overused. Some of these critics have proposed TIF freezes or caps. This view fails 16 , to recognize the benefits received by counties and school districts, as well as cities, upon 17 �;- district expiration while only cities are required to assume [he financial risks associated with 18 '` development decisions. Cities have used tax increment financing responsibly and exampies of t9 20'�' 21 ' 22 23 24 �. ,- 25 2b 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4I these positive uses abound. Respo�tse: To effectively compete with other states, Minnesota must provide its cities greater flexibility in the use of tax increment financing and other economic development programs. The atate should partner with cities in economic development and redevelopment activities, and encourage cities' use of tax increment in achieving the laudable goals of lona-term tax base stabilization and growth, job creation, development of low-to-moderate income housing, remediation of pollution, elimination of blight, recycling and redevelopment of the infrastructure, and redevelopment of its communities. The League opposes proposats for TIF freezes or caps. Counties and school districts are appropriately involved in cities' development decisions through current "review and commenY' requirements and should recognize the benefits they receive, without assuming any of the risk, due to cities' prudent uses of TIF. LE-2. TIF Reform Issue: It is likely that proposals to reform the tax increment financing laws will continue to be identified and debated during upcoming legislative sessions. Respo�:se: As part of any TIF reform debates, the Legislature should consider: • Authorizing any tax increment districts approved after April 1,1990, to pool increments in the same manner as districts certi6ed prior to Apri11,1990; 42 • In light of levy limits, eliminating the LGA/HACA penalty currently imposed on a3 districts or allow an exception from levy limits. If the penalty is not eliminated, the 44 restrictions on the source of payment should be removed; 45 • Expanding the use of tax increment financing to assist in the development of 1 technological infrastructure, workforce readiness, transit-oriented development, the 2 restoration of historic structures, and for nonretail commercial projects (e.g., 3 software companies, banks, and insurance companies); 4 • Exempting redevelopment districts from the "fve year rule"; 5 � Modifying the housing district income qualification level requirements to allow the 6 levels to vary according to those specific to individua[ communities; 7 • Authorizing the use of federal grants and other funds for local contributions; s • Removing the LGA/HACA penalty imposed on housing districts established between 9 the penalty years of 1990 and 1993; to • Making any necessary statutory changes to allow the Office of the State Auditor to i i simplify its TIF reporting forms in consultation with those required to complete the 12 forms; and 13 • Authorizing TIF financial information to be published in a more simplifed format so t4 it provides the average taxpayer with useful information. t5 i6 LE-3. Impact of Property Tax Reform on Existing TIF Districts i� is t 19 � ZO t: 21 <. �;� 22 :: 23 ; z4 %.. 25 a a 26 -; 27 28 29 . 30 31 32 33 -. 34 35 36 37 Issue: The 1997, 1998, and 1999 Legislatures have compressed property tax class rates which, in turn, has jeopardized the repayment of outstanding debt or other obligations in existing TIF districts. Given the long-term nature of property ta�c reform, cities could not have anticipated the impact of these class rate changes, nor can cities project the impact of future changes. The Legislature has recogniz,ed their responsibility for the impacts of their actions by creating a TIF grant program to address situations where the class rate changes cause TIF district deficits. The TIF grant program, currendy funded at $6 miliion and scheduled to expire in 2002, is likely to be insufficient to cover every deficit. Some of the worst deficit situations may not surface for a number of yeazs. Additional pooling and special ta�cing district authority might be useful in certain cities but aze only partial solutions. Response: The Legislature should provide additional state resources to the TIF grant program and extend the program indefinitely so that TIF obligations can be met and third party bondholders are protected if the TIF grant program is insufficient to cover deficits caused by the 1997 through 1999 class rate changes. The Legislature shouid also explore additional options to address deficits such as district duration extensions and eliminating or adjusting the original tax capacity rates. LE-4. Business Subsidies 38 Issue: Cities support the concepts of public notice, participation, and accountability in the 39 use of public funds contained in the business subsidies legislation enacted in 1999. However, 40 some azeas of the new law need cluification and modification. 41 42 43 44 45 46 Response: The Legislature should clarify and modify the 6usiness subsidies law so that effective implementation is achieved. For example, cities that do not award any business subsidies in a given year should not, be required to submit reports. F[�] � _ i LE-5. Economic Development Programs 3 Issue: The Minnesota Investment Fund is not adequately funded. Local govemments do 4 not have an adequate slate of tools to assist job creation, redevelop blight and decay, and 5 provide adequate housing choices. Consequently, cities are not weil equipped to compete 6 nationally and intemationally for business development. 8 Response: 9 i0 • More state resources should continue to be contributed to the Minnesota Investment il 12 l3 14 Fund. • Congress should remove the caps that have been placed on Industrial Development Bonds and acknowledge that the extensive eligibility requirements now adequately limit their use. 15 �6 LE-6. Redevelopment Programs 17' 18 ' 19;-;.., 20 -� 21= 22 `` 23 24 =' 25 26` 27 28 29 30 31 32 33 34 35 36 Issue: Communities across Minnesota are faced with the unique circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and down[owns and a lack of land for development. Redevelopment activities. usuatly require large, up-front funds to address multi-phase projects of extensive duration where site assemblage, demolition, relocation, or pollution clean up must occur before private-sectorinterest can be generated. Additionally, deterioration threatens historic structures in cities across the state. While the redevelopment account administered by the Department of Trade and Economic Development is a critical component in establishing a coherent statewide policy for redevelopment, cities do not have sufficient tools to utilize in local historic preservation efforts. Respo�zse: In recognition of the unique needs of redevetopment projects, the state should continue its commitment to reinvest in its communities by increasing and committing to permanent base budget funding for the redevelopment account administered by the Department of Trade and Economic Development._ Additionally, as part of a comprehensive approach to redevelopment needs, the Legislature should consider the state income tax credit legislation pursued by the Preservation Alliance of Minnesota, TIF subdistricts, and other tax incentives for local historic preservation efforks. s� LE-7. Property Tax Abatement Authority 38 39 Issue: In an effort to increase the number of development tools available, the 1997 4o Legislature authorized local units of government to grant property tax abatements. Although 41 TIF continues to be the primary financing mechanism for local development projects, tax 42 abatements provide a good addition to a needed list of economic development tools. In order 43 to provide maximum benefits, tax abatements shouid be less restrictive in terms of funding 44 caps and financing terms. Property tax abatements shouid not be considered a replacement for 45 tax increment financing. 46 11 t Response: TIF is still the primary viable development tool available for cities. 2 Abatement authority should continue to be available, but not offered as a rationale to 3 eliminate TIF. s LE-8. Brownfields 7 Issue: Brownfields aze lands unsuitable for development due to the presence of chemical 8 or other contaminants. Brownfields are a major cause of blight within communities across the 9 state through loss of local talc base, jobs, housing quality, public safety, and community t0 confidence. Revitalizing this land is costly and requires the cooperation of ciry, county, 11 school, regional, state, and federal governments and the assistance of local economic 12 development organizations and citizens. As we move into an era where the mass creation of 13 jobs is a necessity and where increased tax base is a requirement for local govemments to t4 adequately face growing financial pressures, efforts to revitalize brownfields must not only t5 continue but be accelerated in the upcoming years. Currently, $7 million exists in the 16 Department of Trade and Economic DevelopmenYs (DTED) base for the contaminated site 17 4 clean-up fund. Additionally, $6.2 million is appropriated annually from the Petrofund to 18 � DTED to clean up sites which contain at least some petroleum-related contamination. 19 20 21 22 23 ' 24 =_ 25 - 26'�:. 27 � Response: A comprehensive set of economic development programs must be maintained for cities and other development agencies. The Legislature should: •. Increase funding for the Department of Trade and Economic DevelopmenYs contaminated site clean-up fund and redevelopment account; • Strengthen enforcement and collection of revenues for the state contamination tax; • Continue support for and funding of local and regional programs to assist in the efforts to remediate brownfields; 28 • Establish a fully-funded program to allow cities and other development authorities 29 , to gain control of and reclaim and revitalize brownfields; 30 • Protect existing tax increment financing provisions that provide for the remediation 3 t of brownfields, and modify restrictions to allow the pooling of district revenues to 3z assist in the financing of remediation of brownfields; 33 • Establish an indemnification fund to provide financial security for institutions and 34 individuals as they invest in efforts to recycle brownfields in order to leverage 35 private investment in cities' efforts to increase their tax base and create jobs; and 36 • Continue financing mechanisms for cleaning contaminated sites. 37 ss LE-9 OSA Response Timelines 39 4o Issue: The Office of the State Auditor (OSA) is responsible for TIF oversight. As 41 part of their review of TIF districts, they identify alleged violations of the TIF laws and issue 42 non-compliance notices to TIF authorities. After responding to these non-compliance notices a3 within the required 60-day period, authorities often do not receive timely responses on the 4a matter from the OSA. Additionally,'1'� authorities are often unclear about the final 45 disposition of the matter upon receipt of a final non-compliance notice. LC] tz aa-y� 1 Response: In the event that the OSA determines to issue a final non-compliance 2 notice to a TIF authority, the Legislature should require the OSA to issue the notice 3 within 60 days of receiving the authority's response. Any final non-compliance notice a should contain the OSA's final position on the matter, the date upon which they forward 5 the matter to the county attomey, and the next steps that are required to be taken 6 according to state law. Upon expiration of the 60-day period, the authority should be 7 deemed to be in compliance with the TIF laws if no final non-compliance notice is 8 received. io LE-10 OSA Time Limitations it 12 13 14 15 16 17 18� 19 � 20 : 21 22 ` 23 24 ;. z5 � 26 "' 27 28 29 30 Issue: The Office of the State Auditor (OSA) has the authority to issue non- compliance notices for every existing TIF district in the state for alleged violations of the'I'IF laws going all the way back to the inception of the district. Accordingly, TIF authorities can receive non-compliance notices for aileged violations that occurred twenty or more yeazs ago. Often, s[aff and record-keeping procedures have changed and TIF authorities find it exceedingiy difficult to reconstruct the past in order to identify and remedy these situations. Similarly, the OSA ciaims the authority, based on the state's records retention schedule, to audit TIF dis2ricts for up to ten years after decertification which requires cities to expend staff resources to maintain files and a working knowledge of old districts for an unreasonable period of time. Respo�zse: A reasonable timeframe within which alleged violations are identified should be established. The Legisiature should restrict the OSA's ability to issue non- compliance notices to the six-year period prior to the notice's issuance date. The Legislature should also require the OSA to conduct any audits on decertified districts within one year of decertification. LE-11. Growth Management and Annexation 31 Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, 32 and governmental impact for cities, counties, and state governments because it increases the 33 cost of providing govemment services, and results in the loss of natural resource azeas and 34 prime agricultural land. 35 36 37 38 39 40 41 42 43 44 45 46 Response: The League believes the existing framework for guiding growth and development primarily through local plans and controls adopted by local governments should form the basis of a statewide planning poticy, and that the state should not adopt a mandatory comprehensive statewide planning process. Rather, the state should: • Provide additional financiai and technical assistance to local governments for cooperative planning and growth management issues, particularly where new comprehensive plans have been mandated by the Legislature; • Clearly establish the public purposes served by existing statewide controls such as shoreland zoning and wetlands conservation; clarify, simplify, and streamline these controls; eliminate duplication in their administration; and, fully defend and hold 13 1 harmless any Iocal government sued for a"taking" as a result of executing state 2 land use policies; 3 • Give cities broader authority to extend their zoning, subdivision, and other land use a controls up to two miles outside the city's boundaries, regardless of the existence of 5 county or township controLs, to ensure conformance with city facilities and services; 6 • Cleariy define and differentiate between urban and rural development and restrict 7 urban growth outside city boundaries; 8 • 9 to 11 iz 13 ]4 • IS I6 17 18 '' 19 '' 20 ' 2I .,. 22 - 23 24 25 -> 26 � 27 28 , 29 , 30 31 32 :- 33 , 34 35 36 Require the Metropolitan Council to seek cooperation from the state of Wisconsin and counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure responsible and controlled development; study expansion of Metropolitan Council authority in surrounding counties; and, examine the positive and negative impacts of mandatory regional or local (and use controls and state-imposed development standards; Facilitate the annexation of urban land to cities by amending state statutes that regulate annexation to make it easier for cities to annex developed or developing land within unincorporated areas; Oppose legislation that would reinstate the election requirement in contested annexations; and Encourage ideas consistent with the long-term goal of atlowing urban development only in urban areas. Density incentives such as sprawl reduction aid programs are more straightforward methods of rewarding and encouraging compacf urban development than using LGA or HACA for another new purpose. LE -12. State and/or County Licensed Residential Facilities (group homes) Issue: As the need for more residential-based caze facilities increases, sufficient funding is also needed to ensure residents living in group homes and licensed facilities have appropriate caze and supervision. In view of cities' responsibilities to accommodate group homes and residential-based facilities, it is important that state and county govemment work with local officials to address residential caze and public safety issues. Cities have reasonable concerns for speciai caze necessary for group home residents, particulazly in case of public safety emergencies. Since operators of certain residential facilities and services are not required to notify cities when they intend to purchase housing for group homes, cities do not have opportunity to raise concerns and reguirements regazding the special caze and public safety measures these residences may expect. 37 Response: The Legislature should provide sufficient funding for such residential- ss based services and require state and county agencies that manage those facilitxes or 39 companies licensed to operate group homes to notify cities in a timely manner when 40 licensed facility operators request to operate such facilities or to renew their license and 41 allow cities to require such agencies and licensed operators to identify and Yake 42 appropriate measures to respond to the special care residents need in case of a3 emergencies. Legislation should also require establishment of nonconcentration 4a standards for state or county-issued requests for.proposals (RFPs) and direction to a5 avoid clustering residential facilities. Licensing authorities must also be responsible for la �0-�1�- removing any residents incapable of living in such an environment, particularly if they become a danger to themselves or others. a LE -13. Housing and Economic Vitality 5 6 Issue: City officials increasingiy recognize that housing shortages threaten strong 7 neighborhoods, healthy communities, and local economic vitality. Decreased federal housing 8 assistance and insufficient state resources for housing production place statewide economic 9 expansion at risk. Changes in social services and family support, along with welfaze-to-work 10 requirements, make it pazamount for the Legislature to re-allocate state resources to � t strengthen family stability, improve workforce availability, and improve children's school 12 performance. 13 14 Response: The Legislature must maintain state investment in housing production, at 15 least doubling the current biennial housing budget, to help leverage private and local 16 resources as well as federal funds. The Legislature should continue to make additional 17 investment outside the metropolitan area for production of single-family housing 18 �� affordable to working families, along with affordable rental units. In the metropolitan t9 :r area, investing over the next biennium to carry out the goals of the Livable Communities 20 a- Act will help meet the needs of many households in which working adults must now 21 �. travel long distances to get to work. 2z - zs LE-14. Housing Preservation za 25 = Issue: Loss of federally-assisted housing in communities throughout the state remains a 26 serious threat to the well being of older city residents as well as other vulnerable populations. 27 Few cities have sufficient local resources to purchase or provide equity take-out loans to 28 owners of subsidized rental units who are considering mortgage prepayment and conversion 29 to mazket-rate rentals for properties originally built [o provide housing for low-income 30 residents. 3t Cities and neighborhood organization community development projects sometimes require 32 demolition of substandard housing, which can compound housing shortages and displace 33 occupants. 34 35 Response: The Legislature must continue to appropriate for preservation of 36 federally-subsidized housing throughout the state to provide additional resources for the 37 Minnesota Housing Finance Agency and community-based nonprofit housing 38 orgaaizations to buy units or make equity take-out loans to property owners in return 39 for maintaining rents affordable to tow-income residents and agreeing to maintain the a0 federally subsidize�' mortgage to term. 41 42 The Legislature should also continue to provide incentives to lower housing 43 construction costs and selting prices to encourage local government, builders, 44 developers, housing agencies, and organizations to address housing design and 45 construction costs, land use regulation, and other factors that could reduce housing a6 development costs. 15 i LE-15. City Role in Telecommunications 3 Issue: As cities seek the benefits of informadon technology, they face a number of 4 critical issues, particulazly availabiliry and competition for providing advanced community- 5 based telecommunications services. Cities recognize the importance of providing these 6 services for education, health care, business, and residents in their homes and work places. 7 8 Cities also play an integral role in the emergence of local competition, the zoning of 9 wireless communications facilities, and preserving cable operator support for public, l0 education, and govemment (PEG) access and institutional networks (I-Nets), and upholding I I federal requirements to treat all providers in a neutral and nondiscriminatory manner. t2 t3 Response: State and federal government should encourage cities and t4 telecommunications service providers to collaborate to take advantage of planning t5 opportunities for the development of telecommunications infrastructure and services to t6 strengthen local and regional economies. Federal and state government must also 17 strengthen city authority to: 18 � t9 • Provide telecommunications services either in partnership with other public entities, zo the private sector, or as a sole provider; 21 _• Grant additional cable TV franchises to provide the benefits of competition to zz =- subscribers; - 23 -:= • Require all multichannel providers of video programming services that use public 24 _` rights of way to comply with local PEG access and I-Net requirements; 25 _= • Exercise effecfive local zoning controls over the siting of wireless communications 26 �� facilities; and 27 • Reserve spectrum for cities to make increased use o£ wireless communications. 28 �. 29 , LE-16. Adequate Funding for Transportation so 31 Issue: Current funding for roads and transit systems across all govemment levels in the 32 state is not adequate. The League acknowledges that ali Minnesota communities benefit from 33 a sound and adequately funded transportation system. 34 35 ' Response: More resources must be dedicated to the state's fransportation system. 36 The League supports constifutionally dedicating a portion of the sales tax on motor 3� vehicles (also referred to as MVET) or other new revenue sources to a transportation 38 fund, which would it:nd bofh highway and transit projects. The Leagae also supports 39 an increase in the gas tax that would 6e dedicated under the existing highway user trust 40 fund formula. Vehicle registration taxes (known as tab fees) should not be reduced ai unless replacement revenues are constitutionally dedicated to the highway user trust a2 futtd. If funding does not come from the state, cities should have funding options 43 available to them to raise the necessary dollars to adequately fund roads and transit. 44 16 bo-yti- 1 All nontransportaYion programs should be funded Yrom sources other than the 2 highway user distribution fund or other funds dedicated to transportation, 3 a LE-17. State Aid for Urban Road Systems 6 Issue: Current rules governing municipal state aid expenditures are restricting the 7 efficient use of these funds, and do not adequately acknowledge the constraints of road 8 systems in urban city environmenYS. l0 Response: Rules affecting the municipal state aid system need to be changed to 1 t acknowledge the technical and practical restrictions on construction and reconstruction iz of urban road systems. New municipa( sfate aid design standards should not apply to 13 reconstruction of existing state aid streets originally constructed under different ta standards. Future changes to state aid rules should ensure the involvement of elected 15 officials and engineering professionals in the decision-making process. 16 »;� LE-18. Turnbacks of County and State Roads i a �: 14 � Issue: As road funding becomes increasingly inadequate, more roads are being "turned 2o back" to cities from counties and the state. 21 22 � 23 " 24 ' 25 26 ' 27 zs 29 30 31 32 Response: Turnbacks should not occur without direct funding or transfer of a funding source. A process of negotiation and mediation should govern the timiag, funding, and condition of turned-back roads. City taxpayers should receive the same treatment as township taxpayers. The requirement for a public hearing, standards abouY the conditeons of Yurnbacks, and temporary maintenance funding should also apply to county turnbacks to cities. At a minimum, roads proposed to be turned back to a lower government level should be brought up to the standards of the receiving government or should be compensated with a direct payment. Direct funding should be provided for smaller cities that are not provided with turnbac[c financing through the municipal state aid system. s3 LE-19. Road Funding for Cities Under 5,000 34 35 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their 36 collector and arterial streets. 37 38 Response: Cities under 5,000 population that are not eligible for Municipal State Aid 39 (M.S.A.) should be able to use county municipal accounts and the 5 percent account of 40 the highway user distribution fund. 41 42 43 44 45 46 Uses of county municipal accounts should be statutorily modified so counties can dedicate these funds for local arterials and collector streets within cities under 5,000 poputation. In addition, the 5 percent set-aside account in the highway user distribution fund should be used to meet this funding gap. 17 � LE-20. Railroad-Related Projects z 3 Issue: Cities are being presented with far-reaching and long-term effecu when railroad 4 expansion and related projects enter their communities. Along with the concerns related to 5 safety, environmental effects, and noise impacts on the communities, several issues have 6 greater reaching effects. They aze: 7 S � The cost-shaze ratio related to roadway crossing improvements will be bome by the public 9 sector to a substantial degree, some estimates are 80 percent public to 20 percent private 10 funding; 11 12 13 14 t5 i6 17 18 ' 19 20 ' 21 �=: 22 23 ' 24 ' 25 : 26 • The financiai burden faced by the public sector to deal with mitigation improvements, a cost that the Surface Transportation Boazd (STB) is not requiring the private sector to pay; • The issues associated with the length of trains moving through communities; • Liability associated with whistleblowing ordinances; and • Pre-emption of local authority to regulate railroad activities. Response: The private sector must be required to pay a greater share of the improvements that benefit their industry. The public sector should not be expected to underwrite the costs of improvements sought by the private sector. The state and federal govemment must participate in adequately funding the mitigation of the negative impact of railroads on local government and its citizens. The federat government must exercise greater oversight'of the STB to ensure that fair and equitable solutions are reached when dealing wifh cities in Minnesota. LE-21. Access Management & Plat Approval 27 - Issue: Increasingly, the state and some counties express a desire to exercise more control 28 over state and counry roads that lie within city boundazies. Some counties have introduced 29 , legislative proposals requiring county plat approval before pro}ects may move forwazd. The 30 Department of Transportation has studied the issue of access management, and is developing 3 t a guidance document to establish minimum standards before new access points onto roads 32 will be allowed. The League has published educational articles designed to highiight the 33 , importance of county and state involvement when cities aze involved in pianning decisions 34 that will allow new development to access roadways. 35 36 37 38 39 40 41 42 43 44 45 LC: Response: Cities support maintaining plat approval authority with each municipality for all plats located within cities. Cities do not support extending county or state authority over plat approval. Aowever, significant advantages can be gained by using a coordinated review process, already existing in state law, between cities and other affected units of government. Such advantages include better overail land use planning, site designs, and traffic management In addition, cities support the concept of statewide access management guidelines that can be ased in a coordinated review process. 18 00 -�{ �- i LE-22. Right of Way Management 2 3 Issue: Cities have fundamental responsibility for managing the safe and convenient use of 4 public rights of way. Cities hold local rights of way in trust for the pubtic as a Iimited and 5 valuable asset. As demand for right of way use increases, cities must continue to have clear 6 authority to allocate and coordinate that resource among competing uses. Local management � responsibilities vary and aze site specific, underscoring the importance of upholding local 8 authority to establish fees and standazds and to obtain fair and reasonable compensation by 9 telecommunications right of way users. t0 I1 12 13 14 t5 16 17 18 �:`s 19 20 2t 22 :-� 23 za , 25 � 26 27 28 Response: State government mast: • Uphoid local authority to manage and protect public rights of way, including reasonable zoning and subdivision regulation and the exercise of local police powers; • Recognize that municipal engineering has a paramount role in developmenf and implementation of construction and safety standards; • Support locai authority to require full recovery of actual costs of managing use of public rights-of-way; • Continue existing local authority to collect franchise fees and capital support for public, education and government (PEG) access and programming and to require provision of institutional networks (I-Nets) from providers of multi-channel video programming; and • Maintain the courts as the primary forum for resolving allegations by telecommunications service providers of arbitrary or capricious city management policies and practices. LE-23. Effective Telecommunications Competition 29 Issue: Gonsumers need protection in the Iransition to a competitive marketplace for 30 telecommunications services. Local economies can be streagthened by competitive provision 3] of services to enhance business participation in the global economy. 32 33 34 35 36 37 38 39 40 41 42 43 44 4S 46 ltesportse: Federal, state, and local government should coordinate policies to protect consumers and encourage emergence of local competition. LE-24. Local Zoning of Telecommunications Facilities Issue: Pederal intervention and restrictions on city zoning authority over the use of property by telecommunicauons service providers threaten to pre-empt basic Ioca1 land-use ragulation. Response: Federal and state government must uphold the fundamental right of local government to adopt and enforce zoning regulations reaffirmed in the federal Telecommunications Act of 1996. 19 i LE-25. Workforce Readiness 3 Issue: State and federal welfaze reform efforts have focused on the importance of the d welfaze-to-work transition, and have recognized the challenge of ensuring individuals aze 5 qualified to work. Cities have an interest in the availability of qualified workers as part of 6 their economic development efforts, and can serve as a catalyst with other public entities and 7 the private sector to address workforce readiness issues. 9' Response: The Legislature should continue to fuliy fund the job skiils partnership to and pathways programs administered by the Department of Trade and Economic t 1 Development. Flexibility shoutd be provided to accommodate small companies' needs 12 _- and provide alternatives to the Qublic trafning systems. 13 14 �s LE-26. Platting Law Recodification 16 17 Issue: The Minnesota Association of Counry Surveyors (MACS) is seeking to recodify Is _ Minnesota Statutes Chapter 505. Two issues raised by MACS that will likely impact cities t9 � are the subdivision plat requiremenu, and the creation and amendment of road right of way 20 acquisition maps. 21 > 22 : Response: The Legislature should preserve local authority over. plat approval and z3 ��,- include language in the recodification legislation that will allow. foc pedestrian easements 24 or thoroughfares to be dedicated by plat (for sidewaiks, public trails, etc.). 25 26 LE-27. Economic Development Authorities 27 z8 Issue: The state's policy regarding economic development authorities (EDAs) has been to 29 limit the specific authority and powers of EDAs to city govemments. The state has already 30 determined that city govemment most efficiently provides governmental services in azeas 3t intensively developed for residential, industrial, and governmental purposes. However, in 32 certain azeas of the scate, cfties within a county may wish to participate in the formation of a 33 county EDA 34 35 Respo�:se: The state shoutd continue to recognize the importance of using and 36 preserving the existing infrastructure in cities, and should continue to find thaf urban 3't development, and all related authority, remain within cities and managed by city 38 government. The Legislature should continue its decision to limit EDA authority to 39 cities as the primary local government responsible for the organizational and financial 4o coordination of development and redevelopment unless the cities wishing to participate ai in a county EDA jointly determine and individuatly approve the county's provision of 42 economic development services and cities not wishing to participate in the county EDA 43 are not subject to the county EDA's tax levy. 44 45 46 20 O o —y �- t LE-28. Infrastructure Funding Options z 3 Issue: Current infrastructure funding options available to cities aze inadequate. Existing a special assessment law, Chapter 429, does not meet cities f nancing needs because of the 5 benefit requirement. The law requires a minimum of 2Q percent of such a project to be 6 specially assessed against affected properties. In practice, however, proof of increased 7 property value to this degree of benefit can rarely be pYOVen from regular repair or 8 replacement of existing infrastructure, such as streets or sidewalks. Alternatives to the 9 Chapter 429 methods for financing infrastructure improvements aze neazly nonexistent. t0 I t The Legislature has given cities the authority to operate systems for waterworks, sanitary 12 sewers, and storm sewers. The storm sewer authority, established in 1983, set the precedent 13 for a workable process of charging a use fee on a utility bill for a city service infrastructure 14 that is oF value to ati those in a city. Similar to the storm sewer authority, a transportation or is sidewalk system would use tachnical, well-founded measurements, and wouid equitably 16 distribute the costs of locai infrastructure services. i� 18x 19 F' 2o M. 2 t �? 22 ;. 23 °- 24 �; , 25 . 26 27 2s 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Resporase: The Legislature should authorize cities to create, as a local option, additional systems such as a transportation or sidewalk system. Such authority would acknowledge: the effects of repeated levy limits and the general funding shift from the state to local governments £or building and maintaining necessary infrastructure; the benefits to all taxpayers of a properly maintained public infrastructure; and the limitations of existing special assessment authority. IMPROVING SERVICE DELIVERY SD-1. Redesigning and Reinventing Government Issue: Every leveI of government is reevaluating, reprioritizing, redesigning, and renewing its organizational structure and programs in response to financial realities and citizens' needs and problems. Reforms, however, must be more than change for the sake of change, or a reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and reassignments of governmental entities and services should save money where feasible, deliver improved services, serve essential needs, and be eqnitably strvctured. Cities have and will continue to pursue the use of cooperative agreements, the reevaluation of city programs and services, and changes to organizational structures. Response: The federai, state, and county governments should: • Ensure that in redesianing, reinventing, or reassigning government services and programs that the appropriate level of service to citizens is evaluated, and citizen demands and expectations are adequately addressed; • Promote local efforts through incentives, rather than mandates; 21 �_• Communicate and estab(ish a process of negotiation before shifting responsibility for 2 delivering services from one level of government to another, or seeking to reduce 3 service duplication; 4 • Transfer authority for use of revenues dedicated to such programs, or provide 5 appropriate and adequate alternatives; 6 • Identify and repeal programs or discontinue services that are no longer necessary, or 7 which can readily and fairly be provided by the private sector; and s • Employ existing government entities in redesign efforts rather than create new 9 agencies or units. 10 ii iz 13 14 15 16 17 18 ;, l9 5D-2. Unfunded Mandates Issue: The cost of federal and state mandated programs substitute the judgment of Congress, the President, the Legislature, and the govemor for local budget priorities. These mandates force cities to reduce funding for other basic services or to increase taxes and service charges. The passage by the Legislature of reporting requirements for new state mandates, and the passage by Congress of legislation restraining new federal mandates, should help address the problem, but other steps ue necessary. 2o Response: < 2 ] :; 22 �� • Existing unfunded mandates should be modified or repealed where 23 possibie. 2a :• No additional statewide mandates shoutd be enacted, untess fuli funding for the 25 mandate is provided by the level of government imposing it or a permanent stable 26 ` revenue source is established. 27 • Cities should not be forced to comply with unfunded mandates. 28 29 30 31 32 33 34 35; 36 37 38 39 40 al 42 43 44 45 [[.� • Cities should be given the greatest flexibility possible in implementing mandates to ensure their cost is minimized. SD-3. Civil Liability of Local Governments Issue: One of the barriers to the delivery of govemmental services and programs is the exposure of local govemments and their officials to civil damage claims. The state has acted to protect itself and its local governments by enacting exceptions and limitations to liability suits, and authorizing self-insurance and other mechanisms to deal with claiuu allowed by law. Additionally, the current law, which requires district court approval of settlements of claims against municipalities that exceed $10,000, has become burdensome for cities. Respo�:se: The League supports: • Creating an exception to municipal-tort indemn�cation law (MN Stat� Sec. 466.07) where an employee is defended and indemnified for claims under a contract of insurance carried by the employee. � Extending the protection of the state and municipaI tort claims act to quasi- 22 no-ya i govemmental entities when performing public services such as firefighting; 2 • Existing constitutional safeguards for protecting public and private property 3 inferests without any statutory expansion of property rights; 4 • Eliminating Yhe district court approval of settlements requirement or, in the 5 alternative, increasing the threshold amount for district court approval of 6 settlements to $100,000; and 7 • Clarifying and maintaining the appticabifity of municipaI immunify in various areas 8 including, bat not limited to, park and recreational immunity, including the 9 extension to entities providing a public service that have not traditionally been l0 included within the immunity (e.g. state traits over municipal utility easements) and 11 vicarious official immunity, and seeking immunity from claims related to providing t2 and disfributing information from geographic information systems (GIS) pursuant t 3 to the Minnesota Data PracYices Act. ta is SD-4. Environmental Protection 16 t7, Issue: State and federal environmental programs are improperly designed to meet their tS� stated goals, and impose an undue burden on local governments because of a lack of federal or state financial assistance. The refusal to finance these programs by the governments that pass them has eliminated an essential restraining feature in program design and implementation. In addition, cities face emerging issues in the areas of drainage, bio-solids, wellhead protection, and feedlots. 19 2Q 2 T; 22' 23� 24„ 25 26' 27 28 29 30 31 32 33 34 35 3'6 37 38 39 Specific problems include: • New programs or standards are continually adopted without regard to the existence, attainability, or cost of existing programs and standards. • The failure of regulatory bodies to consistently use good science and the most current and accurate data when establishing water quality standards. • Fragmented program adoption and implementation does not ensure prioritization of environmental matters or the establishment of comprehensive environmental protection strategies. •"One size fits all" implementation of programs force remedial efforts by local governments for nonexistent environmentat problems. • Permit fees and other cost transfer elements of federal and state programs do not provide an incentive for environmental agency efFiciency, policy prioritization, oz risk assessment. Response: 40 • State agencies must be mquired to provide local governments witk more flexibility in a� achieving environmental goals, such as endorsing performance based outcomes and a2 best-management practices, and these agencies must provide faster approvat of 43 waivers in order to allow municipalities to benefit from greater flexibility. 23 1 • Alternative wastewater treatment and cooperative service systems should be 2 prohibited from operating in areas that can reasonably and effectively be served by 3 existing municipal systems unless: 4 • The municipal system is proven to be: 5 ■ substantially less cost-effective and 6 ■ substantially less beneficial to the environment; and 7 • The operation of these systems will not create a stranded public investment in the 8 : exisdng system. 9 • A comprehensive effort to consolidate, reorganize, and manage state and federal l0 environmental agencies and programs should be undertaken, and a partial or full t t moratorium on new programs or requirements should be considered. tz • Permit fees should be limited to 5Q percent of the agency's direct operating costs in 13 order to promote efficient agency operation and sufficient legislative oversight t4 • Su�cient state and federal financial assistance should be provided to comply with ts state and federal infrastructure requirements, particularly with regard to t6 ;, wastewater, stormwater, and drinking water facilities. 17 • Minnesota Statutes § 115A.32-39 should be amended to reinstate the administrative fE� 19 ; 20 ` 21 : 22 -' 23 "t, 24 � 25 procedure used for the resolution of bio-solids disputes, a procedure whose function was inadvertently deleted during a re-codification of the statutes. In addition, local governments in Greater Minnesota should be.allowed to dispose of bio-solids in manners consistent with the MPCA's permits and rules and be prohibited from imposing blanket moratoriums on land application of bio-solids. This authority would be similar to the statutory protection enjoyed by metropolitan area communities (NIN Stat. § 473.516). z6 SD-5. Election Issues z� 28 Issue: Delays and lack of funding at the state level have prolonged the wait for cities to 29 have direct access to the statewide voter registration system. Lack of access increases the 30 time and cost to process new voter registrations, update voter files and verify voter 3t information in a timely manner. 32 ' 33 Respa:se: The Legislature should provide funding to allow more cities direct access 34 to the statewide voter registration system. 35 36 SD-6. Local ElecEion Authority 37 38 Issue: Previous legislatures restricted city authoriry to schedule city elections and 39 establish terms of office for local elected officials thereby diminishing regard for the role of 40 local self-govemment, particulazly when state policy preempts home rule authority governing 4t city elections. 42 43 Respor:se: The Legislature should oppose further limits on either the number or the aa length of terzns city etected officials may serve, particularly when those terms have been 2a po-ti y i established by voters in home rule charter cities. State policy on uniform elections 2 shouid confinue fo recognize and uphotd Iocal authority to schedute city elections in 3 November of either even- or odd-numbered years. 4 s SD-7. City Costs for Enforcing State and Local Laws 6 � Issue: Cities experience substantial costs enforcing state and local laws, particulazly those 8 related to traffic, controlled substances, and incazceration of prisoners. The current method in 9 our criminai justice system of recovering costs for law enforcement and prosecution through t0 fines is insufficient to meet the costs incurred by local governments. 1t t2 13 14 15 16 17 Response: The Legislature should review this issue and adopt measures that provide for complete reimbursement of the costs incurred by Ioca[ governmenfs in enforcing state and local laws. Solutions that shoutd be considered include the following: • Increasing fine amounts; • Removing or modifying county and state surcharges that conflict with cost recovery �8-� principtes; and i4 • Requiring the defendant to pay the ful! costs of enforcement and prosecution as part 20;; of any sentence. 21;� - Zzy SD-8. Access to Information Technology and Services 23 24., Issue: Cities recognize the importance of achieving world class standazds and universal 25 �:. service in order to provide quality education and opportunities for local businesses and 26=, industry to engage successfully in global competition. 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Respo�ase: The Legislature should: Expand and ensure the public's access to government meetings and information through electronic means; and Provide technical and financial assistance to make advanced technologies available and encourage collaboration among cities, schools, and libraries, health care, nonprofit organizations and businesses in its effective use. SD-9. Design-build Issue: The standard bid procedure cities are required to use in selecting contractors for municipat buildings can be quite costly. Private sector devetopment uses a process known as "design-build" in which vazious firms submit project proposals that include both a design and the construction costs for that design. The selection is then based on the total package. By �ranting specific statutory authority to use ihe design-build alternative to the Metropolitan Sports Facilities Commission and state agencies, including the Department of Revenue, the Legislature has recognized the financial savings it can provide. In documented instances, cities have saved taxpayers up to 10 percent of the Total project cost by using the design-build altemative. 25 t The design-build process also pernuu improved project management and oversight. 2 However, absent statutory authorization to use this altemative, ciries are vulnerable to 3 lawsuits from unsuccessful bidders. In addition, the design-build process for playground 4 equipment can encourage greater creativity while maintaining cost controls. Special 5 legislation was enacted for the city of Chanhassen in 1995 to experiment using this process 6 for purchasing playground equipment. T s Response: The Legislature should authorize an extension of the design-buiid 9 procedure to cities as a less expensive alternative to the standard bid procedure. to t i " SD-10. Providing Information to Citizens iz t3 Issue: To keep the public updated and informed, state law requires local units of 14 government to publish various notification documents in newspapers, and often dictates which t5 newspapers receive cities publication business. The number and variety of documents i6 required to be published and the costs of publication aze burdensome. Technological 17 advancements have expanded the ways government can provide information to citizens. In t 8 many cases, these new technologies aze more efficient and cost effective. 19 2o Response: Cities should be authorized to take advantage of new technologies to 21 increase the dissemination of information to citizens and potentialiy lower the associated z2 -°. costs. Specif cally, the Legislature should,authorize local units of government to 2s designate an appropriate daily%weekly publication, elect alternative means of 24 . communication such as city newsletters, cable television, and the Internet, and expand 25 ' the use of summaries where information is technicai or lengthy. Additionally, the z6 '; Legislature should eliminate outdated or unnecessary pub(ication requirements. 27 ` Zx ' SD-11. Creating a Minnesota GYS Program 29 30 Issue: Local governments aze finding geographic information systems (GIS) an essential 3 i tool for comprehensive land use, real estate, environmental, and other land management 32 information. In many counties, maintenance of official land records has not been automated, 33 creating a barrier to GIS development. In addition, the start-ap costs of GIS implementation 34 can be prohibitive. 35 36 _,. Response: The Legislature should encourage locat government implementation of 37 GIS through grants and/or the dedication of a revenue source such as real estate 38 transaction fees. In addition, cities should be involved in the development of county 39 land records modernization plans. 40 ai SD-12. State Regulation of Massage Therapists 42 a3 Issue: The state does not cunently regulate massage therapy, an emerging and rapidly 44 growing grofession. In order to controi prostitution and to provide for health and sanitation as standuds, several cities have entered the traditional state domain of heaith-care licensure by 46 enacting ordinances that require all massage therapists to obtain a local professional license. f�3.� 6p -�-/ 2 1 These ordinances allow local law enforcement officers to differentiate between legitimate 2 massage therapists, who have a city license, and prostitution businesses fronting as massage 3 therapy establishments. 4 5 The lack of statewide regulation of massage therapists has hampered law enforcement 6 techniques, and has caused problems for cities attempting to regulate an entire health-caze 7 profession without any statewide standards. Currently, 25 states regulate massage therapists 8 on a statewide level. Statewide regulation of massage therapists would provide a clear set of 9 educational standazds that massage therapists must meet, and would provide local law l0 enforcement agencies with an easy tool to distinguish between prostitution and legitimate 11 massage therapy. Statewide regulation would not disturb traditional powers over land use and 12 13 ta �5 16 17 18� 19;;- 20 21 22.' 23. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 a0 41 42 as 44 45 46 business licensure. Response: The League supports the statewide regulation of massage therapists in order to aid local law enforcement efforts at controlling prostitution and other criminal activity. SD-13. Private Property Rights and Takings Issue: The Legislature has been introducing an increasing number of bills designed to diminish or control local governments' abili[y to exercise traditional planning and zoning authority. I.egislation to control cities' abilities to perform regulatory acts such as shooting , range zoning and amortization received strong support from legislators. In addition, bills have been introduced to codify the property rights section of Minnesota's Constitution. The Federal Swamp Buster/Sod Buster programs, the Army Corps of Engineers' dredge and fill programs, and the State's Wetlands Conservation Act and Community Based Planning Act, appear to be the nexus for much of the property rights and takings legislation proponents. The League supports local governments' ability to balance the rights of private landowners with the interest of the public. However, the League is concerned various legislative initiatives will adversely impact cities in two ways. First, such legislative initiatives undermine the fundamental authority of cities to protect the pu(ilic health, safety, and welfaze of its citizens. Second, if the Legislature acts to codify part of the Minnesota Constitution, an argument may be made that the Legislature intended to create new causes of action against ci[ies. This wouid encourage more lawsuits and expose cities to the expense of defending those cases. Respor:se: The League encourages the state and federal governments to improve their regulatory programs by eliminating property rights issues that were caused by the adoption of such laws as the Wetlands Conservation Act or Swamp Buste;/Sod Buster. The League opposes legislation that diminishes the ability of cities to act in the best interests of the health, safety, and welfare of its citizens or that creates the possibility of additional lawsuits against cities. 27 � SD-14. Construction Codes 3 Issue: Each year the Legislature addresses construction codes issues that have some 4 impact on local govemments. The Legislature mandated bleacher safety legislation and is 5 expioring the idea of having both the fire and building o�cials approve building permits. 7 In addition, the Construction Codes Advisory Council has indicated it may be 8 recommending legislation to institute an appeals process for disagreements over the 9 application or interpretation of various construction codes and to establish a statewide t0 building code. The International Organization for Standazdization (ISO) has been evaluating t i Minnesota's building codes and enforcement. There is some expectation on the part of 12 council members that ISO will act as the catalyst for a statewide building code. 13 14 While all cities must enforce certain codes, such as the accessibility code, the electrical 15 code and the bleacher safety code, the state's building code remains a local option for cities 16 outside the metropolitan area. Many Greater Minnesota cities have adopted the state building 17 code and all cities within the seven-county metropolitan azea are required to adhere to the 18 state building code. I9 20 Response: A building code provides many benefits including uniformity of 21 construction standards in the building industry, consistency in code interpretation and 22 . enforcement, and life safety guidance. 23 24 =_ 25 '- 26 � 27 2s A statewide-enforced building code may have benefits, but requiring it would result in an unfunded mandate. The enforcement of a buitding code can be cost prohibitive for many cities due to the expenses and overhead related to staffing vs. the limited building activity occurring in some communities. 29 The League supports adoption of a state building code as long as there is not 30 mandatory enforcement at the local level. The adoption of an enforced state building 3 t code should remain a local option for municipalities outside the seven-county 32 metropolitan area, unless the state fully funds the costs of enforcement and insQection 33 ` services necessary to enforce a statewide building code. In the event the Legislature 34 - requires an enforced statewide building code, local governments must have the option to 35 hire or select a building official of their choice and setting the appropriate level of 3b service, even if the state fully funds code enforcement activities. 37 38 An appeals process would provide an excellent forum to resoive code disputes. 39 To the extent the insurance industry is concerned about insuring structures not built ao to code, the industry should drive code compliance by issuing policies or setting rates ai based on whether the structure meets various code requirements. az 43 44 45 46 SD-15. Fees for Service Issue: Interest is increasing at the I.egislature and among interest groups to mandate to local govemments specific fee limitations for various municipal services. Examples of � oo-ya- I legislation include building permit fee legislation and coin operated amusement machine 2 license fee legislation, both designed to rigorously control local fee setting authority, This 3 stems, in part, from a belief of some that plan check fees, license fees, and other municipai a fees for service do not reflect tha actual benefits received. 6 Additionaliy, other groups have begun discussing the value of fees for providing services. 7 Recendy, the Citizens Jury explored the value of fees for service and gave limited 8 acknowledgment of the value fees may have in providing core municipal services. The media 9 has entered the discussion, as weil, urging the public and policy makers to monitor fee-setting 10 processes. il t2 Response: 13 �a While the state has a role in providing a general statewide funding policy, the state t5 should not interfere in the simple budgetary decision-making functions performed by 16 clties. 17 ° 18� 19 %�" z0 ' 21 � 22 =: 23 ;. 24 25 �' 26 27 28 29 30 3i 32 33 34 35 36 The League supports the Legislature endorsing local government authority to charge fees that are reasonably related to the cost of providing the service, permit, or licettse and acknowledging there are other associated costs inherent in the provision of those services, permits, or licenses. However, cities oppose any move to legislate speci�c ruethods to pay for municipal services or place caps on license fees or other fees. General services such as permitting, inspections, or enforcement are best funded out of a city's general fund. Cities are better prepared than the state to make local budgetary decisions when providing local services. SD-16. Board of Firefighter Training Issue: The quality, availability, and affordability of firefrghter training varies greatly across the state. After several years of discussion, the fire service has endorsed a proposal to create a state board of firefighter training to ensure the quality of training and oversee state reimbursemen[ of a portion of training costs. The board would not be given authority to mandate specific training requirements or to certify firefighters. 37 Response: The League supports the fire service proposal as tong as tocal 3s governments are fairly represented on the board; the powers and duties of the board are 39 not expanded in a way that would undermine local management authority; and the 40 appropriation comes from the sfate general fund. 41 42 43 44 45 SD-17. Witness Fees Issue: Court administrators aze proposing that the Legislature shift the costs atuibutable to calling witnesses from counties to cities. The rationale behind this proposal is that city F� t prosecutors have no incentive to limit the witnesses called only to those that will actually 2 testify. Most counties cunenfly receive one-third of the fines collected at the city level. 3 4 Response: Cities oppose the shifting of costs attributable to calling witnesses from 5 counties to cities. City prosecutors responsibly call only those witnesses they expect to 6 testify. Under certain circumstances, witnesses may not ultimatety provide testimony for � a variety of reasons. The fine revenue counties receive adequately funds the costs 8 attributable to calling witnesses. 9 io ii 12 13 14 t5 16 17 SD-18. State Appropriation for Government Training Service (GT5) Issue: In 1977, the Govemment Training Service was created in order to provide a coordinated response to the training needs of state and local govemments. GTS was chazged with coordinating the needs of the state, cities, counties, townships, and school districts, with the delivery capability of the sta[e's institutions of higher leaming and other continuing educatSon service providers. 18 State financial support of GTS is unportant. 14Iany. cities and other local governments find ]9 it difficult to adequately fund official and staff training. GTS provides a cost-effective 20 mechanism for taking advantage of the efficiencies of cooperation. 21 22 >` Response: The League supports the state general fund appropriation for the z3 - Government Training Service. 24 zs 26 27 ° 2s 29 30 3t 32 33 34 35 _ 36 37 38 39 4Q 41 42 43 a4 45 46 SD-19. Year 2000 Issues Issue: Despite cities' best efforts to take reasonable actions to address threats to vital services local officials need to be able to rely on the readiness of state government to respond with additional resources and financial assistance, if necessary, to limit threats to local public health and safety or to local economies where unexpected Y2k-related problems cause serious disruptions. Cities have worked to resolve complex Y2k problems over the last yeaz, but some cities have found it necessary to expend substantial additional resources to convert or modify critical service delivery systems to overcome potential Y2k-related emergencies. Cities that have borrowed extensively or issued debt to meet those needs may find that such obligations place significant fiscal strains on local tax resources. Respor:se: State agencies and the legislature should be prepared to grant cities additional emergency financial assistance and other resources during the coming year to help local officials restore vital public services or to assist the community in overcoming the loss ef critically needed business, health care, educational or other fuactions. SD-20. New Public Safety Spectrum Needs Issue: Cities have benefited from successful efforts at the federal level to gain access to exclusive radio and wireless communications capacity for state and local public safety spectrum. Cities can now take advantage of the new radio and wireless communications 30 00 -"-��- i space set aside by the Federal Communications Commission (FCC) at the upper end of the 2 UHF television band for pubiic safety. For future interoperabiliry, cities will need additional 3 spectrum to ensure public safety agencies can communicate with each other and with a sunounding jurisdictions. 6 The U.S. Department of Commerce and the FCC Public Safety Wireless Advisory 7 Committee have recommended reallocation of 3 MHz of radio spectrum in the range of 138- 8 144 MHz radio band be made available exclusively for state and local public safety 9 interoperability. This spectrum is cunently assigned for military use and is not currently in lo use. Unless secured for public safety purposes, it is likely to be auctioned off to the highest ] 1 bidder for private use. The radio band available is adjacent to the current MHz band used for 12 13 14 i5 16 t7 t s;"'�� 19; 20 fire, police, and other public safety communications and would provide particularly good frequencies for mobile/portabie radio system communications. New spectrum in the 800 MHz range requires many more sites to cover the same geographic range and uses more expensive radio equipmeat. Although many public safety a;encies aze moving to new 800 MHz systems, others wi11 need to remain in lower frequency bands. Equipment in 800 MHz range will not communicate with many of the existing public safety systems that operate at lower frequencies. 21 Respaise: The federal government must make additional spectrum available to 22; allow public safety agencies that require multi-agency communications to respond to 23 `. ` accidents, disasters, and criminal activity that cross jurisdictional boundaries. So that it z4Y . wilt not be auctioned, the 3 MHz available for reallocation for public safety should be 2 reserved to relieve congestion on nearby public safety frequencies. 26: 27 28 29 30 31, 32 33 34 35 36 37 38 39 Immediate acTiom m�st be taken Yo secure this additional radio spectrum to advance the interoperability of public safety communications systems. SD-21. Joint & Several Liability Reform Issue: Under joint and severai liability, a party named in a lawsuit can be held liable for an entire damage awazd even if they aze not found to be substantiatly at fault. Accordingly, cities as "deep pockets" often are brought into lawsuits where it is likely that other named defendants are uninsured or otherwise unable to pay. Cities will often settle these cases due to the high degree of exposure and, at minimum, aze almost always responsible for their defense attorney's fees. Joint and severai liability results in cities paying for others' negligence. 40 Response: The Legislature should eliminate or severely restrict the application of at joint and several liability to situations where private and public entities are substantially a2 at fault for the damages incurred. 31 � SD-22. Official Newspaper Designation 2 3 Issue: State statutes currently provide a hierazchy that governs which newspaper a 4. city annually may designate as its official newspaper for legal publication. After designadon, 5 the city has no ability to change its designation to a newspaper lower in that hierazchy if the 6 selected newspaper makes errors. Errors in publication can adversely affect the city's 7 compliance with the law. For example, if ordinances are not published according to Iaw, they S ate likely invalid. 10 , Response: The Legislature should authorize cities to designate an alternative official 1 t newspaper if their current official newspaper makes significant errors in publication. tz �s SD-23. Competitive Bid Threshold Increase 14 15 Issue: Under the uniform municipal contracting law, a city must bid out ail purchases t 6 of supplies, materiais, equipment, rental of equipment, as weli as construction, alteration, 17 repair or maintenance of real of personal property when the estimated amount of the contract t 8' exceeds $25,000. The law also requires that purchases between $10,000 and $25,000 be let 19 with either sealed bids or through direct negotiation by obtaining two or more quotations. 20 21 This law has not been adjusted since 1992 when the comgetitive bid threshold was 22 <- raised from $15,000. In 1999, the House and the Senate approved and sent to the govemor a 23 . bill that would have increased the competitive bid threshotd to $50,QOQ. However, the biil was 24 -` vetoed by the governor based on concems that the threshold increase could increase the risk of 25 � unethical conduct and favoritism. 26 '� 27 28 29 " 30 31 32 33 34 Response: Raising the threshold will not increase unethical conduct and favoritism. Raising the threshold will result in better use of t� dollars by allowing more negotiation in the purchasing process. Therefore, to provide greater flexibility and to streamline the purchasing process, the Legislature should increase the competitive bid threshold. SD-24. Membership in Watershed Management Organizations 35 Issue: In 1999, the Legislature enacted a restriction that will prevent city employees 36 from serving on watershed management organization boazds. The restriction will prevent city 37 staff, who may have an interest and expertise in watershed management issues from serving 38 on a watershed management board. 39 ao 4l 42 43 44 45 46 Response: Elected city councils have ultimate oversight of the functions of watershed management organizations. The state should repeal the membership restrictions for �vatershed management organization boards. In addition, the state should provide an exception to the watershed district law to allow cities to recommend individuals who do not live in the watershed to serve on the watershed district boards when a portion of the watershed is located in the city but no one lives in that area. 32 00 -y�- t SD-25. Legalization of Fireworks 2 3 Issue: Fireworks producu can cause serious injuries and fire loss. Fireworks have 4 been illegal in Minnesota since 1941, and legalizing them would undermine fire prevention 5 efforts. Legatizing fireworks wauld increase public safety enforcetrcent, emergency response, 6 and fire-suppression cosu. 8 Response: The League opposes the legalization of fireworks. 9 �o SD-26. Election Judge Appointment �i 12 Issue: It is increasingly difficult for local election officials to comply with statutory 13 requirements that election judges serving at precinct poIling piaces be persons identified as l4 members of major political parties. The requirement presents a growing concern in obtaining 15 qualified election judges and a serious obstacle to efficient election administration at the local 16 level. » i 8�; 19 20, 2f 2z, 23 24 25 26 27 ?g 29 30 31 32 33 34 35 36 37 Respaise: The legislature should eliminate election judge appointment criteria requiring persons seeking appointment as local election judges to designate a political party. SD-27. Election Judge Compensation Issue: People willing to serve as election judges are often discouraged from doing so because the ciTy is not authorized to accept their service as a volunteer or to contribute their compensation to local chazities or community non-profit organizations. Response: The legislature should authorize cities to allow election judges to direct that their pay be donated to a local charity or community non-profit organization of their choice. SD-28. Counting Write-In Votes Issue: Requirements for recording and reporting votes cast for fictitious and undeclazed write-in candidates aze unproductive, time-consuming and do not serve to increase voter confidence in the outcome of the election. 38 Respo�:se: There should be no requirement to tabulate or report write-in votes 39 cast for fictional or celebrity write-in caadidates who have not officially declared their a0 iuterest in seeking office. Election judges should be required only to list the name of a1 each undeclared write-in candidate unless votes cast in that precinct for that candidate a2 toial more than 5 percent of votes cast in the precinct for that office. 33 i . SD-29. Telecommunications Restructuring 2 3 Issue: Cities have a unique perspective and role in shaping the delivery of a telecommunications services. While city officials recognize the significance of convergence 5 in the provision of these services, proposals currently under consideration at the state level to 6 restructure telecommunications regulation overlook critical functions that cities can more 7 effectively perform. Cities have a fundamental role in guazanteeing public access to 8 communications media, fostering a sense of community through the use of 9 telecommunications, and protecting consumer interesu. 10 i I In an era of convergence, it is also essential that cities, along with local consumers, t2 educational and health care institutions, non-profit organizations and businesses be assured t 3 that all telecommunications service providers aze held accountable for agreements [o provide 14 those services, uphold service guality and respond to community needs wherever they do 15 business. 16 t � Response: In redesigning state telecommunications policy to address the 18 convergence in delivery of telecommunications services, state agencies and tawmakers 19 should uphold local authority in the following areas: 20 2t 22 23 24 25' 26 27 2s 29' 30 31 32 33 34 35 36 37 38 39 Cable Issues • Control over cable franchise provisions:such as the collection, retention and use of cable franchise fee revenue; public, educational and government (PEG) access and institutional network (I-Net) commitments and capital funding to support those activities; • Carry out responsibilities and provide for resources to handle customer compiaints in a timely manner; • Agreements with local cable operators to make services available responsive to local policies and subject to local oversight and gbvernance, including municipal programming and access to analog and digital channei capacity; • Direct unfettered access to video channels and bandwidth free of charge fo offer public, educational and community-based information, programming and service delivery; and • In the absence of federal regulations that override local decision-making authority, recognition that cities retain control over whether to require local cable operators to provide nondiscriminatory access to unaffiliated Internet service providers (ISPs) when offering telephony, cable modem or information services, including Internet access. ao General Telecommunications Issues 41 State policy should assure that telecommunications service providers operating in a2 Minnesota are required to meet service quality and performance standards that treat all a3 areas of the state equitably in the delivery and quality of services. That policy should 4a include: a5 • Encouraging competition and broad deployment of high-speed broadband, cable tv, 46 wireless, and Intemet services; 34 0 o-4y- 1 • Authorizing cities to provide a full range of telecommunications services either in 2 public-privaYe partnerships, through joint powers agreements or as sole providers; 3 • Addressing the particular importance of telecommunications service delivery issues a in rural areas such as the provision of e#ended local call service areas, consolidated 5 schooI disfrict communications needs, and strengthening the network of health care 6 delivery service providers including local clinics, pharmacies and hospitals; 7 • Directly involving local government in determining strategies for and any 8 reallocation of resources; and 9 • Bringing together state and locai government officials on a regular basis to lo recommend changes and improvements to regulation to respond to changes in t 1 competition, technology and delivery of telecommunications services. �z is SD-30. 911 Funding 14 15 Issue: As cities struggle to afford to maintain and improve the hudwaze, software, 16 and training to provide 911 services, costs continue to rise and many cities aze forced to 17 choose between beazing all costs or making incremental improvements to their systems. 18 13� 20 2I 22 2� 24 25 26 27 28 29 30 31 32 33 34 Response: The League supports an adequate state funding source for the upgrades and modifications of 911 and related systems that will allow cities to provide effective, reliabte emergency communications services. Personnel, Pensions, Labor Relations & Data Practices Personnel, Pensions & Labor Relations Issue: Many state laws increase the cost of providing city services to residents by requiring city governments to provide certain levels of compensation or benefits to public employees, by specifying certain working conditions, or by limiting city governments' ability to effectively manage their personnel resources. For instance, existing state laws limit governments' ability to effectively address incompetence or misconduct of city employees specifying certain procedures to be followed or standards of conduct. 35 Response: The state government should refrain from passing laws that regulate 36 fhe pubiic sector workpiace, and shouid repeat or modify problematic existing laws and 37 regulations to encourage full local accountability. 38 39 40 41 42 43 44 The League of Minnesota Cities proposes the following initiatives and reforms: PP-2. Veterans' Preference • The Legislature should conduct a study of Minnesota's veYerans' preference law to determine its effectiveness and efficiency in light of today's employment laws, RF7 t statutes, and regulations. Minnesota's veterans' preference protections were created 2 at the turn of the 19`� Century. These protections were designed to assist veteran 3 employees at a time when Minnesota's and the federal government's labor and a personnel laws were in their infancy. It is likely the Legislature wili find parts of the 5 law will need modemization. � PP-2. Discipline and Discharge s 9 • Veterans' Preference. The state shouid modify veterans' preference and civil service l0 laws that restrict the ability of local governments to effectively discipline public 1 t employees. The Legislature should amend the law to: 12 13 • remove the right to multiple, duplicative disciplinary proceedings; 14 • limit any back-pay ctaims to a maximam of $100,000; t5 • limit the period in which to request a hearing to 14 days (from the current 60 �6 days); 17 . • exclude probationary period employees from veterans preference termination 18 law protections; 19 : • require parties to select their hearing panel representative within 10 days after 20 < notice has been given to the employer that the veteran employee is seeking a 2t � veterans' preference hearing;and 22 • require the panel to hear the petition within 30 days after the third panel 23 �� represenEative is selected and issue a decision within 30 days foIlowing the 24 hearing. 25 _ z6 = PP-3. Compensation limits z� 2s • The state should acknowledge that all local governments, not just schools districts, 29 must be competitive in recruiting and retaining upper level management employees. 30 Therefore, the state should repeal laws limiting the compensation of a person 3 t employed by a statutory or home rule charter city to the governor's salary. If repeal 32 is not possible, the limit should be amended to be based upon the governor's total 33 compensation level. 34 3s PP-4. PELRA 36 3� • The state should modify the definition of public employee under PELRA by 38 removing the existing 14-hour / 67 day requirement and replace it with a definition 39 in which employees must work more than an annual average of 20 hours per week. 4o Temporary or seasonal employees shouid not be included in this definition. 41 • The state should change public sector bargaining laws to require arbitrators to 42 adhere to the pay equity law with regard to consideration of internal class 43 comparisons. 44 c71 00 -y �' � PP-5. Essential Employees i 3 • Cities must balance the health, welfare, and safety of the public with the costs to 4 taxpayers. Therefore, the Legislature should carefully examine requests from 5 interest groups seeking essential employee status under iVIN Stat� §179A (PELRA). 6 The League opposes legislation that mandates arbitration that increases costs and � removes local decision-making authority. 9 PP-6. Pensions to 11 • The state should revise public employee pension laws to facilitate consolidation of t2 local pension plans. 13 • The state should study initiatives to reform and make uniform pension plans for 14 local government employees without increasing public employer contribution levels is or causing the public employer contribufion levei to exceed the confribution Ievel t6 required from employees. 17 • The state should adjust the eligibility thresholds for public pensions to reflect t8e inflation, adopt a process for automatic future adjustments, and limit eligibility for 19 defined benefit plans to employees working an average of at least 20 hours per week. 20 Current members of de�ned benefit plans who do not meet the new eligibilify 2t � threshold should be allowed to contiar�e participation in the plan until they have a z2 �.- break in service and full-time elected officials should remain eligible for defined 23 � benefit pians. 24 • The League opposes special legislation for individual employee pension benefit 2S increases unless they are initiated and approved by the city council of the impacted 26 city. 27 • The state should carefully scrutinize the proposal to increase maximum benefits for 28 volunteer firefighter pension plans to ensure that the higher benefits appropriately 29 compare to the benefits of full-time city employees and are necessary to attract and 3o retain qualified firefighters. 31 3z PP-7. Age Certificates / I-9 Forms 33 34 • The federal I-9 form requires employers and employees to report the same 35 information required by Minnesota's age certificate. The state should repeal MN 36 Stat. §181A.06 and endorse the federal I-9 form to verify age information, and 37 eliminate redundancy for employers and employees when reporting information. 38 s9 PP-8. Employer Reference Immunity ao 41 • The Legislature shonld enact legislation that provides limited immunity to cities 42 when giving accurate written disclosure of information regarding employment 43 related references. This legislation should not undermine the immuttity found in the aa Data Practices Act. 37 i PP-9. State Paid Police and Fire Medical Insurance 3 • The state should fully fund programs that pay for health insurance for police and 4 fire employees required under MN Stat §299A.465, as amended in 1997, for police 5 and fire employees hurt or killed in the line of duty. 6 • The Legislature should clarify whether MN Sta� §299A.465 applies to injuries 7 incurred prior to June 1,1997 (the effective date of the law). 8- • The Legislature should clarify the amount of an employer's contribution under NIN 9 Stat. §299A.465 and whether it changes over time. lo 1 i PP-10. Breathalyzers 12 13 • MN Stat. §181.950-.957 should be amended to permit the use of breathalyzers as an 14 acceptable technolog,y for determining alcohol use. Currently, breathalyzer use is i5 permitted under federal and state commercial drivers' laws. 16 x t� PP-11. Preservation of Local Decision-Making Authority on Employment ts 19 's°- 20 2t 22 < 23 24 `• Related Issues • The League supports local decision-making authority; and opposes legislation intended to interfere in local decisions. PP-12. Drug and Alcohol Rehabilitation 25 ' Issue: [3nder MN Stat. § 181.953, subd. 10(b), an employer cannot temunate an 26 ` employee for a positive controlled substance test without first providing the employee a 27 chance for rehabilitation and treatment. Recently, some cities have been advised that this law 28 applies to "probationazy" employees as well as permanent employees. 29 3o Response: The League supports a legislative change to clarify that the state law on 3 t drug and alcohol rehabilitation and treatment does not apply to probationary 32 employees. 33 34 35 36 37 Data Practices DP-1. Public Access to Information 38 Issue: As a result of 19991egislation, cities (and other state and local units of 39 aovernment) are required to establish policies and make cleaz to the public procedures for ao obtaining access to data classi£ed as govemment public data. 41 42 Respo�ue: These requiremenu musc accord locat officials flexibiliry to establish policies and 43 procedures that reflect the availabiliry of resources and existing forma[s in which informafion is maintained and, 44 organized. � oo-ya- i DP-2. State Model Policies and Training z 3 Issue: The 1949 I.egislature provided funding and directed the Department of 4 Administration to provide model policies and training assistance to cities in complying with 5 the Govemment Data Practices Act (GDPA). 6 7 Response: The Legislature must continue to fully fund the on-going costs of 8 GPDA compliance training and education because there are limited resources at the 9 local level. The Legislature should also require that local officials be directly involved 10 in the development and implementation of training activities. 11 �z DP-3. Tennessen Warning 13 14 15 16 17 18'� ]9 20 . 21'" 22 23 24 zs 26 Issue: The 1998 Information Policy Task Force recommended changes to existing statutory requirements regarding local governmenT responsibility to give employees notice of circumstances in which they may be required to provide information that may be pertinent to subsequent disciplinary or management decisions that affect them. Changes enacted in '99 addressed only a portion of the issues facing local government employers. Response: The Legislature shoufd Iimit compliance with nofice requirement to initial hiring procedures. The initial hiring notice will cover subsequent disciplinary or other personnel-related actions that are likely to adversely affect the individual's employment status. DP-4. Government Data Practices Act Recodi�cation and Conformance 27 Issue: The 1998 Information Policy Task Force recommended that the Legislature 28 Eliminate statutes inconsistent with the nomenclature and philosophy of the Government Data 29 Practices Act (GDPA); however, the '99 Legislature did not act on tkose recommendations. 30 3� Response: The Legislature should examine statutes inconsistent with the 32 Government Data Practices Act and require the input of local government before 33 eliminating or modifying provisions to conform to state information policy. 34 35 DP-5. Alternative Dispute Resolution for Violations of Government Data 36 Practices Act 37 38 Issue: In some circumstances, locaI government compliance with [he Govemment 39 Data Practices Act is hampered by feazs of punitive legal action against public employees 40 responsible for respondina to requests for information while also proTecting data classified as 41 private or non-public. 42 43 Response: The Legislature should limit current damage award requirements for 44 willful violations of the GDPA. Public employees and employers should be encouraged a5 but not limited to using alternative dispute resolution in resotving such disputes. m 39 i DP-6. GDPA Compliance in Contracting z 3 Issue: The '99 I.egislature imposed requirements on the private sector to comply with 4 the Govemment Data Practices Act when under conuact. Despite assurances Yo the contratv. 5 testimony in support of these new requirements generally supported imposing these 6 obiigations whenever government contracts with the private sector to provide public services. 7 8, Response: The Legislature should clarify that the '99 changes in GDPA 9. requirements for access to public government data pertain solely to the contract product l0 '. delivered by the private sector. 11 ►z DP-7. Acquisition of Electronic Surveiilance Devices 13 14 Issue: The '98 Informadon Policy Task Force recommended that cities (and other 15 local units of govemment) be required to report to the State when acquiring electronic devices 16 that improve the capacity to conduct surveiilance — other than for compelling public safety 17 18 19 20 ; 21 ;_, 22 '>. 23 '= reasons. Respw:se: The Legislature should require the involvement of local units of government in the development of recommendations for modifying current state policy. IN ADDITION TO THESE STATE REFORMS AND INITIATIVES, za THE LEAGUE SUPPORTS TAE FOLLOWING POLICIES REGARDING zs � 26 =< 27 28 FEDERAL EMPLOYMENT LAW: FED-1. FLSA/Overtime Compensation 29 • The Fair Labor Standards Act (FLSA) was de5igned for private employer - employee 3o relations. Government employees were exempt for over 100 years. Through a series 31 of court decisions, this statute is now applied to tocal governments. The exception 32 for state and local government employees should be reinstated by statute. 3s . FED-2. Peace Officer Bill of Rights 34 35 • Congress should oppose a federal peace officer bill of rights because it will only 36 compound the difficutties with internal investigations, locai enforcement and 37 diminish local accountability. 38 39 40 41 42 43 4a 45 FED-3. Portability of Deferred Compensation • Public sector employees are increasingly changing jobs between the public and private sectors. Congress shouid enact legislation that would permit tax deferred rollovers between public andlor private deferred campensation plans to improve the portability of funds. 40 �i I• � Electric Deregulation 3 Inhoduclion: Cities have a strong interest in the pablic policy debate about electric 4 restructuring or deregulation. Minnesota already enjoys some of the lowest average electric 5 rates in the nation. The case has yet to be made that deregulation will result in either lower 6 rates or improved service for consumers. 8 Issue: For many decades, electric service to Minnesota citizens has been delivered 9 through a combination of investor-owned utilities (IOUs), municipal utilities, and rural l0 electric cooperatives. This system has served Minnesota we�l, delivering reliable, universal i I service at rates among the lowest in the country. 12 13 In recent yeazs, many have begun to promote "deregulation" or "restructuring" of the 14 industry, meaning that electric service would no longer be a franchised monopoly. A number 15 of states, primarily those with high electric rates, have taken steps to move toward such t6 restructuring. In most of these cases, transmission and distribution remain regulated, with I� retail competition atlowed for generation source. ts 19 20;:' 21"` 22 _ 23_ 24�` 25 Advocates of restructuring argue that such competition will lead to lower rates. However, estimates by the federal Energy Information Agency* are that while the upper Midwest, including Minnesota, will experience slightly lower rates in the short-term, longer- term rates may actually be higher under deregulation. Concerns have also been expressed as to whether residential customers, and those in rural and other hazder-to-serve areas will actually experience decreased retiability and increased rates. z6 Local elected officials have the primary responsibility to the citizens of their cities to 27 make certain restructuring that allows retail competition is as beneficial to the citizens as zs it is to the industry. Beneficial to the citizen means that all Minnesotans experience the same 29 reliable, high-quality, universal, and low-cost service they experience under the current system 30 of electric power delivery. 31 32 City residents have a strong interest in the outcome of this important public poIicy 33 debate. Cities are substantial consumers of electric power. Over 180 cities have 10 percent or 34 more of thezr property tax base in electric industry property, while others collect franchise fees 35 and/or sales taxes on electric purchases within their boundaries. Citizens in 126 Minnesota 36 communities currently receive economical electric service from municipal utiliCies, which 37 make payments-in-lieu of taxes to help support city services. Significant increases in the cost 38 of electric power for city operations or losses of these traditional sources of revenue will result 39 in property tax increases. 40 41 a2 43 44 45 Itesponse: The federal government should aot mandate restructuriag; the decision should be left to the sYates. * EIA is the nonpartisan reseazch azm of the U.S. Department of Energy 41 1 The Legislature shoutd follaw a slow, deliberative approach, taking time to 2 consider how alternative models for delivering etectric power wiil affect the state's 3 traditional benefifs of reliable, universal, high-quality and low-cost service. The public 4 policy discussion should be focused on actual benefits to citizens, rather than on s ideological arguments, stakeholder interests, and over-reliance on simplistic objectives 6 like "consumer choice:' Those advocating a change should bear the burden of proof to 7 demonstrate that restructuring and deregulation will, at a minimum, maintain s Minnesota's high-quality, low-cost, and reliable service. Only when that burden of 9- proof has been met should restructuring occur. io °� 11 - The following pubiic policy goals should be incorporated into any legislation 12 restructuring the electric industry: 13 ia Adequate Suppiy and Demand is 16 t7 IS 19 20 = 21 � 22 The states's current generation and transmission capacity is inadequate to meet projected future needs. No new significanc capacity has been built since the 1980's (Sherco 3). Current regulatory and other governmental policies serve as a disincentive to meet customer demand. The state should review and amend these policies as necessary to encourage development of adequate capacity and reliability. Consumer Protection 23 2a :. Consumer interests must continue to be protected, especially for the most 25 ;, vulnerable populations. Reliable service must be universally available and programs 26 ` such as cotd-weather shut-off rules shouid be continued either as requirements for all 27 market participants or as separate state programs. 28 �. z9 Environmental Concerns 30 3 t The environment must be adequately protected, with conservation and renewable 32 energy efforts maintained. The federal government must review the appropriateness of 33 current environmental regulations and their effect in a deregulated market; for 34 example, exemptions from the Clean Air Act for some generation facilities. 35 35 37 38 39 40 Fair Market Competition To ensure fair market competition, the federal and state govemments must have the authority to review mergers to prevent abuse of market power. at Cities must remain viabie competitors in the electric market Municipal utilities a2 must be granted exemptions from rules like the open meeting law and data practices 43 requirements where they hamper the ability to effectively compete with private aa companies. To ensure adequate service to every citizen, cities and other local 45 governments must maintain their ability to issue tax-exempt bonds for construction of a2 Oo —�1 �— 1 electric infrastructure, and be given explicit authority to aggregate or municipalize 2 provision of electriciLy. a Local Authority 6 Cities must maintain their traditional authority over land use, zoning, rights of 7 way management and cost recovery, as well as the ability to franchise providers and to 8 receive payments-in-lieu of taxes from municipal utilities. Cities' authority to negotiate 9 siting fees and agreements for proposed generating facilities should be enhanced. l0 To avoid unnecessary demand for the limited space in public rights of way, open i� access to transmission and distribution facilities should be maintained through 12 regulation. 13 la As the electric market is opened to interstate competition, the federal government � 5 must preserve the application of Minnesota's state and local sales taxes to the sale of i6 electricity, regardless of the place of origin. t7 ia Stranded Cost Recovery 19 20 Issue: Regulated utilities have traditionally made operating decisions based on needs 21 of consumers within their service territories. Many decisions, therefore, have been based 22 more on need than on economics. In the transition from a regulated to a restruc±ured 23 competitive environment, electric generators' investments in fixed assets and other obligations 24 may or may not remain as economicaily viable. Estimates of these "stranded costs" vary 25 greatly, wi[h some indicating no stranded costs or possibly even negative stranded costs 26 resulting from increased prices after deregulation in Minnesota. 27 28 Response: If regulatory actions have contributed to investment by existing 29 regulated utilities that are not economically viable in a competitive market, and if 30 restructuring occurs, the League supports transition mechanisms that will allow utilities 31 to collect revenues for those particular stranded costs. However, these charges must be 32 carefully monitored to ensure that only eligible and verif�able costs are covered and that 33 over-collections do not occur. Taxpayers and ratepayers should not be expected to cover 34 the cost of investments that were made for business reasons, apart from the requirement 35 to serve under the regulated system. 36 37 If negative stranded costs for the regulated utility as a whole can be established, 38 and are solely the result of transition to a restructured environment, these regulated 39 utilities should be required to contribnte some limited percentage of established amounts ao to offset tax breaks given to these utilities as a result of restructuring. 41 az Property Tax 43 44 Issue: Part of the discussion regazding possible deregulation of the electric power 45 industry has centered on electric utility taxation. Proponents of deregulation assert that if 46 effective free market competition is to replace governmental regulation, state tax policy must 43 t be changed. The main focus of the Investor Owned Utilities (IOUs) so far has been removal 2 of the attached machinery or personal property tax. Utilities subject to the tax azgue it places 3 them at a competitive disadvan[age to non-Minnesota companies, rural electric cooperatives 4 (co-ops), and municipals. However, accurate comparisons of tax burden aze difficult, as other 5 states use completely different ta�cing systems. Additionally, co-ops and municipals do pay 6 direct taYes on some of their property and indirecUy when they purchase wholesale power 7 from sources that aze taxed, such as IOUs. Municipa[s make substantial paymenu-in-lieu of s taxes. t0 Utility personal property can be a significant portion of [he local talc base in all cifies. 1 t Most obviously affected are cities that have power plants; however, transmission and t2 distribution equipment account for over half of the personal property taxes paid by the IOUs 13 and exist in neazly every city. Replacing the revenue that would be lost to cities, counties, t4 school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the 15 mechanics and funding sources of such a replacement revenue would be difficult to develop 16 and administer, and could be subject to reductions or elimination over time. Furthermore, 17 replacement revenues or aids may not fully address the problems created by a large tax base 18 reductio�. 19 20 Response: Cities oppose proposals for exempting the IOUs from the personal 21 properfy tax, apart from the decision to restructure the electric industry in Minnesota. z2 23 If and when deregulation occurs, a truly independent review of the overall talt 24 burden should be conducted to detecmine whether Minnesota utilities are at a 25 competitive disadvantage. If an overall tax disadvantage is identified, the state should 26 correct it. Under no circumstances should local units of government or their citizens be z� required to shoulder the burden of tax relief for IOUs. �