02-49Council File # pa — ��i
Presented
Referred To
Comtnittee Date
WHEREAS, the Association ofMetropolitan Municipalities has adopted its 2002 Policies and Legislarive
Proposals to be considered by the Minnesota Legislature during the 2002 session; and
WHEREAS, the City of Saint Paul was an active participant in the development of these policies and
legislative proposals and the City concurs generally on these policies and proposals.
NOW, THEREFORE, BE TT RESOLVED that the Saint Paul City Council does hereby recommend for
considerationbythe MinnesotaLegislature the 2002 Policies and Legislative Proposals submittedbytheAssociation
of MetropolitanMunicipalities and does hereby request that these issues be addressed by the Legislature during the
2002 session.
Green Sheet # 000 a.
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA 13
Requested by Department of:
�
AdoptedbyCouncil: Date
Adoprion Certified by Council Secretary
Randy Relly's Office
Nancy Haas 266-8527
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(CLIP ALL LOCATIONS FOR SIGNATURE)
The City needs to have Council approval of its legislative support items with respect
to the Association of Metropolitan Municiaplities in order to pursue those support items
at the 2002 Legislature.
PLANNING CAMMISSION
CIB COMMITTEE
CNIL SERVICE CAbIMISSION
Has tnie a��m erer wo�icea unaera contract tormis aepartmenn
YES NO
Has Mis PeisoNfiim ever been e dty employeel
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Oces ihie pe�soNfirm D� a sldll r� namal�YP�� bY anY wrreM citY emPbyee9
YES NO ,
Is Mis peBOMrm a taryHetl venAIX'7
YES ND
COST/REVENUE BUDCETm (CIRCLE ON�
ACTNITYNUMBER
YES NO
(IXPWN)
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Associcrtion of M,etropolitan Municipalities '
< 145 University Ave._ W. ♦ St. Paul, Minnesota 55 ) 03-2044
. ` Phone:,(651) 2I5-4000 � Fax: (651) 28�-1299 , -
E-mail: amrim@amm 145.org . .
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Table of Contents
Municipal Revenue & Taxation (1)
I -A Levy Limits ....................................................................................................... 1
I-B Local GovernmentAid ...................................................................................... 1
(-C Sales Tax on Local Govemment Purchases ...................................................... 1
I -D Price of Government ......................................................................................... 2
I-E Fiscal Disparity Fund Distribution ..................................................................... 2
I-F Personaf Property Taxation: Efectric Utility ........................................................ 2
I-G Revenue Diversification .................................................................................... 2
I-H Class Rate Tax System ..................................................................................... 2
N Limited MarketValue ........................................................................................ 2
I.J City Revenue Stability & Fund Balance ............................................................. 3
I-K Public Employees' RetirementAssociation (PERA) Under-Funding .................. 3
General Legislation
II-A Mandates & Locai Aufhority .............................................................................. 5
(I-B Public Right of-Way .......................................................................................... 5
II-C 911 Telephone Tax ............................................................................................ 5
II-D 800 MHz Radio System .................................................................................... 5
II-E PermitApproval: Zoning/Denial Findings .......................................................... 6
Il-F PERA Opt-in for City Managers ........................................................................ 6
Housing & Economic Development (III)
III-A Livable Communities Act .................................................................................. 7
III-B Federal Housing Policy ..................................................................................... 8
III� State Housing Policy ........................................................................................ 8
lll-D LocalAuthority ..................................................................................................9
III-E Homelessness ................................................................................................. 9
III-F Family & Elderly Housing ..............................................................................:. 10
ill-G Community Housing Land Trusts ..................................................................... 10
III-H Inclusionary Housing Study ..............................................................................11
IIN Economic Development Responsibilities .........................................................11
Iil� Tax Increment Financing (TIF) ......................................................................... 12
III-K State Role in Redevelopment/Reinvestment .................................................... 12
III-� "This Old Shop .............................................................................................. 13
lI1�V1 Group Homes ................................................................................................. 13
2002 Legislative Policies i
Contents
Metropolitan Agencies (IV)
IV-A Purpose of Metropolitan Govemance .............................................................. 15
IV-B Regionally Provided Services: Funding ........................................................... 16
IV -C Regional Systems .......................................................................................... 16
IV-D Coordination of Local & Regional Plans .......................................................... 16
IV -E CollarCounties ...............................................................................................17
N-F Growth Management Strategy ......................................................................... 18
N-G Natural Resource Proteetion ........................................................................... 18
IV-H Local Plan Implementation .............................................................................. 19
N-I Metropolitan Council Focus on Planning ......................................................... 19
IV-J Budget Process & Work Program Evaluation .................................................. 19
IV-K Criteria for Extension of Metropolitan Governance Authority ............................ 20
IV-L RestructuringofMetropolitanAgencies ...........................................................20
N-M Metropolitan Council: Method to Select Members ........................................... 21
IV-N -Parks & Open Space: Operation & Maintenance Capital Funding ................... 22
IV-O Surface & Groundwater Water Management ................................................... 22
IV-P Sale of Lawn Fertilizers Containing Phosphorus ............................................. 23
N -Q WaterSupply ..................................................................................................23
N-R Regional Wastewater (Sewer) Treatment System ........................................... 24
IV-S Waste Stream Management ........................................................................... 24
Transportation (V)
V-A Transportation Funding ................................................................................... 25
V -B Regional System ................................................................................... 25
— -
V -C Road Access Fee .......................................................................................... 26
V -D Transportation Utility ....................................................................................... 26
V-E HighwayTumbacks & Funding ...................................... ...... 26
............................
V-F `3C' Transportation Planning Process: Elected Officials Role .......................... 26
V-G Mofion Imaging Recording System (M.I.R.S.): Tra�c Law Compliance ............ 27
V-H Airport Noise Mitigation .................................................................................. 27
V-I Traffic Control Devices (MN/DOTAdministrative} ............................................ 27
V-J Cities Under 5,000 Population ........................................................................ 28
V-K County State Aid Highway (CSAH) Distribution Formula ................................: 28
Committee Rosters
Housing and Economic Development Policy Committee ........................................... 29
Municipal Revenue Policy Committee ........................................................................ 30
Transportation and General Government Policy Committee ....................................... 31
° Association of Metropolitan Municipalities
px y
Municipal Revenue &
Taxation (t)
1-A Levy Limits
The AMM strongly opposes levy limits and urges the legislature to discontinue them for 2003 or at a
m;n;mtun not re-enact them for 2004 and beyond. The AMM also opposes the imposifion of artificial
mechanisms such as valuation freezes, payroll freezes, reverse referenda, super majority requirements
for levy, or other limitations to the local government budget and taxing process.
I-B Local GovernmentAid (LGA)
ANIM supports the continuation of Local Govemment Aid (LGA), which provides for revenue sharing
between ciries and the state, compensates cifies for the cost of cazrying-out state mandates and helps
provide all Minnesotans w�ith an adequate level of basic public services at a reasonable cost.
However, the program should be revised so that:
♦ the formula is simpler and easier to understand and communicate;
♦ the formula better reflects city "need," and utilizes more reasonable need/ability-to-pay criteria;
♦ a portion of the funds are distributed on a per capita basis;
♦ there is an established mechanism by which the total amount of money appropriated for LGA grows
withinflationandthe economy.
Given the fact that the 2001 Omnibus Taac Bill increased the appropriation far LGA by $140 million, no
ciry should have received less LGA in 2002 than they did in 2001. Therefore, ifthe Legislature elects
not to undertake an in-depthreview and updating ofthe LGA formula during the 2002 session, it
should, at the very least, return those ciries that lost LGA to their 2001 LGA levels. This will cost less
than $4 million, which could be appropriated from the $14 million LGA reform account created by the
2001 Legislature.
I-C Sales Tax on Local Government Purchases
The legislature should reinstate the sales tas exemption for all local govemment purchases without
requiring areduction in other aids.
2002 Legislative Policies 1
Revenue & Taxation
I-D Price of Government
The price ofgovemment calculation in regard to local govemments should be based on (1) changes in
the sum of the levy and state aids, and (2) examination of long-term tr�nds, not single year events. In
addition, consideration should be given to service provision transfers between govemmental units,
increased demand for services by citizens and le�sIative mandates or tax rate chauges.
1-E Fiscal Disparity Fund Distribution
The AMM opposes the use offiscal disparities to fund social orphysical metropolitanprograms since it
results in ametropolitan-wide property t� increase hidden from the public.
1-F Personai Property 7axation: Etecfric Ufilify
The AMM opposes proposals far exempting the Investor Owned Utilities (IOUs) from the personal
properLy tax. Under no circumstances should local units of govemment and their taxpayers be required
to shoulder the burdens oftax relieffor IOUs.
Thepersonalpropertytas is asignificantportion ofthemetropolitanfiscal disparitypool aad, ifelimi-
nated, would have a metropolitan-wide properiy taY impact.
I-G Revenue Diversification
The AMM supports revenue diversification for cities to reduce the reliance on local property taxes. .
The AMM opposes 2egislated reduction or limitation on various Iicense fees, deveIopment fees, or other
general fees which would force increased properry taa� to pay for related services.
I-H C(ass Rate Tax System
The AMIvi opposes a change from the class rate ta�c system to a market value system, which would
cause tremendous shifts of tax burden between ciasses ofproperiy, or applying firture levy increases to
mazket value, since this would fiuther comp&cate the property tax system. "
I-I LimitedMarketValue
The AMM
purposes since such Iimitation shifts taxes to otherproperties and similar newproperties will pay pm-
portionately higher taYes. The legislatiue implemented a six-year phase out oflimited mazket vaiue on
2 Association of Metropolitan Municipalities
o a.-�l`l
Revenue & Taxation `
homestead property in the 2001 tas bill, which the ANIM suggesis be shortened to three yeazs. The
AMM believes that enhanced targeting for special circumstances such as low-income persons better
serves the tax system.
I-J City Revenue Stability & Fund Balance
The legislature should not attempt to conh or restrict city fund balances. These funds are necessary to
maintain fiscai viability to meet uneapected or emergency resoiuce needs of city govemments, to
purchase capital goods and infi�astructure, provide adequate cash flow and to maintain high-level bond
ratings.
I-K Public Employees' RetirementAssociation (PERA) Under-Funding
Although the 20011egislature increased employer and employee conhibutions by 35 percent each,
made some administrarive changes in qualification, and extended the amortization period from 20 to 30
years, there is still a si�ificant funding deficiency inPERA.
Inadditionto further employerlemployee conhibutions,the legislature should considerthe following
alternatives.
♦ Supply PERA with state aid funded from TRA and MSRS sufficiency's as was done in 19$4 for
TRA fromPERA andMSRS.
♦ Allow former employees to take refunds enhanced by a portion of employer contributions.
♦ Reduce gtulra�rteed interest for deferred members' benefits.
♦ Increase vesting from three to five years.
♦ Restructure the POST fund by combnung assets with the current fund, redirect some of POST fund
eamings to active funds, pay excess mortality costs from POST rather than active funds, and ea�tend
investment returns over a 10-year rather than 5-yeaz period.
2002 Legislative Policies 3
�a-`�
General Legislation
II-A Mandates & Local Authority
The AMM opposes statutory changes wtuch erode local control and authority or create mandated
additional tasks req "�rina new or added local costs without a conesponding state appropriation or
funding mechanism. New unfimded mandates cause increased properry taxes which impedes the ability
to fund traditional service needs.
II-B Public Right-of-Way
The AMM supports the continued effort of the League of Minnesota Cities (LMC) to protect the
authoriTy ofcities to maintain jurisdiction over municipal public rights-of-way, to establish relevant
criteria and to obtain reasonable compensation for its degradation and to retain franchise and fee
collecfion authority for gas, electric and cable services.
If-C 911 Telephone Tax
The AMM supports an increase in the current 27 cents per phone line 911 access fee to provide
necessary and mandated upgrades and modifications to 911 systems in public safely answering point
(PSAP) locations throughout the state. This fee increase is needed to maintain reliable emergency
communication services and to comply with the FCC mandate for cell phone automated location
identification. The increased funds should be distributed to the local PSAPs in a fair and appropriate
manner. The Legislature should also restore the Commissioner of Adnunishation's authority to establish
the surcharge amount.
i1-D 800 MHz Radio System
The AMM supports the continuation ofthe Metropolitan 800 MHz Radio System legislation and boazd,
as long as cities aze not forced to modify their current systems or become part of the 800 MHz Radio
System until they so choose. The system should provide a phased transition guaranteeing uninterrupted
service and be technically capable of allowing communities the flexibility to form various coordinated
urangements for dispatching and service provision. Inthat one ofthe prime advantages of this system is
the fact that local public safety agencies and other units of local govemment throughout the region will be
able to communicate with each other, regional funding of the entire system should be considered. The
Radio Boazd should be allowed to provide grants to local units of govemment for capital equipment
purchases from the 4-cent per phone line 911 appropriation in excess ofbackbone system constntction
needs. Any such funding should take into account the reasonable useful life of current systems.
2002 �egislative Policies 5
General Legislation
II-E Permit Approval: Zoning/Denial Findings
Thepernut approvai statute delineating time limit requirements shouid be modified so that inthe case of
a residential to commercial rezoning requiring a super-majority vote, a motion to table (sixnple majority)
that extends action beyond the 60 day time requirement constitutes a denial. Current law provides
automatic approvai ifno action is taken.
In addition, ifan approval resoIution fails for any pemut request, the city should be allowed, by statute,
to provide a denial resolution with findings offact at the next regularmeeting or granted an automatic
time]imitexteilsion.
il-F PERA Opt-in for City Managers
In 1981, when vesting was at 10 years, city managers were allowed to opt-out o£PERA since many did
not stay at their positions for a full ten years. Nowthat vesting in PERA is three years, city managers
should be allowed to opt back in to PERA.
6 Association of Metropolitan Municipalities
oa_�9
Housing & Economic
Development (III)
III-A Livable Communities Act
The 1995 I,egislature enacted the Livable Communities Act (LCA) to stimulate housing and economic
and community development in the metropolitan area. The act permits cities to access about $11.0
million in funding for pollution clean-up, housing and redevelopment. As aparticipant, a city must adopt
affordable and life cycle housing goals and a plan to achieve those goals.
Since its inception, the Metropolitan Council has been responsible for program implementation, includ-
ing the completion of an annual pxogress report. The report for the 1996 calendaz year indicates
progress toward achieving the stated goals but also raises concern regazding the preservation of afford-
able housing, particularly the demolition ofhousing units.
The t11VIM has maintained that the LCA should not be amended until there are progress reports and
eaperience with the LCA. Based on the reports and experience of cities, the AMM recommends:
♦ TheLCA should be continued.
♦ The LCA should be amended to eliminate the requirement that a city annually elect to be a partici-
pant in the act and require by November 15 that a resolution to withdraw be approved.
♦ The state should appropriate funds for the LCA. The appropriation should not replace the cutrent
funding sources but should be in addition to them.
♦ The Metropolitan Council, in cooperation withthe LCA participants, should develop a benclunaz•k
to measure a city's efforts to provide affordable housing. The benchmazk should replace the Afford-
able Life Cycle Housing Opportunity Amount (ALHOA).
♦ The LCA amount should be amended to pemut a development agency to apply for an LCA pro-
gam provided the development agency receives from the city council in which the project will be
located approval to submitthe application andreceivethe gant.
♦ The Legislative Auditor should conduct areview of the Act to measure its effectiveness in achieving
its stated goals.
2002 Legisiative Policies 7
Housing and Economic Development
ili-B Federal Housing Policy
Historically, the federal govenuuenthasprovidedfunding forhousingproduction and renYsnbsidies.
However, over the last decade, the federal govemment has significanfly reduced its funding commitment
As a result, the number ofhousing units affordable to low-income households has not kept pace with the
need.
Further conhibuting to the need for affordable housing aze changes in federal immigrationpo&cy which
aze ea�pected to bring additional new residents to the region. Given the eatent ofthe demand for afford-
able housing, and the fact that federal policies often contribute to it, state and local action alone will
continue to be inadequate to meet the need. Federal involvement is needed in order to adequately
address ttte affordable housing problem.
Therefore, the ANIIvi recommends that the Governor, Legisiahue and local governments throughoutthe
regionutilize memorializing resolutions and othermeans, such as public fonuns, to notify members of
Congress and other federal govemment officials ofthe need for federal housing assistance.
III-C State Housing Policy
In recent yeazs the State of Minnesota has been an active participant in addressing the aff'ordable
housing problem. A variety of state policies have attempted to address the need for production and
maintenance ofowner-occupiedandrental housing affordableto low-incomehouseholds.
The 2001 Legislature provided significant property tax relief for aQaztmentpro�erties, passed legislation
- ---
aimed at reducing regulatory barriers, allocated an additional $100 million intax exempt bonding
authority forhousingpurposes and granted a sales taac exemption for building materiais and furnishings
used in publicly-owned housing.
The Legislature also appropriated $105 million in state general fimd resources to the Minnesota Housing
Finance A�ency (MEIFA). This equals 10 percent of the agency's $1.0 billion spending plan for the
current biennium but is not an increase inthe ageucy's general fund appropriation. Theremainder ofthe
plan will be funded through bond proceeds, inveshnent eamings, and federai fimds.
However, given the ongoing shortage, the state must step-up its efforts in the area of afford-
able housing. Therefore, the AMM supports legislative approval oL
♦ A biennial a ro riation e uai to 20 ercent ofIvSHFA's biennia
� Programs that will leverage investments from non-state sources.
A sates tas exemption for consirucrion supplies and materials used in the production of any new or
rehabilitated affordable housing project.
8 Association of Metropolitan Municipai�ties
oz-�9
Housing and Economic Development
♦ A mortgage and deed tax exemption for public agencies and private developers producing afford-
ablehousing.
♦ Continuation of the housing preservationprogtaui for federally subsidized housing that could be
converted to mazket rate housing.
♦ Institurion of a state tax credit for affordable housing.
♦ Continuation ofthepolicy ofnot reducing a person's or a household's Minnesota Family Invesiment
Progain monthly grant if they aze residents ofpublic or section 8 housing.
111-D Local Authority
Local governments do not have the financial resources to solve the region's affordable housing problem
alone, but they can complement federal tax credits and state grant programs through land use policies
and omilatorymodifications.
However, it is uncleaz whether cities have the legal authority to adopt and enforce an aff'ordable housing
policy in cases where no federal, state or local funds aze involved. For example, it is uncleaz if a city can
offer an incentive such as a density bonus for a developer to produce a portion of the proposed devel-
opment as affordable housina. An attempt was made to explicitly provide this authority during the 2001
session, but it was unsuccessful.
To clarify cifies' authority in this area, the legislature shouid:
♦ Authorize Mimiesota cities to adopt local policies that encourage the production of affordabie
housing. The legislafion should enable cities to draft ordinances or amendments to ordinances that
provide for a portion of new housing to be within income and purchase price guidelines developed
by the city. The enabling legislation should also pemut cities to provide for waiver of fees, density
bonuses or modification of local regulation and similarmeasures to stimulate housing production.
Reaffirni that cities aze responsible for and must retain the authority to regulate the location, size and
aznount, andtype of housing withintheirboundaries.
III-E Homelessness
Programs to assist the homeless are generally funded by a variety of public and non-profit sources.
Many of the programs such as the Stuart McKinney Homeless Prevention Act require operating agen-
cies to develop a community-based plaimuig process to identify needs of the homeless and adopt
pro�ams--continuum of caze—to meet these needs. Continuum of care includes services and housing
types (shelters, transitional and permanent).
In the metropolitan azea, counties in collaboration with other local govemments and service providers
2002 Legisiative Policies 9
Housing and Economic Development
have developed continuum ofcare plans tfiat have the goal ofmoving the homeless to needed services
or permanent housing. However, a recent study completed by Hennepin County and the city of Minne-
apotis regarding homelessness in the county found that homeless adults can not find pem�anent afford-
able housing. They also found that there is a need for more coordination among the numerous meira
polifan agencies involved in hometess assistance. The report notes that in several regions ofthe state
counties coordinate their continuum of care plans. Therefore, it is recommended that:
♦ The supply ofpermanent assisted housing, paiticulazly single room occupancy, be increased.
♦ Metropolitan counties should work together to initiate a coordinated planning process.
111-F Family & Elderly Housing
Demographic h indicate that Miiuiesota's population is aging. In the metropolitan area, the Metro-
politan Council reports that the number of persons age 75 and over will increase from approximately
110,000 in the yeaz 2000 to 180,000 in 2020. Being awaze ofthe trends, the legislature should:
Provide additional resources to serve the low income elderly. Resources should include housing as
well as related services.
♦ Direct state agencies to pmvide information and technical assistance to local govemments regazding
the popuiation changes and their unpacts on public services.
�__Develop_policiesthatenco�sagethedeyelopmentofhousingfortheslderlythatis.affoLdableand._ _ __ _
provides an attractive alternative to current housing and preserves the current housing.
tli-G Community Housing Land Trusts
An affordable housing land trust is a non-profit corporation that is used to create an expanding and
perpetualiy aff'ordable supply ofowner-occupied housing. The landtrust attempts to maKir�i?e the cost-
effectiveness of the public investment. Land irusts aze operative in Minnesota and 22 other states.
Currently there are at least six land tn�sts in Minnesota.
The Minnesota Housing Finance Agency (MHF'A) was authorized to assist in the funding of land tnists.
The one-time funding pemutted Iand hiists to provide gap financing, interest rate subsidies,
predevelopment financing and financial underwriting costs, To assist the land h2ists, it is recommended
♦ A land trust capacity building program be authorized by the 2002 Legislature. The land tnrsts would
be authorized to provide such services as gap financing, interestrate subsiclies, predevelopment
1 � Association of Metropolitan MuRicipalities
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Housing and Economic Development
financing and underwriting. The pro�am should be administered by the MHFA and be appropriated
atleast$540,000.
111-H Inclusionary Housing Study
The 2001 Minnesota Legislature directed the Office of State Planning and the Minnesota Housing
Finance Agency (M�IFA) to study inclusionary housing statues and ordinances throughout the country
and report to the legislature by January 15, 2002. The report will also make recommendations regazding
approaches to encourage residential development that include housing for a range of incomes. The
legislation requires that in developing recommendations, the staze agencies consult with representatives
ofbuilders, developers, municipalities, local zoningofficials, housing advocates and local planning
officials.
The first draft ofthe study without recommendations should be available in October 2001.
The AMM will monitor the study and be active inthe formation ofthe recommendations. In formulating
recommendations the agencies and representatives ofthe various groups should consider acflons that:
♦ Encoimage the development of affordable rental housing.
♦ Provide forthe opporiunity for long-termaffordability ofrental andowner occupiedhousing.
♦ Include regulatory relief and modification of official controls as conhibutors to reducing housing
costs but recognize that these measures alone wiil not produce housing affordabie to households
ean�nig less than halfof the area median income. In many n�stances a direct financial contribution will
be needed.
♦ Recognize that cities aze responsible for land use decisions and that the responsibility should not be
reduced or h�ansfened from the city.
The AMM opposes adoption of a mandated inclusionary housing law.
III-1 Economic Development Responsibilities
The state should continue to recogiuze cities as the primazy unit of govenunent responsible for nnple-
menting economic development policies and land use controls. However, the state should adopt
policies that encourage cities to jointly plan for and implement economic development projects. New or
amended economic development programs designed to address specific economic circumstances within
cities or counties should use problem definition as the criteria rather than geographic location, city size or
similazcriteria
2002 Legisiative Policies 11
Housing and Economic Development
III�) Tax Increment Financing (TIF)
The properiy taY reform provisions of the 2001 Omnibus Tax Bill will have significant negative impacts
on new and e�sting TTF districts. As a result of class-rate compression aad the staTe takeover of all
general education and transit operating levies, existing TTF districts are expected to eaperience deficits
of up to 33 percent in the coming yeazs. An expanded grant program and special deficit authority were
enacted during the 2001 session, but they need to be improved in order to adequately address the
deficits causedbythe reforms.
Therefore, during the 2002 session, the Legislature should:
♦ Direct the Commissioner of Revenue to approve requests forpooling authority prior to July 1 of
each year, so that pooled increments can be used to pay August bond payments.
♦ Reviewthe grantpro�amto clarify ambiguities and conflicts so thatthe Department ofRevenue and
cities canunplementtheprogram with amurimumofdelay anduncertainty.
♦ Make inter-fund loans and some pay-as-you-go notes eligible for the grantprogam. Eligibility for
pay-as-you-go notes should be limited to those where there is a contractuai obligationto make a
specific dollaz payment to a private party who is notthe beneficiary ofreduced properiy taxes on
the benefittedpazceIs.
♦ Repeal the certified taY capacity rate for all new and existing districts.
111-K Stafe Rols in Redeve(opmentlReinvestment
Over the yeazs, the state of Minnesota has provided cities with a variety ofprograms to assist in rede-
veIopment, pollution cleanup, business retention and e�cpansion, and affordable housing. These progaws
include, but aze not limiced to, taac increment financing (TIF), ta�c credits, loans and grants, and taac
expendit�ues.
However, many of these programs were negafively impacted by the taac reforms and budget appropria-
tions eaacted during the 20011egisia6ve session. For eYample, the Redevelopment Fund did not
receive any appropriation and the Minuesota Investment Fund received no increase in its appropriation
Revenues fore�sting TIF districts were sigiufican8y reduced as aresult ofthe taY reforms and the
usefulness ofT'IF' for future pmjects remains uncertain.
The process ofreinvesting in a city is continual. In addition to redevelogmentneeds, many metropolitan
azea cities are faced with significant expenses in order to maintain, up�ade and repIace their pubIic
� 2 Association of Metropolitan Municipa(ities
A�-`�.`\
Housing and Economic Development
uZfiasiructure, inciuding sh�eets, utilities and various otherpublic facilities. While both cities and coimties
develop and adopt capital improvement progruns, cities do not have the authority to issue bonds to
finance their pro�ams the way counties do.
Therefore, during the 2002 session, the Minnesofa Legislature should...
♦ Recogirize the state role in reinvesting in cities, by refining old and developing new tools and pro-
grams under which the state will partner with cities to provide financial resoisces for redevelopment
projects that meet public policy objectives.
♦ Grant cities the same authority counties have to prepare and fund a capital improvements program.
III-L "This Old Shop"
AMM supports the passage of a"This Old Shop" law, similar to the existing "This Old House" law
�Iv1.S. 273.11, Subd. l�, which would allow owners of older commercial/industrial property to defer
an increase in assessed value as the result of si�ificant reinvest in their properry.
III-M Group Homes
♦ State and county agencies mustprovide timely notificarion to cities of facility license requests and
renewals and provide adequate opportwuty to respond. Cities must also be awaze of the special
care needed by residents of such facilities in case ofpublic safety emergencies.
♦ Clusterina ef communi'y residential facilities because of economic, geographic or other factors
should be avoided. Standards of non-concentration for state or county-issued Requests for Propos-
als (RFPs) should be established.
♦ There must be an ongoing screening process, particulazly in the correction azea, to insure that
persons placed in a residential facility will benefit from such an environment and will not be a danger
to themselves ar others. The licensing authority must be responsible for removing any person found
incapable of living peacefully in such an environmen�
♦ Facilities licensedby the corrections department shouldnotbe exempt fromreasonable local land
useregulations.
♦ A fair share concept shouid be considered within the metropolitan area However, this concept
should consider other factors including transportation facilities, job availability and other needed
support services.
♦ The licensing authority andlor legislature should allow cities to participate in the search for facility
locations in order to meet needs ofthe providers, facility residents and the neighborhood.
2002 Legislative Policies 13
Housing and Economic Development
14 Association of Metropolitan Municipatities
o�.� �t°�
Metropolitan Agencies (IV)
Introduction: Metropolitan Governance Structure
The Metropolitan Council was established in 1967 to coordinate "the plazuung and developmenP' of the
seven county metropolitan azea To fulfill its responsibilities, the Metropolita.n Council has worked with
local governments to establish policies regazding growth and development in the iegion. Over the yeazs,
the Metropolitan Council has been authorized by the legislature to be involved in the development of
regional pazks and the operation of regional services.
In the following yeazs the Metropolitan Council was mostly advisory, but was given responsibility for
regional policy development and coordination in the areas of wastewater treatment, transportation and
airports. The Metropolitan Council was given limited approval authority for development proposals,
which were of inetropolitan (regional) significance but was not given direct operational authority.
The Metropolitan Council's responsibilities have been eapanded over the years. The Metropolitan
CouncIl was given direct operational responsibility for regional hansit and wastewater treatment in
1994. In the following year, the legislature directed the Metropolitan Council to implement the Livable
Communities Act (LCA). The Metropolitan Council's role with the LCA is to negotiate affordable and
life cycle housing goals for ci�ies and provide grant funds for the clean-up ofpolluted lands and demon-
stration projects that £oster a �nix of land uses and housing types.'I1ie Metropolitan Council's ro?e has
evolved since its inception to long-range planning and the operarion ofregional services.
IV A Purpose of Metropolitan Governance
The AMM affiuns its support for the existence of a metropolitan govemance system to deal with
appropriate regional issues and concerns. The purpose ofthe metropolitan governance system should
be:
♦ Tofacilitateregion—wideplannnigwiththecooperationandconsiderationoftheaffectedlocalunits.
♦ To provide certain region-wide services that do not duplicate those that can be provided by local
governmentai units, eitherindividually orjoinfly.
♦ To fulfill other specific responsibilities mandated by the state and federal governments.
2002 Legislative Policies 15
Metropolitan Agencies
IV-B Regionaily Provided Services: Funding
The Metropolitan Council should continue to fund its regionat services and activities through the existing
combination ofuser fees, properry taxes, and state and federal grants. The current revenue system
provides better visibility to the customets.
The Metropolitan Council should be responsible fordeterminiug user fees. The fees should be caonsistent
with regional system plans and goal s assure that the service quality can be of high quality as measured
by industry or public policy standards and be established by an open, visible procedure including, but
not limited to, public notice and hearings.
A clear linkage between revenue and service should be maintained. Fee proceeds from one service
should not be used to fund another regional service.
IV-C Regionat Sysfems
The regional inveshnent in metropolitan systems must be maintaiued andpreserved by preventing
adverse impact because ofthe lack ofintegration and coordination between regional and local planning.
Regional system designation shouid only be approved ifthere is a compelling meiropolitan pmblem or
concern that can best be addressed through the designation. F'rior to requesting legislative approvat for a
system, the Mehropolitan Council must discuss theproposal withtheregion.
_ .._. . - -._._ _____.. _ _ __ __.-- - -_.. - - . ___- -- --__ .._. - -
!V-D Coordination of Local & Regional Plans
Therea onalplanningprocessmust, onacontinualbasis,havetheinputoflocalgovemmentofliciais. To
ensure input, the Metropolitan Councii should hold hearings and provide public notice and copies of
pmposaLs regazding aznendments to the Metropolitan Development Guide.
Metropolitan system plaas must be specifrc in terms oflocations, capacities andriming to atIow for
considerntion in local comprehensive planning. System plans should clearly statethe criteria by which
the local plans will be judaed for consistency. The system plans should also clearly state the criteriathat
will be used to find that a local plan has a substantial impact on or contains a substantial departure from
the metropoiitan system pIans.
-..._..-.—.-..T..l�,e.�e?t,aRo.litau..CO�uw.cii.shaul,d ' . .. . .
not be limited to staff support, research, policy gttidelines, system statements and procedures for the �
review and evaluation ofplans and amendments.
i6 Association of Metropolitan Municipalities
o�.-�°�
Metropolitan Agencies
The Metropolitan Coimcil, in its review of local plan amendments, musthave aprocedurethat will:
♦ Recognize that the Metropolitan Council's role is to review and comment, unless there is a substan-
tial impact on or depatture from the system plans.
♦ Establish an open dialogue between cities and the Metropolitan Council, including public meetings
and public hearinas.
♦ Be awaze ofthe statutory time constraints imposed by the legislature on plan amendments and
development applications.
♦ Provide for immediate effectuarion of plan amendments, which have no potential for substantial
impact on systems plans.
♦ Require the informationneeded for the Metropolitan Council to complete its review, but not pre-
scribe additional content or format beyond thai is required by the Metropolitan Land Plavning Act
(MI,PA)•
IV-E Coltar Counties
As the Twin Cifies region continues to grow and eacpand outward, working collaboratively with the 11
collaz counties in Minnesota and Wisconsin, and the cities within those counties, will become increas-
ingly nnportant. There aze both environmental and transportation issues that cannot be solved by the
seven-county area alone.
Therefore, Muuiesota Pluuvng, the Metropolitan CouncIl, and the counties adjacent to the Twin Cifies
meh�opolitan area should begin meeting on a regulaz basis regazding growth management strategies for
the Minnesota collar counties. The Wisconsin collar counties should be included when appropriate.
These strategies should focus on polieies than can be unplemented by local govemments withixithe
adjacent counties and by state agencies, rather than by extension of the Met CounciP s jurisdiction to
additional counties. All strategies should complement and recogiuze growth management policies
currenfly being implemented within the seven-county metropolitan area. .
Regional services should be extended to the collaz counties only if there is a specific probiem that can be
best resolved by extending the service. The azea receiving the services must pay for the service exten-
sion and agree to growth management strategies consistent with those ofthe seven-county metropolitan
2002 Legislative Policies 17
Metropotftan Agencies
azea.
IV-F Growth Management Strategy
The Metropolitan Council is currenfly preparing anew Regional Blueprint, to be completed by Decem-
ber of 2002, that is expected to rely less on the current MUSA line policy. In developing this new
Blueprint, the Council must work with and recogivze the role of local governments in developing and
implementing growth management sh The AMM believes that the metropolitan azeamust
accommodate growth in a manner that balances natural resource protection with the need to provide
affordable land, housing and public services.
While the Council's role is to set broad regional goals, and then provide cities with technical assistance
and models, local govemments are ultimately responsible forzoning, 2and useplamung and development
decisions within their borders. Cifies aze not scheduled to complete new Comprehensive Plans until
2008, and the creation of a new Regional Blueprint in 2002 should not change this planning schedule.
While the process bein� utilized inthe Smart Growth Twin Cities effort does provide opporhinities for
sharing information and working toward consensus on someregional issues, it falls far shortofproviding
a comprehensive regional plavnuigprocess. AMM siron�ly suggests that the Metropolitan Coimcil
eapand the regional planning process to include broader regional issues thanthe "walkability ofneigh-
borhoods."
IV-G Natural Resource Protection
Natural amenities aze one of theprime_contributors_ to the high_quality of life enjoyed in the Twin Cities. __..
region. As the region continues to grow and expand, investing in and protectin� these resources is impor-
tant to maintaining this high quality of life.
Therefore, the Association of Metropolitan Municipalities supports the Metropolitan Council's efforts to
inventory natural resources in the metro azea However, once that inventory has been completed, cities
and theu residents must maintain the authority to make local decisions regazcling the protection of identified
resources.
There is a need to be fle�cible and creafive in order to balance natural resource protection with develop-
mentprojects, such as housing developments, commercial!'mdustrial expansion and infrastructure repair
and upgrading. But there will also be cases that present unavoidable trade-offs betcveen natival resoiu�ce
protection and desired economic and community growth. T'hese situations will require value judgements
a proposed development. Such decisions rightfully belong at the local level.
To protect natural resources of regional importance, the Council, in consultation with local govemments
18 Association of Metropolitan Municipalities
oa.-�t9
Metropolftan Agencies
and private parties, must provide the necessary funding and develop appropriate protection methods.
These methods might include, but should not be limited to, the purchase of development rights, ease-
ments, or acquisition.
Finally, ifthe Me�opolitau Council determiues that the compietion of local NRIs is a regionat priority, it
must provide both funding and tecluucal support to the cities eapected to carryout this policy.
IV-H Local Plan implementation
Local governments aze responsible for zoning. These wning decisions should not be conditioned upon
approvals by the Metropolitan Council or other govemmental agency. The AMM is open to the use of
altemative dispute resolution procedures prior to judicial remedies.
Altemafive dispute resolu6on could reduce costs and time for all parties involved in the dispute. The
AMM strongly opposes the creation of an appeals boazd that could supersede city planning or wning
decisions.
IV-I Metropolitan Council Focus on Planning
Long-range plarniuig should continue to be the primary function ofthe Metropolitan Council. In con-
ducting long-range planning, the Metropolitan Council should periodically update and revise the vision
for the region. As part ofits long-range platming, the Metropolitan Council should include analysis of
trends, plans, policies and programs that could impact or link the regional growth centers in Greater
Mnmesota to the metropolitan azea.
In additionto its long-range plaminig function, theMetropolitan Council should maintain and expand its
technical and research services to cities. The services should assist cifies in completing its planniug
mandates but aiso in conducting special studies and projects.
For cities to meet their plamung mandates, the Metropolitan Council must ensure that its pl2nnuig, data
collection and dissemination funciions are fi�lfilled in a timely manner and are consistent with its statutory
obligations.
IV-J Budget Process & Work Program Evaluation
The Metropolitan Council's annual budget should present revenue and eapenditure budgets by the
services provided. Mandated and non-discretionary projects should be identified along with their
funding sources. Previous year's history should also be provided. The annual budget should maintain
linkages between expenses and revenues. In addition, the fiznds or reserve funds raised for a particulaz
service should not be used or conuningled with the funds raised for any other service or activity.
2002 Legislative Policies 19
Metropolitan Agencies
The Metropolitan Council's workpro�am shouldmeetfourtests:
♦ The issue or problem identified is important to the region's well-being.
♦ Meh�opolitan Council intervention or activity will produce apositive result.
♦ The Metropolitan Council's action does not duplicate or serve as a substihrte for a state level
program or effort or what should be a state level activity.
♦ The Metropolitan Council is the most appropriate agencyto intervene orperformthe activity.
IV-K Criteria for Extension of Metropolifan Governance Authority
The legislature, if granting the me�opolitan govemance siiucture additional responsibility or authority,
should be specific in the grant. New or expanded authority shouid be considered only cvhen one or
more ofthe following exist:
The service, function or activity has been shownto be needed and it can be demonslrated that it
cannotoris notbeing effectively orefficientlyprovidedthrough e�sting generalpurposeunits of
govemment
♦ The service, function or acUvity is not an appropriate state level orlocal government level activityor
function.
Regional intervention is needed forprotection ofthe region's inveshnent in an existing metropolitan
system.
IV-L Restructuring of Metropolitan Agencies
The Sports Facilities Commission and the Metropolitan Airports Commission (MAC) aze ciurenfly
metropolitan commissions. The legislature should make the sports facility commission a local commis-
sion if the back up taY is limited to one city or is eacpanded to additional cities. Ifthe tax is extended to
other cities, the commission should be restructured to have membership from those cities.
The legislature should clarify the status of the MAC so that it becomes either ametropolitan or state
directed agency. The detennining factor in the a�ency_decision is tl�e �attiue qfthe cpmmiss�9z�'.S bs19k-
up tas. Ifthe tas will be a metropolitan azeata�t, its membership should come from the metropolitan
area. Ifthe back-up tax is statewide, then the MAC should have statewide representation.
In selecting membership on the MAC boazd, the govemor should give primary consideration for repre-
sentation from communities impacted by the operations of the MAC airports.
20 Association of Metropolitan Municipalities
oa- -y9
Metropolitan Agencies
[V-M Metropolitan Council: Method to Select Members
The legislature has debated proposals to amend the process to select Metropolitan Council members.
Proposals to electthe members directly orto elect county commissioners as Metropolitan Council
members have been discussed but not enacted into law. The AMM has studied the govemance issue
and has released a sepazate "Metropolitan Govemance Report" (October 1998).
The report notes that there is no regional crisis that requires a govemance change, but did recommend
that Metropolitan Council members serve fixed, staggered terms. The AMM further recommends that
no changes be made to the Meh�opolitan Council unless a govemance proposal meets a set of criteria.
The intent ofthe criteria is to fashion a regional governance structure that has a distinct mission, but does
not establish a political subdivision with local government powers or one that is a state agency. The
Melropolitan Council should have a distinct mission of long-range pla�uvng and operation of legisla-
tively-authorized regional services. The criteria include:
Terms o�Office
Members should serve fixed, staggered terms.
MetroDOlitan Council Powers
The Metropolitan Council should continueto be a long-range, planning agency andpotentially an
operator or oversight agency for regional services. As such, the Metropolitan Council must maintain
plamiing, coordinating and local assistance as a high priority.
Additional Powers
New powers must not eapand or override city responsibilities, especially land use regulation authority.
The Metropolitan Council must not become an agency with general local govetnment powers.
State Role
The legislature should focus on broad oversight ofthe Metropolitan Council's mission and services.
Local Government
Local elected officials must be involved in the selection process ofMetropolitan Council members and
there must be amechanism to facilitate meanuigful dialogue and input betweenthe Metropolitan Coimcil
and cities.
2002 Legislative Policies 21
Metropolitan Agencies
Collar Counties
The metropolitan region clearly includes the seven designated counties and the adjacent eleven Minne-
sota counties, as well as tluee Wisconsin counties. The needs ofthe entire metropolitan region beyond
the curtent seven county region must be addressed.
MetronoZitan Council Members
The selection process must s7ive to appoint Metropolitan Council members who baue an understanding
of and will be responsive to the district represented, as weli as be responsive to the best interests ofthe
region. The selection process should limit the potential influence and support (including financial) of
specialinterests.
IV-N Parks & Open Space: Operation & Maintenance Capitai Funding
The �ovemor and the legislature should continue to appropriate funding for the operation and mainte-
nance ofregional pazks. The level of funding should be equal to the statutory goal of 40 percent of the
total budget. Regional pazks essentially serva the role of state parks in the metropolitan area and the
acquisition, development and improvement ofthe pazks shouid continue to be fixnded, in part, with state
resources.
IVA Surface 8� Groundwater Water Management
If legislafion is considered for surface water management, it should be based on the following principles:
♦ The legislature shouldprovide full funding if it mandates additional watermanagement planniug or
implementing activities by local units of govemmeirt.
♦ Local units of govermnent should continue to be responsible for the orgaiuzation and operation of
surface and groundwater management, since they aze the closest to the problem. Therefore, legisla-
tion enacted in 19991imiting representation on boazds of Water Management Organizafions
(WMOs) should be repealed. -
♦ New state requirements should not add to local costs and duplicate reviews/approvals should be
reduced or elimniated.
TheAMM would supportthe fo$owinginitiatives/action:
� A state grant program similaz to those currenfly administered by the Boazd of Water and Soil
Resources (BOWSR) should be established to assist WMOs in the metropolitan area to implement
theirplans.
22 Association of Metropolitan Municipalities
oa-tia
Metropolitan Agencies
♦ The le� slature should ciarify that the jointpower WMOs can, withthe approvai of its pazticipating
governments, separately Ievy a tax for its progiams.
♦ A thorough assessment of the BOWSR struchue and authorities to ascertain ifit should continue to
be the approval and oversight a�ency for surface water mana�ement planning and activities in the
metropolitan azea.
♦ A thorough assessment of the meh�opolitan azea surface water management planning and permitting
process with the objective of developing improvements in conflict resolution, better coordination
between state and local agencies, and streamlining the project pemut approvals process.
♦ Compliance by local units of govemment located outside of the metropolitan azea with the same
standards and requirements for surface water management as those imposed on local units within
the metropolitan area.
♦ A technical evaluation of the nnpact of 2:1 wetland replacement in the urbanized area on the goal of
greater urban densities as stated in the Metropolitan Council's Regional Blueprint.
IV-P Sale of Lawn Fertilizers Containing Phosphorus
In an effort to improve and enhance surFace water quality in the metropolitan area and to reduce the
public resources expended to implement surface water management plans that aze required by State
law, the AMM supports restrictions on the use and sale oflawn fertilizers contauring phosphorus and,
with reasonable exceptions, a"zero" phosphorus contentrequirement for lawn fertilizers sold inthe
seven-county metropolitan azea Watersheds rarely are wholly within municipal boundaries and, to be
effecfive, measures for water quality improvements need to be uniform and regional or statewide. Cities
believe the State is the appropriate level of government for effective and economical administration and
enforcement responsibility.
IV-Q Water Supply
Additional legislation pertauiuig to local or regional water supply plavning is not warranted. Iflegislation,
however, is proposed it should be based onthe following principles:
♦ Local units should retain the basic responsibility for water supply planning and management as in
current law.
♦ The state should fund addirional xnandates.
♦ Potabie water should not be designated a regional system.
2002 Legisiative Policies 23
Metropolitan Agencies
IV-R Regional Wastewater (Sewer) Treatment Sysfem
The regional wastewatez treatment system has improved the water quality of the region's major river
and lakes. The system should not be pemutted to break up or to diminish its effectiveness. Since all
users benefit equally, the regional user rates should be uniform by type of user.
IV-S Waste Stream Management
The legislature should enact legislation which will:
♦ Establish goals to reduce, recycle and reuse packa materials and establish fees, tases or depos-
its to encourage accomplishment ofthe goals. The revenues would be waived when the goals aze
met Available revenues would be used to promote or enhance local programs to achieve the goals.
♦ Continue the Office ofEnvironmenta( Assistance (OEA) as an agency thatprimarily assists local
govemments to manaa waste effectively.
♦ Continue the role of ciries in waste stream management unless a state or metropolitan system is
established to achieve the same goal.
♦ Distribute all proceeds from any funding system for solid waste management activities and require
dishribution of funds to all entities involved in the system.
e Provide that host communities for solid waste facilities will not have a financial liability for costs
associated with operating and monitoring the facility. Such costs should be bome by the operator
and in the absence ofregulations should be assumed by the state.
♦ Maintain, at am;n;m�, �e current compensation level pernutted through surchatge fees and
increase the level as well as makiug the compensation auailable to all types of solid waste facilities.
♦ Define municipal solid waste not to be a ha�lydous substauce. The definition would enkiance the
abilityoflocalgovenunents. �
z4 Association of Metropolitan Municipalities
0�.-�9
Transportation (V)
V-A Transportation Funding
The AMM strongly supports increased funding for transit and highways, both of which aze a critical
need in the metropolitan azea In addition, funding formass hansit including hansit ways, light rail or
heavy rail in existing corridors should be dedicated in a manner consistent with current highway funding.
Funds allocated to the metropolitan area should be flexible so that the most efficient and cost effective
transportarion solutionmay be chosen andthe mainmetropolitanproblem (congestionreliefl canbe
addressed.
The AMM supports a constitutional amendment dedicating the Motor Vehicle Sales TaY and/or other
revenue source to a new Surface Transportation Multimodal fund from which an appropriate amount is
allocated to the Highway User Tax Dishibu6on fund to repiace the auto license tab fee reduction of
2000, and the remaining amount to be used for transit and/or highway needs as priority dictates. The
AMM will support a general gas tax increase only if accompanied by this constitutional amendment
provision.
The AMM also supports a Metropolitan azea referendum for an additional half-cent or full cent sales tax
to support metro area major highway and transit needs with the caveat that current funding source
amounts and percentages for the Metro area aze maintained.
All non-transportationprograms should be funded from sources otherthan currently dedicated trans-
portation funds.
V-B RegionalTransitSystem
To provide travel choices to reduce congestion and automobile dependency the Regional Transit System
should be a combination of integrated traffic management systems which include use of HOV lanes,
express buses, exclusive transit ways, light rail transit, and commuter rail corridors built to connect
residents to job, retail and commercial centers, plus a variety of other transit modes, including taxi, bus,
pedestrian and bicycle.
Shifting major transit fundinn from property tax to a percentage of MVST may not equate to reai
property/people growth nor provide for the addition of needed service to previously unserved growth
centers. Therefore, the AMM supports annual funding increases for the Metropolitan Transit System
that not only support the current system but preferable increase Metro h'ansit capability to equal growth
andprovide muchneeded congestion relief.
2002 Legisiative Poticies 25
Transportation
Pazk-and-ride facilities for mass transit modes adequate to connect the regional centers, major trip
generators and communities, both urban and suburban, should have integrated feeder systems to
accommodate locat buses, automobiles, vanpools, bicycies, as weil as walldng faciIities.
The Metropolitan Council should work with local units of govemulent to encourage appropriate land
use controls along designated tiansit comdors to promote transit riderslup.
V-C Road Access Fee
In orderto fairly provide formajor street improvements ofprimary benefit Yo aparticulaz subdivision
development but not direcdy assessable and to allocate cost so that new growth pays its fair shaze, the
legislariue should authorize cifies to establish at their option a road development access chazge to be
collected at the time that subdivisions aze approved and/or atthe time building pernuts are issued similaz
to pazk dedication fees.
V-D Transportation Utility
The AMM requests the legislature to authorize cities to establish a h�ansportation utility for stteet con-
structionandreconstructionofaging infiashuciure, similartothe existing stormwaterutility, so tbatcosts
of improved facilities can be more fairly chazged to the users rather than the general population as a
whole.
V-E _ Highway Turnbacks_8�_Funding
The AMM supports jurisdictionat reassignment or tumback ofroads on a phased basis vsing funciional
classification and other appropriate criteria subject to a corresponding mecl�auism for adequate fimding
of roadway improvements and continuing maintenance.
Cities do not cutrenfly have the financial capacity other than significant property ta�c increase to absorb
the additional roadway responsibilities without new funding sources. The existing municipal tumback
fund is not adequate based on contemplated tumbacks.
V-F `3C' Transportation Planning Process: Elecfed OfFcials Role
The AMM supports continuationofthe TrausportationAdvisory Boazd (TAB), amajority oflocal
e�e�lea,O�lC1�S.B1�IR�]EIS211pnttthPTARitcPifan�lthPTAR�mrPC� �7+inc �ri�� �
federal requirements for designation ofthe Metropolitan Council as the Metropolitan Pianning Organiza-
tion that is responsible for the continuous, comprehensive and cooperative (3C) transportation planning
process to allocate federal funds among metropolitan azea projects. This process requirement was
reinforced by the I991 Intermodal Surface Transportation Efficiency Act (ISTEA) and the 1998
26 Association of Metropolitan Municipalities
oa -��
Transportation
Transportation Efficiency Act for the 21 st Century (TEA21).
V-G Motion Imaging Recording System (M.I.R.S.): Traffic Law Compliance
The AMM requests le�slafive action authorizing utilizarion ofmotion imaging recording system technol-
ogy for govemmental units, including cities, on streets and highways to assistpromotion of safety and
traffic law compliance enforcement. Thetechnology hasbeenproven and is currenfly usedfor law
enforcement by numerous states, municipalities and other countries. The state should at least implement
apilot project onmunicipal streets inthe metropolitan azea.
V-H Airport Noise Mitigation
The AMM strongly supports continued equitable airport noise prob ams needed to address the in-
creased noise associated with the expansion of the MSP International Airport. Noise mitigation pro-
grams should now continue as soon as possible towazd the 60 DNL (day/night level—adjusted decibel
average) in accordance with 19961egislation in which the Metropolitan Airports Commission (MAC)
was chazged with developing a mitigationpackage for legislative considerarion in 1997.
In 1999, the Govemor's Community Stability Funding Task Force was creaYed to identify and recom-
mend funding sources for the implementation of noise mitigation measures. While the MAC has initiated
measures to mitigate noise to the standard 65DNL, and has studied and initiated measures, including
siguficant funding for approval by the Federal Aviation Administration (FAA), to address noise mitiga-
tion inthe 64--60 DNL estimated contours, sufficient altemarive funding for noise mitigation slill has not
been identified or appropriated.
The AMM believes costs associated with a11 types of noise mifigation should be bome not only by MSP
airport (MAC), but also by the state. MSP airport is considered a statewide facility and provides
tremendous economic benefit to the region—a benefit that does not come without responsibility to the
citizens adversely impacted. The MAC and the state should seek long-term solutions and pmvide stable
and siguficant funding to mitigate noise impacts.
In addition to MSP Intemational Airport, impacts, including environmental and low frequency noise,
must be identified at all MAC airports and applicable mi6gation measures implemented by the MAC.
V-I Traffic Control Devices (MN/DOT Administrative)
The AMNI understands the need for the Manual on Uniform Traffic Control Devices. The AMM also
recognizes that unique situations within municipalities occasionally may not be adequately addressed by
the standards in the manual. Therefore, the ANIM encourages the Department of Transportarion to
more strongly take into considerationunique local conditions and cuciunstanceswhen exa.,,;n;ng local
requests for iraffic conirol devices. In addition, the ANIM would support the establishment of a peer
appeals review boazd to review, when requested by a local municipaiity, specific situations when the
2002 Legislative Policies 27
Transportation
quantitative warra�it criteria in the Manual on Uniform Traffc Control DevicPS are not met.
V-J Cities Under 5,000 Population
Currenfly cities under 5,000 popularion receive no state funding or MSA fuads fot collectoror arterial
sireets regardless oftraffic volume, origination and/or destination. Cutrent CSAH distribution to Metro-
politan Counties is inadequate to provide for metro azea smaller city needs. Criteria such as number of
average daily hips should be established in a small city local road improvementprograzn for funding
qualification and a distriburion method devised Possible funding sources include the five-percent set-
aside account inthe highway user distribution fund, modificationto county municipal accounfs and/or
state general fund.
V-K County State Aid Highway (CSAH) Distribution Formula
The ANIM supports modification ofthe County State Aid Highway (CSAF3) dishibution formula to
more fairly account for total vehicle miles traveled on Metropolitan County CSAH funded roads.
Although only 10% of the CSAH roads are in the Metro azea fhey account for nearly 50% of the
vehicle miles traueled. The metro counties receive less than 20% ofthe CSAH distribufion and have
instituted city costparlicipation, whereby cities aze now forced to pay up to 45% ofa CSAH road
project cost in some areas.
28 Association of Metropolitan Municipalities
0.�. - �!°1
Committee Rosters (Vt)
Housing and Economic Devefopment Poficy Committee
Jan LeSuer, Councilmember, Golden VaZley (Committee Chair)
Bonnie Balach, Community Development, Minneapolis
Frank Boyles, City Manager, Prior Lake
Shazon Cassen, Councilmember, New Hope
John Erar, CityAdministrator, Andover
John Goedeke, Councilmember, Roseville
Tom Goodwin, CounciZmember, Apple VaZZey
Tom Harmening, Communiry Development Director, St. Louis Park
Regina H�Tis, HRA Director, Bloomington
Ryan Kaess, Assistant to the Mayor, St. Paul
AndreaHartKajer,IGRDirector, Minneapolis
James Keinath, Administrator, Circle Pines
JoanMolenaar,Councilmember, Champlin
Richard Mussell, Councilmember Anoka
JimNomiau,Administrator, Ramsey
AnneI3orris,Manager, Crystal
Samantha Orduno, Administrator; Richfield
Tim Ricker, Councilmember, Brooklyn Center
James Verbrugge,AssistantAdministr�ator, Eagan
Craig Waldron,Administrator, Oakdale
Liz Workxnan, CounciZmember, Burnsville
HeatherWorthina on,Administrator, FalconHeights
Metropolitan Agencies Policy Committee
Beverly Aplikowski, Councilmember, Arden Hills (Committee Chair)
Mary Anderson, Mayor, Golden Valley
Bill Bamhart, Government Relations Representative, Minneapolis
Steve Chemey, Councilmember Burnsville
Kris Danielson, Community Development Director, OakParkHeights
CraigDawson,Administrator, Shorewood
Mike Gundlach, Councilmember, Prior Lake
2002 Legislative Policies 2g
Committee Rosters
Anne Hurlburt, Director ofCommunity Development, Plymouth
Marvin Johnson, Mayor•, Independence
Bartet Lane, Councilmember, Minneapolis
Larry Lee, Director of Community Development, Bloomington
Tom Link, Direcror ofCommunity DeveZopment, Irrver Grove Heights
Terry Schneider, Councilmember, Minnetonka
Jeanna Troha, Assistant to the City Manager, New Brighton
Municipal Revenue Policy Committee
Jim Smith, CounciZmember, Independence (Committee Chair)
Curt Boganey, Manager, Brooklyn Park
Tom Burt,Administrator, Rosemount
Joan Campbell, Councilmember �nneapo7is
Don Collier, Councilmember, New Hope
SteveDevich,AssistantCityManager, Richfield
Wa1t Fehst, Manager, Columbia Heights
Matt Fulton, Manager, New Brighton
RichardFursman,Administrator, Maplewood
Teri Heaton, ChiefFinancial O�cer, Bloomington
Joe Huss, Finance Manager, Bloomington
Kim Kamper, Interim CiYyAdministrator, OakParkHeights
_ TomLawell,Administrator,Apple_Yalley_ _ _._
__ -- _ - -
Joe Lynch, Administrator, Arden Hills
Wes Mader, Mayor, Prior Lake
Mike Momson, Manager, St. tlnthony
Bruce Nawrocki, Councilmember, Columbia Heights
Steve O'Maliey, DeputyCityManager, Burnsville
Don Rambow, Finance Director, White Bear Lake
Douglas Reeder,Administrator, SouthSt. Paul
Ryan Schroeder,.4dministrator, Cottage Grove
Jerry Splinter, Manager, Coon Rczpids -
Steve Stahmer, Assistant fo the City Manager, Hopkins
Kathy Thurber, Councilmember, Minneapolis
John Wallin, Finance Director, Edina
Ti___�,_m Wi11 ic,Admini.sLC4tDY �
3 a Association of Mefropo(itan Municipa(ities
Os-41
Committee Rosters
Transportaton and General Government Policy Committee
Veid Muiznieks, Councilmember, St. Paul Park (Committee Chair)
Beverly Aplikowski, Councilmember, Arden Hills
Dave Callister, Clerk-Administrator, Osseo
Chazlie Crichton, CounciZmember, Bza�nsville
ChuckDeVore,Councilmember, WhiteBearLake
Dan Donahue, Manager, New Hope
Shazon Feess, Councilmember, Brooklyn Park
Mary Hamann-Roland, Mayor, Apple Valley
BiIlHargis,Mayor, Woodbury
Jon Hohenstein, Administrator, Mahtomedi
Patrick Hollister, Administrative Assistant, Mendota Heights
BazbazaJohnson, Councilmember, Minneapolis
Mike Klassen, St. Pau1
Steve Larson, Mayor, New Brighton
Mazk McNeill, Administrator, Shakopee
Ed Nelson, Councilmember, Brooklyn Center
Jim Smith, Councilmember, Independence
Gertrude Ulrich, Councilmember, Richfield
Kazen Lowery Wagner, GovernmentRelations Representative
John Weaver, Councilmember, Anoka
2002 Legislative Policies 31
Council File # pa — ��i
Presented
Referred To
Comtnittee Date
WHEREAS, the Association ofMetropolitan Municipalities has adopted its 2002 Policies and Legislarive
Proposals to be considered by the Minnesota Legislature during the 2002 session; and
WHEREAS, the City of Saint Paul was an active participant in the development of these policies and
legislative proposals and the City concurs generally on these policies and proposals.
NOW, THEREFORE, BE TT RESOLVED that the Saint Paul City Council does hereby recommend for
considerationbythe MinnesotaLegislature the 2002 Policies and Legislative Proposals submittedbytheAssociation
of MetropolitanMunicipalities and does hereby request that these issues be addressed by the Legislature during the
2002 session.
Green Sheet # 000 a.
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA 13
Requested by Department of:
�
AdoptedbyCouncil: Date
Adoprion Certified by Council Secretary
Randy Relly's Office
Nancy Haas 266-8527
16
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Rq7791G
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TOTAL � OF SIGNATURE PAGES 1
GREEN SHEET
orr.w�r�nouaa�
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No 200022
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❑ wuxouLLauucFSOrt ❑ nuncu�aEa�n�ttro
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(CLIP ALL LOCATIONS FOR SIGNATURE)
The City needs to have Council approval of its legislative support items with respect
to the Association of Metropolitan Municiaplities in order to pursue those support items
at the 2002 Legislature.
PLANNING CAMMISSION
CIB COMMITTEE
CNIL SERVICE CAbIMISSION
Has tnie a��m erer wo�icea unaera contract tormis aepartmenn
YES NO
Has Mis PeisoNfiim ever been e dty employeel
ves rb
Oces ihie pe�soNfirm D� a sldll r� namal�YP�� bY anY wrreM citY emPbyee9
YES NO ,
Is Mis peBOMrm a taryHetl venAIX'7
YES ND
COST/REVENUE BUDCETm (CIRCLE ON�
ACTNITYNUMBER
YES NO
(IXPWN)
- January 2002 - � o �:-�q
- �i
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Associcrtion of M,etropolitan Municipalities '
< 145 University Ave._ W. ♦ St. Paul, Minnesota 55 ) 03-2044
. ` Phone:,(651) 2I5-4000 � Fax: (651) 28�-1299 , -
E-mail: amrim@amm 145.org . .
oi_kg
Table of Contents
Municipal Revenue & Taxation (1)
I -A Levy Limits ....................................................................................................... 1
I-B Local GovernmentAid ...................................................................................... 1
(-C Sales Tax on Local Govemment Purchases ...................................................... 1
I -D Price of Government ......................................................................................... 2
I-E Fiscal Disparity Fund Distribution ..................................................................... 2
I-F Personaf Property Taxation: Efectric Utility ........................................................ 2
I-G Revenue Diversification .................................................................................... 2
I-H Class Rate Tax System ..................................................................................... 2
N Limited MarketValue ........................................................................................ 2
I.J City Revenue Stability & Fund Balance ............................................................. 3
I-K Public Employees' RetirementAssociation (PERA) Under-Funding .................. 3
General Legislation
II-A Mandates & Locai Aufhority .............................................................................. 5
(I-B Public Right of-Way .......................................................................................... 5
II-C 911 Telephone Tax ............................................................................................ 5
II-D 800 MHz Radio System .................................................................................... 5
II-E PermitApproval: Zoning/Denial Findings .......................................................... 6
Il-F PERA Opt-in for City Managers ........................................................................ 6
Housing & Economic Development (III)
III-A Livable Communities Act .................................................................................. 7
III-B Federal Housing Policy ..................................................................................... 8
III� State Housing Policy ........................................................................................ 8
lll-D LocalAuthority ..................................................................................................9
III-E Homelessness ................................................................................................. 9
III-F Family & Elderly Housing ..............................................................................:. 10
ill-G Community Housing Land Trusts ..................................................................... 10
III-H Inclusionary Housing Study ..............................................................................11
IIN Economic Development Responsibilities .........................................................11
Iil� Tax Increment Financing (TIF) ......................................................................... 12
III-K State Role in Redevelopment/Reinvestment .................................................... 12
III-� "This Old Shop .............................................................................................. 13
lI1�V1 Group Homes ................................................................................................. 13
2002 Legislative Policies i
Contents
Metropolitan Agencies (IV)
IV-A Purpose of Metropolitan Govemance .............................................................. 15
IV-B Regionally Provided Services: Funding ........................................................... 16
IV -C Regional Systems .......................................................................................... 16
IV-D Coordination of Local & Regional Plans .......................................................... 16
IV -E CollarCounties ...............................................................................................17
N-F Growth Management Strategy ......................................................................... 18
N-G Natural Resource Proteetion ........................................................................... 18
IV-H Local Plan Implementation .............................................................................. 19
N-I Metropolitan Council Focus on Planning ......................................................... 19
IV-J Budget Process & Work Program Evaluation .................................................. 19
IV-K Criteria for Extension of Metropolitan Governance Authority ............................ 20
IV-L RestructuringofMetropolitanAgencies ...........................................................20
N-M Metropolitan Council: Method to Select Members ........................................... 21
IV-N -Parks & Open Space: Operation & Maintenance Capital Funding ................... 22
IV-O Surface & Groundwater Water Management ................................................... 22
IV-P Sale of Lawn Fertilizers Containing Phosphorus ............................................. 23
N -Q WaterSupply ..................................................................................................23
N-R Regional Wastewater (Sewer) Treatment System ........................................... 24
IV-S Waste Stream Management ........................................................................... 24
Transportation (V)
V-A Transportation Funding ................................................................................... 25
V -B Regional System ................................................................................... 25
— -
V -C Road Access Fee .......................................................................................... 26
V -D Transportation Utility ....................................................................................... 26
V-E HighwayTumbacks & Funding ...................................... ...... 26
............................
V-F `3C' Transportation Planning Process: Elected Officials Role .......................... 26
V-G Mofion Imaging Recording System (M.I.R.S.): Tra�c Law Compliance ............ 27
V-H Airport Noise Mitigation .................................................................................. 27
V-I Traffic Control Devices (MN/DOTAdministrative} ............................................ 27
V-J Cities Under 5,000 Population ........................................................................ 28
V-K County State Aid Highway (CSAH) Distribution Formula ................................: 28
Committee Rosters
Housing and Economic Development Policy Committee ........................................... 29
Municipal Revenue Policy Committee ........................................................................ 30
Transportation and General Government Policy Committee ....................................... 31
° Association of Metropolitan Municipalities
px y
Municipal Revenue &
Taxation (t)
1-A Levy Limits
The AMM strongly opposes levy limits and urges the legislature to discontinue them for 2003 or at a
m;n;mtun not re-enact them for 2004 and beyond. The AMM also opposes the imposifion of artificial
mechanisms such as valuation freezes, payroll freezes, reverse referenda, super majority requirements
for levy, or other limitations to the local government budget and taxing process.
I-B Local GovernmentAid (LGA)
ANIM supports the continuation of Local Govemment Aid (LGA), which provides for revenue sharing
between ciries and the state, compensates cifies for the cost of cazrying-out state mandates and helps
provide all Minnesotans w�ith an adequate level of basic public services at a reasonable cost.
However, the program should be revised so that:
♦ the formula is simpler and easier to understand and communicate;
♦ the formula better reflects city "need," and utilizes more reasonable need/ability-to-pay criteria;
♦ a portion of the funds are distributed on a per capita basis;
♦ there is an established mechanism by which the total amount of money appropriated for LGA grows
withinflationandthe economy.
Given the fact that the 2001 Omnibus Taac Bill increased the appropriation far LGA by $140 million, no
ciry should have received less LGA in 2002 than they did in 2001. Therefore, ifthe Legislature elects
not to undertake an in-depthreview and updating ofthe LGA formula during the 2002 session, it
should, at the very least, return those ciries that lost LGA to their 2001 LGA levels. This will cost less
than $4 million, which could be appropriated from the $14 million LGA reform account created by the
2001 Legislature.
I-C Sales Tax on Local Government Purchases
The legislature should reinstate the sales tas exemption for all local govemment purchases without
requiring areduction in other aids.
2002 Legislative Policies 1
Revenue & Taxation
I-D Price of Government
The price ofgovemment calculation in regard to local govemments should be based on (1) changes in
the sum of the levy and state aids, and (2) examination of long-term tr�nds, not single year events. In
addition, consideration should be given to service provision transfers between govemmental units,
increased demand for services by citizens and le�sIative mandates or tax rate chauges.
1-E Fiscal Disparity Fund Distribution
The AMM opposes the use offiscal disparities to fund social orphysical metropolitanprograms since it
results in ametropolitan-wide property t� increase hidden from the public.
1-F Personai Property 7axation: Etecfric Ufilify
The AMM opposes proposals far exempting the Investor Owned Utilities (IOUs) from the personal
properLy tax. Under no circumstances should local units of govemment and their taxpayers be required
to shoulder the burdens oftax relieffor IOUs.
Thepersonalpropertytas is asignificantportion ofthemetropolitanfiscal disparitypool aad, ifelimi-
nated, would have a metropolitan-wide properiy taY impact.
I-G Revenue Diversification
The AMM supports revenue diversification for cities to reduce the reliance on local property taxes. .
The AMM opposes 2egislated reduction or limitation on various Iicense fees, deveIopment fees, or other
general fees which would force increased properry taa� to pay for related services.
I-H C(ass Rate Tax System
The AMIvi opposes a change from the class rate ta�c system to a market value system, which would
cause tremendous shifts of tax burden between ciasses ofproperiy, or applying firture levy increases to
mazket value, since this would fiuther comp&cate the property tax system. "
I-I LimitedMarketValue
The AMM
purposes since such Iimitation shifts taxes to otherproperties and similar newproperties will pay pm-
portionately higher taYes. The legislatiue implemented a six-year phase out oflimited mazket vaiue on
2 Association of Metropolitan Municipalities
o a.-�l`l
Revenue & Taxation `
homestead property in the 2001 tas bill, which the ANIM suggesis be shortened to three yeazs. The
AMM believes that enhanced targeting for special circumstances such as low-income persons better
serves the tax system.
I-J City Revenue Stability & Fund Balance
The legislature should not attempt to conh or restrict city fund balances. These funds are necessary to
maintain fiscai viability to meet uneapected or emergency resoiuce needs of city govemments, to
purchase capital goods and infi�astructure, provide adequate cash flow and to maintain high-level bond
ratings.
I-K Public Employees' RetirementAssociation (PERA) Under-Funding
Although the 20011egislature increased employer and employee conhibutions by 35 percent each,
made some administrarive changes in qualification, and extended the amortization period from 20 to 30
years, there is still a si�ificant funding deficiency inPERA.
Inadditionto further employerlemployee conhibutions,the legislature should considerthe following
alternatives.
♦ Supply PERA with state aid funded from TRA and MSRS sufficiency's as was done in 19$4 for
TRA fromPERA andMSRS.
♦ Allow former employees to take refunds enhanced by a portion of employer contributions.
♦ Reduce gtulra�rteed interest for deferred members' benefits.
♦ Increase vesting from three to five years.
♦ Restructure the POST fund by combnung assets with the current fund, redirect some of POST fund
eamings to active funds, pay excess mortality costs from POST rather than active funds, and ea�tend
investment returns over a 10-year rather than 5-yeaz period.
2002 Legislative Policies 3
�a-`�
General Legislation
II-A Mandates & Local Authority
The AMM opposes statutory changes wtuch erode local control and authority or create mandated
additional tasks req "�rina new or added local costs without a conesponding state appropriation or
funding mechanism. New unfimded mandates cause increased properry taxes which impedes the ability
to fund traditional service needs.
II-B Public Right-of-Way
The AMM supports the continued effort of the League of Minnesota Cities (LMC) to protect the
authoriTy ofcities to maintain jurisdiction over municipal public rights-of-way, to establish relevant
criteria and to obtain reasonable compensation for its degradation and to retain franchise and fee
collecfion authority for gas, electric and cable services.
If-C 911 Telephone Tax
The AMM supports an increase in the current 27 cents per phone line 911 access fee to provide
necessary and mandated upgrades and modifications to 911 systems in public safely answering point
(PSAP) locations throughout the state. This fee increase is needed to maintain reliable emergency
communication services and to comply with the FCC mandate for cell phone automated location
identification. The increased funds should be distributed to the local PSAPs in a fair and appropriate
manner. The Legislature should also restore the Commissioner of Adnunishation's authority to establish
the surcharge amount.
i1-D 800 MHz Radio System
The AMM supports the continuation ofthe Metropolitan 800 MHz Radio System legislation and boazd,
as long as cities aze not forced to modify their current systems or become part of the 800 MHz Radio
System until they so choose. The system should provide a phased transition guaranteeing uninterrupted
service and be technically capable of allowing communities the flexibility to form various coordinated
urangements for dispatching and service provision. Inthat one ofthe prime advantages of this system is
the fact that local public safety agencies and other units of local govemment throughout the region will be
able to communicate with each other, regional funding of the entire system should be considered. The
Radio Boazd should be allowed to provide grants to local units of govemment for capital equipment
purchases from the 4-cent per phone line 911 appropriation in excess ofbackbone system constntction
needs. Any such funding should take into account the reasonable useful life of current systems.
2002 �egislative Policies 5
General Legislation
II-E Permit Approval: Zoning/Denial Findings
Thepernut approvai statute delineating time limit requirements shouid be modified so that inthe case of
a residential to commercial rezoning requiring a super-majority vote, a motion to table (sixnple majority)
that extends action beyond the 60 day time requirement constitutes a denial. Current law provides
automatic approvai ifno action is taken.
In addition, ifan approval resoIution fails for any pemut request, the city should be allowed, by statute,
to provide a denial resolution with findings offact at the next regularmeeting or granted an automatic
time]imitexteilsion.
il-F PERA Opt-in for City Managers
In 1981, when vesting was at 10 years, city managers were allowed to opt-out o£PERA since many did
not stay at their positions for a full ten years. Nowthat vesting in PERA is three years, city managers
should be allowed to opt back in to PERA.
6 Association of Metropolitan Municipalities
oa_�9
Housing & Economic
Development (III)
III-A Livable Communities Act
The 1995 I,egislature enacted the Livable Communities Act (LCA) to stimulate housing and economic
and community development in the metropolitan area. The act permits cities to access about $11.0
million in funding for pollution clean-up, housing and redevelopment. As aparticipant, a city must adopt
affordable and life cycle housing goals and a plan to achieve those goals.
Since its inception, the Metropolitan Council has been responsible for program implementation, includ-
ing the completion of an annual pxogress report. The report for the 1996 calendaz year indicates
progress toward achieving the stated goals but also raises concern regazding the preservation of afford-
able housing, particularly the demolition ofhousing units.
The t11VIM has maintained that the LCA should not be amended until there are progress reports and
eaperience with the LCA. Based on the reports and experience of cities, the AMM recommends:
♦ TheLCA should be continued.
♦ The LCA should be amended to eliminate the requirement that a city annually elect to be a partici-
pant in the act and require by November 15 that a resolution to withdraw be approved.
♦ The state should appropriate funds for the LCA. The appropriation should not replace the cutrent
funding sources but should be in addition to them.
♦ The Metropolitan Council, in cooperation withthe LCA participants, should develop a benclunaz•k
to measure a city's efforts to provide affordable housing. The benchmazk should replace the Afford-
able Life Cycle Housing Opportunity Amount (ALHOA).
♦ The LCA amount should be amended to pemut a development agency to apply for an LCA pro-
gam provided the development agency receives from the city council in which the project will be
located approval to submitthe application andreceivethe gant.
♦ The Legislative Auditor should conduct areview of the Act to measure its effectiveness in achieving
its stated goals.
2002 Legisiative Policies 7
Housing and Economic Development
ili-B Federal Housing Policy
Historically, the federal govenuuenthasprovidedfunding forhousingproduction and renYsnbsidies.
However, over the last decade, the federal govemment has significanfly reduced its funding commitment
As a result, the number ofhousing units affordable to low-income households has not kept pace with the
need.
Further conhibuting to the need for affordable housing aze changes in federal immigrationpo&cy which
aze ea�pected to bring additional new residents to the region. Given the eatent ofthe demand for afford-
able housing, and the fact that federal policies often contribute to it, state and local action alone will
continue to be inadequate to meet the need. Federal involvement is needed in order to adequately
address ttte affordable housing problem.
Therefore, the ANIIvi recommends that the Governor, Legisiahue and local governments throughoutthe
regionutilize memorializing resolutions and othermeans, such as public fonuns, to notify members of
Congress and other federal govemment officials ofthe need for federal housing assistance.
III-C State Housing Policy
In recent yeazs the State of Minnesota has been an active participant in addressing the aff'ordable
housing problem. A variety of state policies have attempted to address the need for production and
maintenance ofowner-occupiedandrental housing affordableto low-incomehouseholds.
The 2001 Legislature provided significant property tax relief for aQaztmentpro�erties, passed legislation
- ---
aimed at reducing regulatory barriers, allocated an additional $100 million intax exempt bonding
authority forhousingpurposes and granted a sales taac exemption for building materiais and furnishings
used in publicly-owned housing.
The Legislature also appropriated $105 million in state general fimd resources to the Minnesota Housing
Finance A�ency (MEIFA). This equals 10 percent of the agency's $1.0 billion spending plan for the
current biennium but is not an increase inthe ageucy's general fund appropriation. Theremainder ofthe
plan will be funded through bond proceeds, inveshnent eamings, and federai fimds.
However, given the ongoing shortage, the state must step-up its efforts in the area of afford-
able housing. Therefore, the AMM supports legislative approval oL
♦ A biennial a ro riation e uai to 20 ercent ofIvSHFA's biennia
� Programs that will leverage investments from non-state sources.
A sates tas exemption for consirucrion supplies and materials used in the production of any new or
rehabilitated affordable housing project.
8 Association of Metropolitan Municipai�ties
oz-�9
Housing and Economic Development
♦ A mortgage and deed tax exemption for public agencies and private developers producing afford-
ablehousing.
♦ Continuation of the housing preservationprogtaui for federally subsidized housing that could be
converted to mazket rate housing.
♦ Institurion of a state tax credit for affordable housing.
♦ Continuation ofthepolicy ofnot reducing a person's or a household's Minnesota Family Invesiment
Progain monthly grant if they aze residents ofpublic or section 8 housing.
111-D Local Authority
Local governments do not have the financial resources to solve the region's affordable housing problem
alone, but they can complement federal tax credits and state grant programs through land use policies
and omilatorymodifications.
However, it is uncleaz whether cities have the legal authority to adopt and enforce an aff'ordable housing
policy in cases where no federal, state or local funds aze involved. For example, it is uncleaz if a city can
offer an incentive such as a density bonus for a developer to produce a portion of the proposed devel-
opment as affordable housina. An attempt was made to explicitly provide this authority during the 2001
session, but it was unsuccessful.
To clarify cifies' authority in this area, the legislature shouid:
♦ Authorize Mimiesota cities to adopt local policies that encourage the production of affordabie
housing. The legislafion should enable cities to draft ordinances or amendments to ordinances that
provide for a portion of new housing to be within income and purchase price guidelines developed
by the city. The enabling legislation should also pemut cities to provide for waiver of fees, density
bonuses or modification of local regulation and similarmeasures to stimulate housing production.
Reaffirni that cities aze responsible for and must retain the authority to regulate the location, size and
aznount, andtype of housing withintheirboundaries.
III-E Homelessness
Programs to assist the homeless are generally funded by a variety of public and non-profit sources.
Many of the programs such as the Stuart McKinney Homeless Prevention Act require operating agen-
cies to develop a community-based plaimuig process to identify needs of the homeless and adopt
pro�ams--continuum of caze—to meet these needs. Continuum of care includes services and housing
types (shelters, transitional and permanent).
In the metropolitan azea, counties in collaboration with other local govemments and service providers
2002 Legisiative Policies 9
Housing and Economic Development
have developed continuum ofcare plans tfiat have the goal ofmoving the homeless to needed services
or permanent housing. However, a recent study completed by Hennepin County and the city of Minne-
apotis regarding homelessness in the county found that homeless adults can not find pem�anent afford-
able housing. They also found that there is a need for more coordination among the numerous meira
polifan agencies involved in hometess assistance. The report notes that in several regions ofthe state
counties coordinate their continuum of care plans. Therefore, it is recommended that:
♦ The supply ofpermanent assisted housing, paiticulazly single room occupancy, be increased.
♦ Metropolitan counties should work together to initiate a coordinated planning process.
111-F Family & Elderly Housing
Demographic h indicate that Miiuiesota's population is aging. In the metropolitan area, the Metro-
politan Council reports that the number of persons age 75 and over will increase from approximately
110,000 in the yeaz 2000 to 180,000 in 2020. Being awaze ofthe trends, the legislature should:
Provide additional resources to serve the low income elderly. Resources should include housing as
well as related services.
♦ Direct state agencies to pmvide information and technical assistance to local govemments regazding
the popuiation changes and their unpacts on public services.
�__Develop_policiesthatenco�sagethedeyelopmentofhousingfortheslderlythatis.affoLdableand._ _ __ _
provides an attractive alternative to current housing and preserves the current housing.
tli-G Community Housing Land Trusts
An affordable housing land trust is a non-profit corporation that is used to create an expanding and
perpetualiy aff'ordable supply ofowner-occupied housing. The landtrust attempts to maKir�i?e the cost-
effectiveness of the public investment. Land irusts aze operative in Minnesota and 22 other states.
Currently there are at least six land tn�sts in Minnesota.
The Minnesota Housing Finance Agency (MHF'A) was authorized to assist in the funding of land tnists.
The one-time funding pemutted Iand hiists to provide gap financing, interest rate subsidies,
predevelopment financing and financial underwriting costs, To assist the land h2ists, it is recommended
♦ A land trust capacity building program be authorized by the 2002 Legislature. The land tnrsts would
be authorized to provide such services as gap financing, interestrate subsiclies, predevelopment
1 � Association of Metropolitan MuRicipalities
o a-- �l°�
Housing and Economic Development
financing and underwriting. The pro�am should be administered by the MHFA and be appropriated
atleast$540,000.
111-H Inclusionary Housing Study
The 2001 Minnesota Legislature directed the Office of State Planning and the Minnesota Housing
Finance Agency (M�IFA) to study inclusionary housing statues and ordinances throughout the country
and report to the legislature by January 15, 2002. The report will also make recommendations regazding
approaches to encourage residential development that include housing for a range of incomes. The
legislation requires that in developing recommendations, the staze agencies consult with representatives
ofbuilders, developers, municipalities, local zoningofficials, housing advocates and local planning
officials.
The first draft ofthe study without recommendations should be available in October 2001.
The AMM will monitor the study and be active inthe formation ofthe recommendations. In formulating
recommendations the agencies and representatives ofthe various groups should consider acflons that:
♦ Encoimage the development of affordable rental housing.
♦ Provide forthe opporiunity for long-termaffordability ofrental andowner occupiedhousing.
♦ Include regulatory relief and modification of official controls as conhibutors to reducing housing
costs but recognize that these measures alone wiil not produce housing affordabie to households
ean�nig less than halfof the area median income. In many n�stances a direct financial contribution will
be needed.
♦ Recognize that cities aze responsible for land use decisions and that the responsibility should not be
reduced or h�ansfened from the city.
The AMM opposes adoption of a mandated inclusionary housing law.
III-1 Economic Development Responsibilities
The state should continue to recogiuze cities as the primazy unit of govenunent responsible for nnple-
menting economic development policies and land use controls. However, the state should adopt
policies that encourage cities to jointly plan for and implement economic development projects. New or
amended economic development programs designed to address specific economic circumstances within
cities or counties should use problem definition as the criteria rather than geographic location, city size or
similazcriteria
2002 Legisiative Policies 11
Housing and Economic Development
III�) Tax Increment Financing (TIF)
The properiy taY reform provisions of the 2001 Omnibus Tax Bill will have significant negative impacts
on new and e�sting TTF districts. As a result of class-rate compression aad the staTe takeover of all
general education and transit operating levies, existing TTF districts are expected to eaperience deficits
of up to 33 percent in the coming yeazs. An expanded grant program and special deficit authority were
enacted during the 2001 session, but they need to be improved in order to adequately address the
deficits causedbythe reforms.
Therefore, during the 2002 session, the Legislature should:
♦ Direct the Commissioner of Revenue to approve requests forpooling authority prior to July 1 of
each year, so that pooled increments can be used to pay August bond payments.
♦ Reviewthe grantpro�amto clarify ambiguities and conflicts so thatthe Department ofRevenue and
cities canunplementtheprogram with amurimumofdelay anduncertainty.
♦ Make inter-fund loans and some pay-as-you-go notes eligible for the grantprogam. Eligibility for
pay-as-you-go notes should be limited to those where there is a contractuai obligationto make a
specific dollaz payment to a private party who is notthe beneficiary ofreduced properiy taxes on
the benefittedpazceIs.
♦ Repeal the certified taY capacity rate for all new and existing districts.
111-K Stafe Rols in Redeve(opmentlReinvestment
Over the yeazs, the state of Minnesota has provided cities with a variety ofprograms to assist in rede-
veIopment, pollution cleanup, business retention and e�cpansion, and affordable housing. These progaws
include, but aze not limiced to, taac increment financing (TIF), ta�c credits, loans and grants, and taac
expendit�ues.
However, many of these programs were negafively impacted by the taac reforms and budget appropria-
tions eaacted during the 20011egisia6ve session. For eYample, the Redevelopment Fund did not
receive any appropriation and the Minuesota Investment Fund received no increase in its appropriation
Revenues fore�sting TIF districts were sigiufican8y reduced as aresult ofthe taY reforms and the
usefulness ofT'IF' for future pmjects remains uncertain.
The process ofreinvesting in a city is continual. In addition to redevelogmentneeds, many metropolitan
azea cities are faced with significant expenses in order to maintain, up�ade and repIace their pubIic
� 2 Association of Metropolitan Municipa(ities
A�-`�.`\
Housing and Economic Development
uZfiasiructure, inciuding sh�eets, utilities and various otherpublic facilities. While both cities and coimties
develop and adopt capital improvement progruns, cities do not have the authority to issue bonds to
finance their pro�ams the way counties do.
Therefore, during the 2002 session, the Minnesofa Legislature should...
♦ Recogirize the state role in reinvesting in cities, by refining old and developing new tools and pro-
grams under which the state will partner with cities to provide financial resoisces for redevelopment
projects that meet public policy objectives.
♦ Grant cities the same authority counties have to prepare and fund a capital improvements program.
III-L "This Old Shop"
AMM supports the passage of a"This Old Shop" law, similar to the existing "This Old House" law
�Iv1.S. 273.11, Subd. l�, which would allow owners of older commercial/industrial property to defer
an increase in assessed value as the result of si�ificant reinvest in their properry.
III-M Group Homes
♦ State and county agencies mustprovide timely notificarion to cities of facility license requests and
renewals and provide adequate opportwuty to respond. Cities must also be awaze of the special
care needed by residents of such facilities in case ofpublic safety emergencies.
♦ Clusterina ef communi'y residential facilities because of economic, geographic or other factors
should be avoided. Standards of non-concentration for state or county-issued Requests for Propos-
als (RFPs) should be established.
♦ There must be an ongoing screening process, particulazly in the correction azea, to insure that
persons placed in a residential facility will benefit from such an environment and will not be a danger
to themselves ar others. The licensing authority must be responsible for removing any person found
incapable of living peacefully in such an environmen�
♦ Facilities licensedby the corrections department shouldnotbe exempt fromreasonable local land
useregulations.
♦ A fair share concept shouid be considered within the metropolitan area However, this concept
should consider other factors including transportation facilities, job availability and other needed
support services.
♦ The licensing authority andlor legislature should allow cities to participate in the search for facility
locations in order to meet needs ofthe providers, facility residents and the neighborhood.
2002 Legislative Policies 13
Housing and Economic Development
14 Association of Metropolitan Municipatities
o�.� �t°�
Metropolitan Agencies (IV)
Introduction: Metropolitan Governance Structure
The Metropolitan Council was established in 1967 to coordinate "the plazuung and developmenP' of the
seven county metropolitan azea To fulfill its responsibilities, the Metropolita.n Council has worked with
local governments to establish policies regazding growth and development in the iegion. Over the yeazs,
the Metropolitan Council has been authorized by the legislature to be involved in the development of
regional pazks and the operation of regional services.
In the following yeazs the Metropolitan Council was mostly advisory, but was given responsibility for
regional policy development and coordination in the areas of wastewater treatment, transportation and
airports. The Metropolitan Council was given limited approval authority for development proposals,
which were of inetropolitan (regional) significance but was not given direct operational authority.
The Metropolitan Council's responsibilities have been eapanded over the years. The Metropolitan
CouncIl was given direct operational responsibility for regional hansit and wastewater treatment in
1994. In the following year, the legislature directed the Metropolitan Council to implement the Livable
Communities Act (LCA). The Metropolitan Council's role with the LCA is to negotiate affordable and
life cycle housing goals for ci�ies and provide grant funds for the clean-up ofpolluted lands and demon-
stration projects that £oster a �nix of land uses and housing types.'I1ie Metropolitan Council's ro?e has
evolved since its inception to long-range planning and the operarion ofregional services.
IV A Purpose of Metropolitan Governance
The AMM affiuns its support for the existence of a metropolitan govemance system to deal with
appropriate regional issues and concerns. The purpose ofthe metropolitan governance system should
be:
♦ Tofacilitateregion—wideplannnigwiththecooperationandconsiderationoftheaffectedlocalunits.
♦ To provide certain region-wide services that do not duplicate those that can be provided by local
governmentai units, eitherindividually orjoinfly.
♦ To fulfill other specific responsibilities mandated by the state and federal governments.
2002 Legislative Policies 15
Metropolitan Agencies
IV-B Regionaily Provided Services: Funding
The Metropolitan Council should continue to fund its regionat services and activities through the existing
combination ofuser fees, properry taxes, and state and federal grants. The current revenue system
provides better visibility to the customets.
The Metropolitan Council should be responsible fordeterminiug user fees. The fees should be caonsistent
with regional system plans and goal s assure that the service quality can be of high quality as measured
by industry or public policy standards and be established by an open, visible procedure including, but
not limited to, public notice and hearings.
A clear linkage between revenue and service should be maintained. Fee proceeds from one service
should not be used to fund another regional service.
IV-C Regionat Sysfems
The regional inveshnent in metropolitan systems must be maintaiued andpreserved by preventing
adverse impact because ofthe lack ofintegration and coordination between regional and local planning.
Regional system designation shouid only be approved ifthere is a compelling meiropolitan pmblem or
concern that can best be addressed through the designation. F'rior to requesting legislative approvat for a
system, the Mehropolitan Council must discuss theproposal withtheregion.
_ .._. . - -._._ _____.. _ _ __ __.-- - -_.. - - . ___- -- --__ .._. - -
!V-D Coordination of Local & Regional Plans
Therea onalplanningprocessmust, onacontinualbasis,havetheinputoflocalgovemmentofliciais. To
ensure input, the Metropolitan Councii should hold hearings and provide public notice and copies of
pmposaLs regazding aznendments to the Metropolitan Development Guide.
Metropolitan system plaas must be specifrc in terms oflocations, capacities andriming to atIow for
considerntion in local comprehensive planning. System plans should clearly statethe criteria by which
the local plans will be judaed for consistency. The system plans should also clearly state the criteriathat
will be used to find that a local plan has a substantial impact on or contains a substantial departure from
the metropoiitan system pIans.
-..._..-.—.-..T..l�,e.�e?t,aRo.litau..CO�uw.cii.shaul,d ' . .. . .
not be limited to staff support, research, policy gttidelines, system statements and procedures for the �
review and evaluation ofplans and amendments.
i6 Association of Metropolitan Municipalities
o�.-�°�
Metropolitan Agencies
The Metropolitan Coimcil, in its review of local plan amendments, musthave aprocedurethat will:
♦ Recognize that the Metropolitan Council's role is to review and comment, unless there is a substan-
tial impact on or depatture from the system plans.
♦ Establish an open dialogue between cities and the Metropolitan Council, including public meetings
and public hearinas.
♦ Be awaze ofthe statutory time constraints imposed by the legislature on plan amendments and
development applications.
♦ Provide for immediate effectuarion of plan amendments, which have no potential for substantial
impact on systems plans.
♦ Require the informationneeded for the Metropolitan Council to complete its review, but not pre-
scribe additional content or format beyond thai is required by the Metropolitan Land Plavning Act
(MI,PA)•
IV-E Coltar Counties
As the Twin Cifies region continues to grow and eacpand outward, working collaboratively with the 11
collaz counties in Minnesota and Wisconsin, and the cities within those counties, will become increas-
ingly nnportant. There aze both environmental and transportation issues that cannot be solved by the
seven-county area alone.
Therefore, Muuiesota Pluuvng, the Metropolitan CouncIl, and the counties adjacent to the Twin Cifies
meh�opolitan area should begin meeting on a regulaz basis regazding growth management strategies for
the Minnesota collar counties. The Wisconsin collar counties should be included when appropriate.
These strategies should focus on polieies than can be unplemented by local govemments withixithe
adjacent counties and by state agencies, rather than by extension of the Met CounciP s jurisdiction to
additional counties. All strategies should complement and recogiuze growth management policies
currenfly being implemented within the seven-county metropolitan area. .
Regional services should be extended to the collaz counties only if there is a specific probiem that can be
best resolved by extending the service. The azea receiving the services must pay for the service exten-
sion and agree to growth management strategies consistent with those ofthe seven-county metropolitan
2002 Legislative Policies 17
Metropotftan Agencies
azea.
IV-F Growth Management Strategy
The Metropolitan Council is currenfly preparing anew Regional Blueprint, to be completed by Decem-
ber of 2002, that is expected to rely less on the current MUSA line policy. In developing this new
Blueprint, the Council must work with and recogivze the role of local governments in developing and
implementing growth management sh The AMM believes that the metropolitan azeamust
accommodate growth in a manner that balances natural resource protection with the need to provide
affordable land, housing and public services.
While the Council's role is to set broad regional goals, and then provide cities with technical assistance
and models, local govemments are ultimately responsible forzoning, 2and useplamung and development
decisions within their borders. Cifies aze not scheduled to complete new Comprehensive Plans until
2008, and the creation of a new Regional Blueprint in 2002 should not change this planning schedule.
While the process bein� utilized inthe Smart Growth Twin Cities effort does provide opporhinities for
sharing information and working toward consensus on someregional issues, it falls far shortofproviding
a comprehensive regional plavnuigprocess. AMM siron�ly suggests that the Metropolitan Coimcil
eapand the regional planning process to include broader regional issues thanthe "walkability ofneigh-
borhoods."
IV-G Natural Resource Protection
Natural amenities aze one of theprime_contributors_ to the high_quality of life enjoyed in the Twin Cities. __..
region. As the region continues to grow and expand, investing in and protectin� these resources is impor-
tant to maintaining this high quality of life.
Therefore, the Association of Metropolitan Municipalities supports the Metropolitan Council's efforts to
inventory natural resources in the metro azea However, once that inventory has been completed, cities
and theu residents must maintain the authority to make local decisions regazcling the protection of identified
resources.
There is a need to be fle�cible and creafive in order to balance natural resource protection with develop-
mentprojects, such as housing developments, commercial!'mdustrial expansion and infrastructure repair
and upgrading. But there will also be cases that present unavoidable trade-offs betcveen natival resoiu�ce
protection and desired economic and community growth. T'hese situations will require value judgements
a proposed development. Such decisions rightfully belong at the local level.
To protect natural resources of regional importance, the Council, in consultation with local govemments
18 Association of Metropolitan Municipalities
oa.-�t9
Metropolftan Agencies
and private parties, must provide the necessary funding and develop appropriate protection methods.
These methods might include, but should not be limited to, the purchase of development rights, ease-
ments, or acquisition.
Finally, ifthe Me�opolitau Council determiues that the compietion of local NRIs is a regionat priority, it
must provide both funding and tecluucal support to the cities eapected to carryout this policy.
IV-H Local Plan implementation
Local governments aze responsible for zoning. These wning decisions should not be conditioned upon
approvals by the Metropolitan Council or other govemmental agency. The AMM is open to the use of
altemative dispute resolution procedures prior to judicial remedies.
Altemafive dispute resolu6on could reduce costs and time for all parties involved in the dispute. The
AMM strongly opposes the creation of an appeals boazd that could supersede city planning or wning
decisions.
IV-I Metropolitan Council Focus on Planning
Long-range plarniuig should continue to be the primary function ofthe Metropolitan Council. In con-
ducting long-range planning, the Metropolitan Council should periodically update and revise the vision
for the region. As part ofits long-range platming, the Metropolitan Council should include analysis of
trends, plans, policies and programs that could impact or link the regional growth centers in Greater
Mnmesota to the metropolitan azea.
In additionto its long-range plaminig function, theMetropolitan Council should maintain and expand its
technical and research services to cities. The services should assist cifies in completing its planniug
mandates but aiso in conducting special studies and projects.
For cities to meet their plamung mandates, the Metropolitan Council must ensure that its pl2nnuig, data
collection and dissemination funciions are fi�lfilled in a timely manner and are consistent with its statutory
obligations.
IV-J Budget Process & Work Program Evaluation
The Metropolitan Council's annual budget should present revenue and eapenditure budgets by the
services provided. Mandated and non-discretionary projects should be identified along with their
funding sources. Previous year's history should also be provided. The annual budget should maintain
linkages between expenses and revenues. In addition, the fiznds or reserve funds raised for a particulaz
service should not be used or conuningled with the funds raised for any other service or activity.
2002 Legislative Policies 19
Metropolitan Agencies
The Metropolitan Council's workpro�am shouldmeetfourtests:
♦ The issue or problem identified is important to the region's well-being.
♦ Meh�opolitan Council intervention or activity will produce apositive result.
♦ The Metropolitan Council's action does not duplicate or serve as a substihrte for a state level
program or effort or what should be a state level activity.
♦ The Metropolitan Council is the most appropriate agencyto intervene orperformthe activity.
IV-K Criteria for Extension of Metropolifan Governance Authority
The legislature, if granting the me�opolitan govemance siiucture additional responsibility or authority,
should be specific in the grant. New or expanded authority shouid be considered only cvhen one or
more ofthe following exist:
The service, function or activity has been shownto be needed and it can be demonslrated that it
cannotoris notbeing effectively orefficientlyprovidedthrough e�sting generalpurposeunits of
govemment
♦ The service, function or acUvity is not an appropriate state level orlocal government level activityor
function.
Regional intervention is needed forprotection ofthe region's inveshnent in an existing metropolitan
system.
IV-L Restructuring of Metropolitan Agencies
The Sports Facilities Commission and the Metropolitan Airports Commission (MAC) aze ciurenfly
metropolitan commissions. The legislature should make the sports facility commission a local commis-
sion if the back up taY is limited to one city or is eacpanded to additional cities. Ifthe tax is extended to
other cities, the commission should be restructured to have membership from those cities.
The legislature should clarify the status of the MAC so that it becomes either ametropolitan or state
directed agency. The detennining factor in the a�ency_decision is tl�e �attiue qfthe cpmmiss�9z�'.S bs19k-
up tas. Ifthe tas will be a metropolitan azeata�t, its membership should come from the metropolitan
area. Ifthe back-up tax is statewide, then the MAC should have statewide representation.
In selecting membership on the MAC boazd, the govemor should give primary consideration for repre-
sentation from communities impacted by the operations of the MAC airports.
20 Association of Metropolitan Municipalities
oa- -y9
Metropolitan Agencies
[V-M Metropolitan Council: Method to Select Members
The legislature has debated proposals to amend the process to select Metropolitan Council members.
Proposals to electthe members directly orto elect county commissioners as Metropolitan Council
members have been discussed but not enacted into law. The AMM has studied the govemance issue
and has released a sepazate "Metropolitan Govemance Report" (October 1998).
The report notes that there is no regional crisis that requires a govemance change, but did recommend
that Metropolitan Council members serve fixed, staggered terms. The AMM further recommends that
no changes be made to the Meh�opolitan Council unless a govemance proposal meets a set of criteria.
The intent ofthe criteria is to fashion a regional governance structure that has a distinct mission, but does
not establish a political subdivision with local government powers or one that is a state agency. The
Melropolitan Council should have a distinct mission of long-range pla�uvng and operation of legisla-
tively-authorized regional services. The criteria include:
Terms o�Office
Members should serve fixed, staggered terms.
MetroDOlitan Council Powers
The Metropolitan Council should continueto be a long-range, planning agency andpotentially an
operator or oversight agency for regional services. As such, the Metropolitan Council must maintain
plamiing, coordinating and local assistance as a high priority.
Additional Powers
New powers must not eapand or override city responsibilities, especially land use regulation authority.
The Metropolitan Council must not become an agency with general local govetnment powers.
State Role
The legislature should focus on broad oversight ofthe Metropolitan Council's mission and services.
Local Government
Local elected officials must be involved in the selection process ofMetropolitan Council members and
there must be amechanism to facilitate meanuigful dialogue and input betweenthe Metropolitan Coimcil
and cities.
2002 Legislative Policies 21
Metropolitan Agencies
Collar Counties
The metropolitan region clearly includes the seven designated counties and the adjacent eleven Minne-
sota counties, as well as tluee Wisconsin counties. The needs ofthe entire metropolitan region beyond
the curtent seven county region must be addressed.
MetronoZitan Council Members
The selection process must s7ive to appoint Metropolitan Council members who baue an understanding
of and will be responsive to the district represented, as weli as be responsive to the best interests ofthe
region. The selection process should limit the potential influence and support (including financial) of
specialinterests.
IV-N Parks & Open Space: Operation & Maintenance Capitai Funding
The �ovemor and the legislature should continue to appropriate funding for the operation and mainte-
nance ofregional pazks. The level of funding should be equal to the statutory goal of 40 percent of the
total budget. Regional pazks essentially serva the role of state parks in the metropolitan area and the
acquisition, development and improvement ofthe pazks shouid continue to be fixnded, in part, with state
resources.
IVA Surface 8� Groundwater Water Management
If legislafion is considered for surface water management, it should be based on the following principles:
♦ The legislature shouldprovide full funding if it mandates additional watermanagement planniug or
implementing activities by local units of govemmeirt.
♦ Local units of govermnent should continue to be responsible for the orgaiuzation and operation of
surface and groundwater management, since they aze the closest to the problem. Therefore, legisla-
tion enacted in 19991imiting representation on boazds of Water Management Organizafions
(WMOs) should be repealed. -
♦ New state requirements should not add to local costs and duplicate reviews/approvals should be
reduced or elimniated.
TheAMM would supportthe fo$owinginitiatives/action:
� A state grant program similaz to those currenfly administered by the Boazd of Water and Soil
Resources (BOWSR) should be established to assist WMOs in the metropolitan area to implement
theirplans.
22 Association of Metropolitan Municipalities
oa-tia
Metropolitan Agencies
♦ The le� slature should ciarify that the jointpower WMOs can, withthe approvai of its pazticipating
governments, separately Ievy a tax for its progiams.
♦ A thorough assessment of the BOWSR struchue and authorities to ascertain ifit should continue to
be the approval and oversight a�ency for surface water mana�ement planning and activities in the
metropolitan azea.
♦ A thorough assessment of the meh�opolitan azea surface water management planning and permitting
process with the objective of developing improvements in conflict resolution, better coordination
between state and local agencies, and streamlining the project pemut approvals process.
♦ Compliance by local units of govemment located outside of the metropolitan azea with the same
standards and requirements for surface water management as those imposed on local units within
the metropolitan area.
♦ A technical evaluation of the nnpact of 2:1 wetland replacement in the urbanized area on the goal of
greater urban densities as stated in the Metropolitan Council's Regional Blueprint.
IV-P Sale of Lawn Fertilizers Containing Phosphorus
In an effort to improve and enhance surFace water quality in the metropolitan area and to reduce the
public resources expended to implement surface water management plans that aze required by State
law, the AMM supports restrictions on the use and sale oflawn fertilizers contauring phosphorus and,
with reasonable exceptions, a"zero" phosphorus contentrequirement for lawn fertilizers sold inthe
seven-county metropolitan azea Watersheds rarely are wholly within municipal boundaries and, to be
effecfive, measures for water quality improvements need to be uniform and regional or statewide. Cities
believe the State is the appropriate level of government for effective and economical administration and
enforcement responsibility.
IV-Q Water Supply
Additional legislation pertauiuig to local or regional water supply plavning is not warranted. Iflegislation,
however, is proposed it should be based onthe following principles:
♦ Local units should retain the basic responsibility for water supply planning and management as in
current law.
♦ The state should fund addirional xnandates.
♦ Potabie water should not be designated a regional system.
2002 Legisiative Policies 23
Metropolitan Agencies
IV-R Regional Wastewater (Sewer) Treatment Sysfem
The regional wastewatez treatment system has improved the water quality of the region's major river
and lakes. The system should not be pemutted to break up or to diminish its effectiveness. Since all
users benefit equally, the regional user rates should be uniform by type of user.
IV-S Waste Stream Management
The legislature should enact legislation which will:
♦ Establish goals to reduce, recycle and reuse packa materials and establish fees, tases or depos-
its to encourage accomplishment ofthe goals. The revenues would be waived when the goals aze
met Available revenues would be used to promote or enhance local programs to achieve the goals.
♦ Continue the Office ofEnvironmenta( Assistance (OEA) as an agency thatprimarily assists local
govemments to manaa waste effectively.
♦ Continue the role of ciries in waste stream management unless a state or metropolitan system is
established to achieve the same goal.
♦ Distribute all proceeds from any funding system for solid waste management activities and require
dishribution of funds to all entities involved in the system.
e Provide that host communities for solid waste facilities will not have a financial liability for costs
associated with operating and monitoring the facility. Such costs should be bome by the operator
and in the absence ofregulations should be assumed by the state.
♦ Maintain, at am;n;m�, �e current compensation level pernutted through surchatge fees and
increase the level as well as makiug the compensation auailable to all types of solid waste facilities.
♦ Define municipal solid waste not to be a ha�lydous substauce. The definition would enkiance the
abilityoflocalgovenunents. �
z4 Association of Metropolitan Municipalities
0�.-�9
Transportation (V)
V-A Transportation Funding
The AMM strongly supports increased funding for transit and highways, both of which aze a critical
need in the metropolitan azea In addition, funding formass hansit including hansit ways, light rail or
heavy rail in existing corridors should be dedicated in a manner consistent with current highway funding.
Funds allocated to the metropolitan area should be flexible so that the most efficient and cost effective
transportarion solutionmay be chosen andthe mainmetropolitanproblem (congestionreliefl canbe
addressed.
The AMM supports a constitutional amendment dedicating the Motor Vehicle Sales TaY and/or other
revenue source to a new Surface Transportation Multimodal fund from which an appropriate amount is
allocated to the Highway User Tax Dishibu6on fund to repiace the auto license tab fee reduction of
2000, and the remaining amount to be used for transit and/or highway needs as priority dictates. The
AMM will support a general gas tax increase only if accompanied by this constitutional amendment
provision.
The AMM also supports a Metropolitan azea referendum for an additional half-cent or full cent sales tax
to support metro area major highway and transit needs with the caveat that current funding source
amounts and percentages for the Metro area aze maintained.
All non-transportationprograms should be funded from sources otherthan currently dedicated trans-
portation funds.
V-B RegionalTransitSystem
To provide travel choices to reduce congestion and automobile dependency the Regional Transit System
should be a combination of integrated traffic management systems which include use of HOV lanes,
express buses, exclusive transit ways, light rail transit, and commuter rail corridors built to connect
residents to job, retail and commercial centers, plus a variety of other transit modes, including taxi, bus,
pedestrian and bicycle.
Shifting major transit fundinn from property tax to a percentage of MVST may not equate to reai
property/people growth nor provide for the addition of needed service to previously unserved growth
centers. Therefore, the AMM supports annual funding increases for the Metropolitan Transit System
that not only support the current system but preferable increase Metro h'ansit capability to equal growth
andprovide muchneeded congestion relief.
2002 Legisiative Poticies 25
Transportation
Pazk-and-ride facilities for mass transit modes adequate to connect the regional centers, major trip
generators and communities, both urban and suburban, should have integrated feeder systems to
accommodate locat buses, automobiles, vanpools, bicycies, as weil as walldng faciIities.
The Metropolitan Council should work with local units of govemulent to encourage appropriate land
use controls along designated tiansit comdors to promote transit riderslup.
V-C Road Access Fee
In orderto fairly provide formajor street improvements ofprimary benefit Yo aparticulaz subdivision
development but not direcdy assessable and to allocate cost so that new growth pays its fair shaze, the
legislariue should authorize cifies to establish at their option a road development access chazge to be
collected at the time that subdivisions aze approved and/or atthe time building pernuts are issued similaz
to pazk dedication fees.
V-D Transportation Utility
The AMM requests the legislature to authorize cities to establish a h�ansportation utility for stteet con-
structionandreconstructionofaging infiashuciure, similartothe existing stormwaterutility, so tbatcosts
of improved facilities can be more fairly chazged to the users rather than the general population as a
whole.
V-E _ Highway Turnbacks_8�_Funding
The AMM supports jurisdictionat reassignment or tumback ofroads on a phased basis vsing funciional
classification and other appropriate criteria subject to a corresponding mecl�auism for adequate fimding
of roadway improvements and continuing maintenance.
Cities do not cutrenfly have the financial capacity other than significant property ta�c increase to absorb
the additional roadway responsibilities without new funding sources. The existing municipal tumback
fund is not adequate based on contemplated tumbacks.
V-F `3C' Transportation Planning Process: Elecfed OfFcials Role
The AMM supports continuationofthe TrausportationAdvisory Boazd (TAB), amajority oflocal
e�e�lea,O�lC1�S.B1�IR�]EIS211pnttthPTARitcPifan�lthPTAR�mrPC� �7+inc �ri�� �
federal requirements for designation ofthe Metropolitan Council as the Metropolitan Pianning Organiza-
tion that is responsible for the continuous, comprehensive and cooperative (3C) transportation planning
process to allocate federal funds among metropolitan azea projects. This process requirement was
reinforced by the I991 Intermodal Surface Transportation Efficiency Act (ISTEA) and the 1998
26 Association of Metropolitan Municipalities
oa -��
Transportation
Transportation Efficiency Act for the 21 st Century (TEA21).
V-G Motion Imaging Recording System (M.I.R.S.): Traffic Law Compliance
The AMM requests le�slafive action authorizing utilizarion ofmotion imaging recording system technol-
ogy for govemmental units, including cities, on streets and highways to assistpromotion of safety and
traffic law compliance enforcement. Thetechnology hasbeenproven and is currenfly usedfor law
enforcement by numerous states, municipalities and other countries. The state should at least implement
apilot project onmunicipal streets inthe metropolitan azea.
V-H Airport Noise Mitigation
The AMM strongly supports continued equitable airport noise prob ams needed to address the in-
creased noise associated with the expansion of the MSP International Airport. Noise mitigation pro-
grams should now continue as soon as possible towazd the 60 DNL (day/night level—adjusted decibel
average) in accordance with 19961egislation in which the Metropolitan Airports Commission (MAC)
was chazged with developing a mitigationpackage for legislative considerarion in 1997.
In 1999, the Govemor's Community Stability Funding Task Force was creaYed to identify and recom-
mend funding sources for the implementation of noise mitigation measures. While the MAC has initiated
measures to mitigate noise to the standard 65DNL, and has studied and initiated measures, including
siguficant funding for approval by the Federal Aviation Administration (FAA), to address noise mitiga-
tion inthe 64--60 DNL estimated contours, sufficient altemarive funding for noise mitigation slill has not
been identified or appropriated.
The AMM believes costs associated with a11 types of noise mifigation should be bome not only by MSP
airport (MAC), but also by the state. MSP airport is considered a statewide facility and provides
tremendous economic benefit to the region—a benefit that does not come without responsibility to the
citizens adversely impacted. The MAC and the state should seek long-term solutions and pmvide stable
and siguficant funding to mitigate noise impacts.
In addition to MSP Intemational Airport, impacts, including environmental and low frequency noise,
must be identified at all MAC airports and applicable mi6gation measures implemented by the MAC.
V-I Traffic Control Devices (MN/DOT Administrative)
The AMNI understands the need for the Manual on Uniform Traffic Control Devices. The AMM also
recognizes that unique situations within municipalities occasionally may not be adequately addressed by
the standards in the manual. Therefore, the ANIM encourages the Department of Transportarion to
more strongly take into considerationunique local conditions and cuciunstanceswhen exa.,,;n;ng local
requests for iraffic conirol devices. In addition, the ANIM would support the establishment of a peer
appeals review boazd to review, when requested by a local municipaiity, specific situations when the
2002 Legislative Policies 27
Transportation
quantitative warra�it criteria in the Manual on Uniform Traffc Control DevicPS are not met.
V-J Cities Under 5,000 Population
Currenfly cities under 5,000 popularion receive no state funding or MSA fuads fot collectoror arterial
sireets regardless oftraffic volume, origination and/or destination. Cutrent CSAH distribution to Metro-
politan Counties is inadequate to provide for metro azea smaller city needs. Criteria such as number of
average daily hips should be established in a small city local road improvementprograzn for funding
qualification and a distriburion method devised Possible funding sources include the five-percent set-
aside account inthe highway user distribution fund, modificationto county municipal accounfs and/or
state general fund.
V-K County State Aid Highway (CSAH) Distribution Formula
The ANIM supports modification ofthe County State Aid Highway (CSAF3) dishibution formula to
more fairly account for total vehicle miles traveled on Metropolitan County CSAH funded roads.
Although only 10% of the CSAH roads are in the Metro azea fhey account for nearly 50% of the
vehicle miles traueled. The metro counties receive less than 20% ofthe CSAH distribufion and have
instituted city costparlicipation, whereby cities aze now forced to pay up to 45% ofa CSAH road
project cost in some areas.
28 Association of Metropolitan Municipalities
0.�. - �!°1
Committee Rosters (Vt)
Housing and Economic Devefopment Poficy Committee
Jan LeSuer, Councilmember, Golden VaZley (Committee Chair)
Bonnie Balach, Community Development, Minneapolis
Frank Boyles, City Manager, Prior Lake
Shazon Cassen, Councilmember, New Hope
John Erar, CityAdministrator, Andover
John Goedeke, Councilmember, Roseville
Tom Goodwin, CounciZmember, Apple VaZZey
Tom Harmening, Communiry Development Director, St. Louis Park
Regina H�Tis, HRA Director, Bloomington
Ryan Kaess, Assistant to the Mayor, St. Paul
AndreaHartKajer,IGRDirector, Minneapolis
James Keinath, Administrator, Circle Pines
JoanMolenaar,Councilmember, Champlin
Richard Mussell, Councilmember Anoka
JimNomiau,Administrator, Ramsey
AnneI3orris,Manager, Crystal
Samantha Orduno, Administrator; Richfield
Tim Ricker, Councilmember, Brooklyn Center
James Verbrugge,AssistantAdministr�ator, Eagan
Craig Waldron,Administrator, Oakdale
Liz Workxnan, CounciZmember, Burnsville
HeatherWorthina on,Administrator, FalconHeights
Metropolitan Agencies Policy Committee
Beverly Aplikowski, Councilmember, Arden Hills (Committee Chair)
Mary Anderson, Mayor, Golden Valley
Bill Bamhart, Government Relations Representative, Minneapolis
Steve Chemey, Councilmember Burnsville
Kris Danielson, Community Development Director, OakParkHeights
CraigDawson,Administrator, Shorewood
Mike Gundlach, Councilmember, Prior Lake
2002 Legislative Policies 2g
Committee Rosters
Anne Hurlburt, Director ofCommunity Development, Plymouth
Marvin Johnson, Mayor•, Independence
Bartet Lane, Councilmember, Minneapolis
Larry Lee, Director of Community Development, Bloomington
Tom Link, Direcror ofCommunity DeveZopment, Irrver Grove Heights
Terry Schneider, Councilmember, Minnetonka
Jeanna Troha, Assistant to the City Manager, New Brighton
Municipal Revenue Policy Committee
Jim Smith, CounciZmember, Independence (Committee Chair)
Curt Boganey, Manager, Brooklyn Park
Tom Burt,Administrator, Rosemount
Joan Campbell, Councilmember �nneapo7is
Don Collier, Councilmember, New Hope
SteveDevich,AssistantCityManager, Richfield
Wa1t Fehst, Manager, Columbia Heights
Matt Fulton, Manager, New Brighton
RichardFursman,Administrator, Maplewood
Teri Heaton, ChiefFinancial O�cer, Bloomington
Joe Huss, Finance Manager, Bloomington
Kim Kamper, Interim CiYyAdministrator, OakParkHeights
_ TomLawell,Administrator,Apple_Yalley_ _ _._
__ -- _ - -
Joe Lynch, Administrator, Arden Hills
Wes Mader, Mayor, Prior Lake
Mike Momson, Manager, St. tlnthony
Bruce Nawrocki, Councilmember, Columbia Heights
Steve O'Maliey, DeputyCityManager, Burnsville
Don Rambow, Finance Director, White Bear Lake
Douglas Reeder,Administrator, SouthSt. Paul
Ryan Schroeder,.4dministrator, Cottage Grove
Jerry Splinter, Manager, Coon Rczpids -
Steve Stahmer, Assistant fo the City Manager, Hopkins
Kathy Thurber, Councilmember, Minneapolis
John Wallin, Finance Director, Edina
Ti___�,_m Wi11 ic,Admini.sLC4tDY �
3 a Association of Mefropo(itan Municipa(ities
Os-41
Committee Rosters
Transportaton and General Government Policy Committee
Veid Muiznieks, Councilmember, St. Paul Park (Committee Chair)
Beverly Aplikowski, Councilmember, Arden Hills
Dave Callister, Clerk-Administrator, Osseo
Chazlie Crichton, CounciZmember, Bza�nsville
ChuckDeVore,Councilmember, WhiteBearLake
Dan Donahue, Manager, New Hope
Shazon Feess, Councilmember, Brooklyn Park
Mary Hamann-Roland, Mayor, Apple Valley
BiIlHargis,Mayor, Woodbury
Jon Hohenstein, Administrator, Mahtomedi
Patrick Hollister, Administrative Assistant, Mendota Heights
BazbazaJohnson, Councilmember, Minneapolis
Mike Klassen, St. Pau1
Steve Larson, Mayor, New Brighton
Mazk McNeill, Administrator, Shakopee
Ed Nelson, Councilmember, Brooklyn Center
Jim Smith, Councilmember, Independence
Gertrude Ulrich, Councilmember, Richfield
Kazen Lowery Wagner, GovernmentRelations Representative
John Weaver, Councilmember, Anoka
2002 Legislative Policies 31