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98-10Council File � I u - /v Green Sheet � 5a3 �o 0 R! G I N A L �OLUTION CITY OF S PAUL, NIINNESOTA /� Presented By \��\� \� � Re£erred To Committee: Date 1 WHEREAS, the league of Minnesota Cities, which represents 811 of Minnesota's 856 2 cities. as well as 10 urban towns and special districts, has led the coordination of 3 member cities in the development of the 1998 City Policies for Legislative and 4 Administrative Action which identifies issues as priorities for action during the 5 1998 legislative session; and 6 7 WF�REAS, the City of Saint Paul was an active participant in this coordinated effort 8 and the City approves generally of these priorities; now therefore be it 9 10 RESOLVED, the City Council of Saint Paul does hereby recommend for consideration by 11 the Minnesota State Legislature, 1998 City Policies for Legislative and 12 Administrative Action, submitted by the League of Minnesota Cities and does hereby 13 request that these issues be addressed by the Legislature during the 1998 session. 14 1 5 Requested by Department of: By: Form Approved by City Attorney Bv: By: Appx sy: ��-, / eK%(/C�/C� proved by Mayor for Submission to ancil � > � `��'�' � Adopted by Council: Date Adoption Certified by Counci Secretary N° 52360 �c_ ,.� DEF11RiMENiNFfICEnCOUNCIL � DATE INITIATED � Q IV r�5 Office 12/29/97 G RE EN SH E E CONTA PERSONBPHONE INITIAVDATE INITIAVDATE . � DEPARTMENTDIREC70R O pTYCOONCR Bill Hue enbeCkeZ 266-8 17 "5��" �a�rvnnoaNev �GITYQERK MUST BE ON CAUNCIL AGENDA BY IDATE) NUMBEfi FOp ❑ BUDGET DIRECTOq O FIN. 8 MGi SEPVICES DIR. qOUi1NG OPDEN O MAYOR (OR AS$ISTqNT) O 1 TOTAL # OF SIGNATURE PAGES (CIIP ALL LOCATIONS FOR SIGNATURE) � ACTION /iEQUESTED. City Gduncil appYOVal of the Polic3es fox Legislative and Administrative Action, as , submitted by the League of Minnesota Cities for the 1998 legislature. . RECOMMEN�ATIONS- App�ova (A) or Reject (R) pEHSONAL SERVICE CONTflACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PIANNING CAMMISSION _ CIVIL SERVICE COMMISSION �. Has this Derson/firm ever worked under a contract for this department? � _ CIB COMMITfEE YES NO _ SincF 2. Has this personRirm ever been a dry employee? - — YES NO _ DISTRICT COURT _ 3. D025 this pe/sonflirm po55e55 8 Skill not nOrm211y p055855Ctl by any cuRerrt city employee? " SUPPORTS WHICH COUNCIL OBJEClIVE? YES NO Explain alI yes anawera on aeperata aheet and attaeh to green aheet � INITIATING PROBLEM, ISSUE. OPPOpTUNITV (WM, What, When. Where. W�y} " The City of Saint Paul has been an active participant in developing the 1998 Legislative priorities for the League of Minnesota Cities. With the City Council's approval of these priorities, Saint Paul will be supporting the League in its efforts to work on behalf of Minnesota's cities. r:tE` , �; x�' ADVANTAGES iF APPRpVED: �;' Saint Paul, as a member of the League of Minnesota Cities and an active participant �;. in the League's activities, committees, etc., wi11 be a partner in supporting the ?" ' legislative priorities recommanded by the member cities. �- i,; DISADVANTA6ES IF APPROVED t� None. 0�� 29 1597 ��'s ��°� � DISADVANTAGES IF NOTAPPROVED: Saint Pau1 would not be a partner in supporting the League of Minnesota Cities 1998 - Legislative Policies. r .,' �� . � DEC 2 9 1997 _.� TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDI(dG SOURCE AC7lVITY NUMBER . FINANQAL INFORf.iATION: (EXPLAIN� '� 9fr-lo . � �. I�M� Eaaguc of Mirsnasota CiEies �"itiar p.oniolmg au¢nencr 145 Universitq Avenne West, St. Paul, MN 55103-2044 Plione: (612) 281-1200 • (800) 925-1122 Fax: (612) 281-1299 • TDA (612) 281-1290 October 24, 1997 Dear L.eague Members: I am pleased to submit the accompanying draft 1998 I,egislative Policies for your consideration. These policies were developed by more than 200 city officials serving on the I,eague's policy committees and their respective policy task forces. For those of you who served on a task force or policy committee, I would like to thank you for your time and efforts. The hard work and input of city o�cials is the necessary foundation for developing and implementing a successful legislative agenda for the L,eague of Minnesota Cities and its members. For those who could not participate in the policy committee process, your input in the I.eague's policy development process is still crucial. The League needs your review of the attached draft 1998 Legislative Policies and the proposed resolutions. Piease plan to attend the LMC Policy Adoption Conference on November 21 at the Minnetonka Ramada Plaza. If you cannot attend the conference and have concerns or suggestions, please contact any member of the Intergovernmental Relations staff at the League. On behalf of the Board of Directors and I.eague staff, please accept my sincere thanks for your contribution to this most important process. Sincerely, � Robert C. ong I.eague President City Attorney, City of Mounds View I:mdiedric�policies\pac\pres.ltr AN EQUAL OPPORTUNITY/AFFIftIvIATIVE ACTION EMPLOYER �'�-/a , CONTENTS Letter from the League President General Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii LeagueStaff ............................................................ iv Legislative Policy Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Policy Development Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Statement of Intent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii PART I --1998 POLICY GUIDELINE Improving Community Life CL-i. Livable Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART TI -- 199$ CITY POLICIES Improving Fiscal Futures FF-1. FF-2. FF-3. FF-4. FF-5. FF-6. FF-7. FF-8. FF-9. FF-10. RF-11. FF-12. FF-13. FF-14. FF-15. FF-16. State-Local Fiscal Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State Shared Revenues ............................................ Taxation of Municipal Bond Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City Fiscal Year ................................................. Sales Tax on Local Government Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . Del3nquent Property Tax PenalYies and Interest . . . . . . . . . . . . . . . . . . . . . . . . . Payments far Services to Tax-Exempt Property . . . . . . . . . . . . . . . . . . . . . . . . Truth-in-Tasation ................................................ State Deductions from LGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reporting Requirements ........................................... FederalBudgetCutbacks .......................................... LocalPerformance Aid ............................................ Price of Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DevelopmentFees ................................................ Residential Nonhomestead Property Tax Relief . . . . . . . . . . . . . . . . . . . . . . . . . Electric Utility Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 4 5 5 6 6 7 7 8 8 8 9 9 10 il 11 Improving Local Economies LE-l. TasIncementFinancing .......................................... 12 LE-2. Property TaY Reform, Levy Limits, and TIF . . . . . . . . . . . . . . . . . . . . . . . . . . I S LE-3. Economic Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 LE-4. Redevelopment of Developed Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 LE-5. Property Tax Abatement Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1998 City Policies i �� io LE-6. LE-7. LE-8. LE-9. LE-10. LE-11. LE-12. LE-13. LE-14. LE-I5. LE-16. LE-17. LB-18. LE-19. LE-20. LE-21. Brownfields .................................................... 18 Growth Management and Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2p State and/or County Licensed Residential Facilities (group homes) . . . . . . . . . 21 Affordable Housing .............................................. 22 City Role in Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Redesign of Electric Utiiity ReguIation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Adequate Funding for Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 State Aid for Urban Road Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 State Aid Roads for Contiguous Cities Under 5,000 . . . . . . . . . . . . . . . . . . . . . 29 Tumbacks of County and State Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Cooperation Between Counfies and Cities Over County Roads Within Cities .................................................... 30 Management of Rights-of-Way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Communications Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Effective Tetecommunicarions Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Local Zoning Regulation of Telecommunications Service Providers ........ 34 ISTEA Reauthorization ............................................34 Improving Service Delivery SD-1. SD-2. SD-3. SD-4. SD-5. SD-6. SD-7. SD-8. SD-9. SD-10. SD-I1. SD-12. SD-13. SD-14. SD-15. SD-16. ii Redesigning and Reinventing Govemment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Unfunded Mandates .............................................. 37 Civil Liability ofLocal Govemments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Environmental Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Personnel, Pensions, and Labor Retations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 ElectionIssues .................................................. 43 Local Election Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 City Costs for Enforcing State and Local Laws . . . . . . . . . . . . . . . . . . . . . . . . . 44 Access to Information Technology and Services . . . . . . . . . . . . . . . . . . . . . . . . 44 Lawful Gambling Fund Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Design-Build .................................................... 46 Mobite Hame Park Oversight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Proposed Plat Approval Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Providing Information to Citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Creating a Minnesota GIS Program :................................. 48 State Licensing of Massage Therapists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 League of Minnesota Cities t � �o General Policy Statement One of the most important purposes of the League of Minnesota Cities is to serve as a vehicle for cities to define common problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 815 of Minnesota's 853 cities as well as 12 urban towns and 24 special distric�s. All sizes of communities aze represented among the League's members (the largest nonmember city has a population of 163) and each region of the state is represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies. There is a need for a governmental system which allows flexibility and authority for cities to meet challenges of governing and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and 2. The financial and technical requirements for goveming and providing services necessitate a continuing and strengthened partnership with federal, state, and local governments. This partnership particularly in the areas of finance, development, housing, environment, and transportation is critical for the successful operation of Minnesota's cities and the well-being of city residents. 1998 City Policies iii 9 �=lt� LEAGUE STAFF WORKING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications Gary CarIson, Director of Intergovernmentai Relations General revenue sources for cities including aid to cities and the property tax system, fiseal administration of cities, economic development and redevelopment, personnel, transportation Kevin Frazell, Director of Member Services Government innovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, telecommunications Ann Higgins, IntergovernmenYal Relations Representative Telecommunications, housing, elections and ethics, utflity service districts, transportation Andrea Stearns, Intergovernmental Relations Representative Tas increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing, pubiic safety, generat municipal governance Remi Stone, Intergovernmental ReIations Representative Growth management and land use, environmental protection, personnel Eric WiIIette, Legislative Policy Analyst General revenue sonrces for cities including aid to cities and the property tax system, fscal administration of cities, pensions iv League of Minnesota 4�-la Legislative Policy Committee Members Improv[ng Community Life Sue Gehrz, Chair, Mayor, Falcon Hei�hts Jean Andre, Assistant to Manager/HRA Coordinator, Golden Valley Jack Barlow, Councilmember, Lauderdale Bil1 Bamhart, Inter�ovemmeatai Relations, Minneapolis Robert Benke, Mayor New Bri�hton John Blahna, Mayor, Landfall Cathy Busho, Mayor, Rosemount KaThleen Caanody, Councilmember, Brooklyn Center Peter Connor, Nlayor, Owatonna Lorenzo Davis, Administratrve Intern, Ea�an John DoyVe, Councilmember, Marshall Michael Ericson, City Administrator, Watertown Pat Famell, Chief of Police, Rochester Sharon Feess, Councilmember, Brooklyn Park Evelyn Fox, Councilmember, Breckenridge Wendy Gorham, Councilmember, Mora Harlan Gorath, Councilmember, Fairmont Arly Gunderman, Councilmember, New Brighton Vivian Hart, GTS, St. Paul Sue Henry, Administrative Aide, St. Cloud Fran Hesch, Councilmember, Hopkins James Hurm, City Administrator, Shorewood John Jenkins, City Administrator, Ortonville Julianne Manship, Neighborhood Development Director, West St. Paul Sandra Masin, Councilmember, Ea�an Roberta Megard, Councilmember, St. Paul James M(adek, Mayor, Montgomery Ed Mylnar, Mayor, Lester Prairie Deb Moran, Councilmember, Bumsville Larry Nicholson, Councilmember, Moorhead John Olin�er, City Administrator, Mahtomedi Isobel Rapaich, Councilmem6er, Duluth Char Samuelsmi, Councilmember, New Brighton Barbara Sanderson, Councilmember, Grand Rapids Jolie Sasseville. Public Information Officer, Fer�us Falls Betty Sindt, Councilmember, Lakeville Grant Thorstad, Police OfficedDARE Instructor, Kosemount Blair Tremere, Assistant City Mana�er, Prior Lake Dawn Weitzei, Interim Deputy Clerk, Mounds View Duane Zaun, Mayor, Lakeville Improving Fiscal Futures Joy Tierney, Chair, Ntayor. Plymouth Steve Okins, Vice Chair. Finance Director, Willmar Dick Abraham, City Administrator, Lake City Karen Andzrson, Mayor, Minnetonka David Beaudet, Councilmember, Oak Park Hei�hts Steve B}ork, City Planner/Coordinator, St. Francis Thomas Burt, City Administrator, Rosemount Gino Businaro, Finance Director, Mound Dave Callister, City Administrator, Osseo Henry A. Duitsman, Mayor, Etk River Terry Dussault, Assistant to Mana�er, Blaine (altemate) Gary Eitel, City Administrator, Ro�ers Charlotte Ericksoq AdministratorlClerk, Minnetrista Jerry Faust, Councilmember, St. Anthony Ro�er V✓. Fraser, City Mana�er, Blaine Rick Getschow, City Administrator, Hector John Gretz, City Administrator, Apple Valley Rod Hale, Councilmember, Cottage Grove Jeff Haubrich, Assistant Council Administrator, Red Wing Steve Helget, Ciry Clerk/Administrator, Tyler Patrick Hent�es, City Mana�er, Mankato Susan Hoyt, Ciry Administrator, Falcon Hei�hTs Bill Huepenbecker, Inter�overnmental Director, St. Paul Gre� Isaackson, Clerk-Administrator, Cottonwood Joel Jamnik, Campbell Knutson, Ea�an Barbara Jeanetta, Assistant to Mana�er, New Bri�hton Elizabeth Kautz, Mayor, Burnsville James Keinath, City Administrator, Cimle Pines Dennis Kraft, City Manager, Robbinsdale Lynn Lander, City Administrator, Hermantown Bob Larson, City Administrator, Deephaven Ann Lenczewski, Counciimember, Bloomington Kathy Lueckert, Assistant City Manager, Plymouth Wes Mader, Councilmember, Prior Lake Michael McGuire, City Manager, Maplewood Stzve Mielke, City Mana�er, Hopkins EI Mlynar, Mayor, Lester Prairie John Moir, Finance Department, Minneapolis Ruih Nelsen, City Cterk, Hilitop Gary Neumann, Assistant Administrator, Rochester lohn Perino, Mayor, Atexandria David Pokorney, City Administrator, Chaska Bryan Read, City Administrator, Mont�omery Douelas Reeder, City Administrator, South St. Paul lohn W. Remkus, Finance Director, West St. Paul Robert Rys, City Administrator, Minnesota Lake Ryan Schroeder, City Adminisuator, Ramsey Alfred Schumann. Mayor, Eyota James Smith, Councilmember, Independence 1998 City Policies V 9�-/l� Gerald Sorenson, Administrative Services Director, Moorhead Pete Stolley, Public Works, Nor[hfield btalcolm Tilberg, City Mana�er, St James David Urbia, City Administrator, Blue Earth Gene VanOverbeke, Finance Director, Eagan Ieff VanWychen, inter�overnmental Relations, Minneapolis (alternate) Daniel Vogt, CityAdministrator, Brainerd Bill Waller, City Administramr, LaCrescent Cfiuck Whiting, Clerk Administrator, Mounds View James Willis, City Administrator, Inver Grove Heights Donn Wiski, Councilmember, Roseville Improving Local Economies Bonnie Cumberland, Chair, Mayor, Brainerd Duane Zahn, Vice Chair, Mayor, Lakeville Kirsten Barsness, Economic Development Director, Cotta�e Grove David Beaudet, Councilmember, Oak Park Hei�h[s Jerry Bohnsack, City Administrator, New Prague Gerald Brever, City Administrator, Staples Kevin Cattoll, Councilmember, Rosemount Victoria Cox, Councilmember, White Bear Lake lames Daniels, Administrator, Lake Minqetonka Commuaications Commission, Excelsior Leo W. Eldred, Councilmember, Moorhead Michaei Ericson, City Administrator, Watertown Keith Ford, Community Development A�ency, Minneapolis Matt Fulton, City Manager, New Bri�hton Allen Greenfield, Councilmember, Prior Lake Tom Hansert, Deputy Mana�erAdministrative Enterprises, Bumsville Duane Hebert, City Administrator, Renville Pat Heldt, Councilmember, Alexandria Jon Hohensteiq Assistant to Administrator, Ea�an Bill Huepenbecker. Intergovernmental Rela[ions Director, St Paul Marvin Johnsoq Mayor, [ndependence Ronald Johnson, City Administrator, Zumbrota Steven C. Jones, City Administrator, Mora Andrea Hart Kajer, Intergovernmental Relations Direc[or, Minneapolis (al[emate) Randy A. Kolb, Courtcilmember, Blairte Edward R. Larson, City Manager, Morris Lam Lee, Community Deve(opment Director, Blooming[on Gre� Lerud. City Mana�er, Milaca Don Levens. City Adminis[rator. Cokato James L. Mtadek. Mayor, Mont�omery Ron Moorse, City Administrator, Orono E. Craio Morris, Mayor, Lakeland V1 Mark Na�el, City Manaeer, Anoka Rhoda Newiin, Counciimember, Red Wing James Norman, City Mana�er, Montevideo Bruce Peterson, Community Development Director, Willmar Dan Ro�ness, Community pevelopment Director, Rosemount 1oe Rudberg, City Administrator, Becker Terry Schneider, Councilmember, Minnetonka Chad Shryock, City Administrator, Eagle Lake Robert Therres, City Administrator, Sartell Brian Wagner, City Coordinator, Lakefield Craig Waldron, City Administrator, Oakdale Danie! Wall, Mayor, Roseville Denny Wilde, City Administrator, Paynesville Betry Zachmann, City C(erk-1'reasurer, Winsted Improving Service Deli�ery David M. Senjem, Chair, Councilmember, Rochester Jerry Dulgar, Vice Chair. City Mana�er, Crystal Patricia Crawford, Clerk-Treasurer, Motley Laurie Elliott, Personnel Coordinator, Shoreview Brian Friisin�er, City Administrator, Arden Hills Theresa Goble, Finance Director, Brainerd Ken Hartun�, City Administrator, Bayport Mimi Hasselbalch, Councilmember, Vadnais Heights Andrea HaR Kajer, Inter�ovemmental Re[ations Director, Minneapolis (altemate) Mark Karnowski, City Administrator, Lindstrom Kay Kuhlmann, Councii Administrator, Red WinJ Myrna Maikkula, City Clerk, Brooklyn Park Kay McAloney, Personnel Director, Anoka Mary Helen Mische, Intergovemmental Relations Assistant, St. Pau( Judd Mowry, Councilmember, Tonka Bay Susan Olesen, Clerk, Burnsville Desyl Peterson, City Attprney, Minnetonka Isabel Rapaich, Councilmember, Duluth Dan Scott, City Mana�er_ North St. Paul Ceil Smith, AssistaM to City Manager, Edina Gtenda Spiotta, City Administrator, Carver Joyce Swadner, Elections Office, Minneapolis Blair Tremere, Assistant City Mana�er, Prior Lake Joyce Twistol, Personae! DirectodCiry Clerk, Blaine Kurt Ulrich, City Administrator, Champiin Susan Walsh, Administrative Assistant, Rosemount Rena Weber, Clerk/Coordinator, Cold Sprin� Liz Witt, Administrative Assistant, Ea�an Krista Wi[ty, MVCOG Director, Mankato Wally Wysopal, Assistant to Manaser/Personnei Officer, SL Louis Park League of Minnesota Cities � � �d League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past five months. The process began with a member survey of priority issues facing city o�cials. The process will not end with the policy adoption conference. The committees will schedule additional meetings during the upcoming legislative session co discuss additional issues, develop alternative solutions and to discuss strategies to implement the League's policies. Listed below is a b�ief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. Aprit/May June The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. The Lea;ue President accepts applications for committees and appoints policy commi[[ee members. The policy committees are: Improving Fiscal Futures Committee Improving Local Economies Improving Service Delivery In addition, the Improving Community Life Committee meets on a regular basis to discuss issues affecting "livable communities" and to develop the Improving Communiry Life policy guideline. July Committees meet to discuss issues raised in member survey. Commitees can atso form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August through September October November December January thraugh May Committees and task forces meet to discuss issues and problems, accept testimony and develop policy statements. Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the four above-mentioned committees. Policy Adoptfon Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for membership consideration. The Board adopts the Legislative Action Plan, based on input from the Policy Adoption Conference. Legisiative Session. Durin� che session, the policy committees and task forces will continue to meet on issues and strategies. Members can assist the League's leeislative efforts by volunteering to contac[ legislators on a variety of issues of interesc [o our ci[ies. 1998 City Policies vii 9 �-,la Statement of Intent There are many problems which limit the effectiveness of city government to improve community Iife, improve the fiscal future and service delivery of city government, and to unprove the local economy. What foltows are statements of the problems facing cities and the solutions proposed to help resolve these probiems. These statements of problems and proposed solutions form the policy of the League of Minnesota Cities. Additional and alternative solutions to these problems may be propose@ a8er the Policy Adoption Conference and the members of the League authorize its Board of Directozs to consider and support additional or alternative solutions, if necessary, to resolve the problems identified in this policy statement. viii League of Minnesota Cities 9�--Ia Part I 19�8 Policy Guidelines � 9�-�� IMPROVING COMMUIVITY LIFE CL-1. Livable Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local governments to work together in partnership to make every community "livable." PROBLEM: Cities in Minnesota are at various stages in meeting the goal of being "livable communities." SOLUTION: The definition of a"livable community" below will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabiing all Minnesota cities to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable communities. A LIVABLE COMIVLCJNITY IS: WHERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: " safe * a sense of belonging * welcome s engage in life-long learning activities that: * prepare them for responsible citizenship * enhance the enjoyment of life * prepare them for changing job markets • participate in the decision-making process of community leaders • celebrate community • want to make cheir home 1998 City Policies 1 � �-�� • have access to: * good paying jobs * adequate and affordable housing * choice of e�cient transportation systems including transit, pedestrians, and bicycles * gathering places * desired information * choice of cultural and recreational activities * affordable goods and services, including health care • are involved in the nurturing of youth • care about their homes, community, and the environment • get to know each other • have the benefit of strong family support and nurturing adults • WHERE LOCAL GOVERNMENT • is responsive to the needs of its citizens • is actively supported by enthusiastic volunteers • is open and user friendly � encourages and implements cooperation and collaboration • provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs � educates citizens of aIl ages on local, regional, and state issues and government processes • informs and communicates with citizens to foster participation in public policy decision-making • participates in youth development 2 League of Minnesota Cities �t � - lD Part II 1998 City Policies 9� /o IMPROVING FISCAL FIJTURES 1 FF'-1. State-Local Fiscal Relations 2 Issue: Minnesota�s state and local government finance system is compiex and inter�wined. 3 Cides rely on their partnership with the state to provide Iocal services. On the other hand, the 4 needs and desires of NSinnesota's communifles are many and wide-ranging. While the state's 5 revenue-sharin� system has been regarded as innovative and helpful, there exists a growing 6 need for local elected officials, those closest to the electorate, to be responsive to the service 7 needs of the local citizenry. To that end, cities need discretion and flexibility in determining 8 locairevenues. 9 The 1997 legislature made chan;es to Minnesota's property tax system that will impact the 10 ability of local governments to fund necessary services. The reimposiCion of levy limits, I 1 significant ciass rate compression, and changes in state funding of schools ail may have 12 unintended consequences. 13 Response: As the legislature considers additional property tax changes in 1998, it 14 should: 15 • carefully analyze the combined impacts of the 1497 tax bill and changing economic 16 circumstances on the taxpayer and on local governments so that policymakers can 17 better understand where the system may need further changes; 18 • repeal levy limits, which are inef�cient, ineffective, interfere with local accountability 19 and ignore loca3 circumstances; 20 • diversify available city revenue sources by generally authorizing local tases that 21 reduce reliance on the property tax; and 1998 City I • reduce the property tas burden for all dasses of property by increasing the state share 2 of school funding. Any increase in the state share of school funding must guarantee a 3 permanent reduction in the local property t� burden. The League supports paying 4 for the increased state costs through income and sales taxes. 5 The legislatare should not: 6 • replace all or part of LGA or HACA with state-mandated categorical aid programs, or local option taxing authority; 8 • switch from the classification sysfem to a market vatue based system, which would cause tremendous shifts of taY burden hetween classes of properfy. The League aiso 10 opposes apglying ait future levy increases to market value because this �vould further 11 complicate the property taY system; 12 • interfere in local decision making regarding service delivery; 13 • impose a state-levied property taY; and 14 • cut LGA or HACA to finance an increased stafe role in school finance. � 5 FF-2. State Shared Revenues 16 Issue; State revenue sharing programs address at least three problems with a stand-alone 17 Iocal government Finance system. First, the property tax base available to communities can 18 vary dramatically. These programs use state resources to equalize the ability of communities 19 to provide essential services without undue property tax burdens for local residents. 20 Second, nonresidents can take advantage of local services or create additionaI demands for 21 services without contributing to the Yaxes that support these services. LGA and HACA help 22 address the free rider problem where nonpaying individuals consume services without � League of Minnesota Cities 9 1 contributin� to the local tax base. 9 �r-�a 2 Third, allowina local units of government in Minnesota to only levy the property tax has 3 created an over-reliance on the property tax. LGA and HACA can reduce the overall reliance 4 of local �overnments on the property tax. 5 Response: LGA and HACA, or similar replaceinent revenues, must be continued and b additional state resources greater than the rate of inflation must be allocated to prevent 7 rapid future property tax increases. In addition, the HACA household gro�vth factor for 8 cities shouid Ue reinstated. � FF-3. Taxation of Municipal Bond Interest 10 Issue: The state law that grants a Cax exemptiQn for municipal bond interest is being I 1 reviewed and could bz repealed. A repeal of this exemption will raise borrowing costs for 12 cities. 13 Response: The state should maintain the tax exemption for municipal bond interest 14 income. I S FF-4. City Fiscal Year 16 Issue: The fiscal years for the state and cities are offset by six months. The state fiscal 17 year begins on July 1 while the city fiscal year begins on January 1. Lawmakers have 18 proposed chanainQ the city fiscal year to coincide with the state. Such a chan�e, while 19 providing questionablz benefits for cities. would not correspond with the current property tax 20 cycle, impair historical comparisons of data, force cities to retool accountin� systems, will 1993 City Policies 5 ��-�v 1 adversely impact city credit ratings, and could result in state funding gaps. 2 Response: The state should maintain current law and not change the city fiscal year to 3 coincide with the state �scal year. 4 FF-S. Sales Tax on Local Government Purchases 5 Issue: In 1992 when the state was experiencing a budget shortfall, ihe legislature repealed 6 the sales tax exemption for local government purchases. This action currently costs local 7 governments an estunated $"77.5 miilion annually. Because no additional state aids were adde@ 8 to offsetthe additional cost, this repeal has effectively increased locai property taxes to finance 9 state operations. 10 Response: The state should reinstate the sales tas exempfion for a11 local government 11 purchases. The exemption must not be coupled with cuts in LGA or HACA. 12 FF Delinquent Property Tas Penalties and Tnterest 13 Issue: Although city finances are affected by property tax delinquencies, cities do not 14 receive any associated penaities and interest on these delinquencies. PenaIties and interest are 15 split evenly between counties and schools. 16 Response: Cities and connties should receive a pro-rata distribution of 50 percent of 17 the penalties and inYerest collected on delinquent property tases with the remaining 50 18 percent to be distributed to schools. 6 League of Minnesota Cities 1 FF-7. Payments for Services to Tax-Exempt Property 2 Issue: Tasable property in many cities is being acquired by nonprofit and govemment 3 entities. Converting the properiy to taac-exempt status can lead to a serious taat base erosion 4 without any corresponding reduction in the service needs created by the property. 5 Response: Cities should be allo�ved to collect payments to cover costs of service in-lieu 6 of property taxes or special assessments from statutorily exempt property owners. 7 FF-8. Truth-in-Taxation 8 Issue: The legislature created the truth in taxation process in 1993 as a replacement for �'�-�v 9 state-mandated levy lunits. The 1997 legislature re-enacted levy limits for many cities, yet the 10 truth in taxation requirements remain. The 1997 legislature also changed the parcei-specific i l notice of proposed property taxes to separate the effects of local spending decisions on 12 proposed taxes from the effects of factors beyond local control such as changes in valuation or 13 legislative changes to the class rates or state aids. 14 Response: Changes made in 1997 to the truth in taxation notice will hopefully clarify 15 the roles and responsibilities of the state and local governments. But modifications may 16 be necessary if the new form proves to be too confusing to taspayers. In addition, cities 17 need more flexibility in the truth in taxation process. Cities shouid be able to schedule 18 their initial hearings that may conflict with others' hearings, if no other dates are 19 available. Cities should have the anthority to increase the final levy from the preliminary 20 levy. 1948 City Policies 7 II FF-9. Sfate Deductions from LGA Issue: State administrative costs are deducted from the LGA appropriation. This reduces the 3 property tas relief provided by LGA and creates hidden appropriations for state agencies. 4 Response: All appropriations from LGA resources that fund state operatians should 5 be repeated. 6 FF Reporting Requirements Issue; Budget and financial reporting requirements imposed on cities by the state often result 8 in duplication and additional costs. 9 Respor:se: Requirements for reportiag and ad�rertising financial and budget 10 information shonld be carefully weighed to balance the validity of fhe state's need for a 11 additionai information wifh the costs and burdens of compiling and submitting this 12 information. In addiHon, ail state agencies should be aware of the information already 13 required by others to avoid duplicarion of reporting requirements. 14 FF-ll. Federal Budget Cutbacks 15 Issue: Conb essionaI actions to balance the federal budget will reduce federal assistance to 16 the state and to tocal govexnments. t'7 Response: The state should aot reduce aids or increase fees to local governments as a 18 means for dealing with cutbacks in federai revenues. The state shouid take responsibility 19 for reductions in federal revenues rather than placing the burden on cities and their 20 propeth� taxpayers. 8 Leanue of Minnesota Cities ��-�� 1 FF-12. Local Performance Aid 2 Issue: When the 19961egislature created the local performance aid program, the legislation 3 was vague and the program was partially funded by cuts in HACA. In the future, the 4 requirements for applying for the aid could become an onerous mandate on cities and undermine 5 local decision-making. b Response: The League strongly supports efforts by cities to improve the efficiency and 7 effectiveness of their operations, including exercises such as Qerformance measurement 8 systems. However, these efforts should be local initiatives rather than state mandated 9 actions. Therefore, the League opposes LPA. If local performance aid is to be continued: 10 • The law must be c►arified and the qualification requirements must be attainable by all 1 I cities regardless of city size or staffing levels. 12 • A11 additional funding must come from new revenue sources rather than shifts of aid 13 from other programs such as LGA and HACA. 14 • The program must not bewme an anerous mandate requiring additional city resources. 15 • Any information on individual cities that is collected from the program must not be 16 used to simplistically compare cities. 17 FF Price of Government 18 Issue: The price of government legislation enacted in 1994 was intended to measure the 19 overall effect of state and local taxation over a long period of time. The targets measure 20 government revenues as a percent of personal income. Unfortunately, the tazgets have been 21 misinterpreted and used unfairly to criticize city tax and budget decisions. 1998 City Policies 9 9 �-�t? Response: The price oFgovernment statutes as they apply to local governments shoutd 2 be repealed, If the price of government law is to continue to be applied to local 3 governments, price of government calculations should be: 4 • based on the sum of levy and state aid, not just levy; and • based on long-term trends, not single year events. 6 FF DeveIopment Fees Issue: New development and the resulting growth creates an increased demand for 8 public infrastructure and other public facilities. Severe constraints on local fiscai resources and 9 dramatic forecasts for poputation growth have prompted ciries to critically reconsider ways in 10 which we pay for the inevitable costs associated with new development. Traditional financing 11 methods tend to subsidize new development at the expense oF the existing community, 12 discourage sound land use planning, place inefficient pressures on public facilities, and allow 13 underutilization of existing infrastructure. Consequently, local communities are exploring 14 metkods to assure that new development pays its fair shaze of the true costs of growth. Given the 15 existing authorization to impose fees on new development for water, sanitary and storm sewer, 16 and park purposes, it seems reasonable to extend the concept to additional public infrastructure 17 and facilities improvement also necessitated by new development. 18 Response: The legislatare should authorize cities to impose developmenf fees so fhat 19 new development pays its fair share of the off-site, as well as the on-site, costs of public 20 infrastructure and other public facilities needed to adequately serve new development. 10 League of Minnesota Cities q�- (o I FF-15. Residential Nonhomestead Property Tax Relief 2 Issue: Residential nonhomestead properties (one to three units) aze in need of property ta�c 3 relief. This is particulazly true of duplexes and triplexes, which did not enjoy the same amount 4 of property tax relief in the 1997 tas bill as did single unit rental property; therefore, these types 5 of property should be tased alike. Eliminating the distinction between single unit rental, 6 duplexes, and triplexes will simplify the property tax system by eliminating a class of property. However, granting rental property all the tas advantages of homesteaded property may 8 decrease homeownership and could have a destabilizing impact on Minnesota cities. Homestead 9 property should continue to enjoy preferential tax treatment relative to other classes of property. 10 Under no circumstances should the class rate applied to residential nonhomestead property be I 1 less than the ciass rate that is applied to second-tier homestead property. 12 Response: The League of Minnesota Cities supports maintaining the property tax 13 distinction between homestead and rental property. The League also supports combining 14 all one to three unit nonhomestead residential property into a single class of property with 15 a single class rate. This single class rate should be reduced to, but not below, the class rate 16 currentiy applied to second-tier homestead and rental property. 17 FF Electric Utility Taxation 18 Issue: Part of the discussion regarding possible deregulation of the electric power industry has 19 centered on electric utility taxation. Proponents of deregulation assert that if effective free market 20 competition is to replace govemmental regulation, state tax policy must be changed to "level the 21 playing field" or ensure competitive parity. The main focus of the Investor Owned Utilities (IOUs) 22 so far has been removal of the attached machinery or personal property tax. Utilities subject to the City Policies ll 9 �-!a 1 tax argue that iT places them at a competitive disadvantage to non-Minnesota companies, Rural 2 Electric Cooperatives (Co-ops), and Municipals. Ho�vever, accurate comparisons of tax burden are 3 difficult, as other states use completely different taxing sysTems. Additionally, Co-ops do pay the 4 tax on some of their property and Municipals make substantial payments in lieu of taxes. Utility personal property can be a significant portion of the local tax base in all cities. Most 6 obviously afFected aze cities that have power plants; however, transmission and distribution 7 equipment account for over half of the persona] proper�y taxes paid by the IOUs and exist in neazly 8 every city. Replacing the revenue that would be lost to cities, counties, school districts, and other 9 local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources 10 of such a replacement revenue would be difficult to decelop and administer, and could be subject to 11 reductions or elimination over time. Furthennore, replacement revenues or aids may not fully 12 address ttie problems created by a large tax base reduction. 13 Response: Cities oppose proposals for exempting the IOUs from the personal property tax. 14 Under no circumsfances should local units of govemment and their taxpayers be required to I S shouIder the burdens of tax relief for IOUs. Any effort to remove the personal property tax 26 mast make cities and other iocal taxing jurisdictions whole in all respects. i � IMPROVING LOCAL ECONOMIES 18 LE-1. Tas Increment Financing 19 Issue: The State of Minnesota has effectively delegated the responsibility for economic 20 development and redevelopment to cities. Unfortunately, neighboring states have given their 21 cities more development tools and, therefore, cities in these states have a competitive advantage lz League of Minnesota Cities i over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to 2 all cities in their economic development and redevelopment efforts. The State, whether based on a 3 lack of information or misinformation, has been critical of cities' use of the tool and has 4 implemented a series of restrictions over the past several years rather than partnering with cities 5 and encouraging their endeavors to improve and enhance the economic well-being of Minnesota 6 and the growth and redevelopment of its cities. Cities, required to assume the financial risks 7 associated with development decisions, have used tax increment financing responsibly and 8 examples of these positive uses abound. A legislative task force was created by the 1997 9 legislature and directed to recodify the tax increment statutes for the purpose of simplification 10 only, with no policy implications. 11 Response: To effectively compete with other states, Minnesota must provide its cities 12 greater flexibility in the use of tas increment financing and other economic development 13 programs. In light of substantial changes to the tax increment statutes over the past several 14 years, the legislature should not make major policy changes in 1998. The State should 15 partner with cities in economic development and redevelopment activities and encourage 16 cities' use of taac increment in achieving the laudable goals of long-term tas base stabilization 17 and growth, job creation, development of low-to-moderate income housing, remediation of 18 pollution, elimination of blight, recycling and redevelopment of the infrastructure, and 19 redevelopment of its communities. Counties and school districts are appropriately involved 20 in cities' �levelopment decisions through current "review and comment" requirements. The 21 legislature should reject any recommendations from the TIF recodification task force which 22 have policy implications. If 199$ becomes a year for major changes in TIF policy, the 23 legislature should: City Policies 13 1 • remove eicisting restrictions to property included in a deferred assessment program within 2 the last five years (e.g., green acres); 3 • authorize any ta�e increment districts approved after April 1, 1990 to pool increments in 4 the same manner as districts certi�ed prior to April 1, 1990; 5 • in light of levy limits, eliminate the LGA/HACA penalty currently imposed on districts or 6 allow an exception from levy Iimits. If fhe penalty is not eliminated, the restrictions on 7 the sowrce of payment should be removed; 8 • expand the use of tas increment financing to assist in the development of technological 9 infrastructure, job training, the restoration of historic structures and for non-retail 10 commercial projects (e.g., software companies, banks, and insurance companies); 11 • exempt redevelopment districts from the "five year rule;" and 12 � modify the housing district income quali�cation level requirements to allow the levels to 13 vary according to those specific to individual communities. 14 In any event, consistent with the legislative TIF task force's recodiScation, the 19981egislature 15 should make technical changes, including, but not limited to: 16 • requiring Yhe Department of Revenue's definition of tax increment fo be consistent with the 17 new statutory def►nition of tax increment; 18 • authorizing the use of federal grants and other funds for local contributions; 19 • removing the LGA/HACA penalTy imposed on housing districts established between the 20 penalty years of 1990 and 1993; 21 • requiring the Office of the State Auditor to simplify their TIF reporting forms in 22 consultation with those required fo complete the forms; 23 • authorizing TIF financial information to be published en a more simpiiTied format so that ii 14 League of Minnesota Cities provides the average taxpayer with useful information; and 2 � providing cities with adequate administration financing. 3 LE-2. Property Tax Reform, Levy Limits, and TIF 4 Issue: Future proposals to reform the property tax system from the investor-owned utilities, 5 commercial and industrial groups, or others could have significant implications for tax increment 6 financing districts. For example, if property class rates are further compressed, existing tax 7 increment financing districts could experience additional revenue shortfalls which, in turn, could 8 jeopardize the repayment of outstanding debt or other obligations. Given the long-term nature of 9 properry tax reform, cities could not have anticipated the impact of the 1997 class rate changes nor 10 can cities project the impact of future changes. The $2 m911ion provided by the 1997 legisiature I 1 for grants where the class rate changes cause TIF district deficits, while critically needed, is likely 12 to be insufficient to cover every deficit, does not provide timely reimbursements, and is 13 administratively confusing. Additionaily, several cities have pledged only the city property tax 14 portion to a project. Under levy limits imposed by the 1997 legislature, these cities will be unable 15 to meet these obligations. 16 Response: Any future proposals to reform the property tax system must provide for state 17 resources in an amount sufficient to cover any and all TIF district deficits. Additionally, if 18 fhe $2 million is insufficient to cover the deficits caused by the 1997 class rate changes, the 19 legislatu� e should provide additional state resources so that TIF obiigations can be met and 20 third party bondholders are protected. The legislature should also bring clarification to the 21 administration of the grant process and should require timely reimbursement. The 22 legislature should repeal levy limits. The legislature shouid provide resources so these 1998 City Policies 15 1 projects are held harmless from the ramifications of property tas reform. 2 LE-3. Economic Development Programs 3 Issue: The Minnesota Investment Fund is not adequately funded. The State does not 4 authorize an adequate slate of tools for IocaI governments to assistjob creation, redevelop bli�ht 5 and decay, and provide adequate housing choices. Consequently, cities are not well equipped to 6 compete nationally and internationally for business development. 7 Response: 8 • More state resources should continue to be contributed to the Minnesota Investment 9 Fund. 10 • In the event that the LGA/IIIACA penalty is not eluninated, a portion of the revenues 1] should be contributed to the Minnesota Investment Fund. These funds would then be 12 available for cities to retain businesses in the state and to attract business looking to 13 relocate from other states. 14 • The state should establish a new grant program that would provide funds to cities to IS establish a Revolving Loan Fund targeted to gap �nancing for projects creating jobs. The 16 funds would be awarded to cities through a competitive grant program in which the 17 award is based on community need and local development capacity. The approved 18 applications would be funded strictly on the aForementioned criteria as weIl as Yhe city's 19 development program and development priorities. The State would not be in the business 20 of reviewing projects with respect to speci�c companies and specific loans. These grants 21 would be in an amount up to $250,000 and would facilitate four to �ve initial local loan 22 projects. Local governments should be given the flexibility to utilize these funds � League of .NIinnesota Cities � �-ro 1 throughout the city without any geographical restrictions. The funds to the communities Z would be used to develop subordinated mortgages that are integrafed with the primary 3 financing of a particular project. The loan could be utilized for retention as well as new 4 jobs. The respective community would be required to "recapture" the funds and also to 5 de��elop the appropriate collateral to protect the integrity of the Revolving Loan Fund. In 6 the event that the LGAlHACA penatty is not eliminated, a portion of the revenues should 7 also be contributed to the Revolving Loan Fund. ; 8 • Congress shouid remove the caps that have been placed on Industrial Development Bonds i 9 and acknowledge that the eartensive eligibility requirements now adequately limit their 10 use. 11 LE 4. Redevelopment of Developed Communities 12 Issue: Developed communities across the State of Minnesota are faced with the unique 13 circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and downtowns and 14 a lack of land for deve]opment. Redevelopment activities usually require large, up-front funds to 15 address multi-phase projects of extensive duration wUere site assemblage, demolition, relocation, or 16 pollution clean-up must occur before private-sector interest can be generated. The lack of a coherent 17 statewide policy and the State's unwillingness thus far to provide financial support has and will 18 continue to contribute to the increasing problem of urban sprawl. 14 Respc.nse: In recognition of the unique needs of redevelopment projects, the State should 20 make a commitment to reinvest in its developed communities and should undertake a 21 comprehensive approach �vhich provides financial assistance to address their redevelopment 1998 City Policies 17 �,Y Q l needs. 2 LE Property Tax Abatement Authority Issue: In an effort to increase the number of development tools available, the 19971egislature 4 authorized local units of govemment to grant property tax abatements. While generally supportive 5 of additional development tools, cities did not promote this legislation. Abatement authority was 6 never intended to replace existing ta�c increment financing authority. Abatement is not an adeguate 7 replacemenY for TIF, particularly in redevelopment projects which typically have higher costs. In 8 addition, abatements were placed within the parameters of levy limits, thus, for Yhe neYt two years, 9 the "increase" in taaces cannot be accessed to facilitate projects: 10 Response: TIF is still the primary v4able development tool available. Abatement authority 11 should be available but it should not be offered as a rationaIe to eliminate TIF. If abatement 12 authority is to be at all effective, tax abatement projects need to be considered "ouYside" of levy 13 limits. 14 LE-6. Brownfietds I S Issue: Brownfields are lands that are not suitable for development due to the presence of 16 chemical or other contaminants. Brownfrelds are a major cause of blight within communities 17 across the state through loss of local tax base, jobs, housing qualiry, public safery and community 18 confidence. Revitalizing this Iand is costly and requires the cooperation of city, counry, school, 19 regional, state and federal governments and the assistance of local economic development 20 organizations and citizens. As we move into an era where che chass creation of jobs is a necessity 18 League of Minnesota Cities � �r �-ro 1 and where increased tax base is a requirement for local governmenu to adequately face growing 2 financial pressures, efforts to revitalize brownfields must not oniy continue but be accelerated in 3 the upcoming years. The 1997 legislature re-authorized $7 million for the Department of Trade 4 and Economic Development's (DTED) contaminated site clean-up fund and this amount was added 5 to the Department's base. Additionally, $6.2 million will now be appropriated annually from the 6 Petrofund to DTED to be used to clean petroleum-related contamination without the requirement 7 of an identifiable tank source. Response: A comprehensive set of economic development programs must be maintained 9 for cities and other development agencies. The legislature should: ] 0 • increase funding for the Department of Trade and Economic Development's contaminated I 1 site clean-up fund; 12 • act to strengthen enforcement and wllection of revenues for the state contamination taY; 13 • continue support for and funding of local and regional programs to assist in the efforts to 14 remediate brown�elds; l5 • establish a fully-funded program to ailow cities and other development authorities to gain 16 control of and reclaim and revitalize brownfietds; 17 • protect existing tax increment �nancing provisions that provide for the remediation of 18 brownfields and modify restrictions to allow the pooling of district revenues to assist in 19 the financing of remediation of brownfields; 20 • estabtish an indemnification fund to provide financial security for institntions and 21 individuals as they invest in efforts to recycle brownfields in order to leverage private 22 investment in cities' efforts to increase their tax base and create jobs; and 23 • continue the petrofund as a�nancing mechanism for cleaning contaminated sites. 1998 City Policies 19 9�-�0 1 LE-7. Growtk Management and Annexation 2 Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, and 3 governmental impact for cities, counties, and state governments because it increases the costs of 4 providing government services and results in the loss of narural resource areas and prime 5 agricultural land. 6 Response: The League believes that the existing framework for guiding grovvth and 7 development primarily thraugh local plans and controls adopted by ]ocal governments should 8 form the basis of a statewide planning policy and that the state should not adopt a mandatory 4 comprehensive statewide planning process. Rather, the state should: 10 • provide additional �nancial and technical assistance to local go��ernments for cooperative I I planning and growth management issues, particuiarly where new comprehensive pIans 12 have been mandated by the legislature; 13 • clearly establish the public purposes served by existing statewide controls such as 14 shoreland zoning and wetlands conservation; clarify, simplify, and streamline these 15 controls; eliminate duptication in their administration; and fully deFend and hold 16 harmless any local government sued for a°taking" as a result of executing state land use 17 policies; 18 • give cities broader authority to ea�tend their zoreing, subd'evision, and other land use 19 controls up to two miles oufside the city`s boundaries regardless of the existence of county 20 or township controls, in order to ensure conformance with city facilities and services; 21 • clearly de�ne and differentiate between urban and rural development and restrict urban 22 growth outside city boundaries; 23 • require fhe Metropolitan Council to seek cooperation from the State of R'isconsin and 20 League of Minnesota Cities 9�-to I counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure ? responsible and controlled development, study expansion of i�Ietropolitan Council i authority in surrounding counties, and examine the positive and negative impacts of 4 mandatory regional or local land use controls and state-imposed development standards; 5 and 6 • facilitate the annexation of urban land to cities by amending state statutes regulating 7 annexation to raake it easier for cities to annex developed or developing ►and within 8 unincorporated areas. 9 LE -8. State andlor County Licensed Residential Facilities (group homes) 10 Issue: The need for more residentiai-based care facilities resulting from state policies makes 11 it clear that the state must also ensure there is sufficient funding to assure that residents living in 12 group homes and licensed facilities have appropriate care and supervision. In view of the 13 responsibilities cities have to accommodate group homes and residential-based facilities, it is 14 important that state and county units of government make every effort to work with local officials IS to make sure that adequate care and public safety concerns are addressed. Cities must also be 16 aware of special care needed by group home residents in case of public safety emergencies. Since 17 operators of certain residential facalities and services are not required to notify cities when they 18 intend to purchase housing for this purpose, cities have insufficient opportunity to address special 19 care and �ublic safety needs that these residences may require. 20 Response: The legislatnre shouid require state and county agencies which operate or 21 license companies that operate residential-based facilities notify cities in a timely manner and 22 allow opportunity for cities to respond regarding the status o#� facilitv license requests and 199$ City Policies Zl 9�-/O 1 renewals and the special care needed by residents in case of public safety emergencies. 2 Legislation should also include provisions requiring establishment of non-concentration 3 standards and direction to avoid clustering residential facilities. Licensing authorities must 4 also be responsible for removing any residents found incapabte of living in such an 5 environment, particularly so they do not become a danger to themselves or others. 6 LE -9. Affordable Housing 7 Issue: Many families are unable to afford housing, and cities ofren lack resources at the local 8 level to provide housing far families or to develop housing a(ternatives fo: aging populations that 9 are within their means, particularly in smaller cities. The resutting circumstances limit economic 10 development and weaken the city's tax base. 11 In areas outside the five MSA regions, housing stock is aging and generally older than in more 12 urban locations. U.S. Census figures for 1990 indicate that more than 30 percent oF housing units 13 in those areas were built prior to 194Q as compared with the high rate of new housing 14 construction within MSA locations, particularly in the twin cities metro area where 59 percent of 15 housing units built in the `80's are located. 16 Almost half the households in the state paying median rental housing costs exceeded the level 17 of affordability, according to the latest census. The ratio of housing affordability for low-income 18 renters is also increasing, raising more concern at the local level about the prospect that this 19 portion of the city population wili be less likely to become homeowners. Oider homeowners often 20 reside in housina that is affordable to first-time homebuyers, but o�ten want to remain in their 21 homes as long as possible. By the time they do move, the property may have become run-down. 22 As a result, the home often becomes rental property with minimal improvements undertaken by 22 League of Minnesota 9�-!0 1 the new owners. 2 Response: Federal, state, and local government must pursue policies which encourage 3 public-private partnerships to make it possible for cities, lending institutions, and developers 4 to initiate projects that meet locai housing needs. The state should continue to provide grants 5 and loans from state revenue sources and streamline multiple MHFA-administered programs 6 to create a larger pool of state funding with more flexible criteria and guidelines to make it 7 easier for cities to apply for and make use of state housing assistance programs. The state 8 can also assist cities by establishing priorities for the use of those funds on the basis of state 9 housing policy far which cities and developers can apply based on their specific project 10 activities and locally determined objectives. 11 State housing policy should focus more resources on preservation of existing housing stock 12 as an effective way to promote and retain affordable housing. More also needs to be done to 13 reduce the cost to older homeowners of moving into assisted living or other housing designed 14 for the elderly, such as patio homes and to match up �rst-time homebuyers with affordable 15 properties and to make more "6x-up" programs available at the local level. 16 Among the state-sponsored initiatives and policies the League supports to encourage 17 production of affordable housing are: 18 • exempting construction of low-income housing from the state sales tas; 19 • a state low-income housing tax credit program; 20 • making it easier for cities with affordable housing programs to use tas increment 21 financing or taY-exempt revenue bonds (IRBs); and 22 • exemp�ing public agencies, including HRAs, from the state deed and mortgage transfer 23 tax. 1998 City Policies 23 q �-/D Cities mnst also have sufficieret local aathority and the flexibility to undertake housing 2 projects to meeY their nnique housing needs and must be able to leverage federal and state 3 resources to do so. Bringing Yogether crime prevention specialists and those �vorking to 4 develop new affordable housing units shouJd also be encouraged to imprave access to 5 affordable housing while supporting neighborhood safety and commii�aity liia.bility. 6 LE-10. City Role in Telecommunications 7 Issue: Cities are facing increasingly complex challen;es in respondin� ro and plannin� tYcei; 8 own telecommunications futures. Cities need support at the state and federal (evel to assure tha[ 9 community residents, businesses and non-profit organizations benefit from the com�ergence of 10 electronic ittformation technology, telecommunications, communications, video, and cable 1 I television service delivery. 12 Response: Congress and the legislature should support and encourage local government 13 planning and authority to provide public services and assure the benefits of broadband 14 telecommunications and wireless communications for their communities and residents by: 15 • making it easier for cities to own and operate telecommunications utilities, in part by 16 amending Minn. Stat. § 23719 to authorize cities to construct and operate a telephone 17 exchange by a simple majority vote of its electorate, rather than the current 18 supermajority vote of 65%; 19 • recognizing the changing nature of the public-private partnership in which multiple 20 providers may compete to deliver telecommunications services; 21 • upholding ►ocal authority to establish telecommunications policies and plans that respond 22 to community needs; 24 League of Minnesota Cities g� �o 1 • preserving city authority over matters directly affecting communities, including: 2 construction standards, permitting, insYallation methods, construction scheduling and 3 coordination, degradation of rights-of-ways, cost recovery, city use of telecommunicafions 4 resources for local public, education, government access and I-Nets; 5 • aiding cities to develop community-based information services so that residents with 6 limited income benefit from access to local and wide-area broadband networks and information services; 8 • supporting local authority to require providers of open video systems to provide public, 9 educational and government access; 10 • making sure cities are allocated adequate spectrum on the 800 MHZ radio frequency for 11 public safety and emergency response. 12 Cities are encouraged to: 13 • develop a telecommunications plan identifying community priorities and values and 14 setting forth how the city intends to encourage competition in the local market while 15 ensuring taxpayer investment in public infrastructure is protected; 16 • determine how to implement new federal and state telecommunications laws and 17 regulations to create conditions to attract teleeommunications to make them widely 18 availabie to city residents and businesses; 19 • examine cunent ordinances to take into account how to respond to multipie requests to 20 instatl wireline communications or to erect cellular, personat communications service 21 (PCS) and other wireless communications towers and antennas; 22 • treat all providers on a neutral and nondiscriminatory basis; 23 • seek broad access to advanced telecommunications services including bandwidth and 1998 City Policies 25 � �-.�o 1 spectrum for public safety and emergency response; 2 • provide for institutional networks (I-Nets) through cable franchise aareements with local 3 operators !o acquire a portion of a broadband network and other ad� ance 4 telecommunications resources; 5 • consider installing city-owned and operated broadband netrvorks or forming partnerships 6 to do so where the marketplace fails to provide the infrastructure and/or services; 7 • investigate and develop applications for those networks to deliver public services using 8 advanced telecommunications; 9 • take an inventory of unused, under�sed and(or abandoned conduit in the right-of-way, in 10 easements, or on city-owned property to make use of those resources in developing needed 11 localinformation inFrastructure. 12 LE-11. Redesign of Electric Utility Regulation 13 Issue: Policymakers at the state and federal levels are considering ways in which to bring 14 competition into the electric utility industry. Without a cautious approach which incorporates 15 careful consideration of the implications of any deregulation scheme for all consumers of electric 16 energy, it is possible that only the largest consumers of electric energy would experience true cost 17 savings and other benefits ofren associated with competition while the smail customers, individuals 18 and small businesses, may actually see rate increases. Additionally, city interests in tax base 19 stabiiity and managing and obtaining compensation for the use of public rights of way by utility 20 companies are often overlooked in electric utility restructuring discussions. 21 Cunently, the discussion regarding possible deregulation of the eleccric power industry in 22 Minnesota has centered on electric utility taxation. Proponen[s of deregulation assert that if 26 League of Nlinnesota Cities q� (D 1 effective free market competition is to replace governmental regulation, state ta�c policy must be 2 changed to ensure competitive parity among both inuastate and intersTate producers. The main 3 focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or 4 personal property tax. Utilities subject to the tax argue that it places them at a competitive 5 disadvantage to non-Minnesota companies as weli as Minnesota Rural Electric Cooperatives (Co- 6 ops) and Municipals. However, accurate comparisons of tax burden are difficult, as other states 7 use completely differenc taxing systems. Additionally, Co-ops do pay the tax on some of their 8 property and Municipals make substantial payments in lieu of taxes. 9 Utility personal property can be a significant portion of the local tax base in all cities. Most 10 obviously affected are cities that have power plants. However, generation and transmission 11 equipment accounts for over haif of the personal property taxes paid by the IOUs, and exists in 12 nearly every city. Replacing the revenue that would be lost by cities, counties, school disuicts, 13 and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and 14 funding source of such a replacement revenue would be difficult to develop and administer, and 15 would be subject to reduction or elimination over time. 16 Response: A cautious, deliberative approach to restructuring the electric utility industry 17 is necessary to preserve the level of service to which Minnesota consumers of electric energy 18 have become accustomed. Additionally, it is crucial that cities have a place at the table in 19 deregulation discussions and that they retain their local authority to manage, and obtain 20 compensatioa for, the use of public rights of way, and that neither cities nor their taxpayers 21 are asked to shouider the burdens of any tas relief provided IOUs. Finally, every effort 22 should be made to ensure that additional responsibilities and financial burdens are not 23 shifted to the local level. 1998 City Policies 27 �' �-! 0 LE-12. Adequate Funding for Transportation Issue: Current funding for roads and for transit systems across all eovernment levels in the 3 state is not adequate. 4 Response: Minnesota should value, and adequately fund, all transportation sgstems in the 5 state. The state needs to provide an objective basis to determine the complete needs of the 6 road and transit systems, their present condition, and their impact on the economic health of 7 the state. This should include acknowledgment that delaying current expentlitures wiIl 8 increase costs in the future. The League of Minnesota Cities supports an increase in the gas 9 tas and urges removing fhe e�risting restrictions on its use so that gas tas revenues can be 10 used for all transportation projects and programs, not just road construction and 11 maintenance. The legislature should institute additional revenue sources that can be 12 dedicated to all transportation programs. Cities should receive revenues necessary to meet 13 present and future transportation needs. If lunding does not come from the stafe, cities 14 shouId have funding options available to them to raise the dollars necessary to adequately 15 fund roads and transit. 16 With the exception of funding for the state patrol, ali nontransportation programs should 17 be funded from a source other than the highway user distribution fund. The revenues of the 18 highway user distribution fund are coliected from transportation users and should be I9 dedicated to transportation-related services. 2o LE-13. State Aid for Urban Road Systems 21 Issue: Current rules governing municipal state aid e?cpenditures aze restricting the efficient use 28 League of i�'Iinnesota Cities 9�-to 1 of these funds and do not adequately acknowledge the constraints of road systems in urban city 2 environments. Response: Rules affecting the municipal state aid system need to be changed to 4 acknowledge the technical and practical restrictions on construction and reconstruction of 5 urban road systems. New municipal state aid design standards should not apply to 6 reconstruction of existing state aid streets that were originally constructed under different 7 standards. Future changes to state aid rules should ensure the involvement of elected officials 8 and engineering professionals in the decision-making process. 9 LE State Aid Roads in Contiguous Cities Under 5,000 10 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their collector 11 and arterial streets. 12 Response: State statute should be modified to encourage cooperation and improved 13 transportation systems by allowing contiguous cities that jointly represent a combined 14 population of 5,000 or more to be eligible for Municipal State Aid (M.S.A.). Participating 15 cities would enter into a formal joint powers agreement and establish a joint budget that would 16 be governed by a board of elected officials. Cities that participated in this joint entity would 17 not be required to undertake any formal consolidation activities. 18 Cities under 5,000 population that were not eligible for M.S.A. through this cooperative 19 agreement practice should be able to use county municipal accounts and the five percent 20 account of the highway user distribution fund. 21 Uses of county municipal accounts shou4d be statutorily modified so that counties can 22 dedicate these funds for local arteriais and collector streets within cities under 5,000 1998 City Policies 29 �'�-�o 1 population. In addition, the five percent set-aside account in the highway user distribution 2 fund should be used to meet this funding gap. 3 LE-15. Turnbacks of County and State Roads 4 Issue: As road funding becomes increasingly inadequate, more roads ate being "tumed back" to 5 cities from counties and the state. 6 Response: Turnbacks should not occur without direct funding or transfer of a funding 7 source. A process of negotiation and mediation should govern the timing, funding, and 8 condition of turned-back roads. City taxpayers should receive the same treatment as township 9 taxpayers. The requirement for a pnblic hearing, standards about the conditions of turnbacks, 10 and Yemporary mainteuance funding shouid a[so apply to county turnbacks to cities. At a 11 minimum, proposed roads to be turned back to a lower government level should be brought up 12 to the standards of the receiving government or should be compensated with a direct payment. 13 Direct funding should be pxovided for smaller cities that are not provided with turnback 14 financing through the municipal state aid system. 15 LE-16. Cooperation Between Counties and Cities Over County Roads Within 16 Cities 17 Issue: Some counties want increased control over county roads that lie within city boundazies. 1$ The statutory mechanism for resolving disputes between counties and cities over the construction, 19 reconstruction, or expansions of state-aid highways that extend within city corporate timits is 20 inadequate. Under current law, only The county may request that a dispute resolution board 21 (`boazd") be established and the boazd's role is not to assist the parties in attempting to resolve their 30 League of Minnesota 9� �o 1 dispute. Instead, the boazd has the authority only "to review the propose change, and make a 2 recommendation to the Commissioner." It is the Commissioner of Transportation who ultimateiy 3 makes the fmal decision on whether to "approve the establishment, construction, reconstruction, or 4 improvement of a county state-aid highway recommended by the boazd." The statute does not 5 outline any formal due process that must be followed to ensure fairness to all parties. Additionallp, 6 there is no mediation or non-binding azbitration prerequisite as exists in other azeas of law dealing 7 with dispute resolutions. Response: The Legislature should provide a mediation or non-binding arbitration 9 alternative to assist parties in reaching a resolution on their own �vithout involving the 10 Commissioner. Additionally, to ensure that sound recommendations are made by dispute 11 resolution boards, formal due process and speciSc criteria should be established. For 12 situations where negotiations do not produce an agreeable resolution, cities should be 13 authorized to request that a board be established. 14 LE-17. Management of Rights-of-Way I S Issue: Demand for all types of uses of rights-of-way, both surface and subsurface, is increasing 16 exponentiaily, forcing consideration by cities of how best to allocate this very limited resource. 17 Because public rights-of-way have been acquired at public expense through local property tax 18 sources or other local action, cities have traditionally had the fundamental responsibility and 19 attendant liability for facilitating the safety and convenience of all right-of-way users. Rights-of-way 20 management responsibilities are complex, numerous, and site specific, as are the particular interests 21 of cities in establishing a value for private use of public space in the local rights-of-way. These 22 factors underscore the fact that rational and expeditious decisions can only� be made at the local level. 1998 City Policies 31 q �-� a . i Cities support existing federal nondiscrimination requirements that local administration not 2 impose unreasonable delays or burdens on access, entry, or other reasonable use of rights-of-way. 3 Cities should be authorized, as provided in federal law, to reqaire telecommunications providers to 4 meet local requirements for pubiic, educationat, and government access to their networks as well as 5 financial and technical support for such actions. 6 Local rights-of-way are a iimited and valuable assei held in trust by municipalities for the pubIic. 7 Unlike other businesses which pay for tiie use of public rights-of-way, teIephone companies 8 currently pay property taxes only on a fraction of their faciIities Iocated in pubiic rights-of-way and 9 nothing for the vatue of the right to use them. 10 Response: 11 • The responsibility for managing and protecfing public rights-of-way must remain with 12 cities and ofher units of government entrusted with protecting the health, safety, and 13 convenience of fhe community. I4 • Construction and safety standards are of paramount importance to cities, and consistent I S with respective industries' desire for uniformity, should be developed by the municipal 16 engineering community for adoption by cities to ensure effective rights-of-way 17 management. 18 • Cities and other governmental units responsible for the protection and management of 19 public rights-of-way should be authorized to require reasonable compensation which 20 reflects the policy and fiscal objectives of their community. 21 • The courts should remain the primary forum for resolurion of allegations that communities 22 have exercised their authority in an unreasonable, arbitrary, or capricious manner. 32 League of Minnesota Cities Q.�=to LE-18. Communications Tnfrastructure 2 Issue: Cities must retain authority to provide for development of effective local information 3 in&astructure including public, educational, and govemment (PEG) access channels and institutional 4 nerivorks. Sufficient technical and financial support from telecommunications service providers is � 5 necessary to assure that both traditional and advanced services and applications, including both 6 wired and wireless telephony, video, data and Internet services as well as PEG access are localiy 7 available. Response: The legislature should support local authority to develop, own, and operate 9 information infrastructure and services to require that voice, video, and data communications 10 nehvorks provide channel spectrum and resources sufficient to meet local information and 11 communications needs, assure public safety and convenience, and provide local information 12 and community programming and services. 13 LE-19. Effective Telecommunications Competition 14 Issue: Effective telecommunications competition will not arrive simultaneously in all cities or 15 markets. In the transition to an effectively competitive marketplace, which will yield better services, 16 affordability and deployment of technology to meet community needs, consumers need protection 17 from possible market abuses. 18 Response: Federal, state, and local governments must coordinate efforts to protect 19 consumers and encourage emergence of effective competition to make it possible for 20 communities to participate in the global economy through a local information infrastructure 21 that provides benefits to residents, business, and industrv. 1998 City Policies 33 �r�-!a 1 LE-20. Local Zoning Regulation of Telecommunications Service Providers 2 Issue: Cities must have authority to govern the use of property by telecommunications service 3 providers through zoning regulations without unnecessary state and federal intervention. 4 Response: The Federal Communications Commission and the state legislature should 5 continue to uphold local government authority to adopt and enforce local zoning regulations of 6 telecommunications service providers as reaffirmed in the federal Telecommunications Act of 7 1996. 8 LE-21. ISTEA Reauthorization 9 Issue: Cities have an important stake in the reauthorization of the federal Intermodal Surface 10 Transportation Efficiency Act (ISTEA). Since its enactment in 1991, ISTEA has assured cities of a I 1 key role in planning as weIl as benefits of funding for project enhancements and pollution 12 mitigation. ISTEA expires on September 3Q at the end of this fiscal year. ISTEA has been 13 successfully implemented in Minnesota, with a sYrong focus on partnerships, local decision-mal:ing, 14 funding flexibility and emphasis on inter-modal transportation. 15 Response: Congress should reautharize ISTEA this session to continue support for the ne�v 16 era of transportation investments in which cities can work cooperatively with the Minnesota 17 Department of Transportation (MnDOT) to address local and regional transportation 18 interests. Putting in place locally developed criteria to evaluate programming of limited funds 19 has opened MnDOT programming to recognize regional priorities. Enhanced ISTEA 20 reauthorization �viil allo�r cities to continue to work within the current planning process to 21 address transportation needs. 22 The amount of ISTEA funding in the existing congressional and administration budget 34 League of Minnesota Cities ��-�o allocations does not meet growing needs. Trust fund revenues should be used solely for 2 transportation purposes, and the federal gas tax revenues should be transferred to the 3 Transportation Trust Fund (instead of being used for deficit reduction). 4 Regional planning is a strong component of the current ISTEA program. Congress should 5 support and encourage broadening the federal-state-local partnership and community 6 participation in transportation decision-making. All program categories in the existing ISTEA program should be maintained, in particular the Surface Transportation Program (STP), Transportation Improvement Program (TIP), 9 Enhancement and Safety, transit, Congestion/1�litigation Air Quality (CMAQ), and the 10 National Highway System (NHS) and Bridge Replacement programs. 11 Congress can aid local project imptementation by reducing unnecessarily burdensome 12 regulations and procedures, particularly for smail pro,yects for elements that have Iittle if any 13 negative effects on the environment. There is also a need to examine the relationship between 14 the metropolitan MPO boundary anci U.S. Census boundaries of the Twin Cities Metropolitan 15 Statistical Area (MSA). The MPO in the metro area needs to recognize the broad regional 16 implications of transportation in the 7 counties within Minnesota and the two counties in 17 Wisconsin that are within the MSA. 1s IMPROVING SERVICE DELIVERY 19 SD-1. Redesigning and Reinventing Government 20 Issue: Every level of government is reevaluating, reprioritizing, redesignin�, and renewing its 21 organizational structure and programs in response to financial realities and citizens' needs and City Policies 35 ��-�� 1 problems. Reforms, however, must be more than simply change for the sake of change or a 2 reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and 3 reassignments of govemmental entities and services should save money where feasible, deliver 4 improved services, serve essential needs and be equitably structured. Cities have and will continue 5 to pursue the use of cooperative agreements, the reevaluation of city programs and services, and 6 changesto organizationalstructures. 7 Response: The federal, state, and county governments should: 8 • ensure that in redesigning, reinventing or reassigning government services and programs 9 that the appropriate level of service to citizens is evaluated and citizen demands and 10 expectations are adequately addressed; 11 • promote local efforts through incentives rather than mandates; 12 • communicate and establish a process of negotiation before shifting responsibility for 13 delivering services from one level of government to another or seeking to reduce service 14 duplication; 15 • transfer authority for use of re�°enues dedicated to such programs or provide appropriate 16 and adequate alternatives; 17 • identify and repeal programs or discontinue services which are no longer necessary or 18 which can readily and fairly be pro��ided by the private sector; and 19 • employ existing government entities in redesign efforts rather than create new agencies or 20 units. 21 The League supports cooperative studies of the following issues: 22 • whether the enforcement of human rights laws can best be accomplished by a single state 23 system which would allow local governments to discontinue local enforcement programs; 36 League of Minnesota Cities 1 • whether there should be greater use of statewide or consolidated business licensing, 5�-i o 2 including licensing of sign contractors, to eliminate the need for some businesses to obtain a 3 permit in each city or county; 4 • whether the existing use and structure of Regional Development Commissions can be 5 imgroved; 6 • whether greater use cau be made of block grants to distribute funds related to 7 transportation, sewage treatment, and public water facilities; 8 • whether human services and health programs can be improved by further consolidating 9 their administration at the state and county levels of government; and 10 • whether state and federal environmental and water agencies can be combined or 11 eliminated to avoid inconsistent standards and duplication of responsibilities. 12 SD-2. Unfunded Mandates li Issue: The cost of federal and state mandated programs substitute the judgment of Congress and 14 the President and the legislature and the Governor for local budget priorities. These mandates force 15 cities to reduce funding for other basic services or to increase taxes and service charges. The passage 16 by the legislature of reporting requirements for new state mandates and the passage by Congress of 17 legislation restraining new federal mandates should help address the problem, but other steps aze still 18 necessary. 19 Response: 20 • Existing unfunded mandates should be reviewed and modified or repealed where possible. 21 • No additional statewide mandates should be enacted unless full funding for the mandate is Policies 37 y�-�� 1 provided by the level of government imposing it or a permanent stable revenue source is 2 established. 3 • Cities should not be forced to comply with unfunded mandates. 4 • Cities should be given the greatest flexibility possible in implementing mandates to ensure 5 that their cost is minimized. 6 SD-3. Civil Liability of Local Governments 7 Issue: One of the barriers to the delivery of governmental services and programs is the exposure 8 of tocat govemments and their officiats to civil damage ciaims. The state has acted to protect itself 9 and its local governmenTS by enacting exceprions and limitations to tiabiliry suits and authorizing 10 self-insurance and other mechanisms to deal with claims allowed by law. Additionally, the current ll law which requires district court approval of settlements of claims against municipalities which 12 exceed $10,000 has become burdensome for cities. 13 Response: The League supports: 14 � eliminating joint and several liability, or severely restricting its application to situations 15 where private or public tortfeasors are substantially at fault for the damages incurred; 16 • extending the protection of the state and municipal tort claims act to guasi-governmental 17 entities when performing public services such as firefighting; 18 • existing constitutiona[ safeguards for protecting public and private property interests 19 without any statutory expansion of property rights; and 20 • eliminating the district court approval of settlements requirement or, in the alternative, Z 1 increasing the threshold amount for district court approva] of settlemeats to �100,000. 38 League of Minnesota Cities 1 SD-4. Environmental Protection 2 Issue: State and federal environmental programs are improperly designed to meet their ��-ro 3 stated goals, and impose an undue burden on local governments because of a lack of federal or 4 state financial assistance. The refusal to finance these programs by the governments which pass 5 them has eliminated an essential restraining feature in program design and implementation. 6 Specific problems include: 7 • New programs or standards are continually adopted without regard to the existence, 8 attainability, or cost of existing programs and standards. 9 • Fragmented program adoption and 'unplementation does not ensure prioritization of 10 environmental matters or the establishment of comprehensive environmental protection I1 strategies. 12 •"One size fits all" implementation programs force remedial efforts by local governments for 13 nonexistent environmental problems. 14 • Permit fees and other cost transfer elements of federal and state programs do not provide an 15 incentive for environmental agency efficiency, policy prioritization, or risk assessment. 16 Response: 17 • A comprehensive effort to consolidate, reorganize, and manage state and federal 18 environmental agencies and programs should be undertaken and a partial or full 19 moratorium on new programs or requirements should be considered. 20 • Permit fees should be limited to fifty percent of the agency's direct operating costs in 21 order to promote efficient agency operation and sufficient legislati��e oversight. 22 • 5ufficient state and federal financial assistance should be provided to comply with state 1998 City Policies 9 �-iv. 1 and federal infrastructure requirements, particularly with regard to sewer and water 2 faciliries. 3 SD-5. Personnel, Pensions, and Labor Relations 4 Issue: Many state taws increase the cost of providing city service to residents by requiring 5 city govemments to provide certain leveis of compensation or benefits to public employees, 6 specify certain working conditions, or limit city governments' abiliry to effectively manage their 7 personnel resources. For instance, existing state laws limit governments' ability to effectively 8 address incompetence or misconduct of city employees specifying certain procedures to be 9 followed or standards of conduct. 10 Response: The state government should refrain from passing laws which regulate the 11 public sector workplace and should repeal or modify problematic e�sting taws and 12 regulations to encourage fuil tocal accountability. 13 The League of Minnesota Cities proposes Yhe following reforms: 14 Discipline and Discharge 15 • The state should modify veterans' preference and civil service laws which restrict the 16 ability of local governments to effectively discipline public employees. The legislature 17 should amend the law to: 18 • remove the right to multiple, duplicative disciplinary proceedings; 19 • limit any back-pay claims to a maximum of $100,000, and; 20 • timit the period in which fo request a hearing to 14 days (from the current 60 days). 21 • The state should disconYinue state and local civil service systems which are no longer 40 League of Minnesota Cities needed to ensure fair and accountable hiring and firing practices. 2 Data Practices ��-�o 3 • In light of security concerns, the state should amend the data practices act to reclassify all 4 employee address and telephone data as private data. 5 • The Information Policy Task Force created by the 19971egislature should consider the 6 impact of potential changes to the data practices act, particularly the commercial use and 7 sale of government information, on local units of government and take these into account 8 in any recommendation for legislative action. 9 Compensation limits 10 • The state should repeal laws limiting local government employee compensation levels to 11 the governor's salary. If repeal is not possible, the limit should be amended to be based 12 upon the governor's total compensation level. 13 PELRA 14 • The state should modify the definition of public employee to limit the application of 15 PELRA to employees working more than an annual average of 20 hours per week other 16 than on a temporary or seasonal basis. 17 • The state should change public sector bargaining laws to restrain arbitration awards 18 which exceed other internal class comparisons or outside cost of living limitations. 19 • The State should modify the definition of public employee to exclude police and fire 20 cadets. 21 Pensions 22 • The state should re�ise public employee pension laws to facilitate consolidation of local 1998 City Policies 41 9 �-/ a i pension plans and the transition to more attractive and fiscally-sound pension programs 2 such as defined contribution plans. 3 • The state should study initiatives to reform and make uniform pension plans for local 4 government employees. However, the League opposes increasing public employer 5 contribution levels or any proposal to have the public employer contribution level exceed 6 the contribution level required from emgloyees. 7• The state should adjust the eligibility thresholds for public pensions to reflect inf7ation, 8 adopt a process for automatic future adjustments, and timit eligibility for defined benefit 9 plans to employees working an average of at least 20 hours per week. 10 � The League opposes special legislation related to pension benefit increases that are not 1 I initiated by a previously adopted resolurion of the city council of the affected city, even if 12 the legislation provides an option that requires subsequent local approval. 13 In addition to these state reforms, the League of Minnesota Cities supports the following 14 policies regarding federal employment law: 15 Overtime compensation 16 • Congress should amend the Fair Labor Standards Act to eliminate its applicability to the 17 public sector or at least recognize unique circumstances in the public sector such as 18 accounting for all hours worked by salaried employees and allowing regular employees to 19 serve as volunteers, paid on-call firefighters, referees, coaches, and other community 20 service-oriented positions. 21 Peace officer bill of rights 22 • Congress should oppose a federal peace officer bill of rights, which would make internal 4Z League of Minnesota Cities investigation and enforcement more difficult and diminish local accountability. 2 SD-6. Election Issues 3 Issue: Improvements in absentee voting, voter registration, and the election process 4 are needed. 9�-!a 5 Response: The 19981egislature should develop a bipartisan election reform proposal that 6 simplifies absentee voting, provides more cities direct access to the statewide voter registration 7 system, clarifies restrictions on locating campaign signs within 100 feet of polling places, 8 modifies the voter fraud statute related to voter residency, and allows cities more flexibility in 9 appointing and compensating election judges. 10 SD-7. Local Election Authority 11 Issue: Local authority to schedule city elections and establish terms of office for local elected 12 officials has been increasingly restricted by the legislature, thereby diminishing regard for the role 13 of local self-government, particularly when state policy pre-empts home rule authority governing 14 city elections. 15 Response: The legislatnre should oppose further limits on either the number or the length 16 of terms city elected officials may serve, particularly when those terms have been established 17 by the electorate in home rule charter cities. State policy on uniform elections should continue 18 to recognize and uphold local authority to schedule city elections in November of either even- 19 or odd-numbered years. 1998 City Policies gF-ro ., 1 SD-8. City Costs for Enforcing State and Local Laws 2 Issue: Cities experience substantial costs enforcing state and local laws, particularly those related 3 to traffic, controlled substances, and incazceration of prisoners. The current method in our criminal 4 justice system of recovering costs for law enforcement and prosecution through fines is insufficient 5 to meet the costs incurred by local govemments. 6 Response: The legislature should review this issue and adopt measures thaY provide for 7 complete reimbursement of the costs incurred by locai governments in enforcing state and 8 locai laws. Solutions which should be considered include the following: 9 • increasing fine amounts; 10 • removing or modif}�ing state surcharges which conflict with cost recovery principles; and ll • requiring the defendant to pay the Full costs of enforcement and prosecution as part of any 12 sentence. 13 SD-9. Access to Information 1'echnology and Services 14 Issue: Congress and the state legislature should continue to provide a meanin�ful role for cities 15 in developin� and supporting access to information technology and services. 16 Respo�:se: The legislature should: 17 • enhance opportunities for cities to collaborate with community organizations, schools, 18 tibraries, and nonprofit organizafions and felecommunications service providers to make 19 training and advanced services available to community residents; 20 • take steps to ensure that businesses have access to advanced broadband networks; 21 • provide grants and technical assistance to encourage cities to expand use of information 4 � League of Minnesota Cities 9�- ro , i technolog,y to provide citizen access to government information and deliver services; 2. • monitor telecommunications service providers' compliance with requirements to make 3 public access to information available at a discount; 4 � encourage providers to make capacity for interactive forums available at the local level to 5 increase citizen participation in government; 6 • encourage expanded use of interactive teleconferencing, public access channels, and public 7 broadcast facilities to provide public access to government meetings; and 8 • support federal, state, and local authority to charge providers of cable and cable-like 9 services reasonable fees to support that capacity. 10 SD-10. Lawful Gambling Fund Expenditures 11 Issue: State law authorizes cities to collect up to 10 percent of the net profits from lawful 12 gambling operations conducted within their jurisdictions. These funds must be maintained in a 13 separate account and can be spent only for "lawful purposes." These purposes are defined in 14 statute more narrowly than the permissible public purpose expenditures for charitable 15 contributions to cities. The Gambling Control Board has the authority to demand that cities make 16 repayment to the fund for expenditures it deems out of compliance with the statutorily permitted 17 lawful purpose expenditures. 18 Response: Cities are in the best position to determine the use of funds that will bring the 19 most 6enefit to their citizens. The legislature should expand the permissible lawful gambling 20 fund expenditures to include any public purpose deemed appropriate by the city. 1998 City Poiicies 45 � k i SD-11. Design-buitd 2 Issue: The standard bid procedure cities are required to use in selecting contractors for 3 municipal buildings can be quite cosUy. Private sector development uses a process known as 4"design-build" in which various firms submit project proposals that include both a design and the 5 construction costs for that design. The selection is then based on the total package. By granting 6 specific statutory authority to use the design-build alternative to the Metropolitan Sports Facilities 7 Commission and state agencies including the Department of Revenue, the legisiature has 8 recognized the financial savings it can provide. In documented instances, cities have saved 9 taxpayers up to 10 percent of the total project cost by usin� the design-build aitemative. The 10 design-build process also permits improved project management and oversight. However, absent I 1 statutory authorization to use this aiternative, cities are vulnerable to lawsuits from unsuccessful 12 bidders. In addition, the design-build process for playground equipment can encourage greater 13 creativiry while still maintaining cost controls. Special legislation was enacted for the City of 14 Chanhassen in 1995 to experiment with using this process for purchasing playeround equipment. 15 Response: The legislature should authorize an eartension of the "design-build" procedure 16 to cities as a less expensive alternative to the standard bid procedure. 17 SD-12. Mobile Home Park Oversight 18 Issue: The State has preempted cities in the licensing of mobile home parks and has I9 Iimited the authoriry of cities to place new regulations on estabiished mobile home parks. 20 However, cities are responsible for dealing with the various housing and public safety challenges 21 mobile home parks may create. 4( Leaaue of Minnesota Cities + , y'� i I Response: Since the State has already taken the lead, the legislature should provide 2 sufficient resources and direct the Department of Health to conduct a study on the condition 3 of mobile home parks throughout the State of Minnesota. Cities and mobile home pazk 4 owners and residents should be involved in the study. The results of the study should be used 5 as a basis for policy discussions regarding ways in which the State can provide for increased 6 and improved oversight of mobile home parks and establish a statewide support system for 7 cities to rely on in dealing with the array of issues that arise in mobile home parks. 8 Outcomes of the study should include: 9 •"best practices" for the operation of mobile home parks; 10 • recommended state regulatory changes for the operation of mobile home parks; 11 • suggested ways cities can better address the issues presented by mobile home parks; and 12 • identification of inechanisms to provide assistance in �nancing mobile home park 13 upgrades. 14 SD-13. Proposed Plat Approval Authority 15 Issue: Current law generally grants cities the authority to approve proposed plats as part of 16 their police power responsibilities for regulating development. Certain counties want legislative 17 authorization to approve proposed plats which are contiguous with existing or proposed county 18 roads. 19 Response: Cities oppose extending county authority over plat approval. While counties 20 have a valid interest in proposed plat decisions, this does not warrant a duplication of 21 approval authority. An informal process of county review with the opportunity to offer 1998 City Policies 9�-/� � , comments and suggestions for unprovement is an appropriate cooperative mechanism which 2 is already in place and working well in many azeas of the state. 3 SD-14. Providing Information to Citizens 4 Issue: To keep the public updated and informed, state law requires local units of government 5 to publish various noti£ication documents in newspapers and often dictates which newspapers 6 receive cities' publication business. The number and variety of documents required to be 7 published and the costs of publication are burdensome. Technological advancements have 8 expanded the ways in which government can provide information To citizens. In many cases, 9 these new technologies are more efficient and cost effecrive. 10 Response: Cities should be authorized to take advantage of new technologies to increase 11 the dissemination of information to citizens and potentially lower the associated costs. 12 Specifically, the legislature should authorize local units of governmenY to designate an 13 appropriate daily/weekly publication, elect alternative means of communication such as city 14 newsletters, cable television, and the internet, and expand the use of summaries where 15 information is technical or lengthy. Additionally, the legislature should eliminate outdated or 16 unnecessary publication requirements. 17 SD-15. Creating a Minnesota GIS Program 18 Issue: Cities need Geographic Information Systems (GIS). Although only forty-five cities have 19 pazcel-based GIS, this improved method of local land record management is already paying 20 tremendous dividends to those with access to the technology, but it is costly and difficult to create, 48 League of Minnesota Cities ,� r g�- �D I maintain, and upgrade. Cities face serious obstacles to modemizing land records when maps, survey 2 controls, and electronic records management do not exist at the county level. VJithout state 3 investment to help local government modemize land management records, development of GIS will 4 continue to fall behind, with costly results for residents and taxpayers in those locations where land 5 pazcel data is not organized. A seamless land records database would encourage sustainable land-use 6 planning at both the state and local level. Response: The League endorses the recommendations put forth by the Govemor's Council 8 on Geographic Information to establish and fund a Minnesota GIS Program to provide 9 technical support and funding for local government development of GIS. 10 SD-16. State Licensing of Massage Therapists 11 Issue: The state does not currently regulate massage therapy, an emerging but rapidly growing 12 profession. In order to control prostitution and to provide for health and sanitation standards, several 13 cities have entered the traditional state domain of health-care licensure by enacting ordinances that 14 require all massage therapists to obtain a local professional license. These ordinances allow local I S law enforcement officers to differentiate between legitimate massage therapists, who have a city 16 license, and prostitution businesses fronting as massage therapy establishments. The lack of 17 statewide licensing of massage therapists has hampered law enforcement techniques and has caused 18 problems for cities attempting to regulate an entire health-caze profession without any statewide 19 standards. Currently, twenty-five states license massage therapists on a statewide level. Statewide 20 licensing of massa�e therapists would provide a clear set of educational standazds that massage 21 therapists must meet and w provide local law enforcement agencies with an easy tool to 22 distin�uish between prostitution and legitimate massage therapy. Statewide professional licensing 1998 City Policies 49 9� io , � � b' 1 would not disturb traditional powers over land use and business licensure. 2 Response: The League supports the statewide professional licensing of massage therapists 3 in order to aid local law enforcement efforts at controlling prostitution and other criminal 4 activity. �� League of Minnesota Cities Council File � I u - /v Green Sheet � 5a3 �o 0 R! G I N A L �OLUTION CITY OF S PAUL, NIINNESOTA /� Presented By \��\� \� � Re£erred To Committee: Date 1 WHEREAS, the league of Minnesota Cities, which represents 811 of Minnesota's 856 2 cities. as well as 10 urban towns and special districts, has led the coordination of 3 member cities in the development of the 1998 City Policies for Legislative and 4 Administrative Action which identifies issues as priorities for action during the 5 1998 legislative session; and 6 7 WF�REAS, the City of Saint Paul was an active participant in this coordinated effort 8 and the City approves generally of these priorities; now therefore be it 9 10 RESOLVED, the City Council of Saint Paul does hereby recommend for consideration by 11 the Minnesota State Legislature, 1998 City Policies for Legislative and 12 Administrative Action, submitted by the League of Minnesota Cities and does hereby 13 request that these issues be addressed by the Legislature during the 1998 session. 14 1 5 Requested by Department of: By: Form Approved by City Attorney Bv: By: Appx sy: ��-, / eK%(/C�/C� proved by Mayor for Submission to ancil � > � `��'�' � Adopted by Council: Date Adoption Certified by Counci Secretary N° 52360 �c_ ,.� DEF11RiMENiNFfICEnCOUNCIL � DATE INITIATED � Q IV r�5 Office 12/29/97 G RE EN SH E E CONTA PERSONBPHONE INITIAVDATE INITIAVDATE . � DEPARTMENTDIREC70R O pTYCOONCR Bill Hue enbeCkeZ 266-8 17 "5��" �a�rvnnoaNev �GITYQERK MUST BE ON CAUNCIL AGENDA BY IDATE) NUMBEfi FOp ❑ BUDGET DIRECTOq O FIN. 8 MGi SEPVICES DIR. qOUi1NG OPDEN O MAYOR (OR AS$ISTqNT) O 1 TOTAL # OF SIGNATURE PAGES (CIIP ALL LOCATIONS FOR SIGNATURE) � ACTION /iEQUESTED. City Gduncil appYOVal of the Polic3es fox Legislative and Administrative Action, as , submitted by the League of Minnesota Cities for the 1998 legislature. . RECOMMEN�ATIONS- App�ova (A) or Reject (R) pEHSONAL SERVICE CONTflACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PIANNING CAMMISSION _ CIVIL SERVICE COMMISSION �. Has this Derson/firm ever worked under a contract for this department? � _ CIB COMMITfEE YES NO _ SincF 2. Has this personRirm ever been a dry employee? - — YES NO _ DISTRICT COURT _ 3. D025 this pe/sonflirm po55e55 8 Skill not nOrm211y p055855Ctl by any cuRerrt city employee? " SUPPORTS WHICH COUNCIL OBJEClIVE? YES NO Explain alI yes anawera on aeperata aheet and attaeh to green aheet � INITIATING PROBLEM, ISSUE. OPPOpTUNITV (WM, What, When. Where. W�y} " The City of Saint Paul has been an active participant in developing the 1998 Legislative priorities for the League of Minnesota Cities. With the City Council's approval of these priorities, Saint Paul will be supporting the League in its efforts to work on behalf of Minnesota's cities. r:tE` , �; x�' ADVANTAGES iF APPRpVED: �;' Saint Paul, as a member of the League of Minnesota Cities and an active participant �;. in the League's activities, committees, etc., wi11 be a partner in supporting the ?" ' legislative priorities recommanded by the member cities. �- i,; DISADVANTA6ES IF APPROVED t� None. 0�� 29 1597 ��'s ��°� � DISADVANTAGES IF NOTAPPROVED: Saint Pau1 would not be a partner in supporting the League of Minnesota Cities 1998 - Legislative Policies. r .,' �� . � DEC 2 9 1997 _.� TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDI(dG SOURCE AC7lVITY NUMBER . FINANQAL INFORf.iATION: (EXPLAIN� '� 9fr-lo . � �. I�M� Eaaguc of Mirsnasota CiEies �"itiar p.oniolmg au¢nencr 145 Universitq Avenne West, St. Paul, MN 55103-2044 Plione: (612) 281-1200 • (800) 925-1122 Fax: (612) 281-1299 • TDA (612) 281-1290 October 24, 1997 Dear L.eague Members: I am pleased to submit the accompanying draft 1998 I,egislative Policies for your consideration. These policies were developed by more than 200 city officials serving on the I,eague's policy committees and their respective policy task forces. For those of you who served on a task force or policy committee, I would like to thank you for your time and efforts. The hard work and input of city o�cials is the necessary foundation for developing and implementing a successful legislative agenda for the L,eague of Minnesota Cities and its members. For those who could not participate in the policy committee process, your input in the I.eague's policy development process is still crucial. The League needs your review of the attached draft 1998 Legislative Policies and the proposed resolutions. Piease plan to attend the LMC Policy Adoption Conference on November 21 at the Minnetonka Ramada Plaza. If you cannot attend the conference and have concerns or suggestions, please contact any member of the Intergovernmental Relations staff at the League. On behalf of the Board of Directors and I.eague staff, please accept my sincere thanks for your contribution to this most important process. Sincerely, � Robert C. ong I.eague President City Attorney, City of Mounds View I:mdiedric�policies\pac\pres.ltr AN EQUAL OPPORTUNITY/AFFIftIvIATIVE ACTION EMPLOYER �'�-/a , CONTENTS Letter from the League President General Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii LeagueStaff ............................................................ iv Legislative Policy Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Policy Development Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Statement of Intent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii PART I --1998 POLICY GUIDELINE Improving Community Life CL-i. Livable Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART TI -- 199$ CITY POLICIES Improving Fiscal Futures FF-1. FF-2. FF-3. FF-4. FF-5. FF-6. FF-7. FF-8. FF-9. FF-10. RF-11. FF-12. FF-13. FF-14. FF-15. FF-16. State-Local Fiscal Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State Shared Revenues ............................................ Taxation of Municipal Bond Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City Fiscal Year ................................................. Sales Tax on Local Government Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . Del3nquent Property Tax PenalYies and Interest . . . . . . . . . . . . . . . . . . . . . . . . . Payments far Services to Tax-Exempt Property . . . . . . . . . . . . . . . . . . . . . . . . Truth-in-Tasation ................................................ State Deductions from LGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reporting Requirements ........................................... FederalBudgetCutbacks .......................................... LocalPerformance Aid ............................................ Price of Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DevelopmentFees ................................................ Residential Nonhomestead Property Tax Relief . . . . . . . . . . . . . . . . . . . . . . . . . Electric Utility Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 4 5 5 6 6 7 7 8 8 8 9 9 10 il 11 Improving Local Economies LE-l. TasIncementFinancing .......................................... 12 LE-2. Property TaY Reform, Levy Limits, and TIF . . . . . . . . . . . . . . . . . . . . . . . . . . I S LE-3. Economic Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 LE-4. Redevelopment of Developed Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 LE-5. Property Tax Abatement Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1998 City Policies i �� io LE-6. LE-7. LE-8. LE-9. LE-10. LE-11. LE-12. LE-13. LE-14. LE-I5. LE-16. LE-17. LB-18. LE-19. LE-20. LE-21. Brownfields .................................................... 18 Growth Management and Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2p State and/or County Licensed Residential Facilities (group homes) . . . . . . . . . 21 Affordable Housing .............................................. 22 City Role in Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Redesign of Electric Utiiity ReguIation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Adequate Funding for Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 State Aid for Urban Road Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 State Aid Roads for Contiguous Cities Under 5,000 . . . . . . . . . . . . . . . . . . . . . 29 Tumbacks of County and State Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Cooperation Between Counfies and Cities Over County Roads Within Cities .................................................... 30 Management of Rights-of-Way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Communications Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Effective Tetecommunicarions Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Local Zoning Regulation of Telecommunications Service Providers ........ 34 ISTEA Reauthorization ............................................34 Improving Service Delivery SD-1. SD-2. SD-3. SD-4. SD-5. SD-6. SD-7. SD-8. SD-9. SD-10. SD-I1. SD-12. SD-13. SD-14. SD-15. SD-16. ii Redesigning and Reinventing Govemment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Unfunded Mandates .............................................. 37 Civil Liability ofLocal Govemments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Environmental Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Personnel, Pensions, and Labor Retations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 ElectionIssues .................................................. 43 Local Election Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 City Costs for Enforcing State and Local Laws . . . . . . . . . . . . . . . . . . . . . . . . . 44 Access to Information Technology and Services . . . . . . . . . . . . . . . . . . . . . . . . 44 Lawful Gambling Fund Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Design-Build .................................................... 46 Mobite Hame Park Oversight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Proposed Plat Approval Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Providing Information to Citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Creating a Minnesota GIS Program :................................. 48 State Licensing of Massage Therapists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 League of Minnesota Cities t � �o General Policy Statement One of the most important purposes of the League of Minnesota Cities is to serve as a vehicle for cities to define common problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 815 of Minnesota's 853 cities as well as 12 urban towns and 24 special distric�s. All sizes of communities aze represented among the League's members (the largest nonmember city has a population of 163) and each region of the state is represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies. There is a need for a governmental system which allows flexibility and authority for cities to meet challenges of governing and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and 2. The financial and technical requirements for goveming and providing services necessitate a continuing and strengthened partnership with federal, state, and local governments. This partnership particularly in the areas of finance, development, housing, environment, and transportation is critical for the successful operation of Minnesota's cities and the well-being of city residents. 1998 City Policies iii 9 �=lt� LEAGUE STAFF WORKING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications Gary CarIson, Director of Intergovernmentai Relations General revenue sources for cities including aid to cities and the property tax system, fiseal administration of cities, economic development and redevelopment, personnel, transportation Kevin Frazell, Director of Member Services Government innovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, telecommunications Ann Higgins, IntergovernmenYal Relations Representative Telecommunications, housing, elections and ethics, utflity service districts, transportation Andrea Stearns, Intergovernmental Relations Representative Tas increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing, pubiic safety, generat municipal governance Remi Stone, Intergovernmental ReIations Representative Growth management and land use, environmental protection, personnel Eric WiIIette, Legislative Policy Analyst General revenue sonrces for cities including aid to cities and the property tax system, fscal administration of cities, pensions iv League of Minnesota 4�-la Legislative Policy Committee Members Improv[ng Community Life Sue Gehrz, Chair, Mayor, Falcon Hei�hts Jean Andre, Assistant to Manager/HRA Coordinator, Golden Valley Jack Barlow, Councilmember, Lauderdale Bil1 Bamhart, Inter�ovemmeatai Relations, Minneapolis Robert Benke, Mayor New Bri�hton John Blahna, Mayor, Landfall Cathy Busho, Mayor, Rosemount KaThleen Caanody, Councilmember, Brooklyn Center Peter Connor, Nlayor, Owatonna Lorenzo Davis, Administratrve Intern, Ea�an John DoyVe, Councilmember, Marshall Michael Ericson, City Administrator, Watertown Pat Famell, Chief of Police, Rochester Sharon Feess, Councilmember, Brooklyn Park Evelyn Fox, Councilmember, Breckenridge Wendy Gorham, Councilmember, Mora Harlan Gorath, Councilmember, Fairmont Arly Gunderman, Councilmember, New Brighton Vivian Hart, GTS, St. Paul Sue Henry, Administrative Aide, St. Cloud Fran Hesch, Councilmember, Hopkins James Hurm, City Administrator, Shorewood John Jenkins, City Administrator, Ortonville Julianne Manship, Neighborhood Development Director, West St. Paul Sandra Masin, Councilmember, Ea�an Roberta Megard, Councilmember, St. Paul James M(adek, Mayor, Montgomery Ed Mylnar, Mayor, Lester Prairie Deb Moran, Councilmember, Bumsville Larry Nicholson, Councilmember, Moorhead John Olin�er, City Administrator, Mahtomedi Isobel Rapaich, Councilmem6er, Duluth Char Samuelsmi, Councilmember, New Brighton Barbara Sanderson, Councilmember, Grand Rapids Jolie Sasseville. Public Information Officer, Fer�us Falls Betty Sindt, Councilmember, Lakeville Grant Thorstad, Police OfficedDARE Instructor, Kosemount Blair Tremere, Assistant City Mana�er, Prior Lake Dawn Weitzei, Interim Deputy Clerk, Mounds View Duane Zaun, Mayor, Lakeville Improving Fiscal Futures Joy Tierney, Chair, Ntayor. Plymouth Steve Okins, Vice Chair. Finance Director, Willmar Dick Abraham, City Administrator, Lake City Karen Andzrson, Mayor, Minnetonka David Beaudet, Councilmember, Oak Park Hei�hts Steve B}ork, City Planner/Coordinator, St. Francis Thomas Burt, City Administrator, Rosemount Gino Businaro, Finance Director, Mound Dave Callister, City Administrator, Osseo Henry A. Duitsman, Mayor, Etk River Terry Dussault, Assistant to Mana�er, Blaine (altemate) Gary Eitel, City Administrator, Ro�ers Charlotte Ericksoq AdministratorlClerk, Minnetrista Jerry Faust, Councilmember, St. Anthony Ro�er V✓. Fraser, City Mana�er, Blaine Rick Getschow, City Administrator, Hector John Gretz, City Administrator, Apple Valley Rod Hale, Councilmember, Cottage Grove Jeff Haubrich, Assistant Council Administrator, Red Wing Steve Helget, Ciry Clerk/Administrator, Tyler Patrick Hent�es, City Mana�er, Mankato Susan Hoyt, Ciry Administrator, Falcon Hei�hTs Bill Huepenbecker, Inter�overnmental Director, St. Paul Gre� Isaackson, Clerk-Administrator, Cottonwood Joel Jamnik, Campbell Knutson, Ea�an Barbara Jeanetta, Assistant to Mana�er, New Bri�hton Elizabeth Kautz, Mayor, Burnsville James Keinath, City Administrator, Cimle Pines Dennis Kraft, City Manager, Robbinsdale Lynn Lander, City Administrator, Hermantown Bob Larson, City Administrator, Deephaven Ann Lenczewski, Counciimember, Bloomington Kathy Lueckert, Assistant City Manager, Plymouth Wes Mader, Councilmember, Prior Lake Michael McGuire, City Manager, Maplewood Stzve Mielke, City Mana�er, Hopkins EI Mlynar, Mayor, Lester Prairie John Moir, Finance Department, Minneapolis Ruih Nelsen, City Cterk, Hilitop Gary Neumann, Assistant Administrator, Rochester lohn Perino, Mayor, Atexandria David Pokorney, City Administrator, Chaska Bryan Read, City Administrator, Mont�omery Douelas Reeder, City Administrator, South St. Paul lohn W. Remkus, Finance Director, West St. Paul Robert Rys, City Administrator, Minnesota Lake Ryan Schroeder, City Adminisuator, Ramsey Alfred Schumann. Mayor, Eyota James Smith, Councilmember, Independence 1998 City Policies V 9�-/l� Gerald Sorenson, Administrative Services Director, Moorhead Pete Stolley, Public Works, Nor[hfield btalcolm Tilberg, City Mana�er, St James David Urbia, City Administrator, Blue Earth Gene VanOverbeke, Finance Director, Eagan Ieff VanWychen, inter�overnmental Relations, Minneapolis (alternate) Daniel Vogt, CityAdministrator, Brainerd Bill Waller, City Administramr, LaCrescent Cfiuck Whiting, Clerk Administrator, Mounds View James Willis, City Administrator, Inver Grove Heights Donn Wiski, Councilmember, Roseville Improving Local Economies Bonnie Cumberland, Chair, Mayor, Brainerd Duane Zahn, Vice Chair, Mayor, Lakeville Kirsten Barsness, Economic Development Director, Cotta�e Grove David Beaudet, Councilmember, Oak Park Hei�h[s Jerry Bohnsack, City Administrator, New Prague Gerald Brever, City Administrator, Staples Kevin Cattoll, Councilmember, Rosemount Victoria Cox, Councilmember, White Bear Lake lames Daniels, Administrator, Lake Minqetonka Commuaications Commission, Excelsior Leo W. Eldred, Councilmember, Moorhead Michaei Ericson, City Administrator, Watertown Keith Ford, Community Development A�ency, Minneapolis Matt Fulton, City Manager, New Bri�hton Allen Greenfield, Councilmember, Prior Lake Tom Hansert, Deputy Mana�erAdministrative Enterprises, Bumsville Duane Hebert, City Administrator, Renville Pat Heldt, Councilmember, Alexandria Jon Hohensteiq Assistant to Administrator, Ea�an Bill Huepenbecker. Intergovernmental Rela[ions Director, St Paul Marvin Johnsoq Mayor, [ndependence Ronald Johnson, City Administrator, Zumbrota Steven C. Jones, City Administrator, Mora Andrea Hart Kajer, Intergovernmental Relations Direc[or, Minneapolis (al[emate) Randy A. Kolb, Courtcilmember, Blairte Edward R. Larson, City Manager, Morris Lam Lee, Community Deve(opment Director, Blooming[on Gre� Lerud. City Mana�er, Milaca Don Levens. City Adminis[rator. Cokato James L. Mtadek. Mayor, Mont�omery Ron Moorse, City Administrator, Orono E. Craio Morris, Mayor, Lakeland V1 Mark Na�el, City Manaeer, Anoka Rhoda Newiin, Counciimember, Red Wing James Norman, City Mana�er, Montevideo Bruce Peterson, Community Development Director, Willmar Dan Ro�ness, Community pevelopment Director, Rosemount 1oe Rudberg, City Administrator, Becker Terry Schneider, Councilmember, Minnetonka Chad Shryock, City Administrator, Eagle Lake Robert Therres, City Administrator, Sartell Brian Wagner, City Coordinator, Lakefield Craig Waldron, City Administrator, Oakdale Danie! Wall, Mayor, Roseville Denny Wilde, City Administrator, Paynesville Betry Zachmann, City C(erk-1'reasurer, Winsted Improving Service Deli�ery David M. Senjem, Chair, Councilmember, Rochester Jerry Dulgar, Vice Chair. City Mana�er, Crystal Patricia Crawford, Clerk-Treasurer, Motley Laurie Elliott, Personnel Coordinator, Shoreview Brian Friisin�er, City Administrator, Arden Hills Theresa Goble, Finance Director, Brainerd Ken Hartun�, City Administrator, Bayport Mimi Hasselbalch, Councilmember, Vadnais Heights Andrea HaR Kajer, Inter�ovemmental Re[ations Director, Minneapolis (altemate) Mark Karnowski, City Administrator, Lindstrom Kay Kuhlmann, Councii Administrator, Red WinJ Myrna Maikkula, City Clerk, Brooklyn Park Kay McAloney, Personnel Director, Anoka Mary Helen Mische, Intergovemmental Relations Assistant, St. Pau( Judd Mowry, Councilmember, Tonka Bay Susan Olesen, Clerk, Burnsville Desyl Peterson, City Attprney, Minnetonka Isabel Rapaich, Councilmember, Duluth Dan Scott, City Mana�er_ North St. Paul Ceil Smith, AssistaM to City Manager, Edina Gtenda Spiotta, City Administrator, Carver Joyce Swadner, Elections Office, Minneapolis Blair Tremere, Assistant City Mana�er, Prior Lake Joyce Twistol, Personae! DirectodCiry Clerk, Blaine Kurt Ulrich, City Administrator, Champiin Susan Walsh, Administrative Assistant, Rosemount Rena Weber, Clerk/Coordinator, Cold Sprin� Liz Witt, Administrative Assistant, Ea�an Krista Wi[ty, MVCOG Director, Mankato Wally Wysopal, Assistant to Manaser/Personnei Officer, SL Louis Park League of Minnesota Cities � � �d League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past five months. The process began with a member survey of priority issues facing city o�cials. The process will not end with the policy adoption conference. The committees will schedule additional meetings during the upcoming legislative session co discuss additional issues, develop alternative solutions and to discuss strategies to implement the League's policies. Listed below is a b�ief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. Aprit/May June The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. The Lea;ue President accepts applications for committees and appoints policy commi[[ee members. The policy committees are: Improving Fiscal Futures Committee Improving Local Economies Improving Service Delivery In addition, the Improving Community Life Committee meets on a regular basis to discuss issues affecting "livable communities" and to develop the Improving Communiry Life policy guideline. July Committees meet to discuss issues raised in member survey. Commitees can atso form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August through September October November December January thraugh May Committees and task forces meet to discuss issues and problems, accept testimony and develop policy statements. Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the four above-mentioned committees. Policy Adoptfon Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for membership consideration. The Board adopts the Legislative Action Plan, based on input from the Policy Adoption Conference. Legisiative Session. Durin� che session, the policy committees and task forces will continue to meet on issues and strategies. Members can assist the League's leeislative efforts by volunteering to contac[ legislators on a variety of issues of interesc [o our ci[ies. 1998 City Policies vii 9 �-,la Statement of Intent There are many problems which limit the effectiveness of city government to improve community Iife, improve the fiscal future and service delivery of city government, and to unprove the local economy. What foltows are statements of the problems facing cities and the solutions proposed to help resolve these probiems. These statements of problems and proposed solutions form the policy of the League of Minnesota Cities. Additional and alternative solutions to these problems may be propose@ a8er the Policy Adoption Conference and the members of the League authorize its Board of Directozs to consider and support additional or alternative solutions, if necessary, to resolve the problems identified in this policy statement. viii League of Minnesota Cities 9�--Ia Part I 19�8 Policy Guidelines � 9�-�� IMPROVING COMMUIVITY LIFE CL-1. Livable Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local governments to work together in partnership to make every community "livable." PROBLEM: Cities in Minnesota are at various stages in meeting the goal of being "livable communities." SOLUTION: The definition of a"livable community" below will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabiing all Minnesota cities to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable communities. A LIVABLE COMIVLCJNITY IS: WHERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: " safe * a sense of belonging * welcome s engage in life-long learning activities that: * prepare them for responsible citizenship * enhance the enjoyment of life * prepare them for changing job markets • participate in the decision-making process of community leaders • celebrate community • want to make cheir home 1998 City Policies 1 � �-�� • have access to: * good paying jobs * adequate and affordable housing * choice of e�cient transportation systems including transit, pedestrians, and bicycles * gathering places * desired information * choice of cultural and recreational activities * affordable goods and services, including health care • are involved in the nurturing of youth • care about their homes, community, and the environment • get to know each other • have the benefit of strong family support and nurturing adults • WHERE LOCAL GOVERNMENT • is responsive to the needs of its citizens • is actively supported by enthusiastic volunteers • is open and user friendly � encourages and implements cooperation and collaboration • provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs � educates citizens of aIl ages on local, regional, and state issues and government processes • informs and communicates with citizens to foster participation in public policy decision-making • participates in youth development 2 League of Minnesota Cities �t � - lD Part II 1998 City Policies 9� /o IMPROVING FISCAL FIJTURES 1 FF'-1. State-Local Fiscal Relations 2 Issue: Minnesota�s state and local government finance system is compiex and inter�wined. 3 Cides rely on their partnership with the state to provide Iocal services. On the other hand, the 4 needs and desires of NSinnesota's communifles are many and wide-ranging. While the state's 5 revenue-sharin� system has been regarded as innovative and helpful, there exists a growing 6 need for local elected officials, those closest to the electorate, to be responsive to the service 7 needs of the local citizenry. To that end, cities need discretion and flexibility in determining 8 locairevenues. 9 The 1997 legislature made chan;es to Minnesota's property tax system that will impact the 10 ability of local governments to fund necessary services. The reimposiCion of levy limits, I 1 significant ciass rate compression, and changes in state funding of schools ail may have 12 unintended consequences. 13 Response: As the legislature considers additional property tax changes in 1998, it 14 should: 15 • carefully analyze the combined impacts of the 1497 tax bill and changing economic 16 circumstances on the taxpayer and on local governments so that policymakers can 17 better understand where the system may need further changes; 18 • repeal levy limits, which are inef�cient, ineffective, interfere with local accountability 19 and ignore loca3 circumstances; 20 • diversify available city revenue sources by generally authorizing local tases that 21 reduce reliance on the property tax; and 1998 City I • reduce the property tas burden for all dasses of property by increasing the state share 2 of school funding. Any increase in the state share of school funding must guarantee a 3 permanent reduction in the local property t� burden. The League supports paying 4 for the increased state costs through income and sales taxes. 5 The legislatare should not: 6 • replace all or part of LGA or HACA with state-mandated categorical aid programs, or local option taxing authority; 8 • switch from the classification sysfem to a market vatue based system, which would cause tremendous shifts of taY burden hetween classes of properfy. The League aiso 10 opposes apglying ait future levy increases to market value because this �vould further 11 complicate the property taY system; 12 • interfere in local decision making regarding service delivery; 13 • impose a state-levied property taY; and 14 • cut LGA or HACA to finance an increased stafe role in school finance. � 5 FF-2. State Shared Revenues 16 Issue; State revenue sharing programs address at least three problems with a stand-alone 17 Iocal government Finance system. First, the property tax base available to communities can 18 vary dramatically. These programs use state resources to equalize the ability of communities 19 to provide essential services without undue property tax burdens for local residents. 20 Second, nonresidents can take advantage of local services or create additionaI demands for 21 services without contributing to the Yaxes that support these services. LGA and HACA help 22 address the free rider problem where nonpaying individuals consume services without � League of Minnesota Cities 9 1 contributin� to the local tax base. 9 �r-�a 2 Third, allowina local units of government in Minnesota to only levy the property tax has 3 created an over-reliance on the property tax. LGA and HACA can reduce the overall reliance 4 of local �overnments on the property tax. 5 Response: LGA and HACA, or similar replaceinent revenues, must be continued and b additional state resources greater than the rate of inflation must be allocated to prevent 7 rapid future property tax increases. In addition, the HACA household gro�vth factor for 8 cities shouid Ue reinstated. � FF-3. Taxation of Municipal Bond Interest 10 Issue: The state law that grants a Cax exemptiQn for municipal bond interest is being I 1 reviewed and could bz repealed. A repeal of this exemption will raise borrowing costs for 12 cities. 13 Response: The state should maintain the tax exemption for municipal bond interest 14 income. I S FF-4. City Fiscal Year 16 Issue: The fiscal years for the state and cities are offset by six months. The state fiscal 17 year begins on July 1 while the city fiscal year begins on January 1. Lawmakers have 18 proposed chanainQ the city fiscal year to coincide with the state. Such a chan�e, while 19 providing questionablz benefits for cities. would not correspond with the current property tax 20 cycle, impair historical comparisons of data, force cities to retool accountin� systems, will 1993 City Policies 5 ��-�v 1 adversely impact city credit ratings, and could result in state funding gaps. 2 Response: The state should maintain current law and not change the city fiscal year to 3 coincide with the state �scal year. 4 FF-S. Sales Tax on Local Government Purchases 5 Issue: In 1992 when the state was experiencing a budget shortfall, ihe legislature repealed 6 the sales tax exemption for local government purchases. This action currently costs local 7 governments an estunated $"77.5 miilion annually. Because no additional state aids were adde@ 8 to offsetthe additional cost, this repeal has effectively increased locai property taxes to finance 9 state operations. 10 Response: The state should reinstate the sales tas exempfion for a11 local government 11 purchases. The exemption must not be coupled with cuts in LGA or HACA. 12 FF Delinquent Property Tas Penalties and Tnterest 13 Issue: Although city finances are affected by property tax delinquencies, cities do not 14 receive any associated penaities and interest on these delinquencies. PenaIties and interest are 15 split evenly between counties and schools. 16 Response: Cities and connties should receive a pro-rata distribution of 50 percent of 17 the penalties and inYerest collected on delinquent property tases with the remaining 50 18 percent to be distributed to schools. 6 League of Minnesota Cities 1 FF-7. Payments for Services to Tax-Exempt Property 2 Issue: Tasable property in many cities is being acquired by nonprofit and govemment 3 entities. Converting the properiy to taac-exempt status can lead to a serious taat base erosion 4 without any corresponding reduction in the service needs created by the property. 5 Response: Cities should be allo�ved to collect payments to cover costs of service in-lieu 6 of property taxes or special assessments from statutorily exempt property owners. 7 FF-8. Truth-in-Taxation 8 Issue: The legislature created the truth in taxation process in 1993 as a replacement for �'�-�v 9 state-mandated levy lunits. The 1997 legislature re-enacted levy limits for many cities, yet the 10 truth in taxation requirements remain. The 1997 legislature also changed the parcei-specific i l notice of proposed property taxes to separate the effects of local spending decisions on 12 proposed taxes from the effects of factors beyond local control such as changes in valuation or 13 legislative changes to the class rates or state aids. 14 Response: Changes made in 1997 to the truth in taxation notice will hopefully clarify 15 the roles and responsibilities of the state and local governments. But modifications may 16 be necessary if the new form proves to be too confusing to taspayers. In addition, cities 17 need more flexibility in the truth in taxation process. Cities shouid be able to schedule 18 their initial hearings that may conflict with others' hearings, if no other dates are 19 available. Cities should have the anthority to increase the final levy from the preliminary 20 levy. 1948 City Policies 7 II FF-9. Sfate Deductions from LGA Issue: State administrative costs are deducted from the LGA appropriation. This reduces the 3 property tas relief provided by LGA and creates hidden appropriations for state agencies. 4 Response: All appropriations from LGA resources that fund state operatians should 5 be repeated. 6 FF Reporting Requirements Issue; Budget and financial reporting requirements imposed on cities by the state often result 8 in duplication and additional costs. 9 Respor:se: Requirements for reportiag and ad�rertising financial and budget 10 information shonld be carefully weighed to balance the validity of fhe state's need for a 11 additionai information wifh the costs and burdens of compiling and submitting this 12 information. In addiHon, ail state agencies should be aware of the information already 13 required by others to avoid duplicarion of reporting requirements. 14 FF-ll. Federal Budget Cutbacks 15 Issue: Conb essionaI actions to balance the federal budget will reduce federal assistance to 16 the state and to tocal govexnments. t'7 Response: The state should aot reduce aids or increase fees to local governments as a 18 means for dealing with cutbacks in federai revenues. The state shouid take responsibility 19 for reductions in federal revenues rather than placing the burden on cities and their 20 propeth� taxpayers. 8 Leanue of Minnesota Cities ��-�� 1 FF-12. Local Performance Aid 2 Issue: When the 19961egislature created the local performance aid program, the legislation 3 was vague and the program was partially funded by cuts in HACA. In the future, the 4 requirements for applying for the aid could become an onerous mandate on cities and undermine 5 local decision-making. b Response: The League strongly supports efforts by cities to improve the efficiency and 7 effectiveness of their operations, including exercises such as Qerformance measurement 8 systems. However, these efforts should be local initiatives rather than state mandated 9 actions. Therefore, the League opposes LPA. If local performance aid is to be continued: 10 • The law must be c►arified and the qualification requirements must be attainable by all 1 I cities regardless of city size or staffing levels. 12 • A11 additional funding must come from new revenue sources rather than shifts of aid 13 from other programs such as LGA and HACA. 14 • The program must not bewme an anerous mandate requiring additional city resources. 15 • Any information on individual cities that is collected from the program must not be 16 used to simplistically compare cities. 17 FF Price of Government 18 Issue: The price of government legislation enacted in 1994 was intended to measure the 19 overall effect of state and local taxation over a long period of time. The targets measure 20 government revenues as a percent of personal income. Unfortunately, the tazgets have been 21 misinterpreted and used unfairly to criticize city tax and budget decisions. 1998 City Policies 9 9 �-�t? Response: The price oFgovernment statutes as they apply to local governments shoutd 2 be repealed, If the price of government law is to continue to be applied to local 3 governments, price of government calculations should be: 4 • based on the sum of levy and state aid, not just levy; and • based on long-term trends, not single year events. 6 FF DeveIopment Fees Issue: New development and the resulting growth creates an increased demand for 8 public infrastructure and other public facilities. Severe constraints on local fiscai resources and 9 dramatic forecasts for poputation growth have prompted ciries to critically reconsider ways in 10 which we pay for the inevitable costs associated with new development. Traditional financing 11 methods tend to subsidize new development at the expense oF the existing community, 12 discourage sound land use planning, place inefficient pressures on public facilities, and allow 13 underutilization of existing infrastructure. Consequently, local communities are exploring 14 metkods to assure that new development pays its fair shaze of the true costs of growth. Given the 15 existing authorization to impose fees on new development for water, sanitary and storm sewer, 16 and park purposes, it seems reasonable to extend the concept to additional public infrastructure 17 and facilities improvement also necessitated by new development. 18 Response: The legislatare should authorize cities to impose developmenf fees so fhat 19 new development pays its fair share of the off-site, as well as the on-site, costs of public 20 infrastructure and other public facilities needed to adequately serve new development. 10 League of Minnesota Cities q�- (o I FF-15. Residential Nonhomestead Property Tax Relief 2 Issue: Residential nonhomestead properties (one to three units) aze in need of property ta�c 3 relief. This is particulazly true of duplexes and triplexes, which did not enjoy the same amount 4 of property tax relief in the 1997 tas bill as did single unit rental property; therefore, these types 5 of property should be tased alike. Eliminating the distinction between single unit rental, 6 duplexes, and triplexes will simplify the property tax system by eliminating a class of property. However, granting rental property all the tas advantages of homesteaded property may 8 decrease homeownership and could have a destabilizing impact on Minnesota cities. Homestead 9 property should continue to enjoy preferential tax treatment relative to other classes of property. 10 Under no circumstances should the class rate applied to residential nonhomestead property be I 1 less than the ciass rate that is applied to second-tier homestead property. 12 Response: The League of Minnesota Cities supports maintaining the property tax 13 distinction between homestead and rental property. The League also supports combining 14 all one to three unit nonhomestead residential property into a single class of property with 15 a single class rate. This single class rate should be reduced to, but not below, the class rate 16 currentiy applied to second-tier homestead and rental property. 17 FF Electric Utility Taxation 18 Issue: Part of the discussion regarding possible deregulation of the electric power industry has 19 centered on electric utility taxation. Proponents of deregulation assert that if effective free market 20 competition is to replace govemmental regulation, state tax policy must be changed to "level the 21 playing field" or ensure competitive parity. The main focus of the Investor Owned Utilities (IOUs) 22 so far has been removal of the attached machinery or personal property tax. Utilities subject to the City Policies ll 9 �-!a 1 tax argue that iT places them at a competitive disadvantage to non-Minnesota companies, Rural 2 Electric Cooperatives (Co-ops), and Municipals. Ho�vever, accurate comparisons of tax burden are 3 difficult, as other states use completely different taxing sysTems. Additionally, Co-ops do pay the 4 tax on some of their property and Municipals make substantial payments in lieu of taxes. Utility personal property can be a significant portion of the local tax base in all cities. Most 6 obviously afFected aze cities that have power plants; however, transmission and distribution 7 equipment account for over half of the persona] proper�y taxes paid by the IOUs and exist in neazly 8 every city. Replacing the revenue that would be lost to cities, counties, school districts, and other 9 local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources 10 of such a replacement revenue would be difficult to decelop and administer, and could be subject to 11 reductions or elimination over time. Furthennore, replacement revenues or aids may not fully 12 address ttie problems created by a large tax base reduction. 13 Response: Cities oppose proposals for exempting the IOUs from the personal property tax. 14 Under no circumsfances should local units of govemment and their taxpayers be required to I S shouIder the burdens of tax relief for IOUs. Any effort to remove the personal property tax 26 mast make cities and other iocal taxing jurisdictions whole in all respects. i � IMPROVING LOCAL ECONOMIES 18 LE-1. Tas Increment Financing 19 Issue: The State of Minnesota has effectively delegated the responsibility for economic 20 development and redevelopment to cities. Unfortunately, neighboring states have given their 21 cities more development tools and, therefore, cities in these states have a competitive advantage lz League of Minnesota Cities i over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to 2 all cities in their economic development and redevelopment efforts. The State, whether based on a 3 lack of information or misinformation, has been critical of cities' use of the tool and has 4 implemented a series of restrictions over the past several years rather than partnering with cities 5 and encouraging their endeavors to improve and enhance the economic well-being of Minnesota 6 and the growth and redevelopment of its cities. Cities, required to assume the financial risks 7 associated with development decisions, have used tax increment financing responsibly and 8 examples of these positive uses abound. A legislative task force was created by the 1997 9 legislature and directed to recodify the tax increment statutes for the purpose of simplification 10 only, with no policy implications. 11 Response: To effectively compete with other states, Minnesota must provide its cities 12 greater flexibility in the use of tas increment financing and other economic development 13 programs. In light of substantial changes to the tax increment statutes over the past several 14 years, the legislature should not make major policy changes in 1998. The State should 15 partner with cities in economic development and redevelopment activities and encourage 16 cities' use of taac increment in achieving the laudable goals of long-term tas base stabilization 17 and growth, job creation, development of low-to-moderate income housing, remediation of 18 pollution, elimination of blight, recycling and redevelopment of the infrastructure, and 19 redevelopment of its communities. Counties and school districts are appropriately involved 20 in cities' �levelopment decisions through current "review and comment" requirements. The 21 legislature should reject any recommendations from the TIF recodification task force which 22 have policy implications. If 199$ becomes a year for major changes in TIF policy, the 23 legislature should: City Policies 13 1 • remove eicisting restrictions to property included in a deferred assessment program within 2 the last five years (e.g., green acres); 3 • authorize any ta�e increment districts approved after April 1, 1990 to pool increments in 4 the same manner as districts certi�ed prior to April 1, 1990; 5 • in light of levy limits, eliminate the LGA/HACA penalty currently imposed on districts or 6 allow an exception from levy Iimits. If fhe penalty is not eliminated, the restrictions on 7 the sowrce of payment should be removed; 8 • expand the use of tas increment financing to assist in the development of technological 9 infrastructure, job training, the restoration of historic structures and for non-retail 10 commercial projects (e.g., software companies, banks, and insurance companies); 11 • exempt redevelopment districts from the "five year rule;" and 12 � modify the housing district income quali�cation level requirements to allow the levels to 13 vary according to those specific to individual communities. 14 In any event, consistent with the legislative TIF task force's recodiScation, the 19981egislature 15 should make technical changes, including, but not limited to: 16 • requiring Yhe Department of Revenue's definition of tax increment fo be consistent with the 17 new statutory def►nition of tax increment; 18 • authorizing the use of federal grants and other funds for local contributions; 19 • removing the LGA/HACA penalTy imposed on housing districts established between the 20 penalty years of 1990 and 1993; 21 • requiring the Office of the State Auditor to simplify their TIF reporting forms in 22 consultation with those required fo complete the forms; 23 • authorizing TIF financial information to be published en a more simpiiTied format so that ii 14 League of Minnesota Cities provides the average taxpayer with useful information; and 2 � providing cities with adequate administration financing. 3 LE-2. Property Tax Reform, Levy Limits, and TIF 4 Issue: Future proposals to reform the property tax system from the investor-owned utilities, 5 commercial and industrial groups, or others could have significant implications for tax increment 6 financing districts. For example, if property class rates are further compressed, existing tax 7 increment financing districts could experience additional revenue shortfalls which, in turn, could 8 jeopardize the repayment of outstanding debt or other obligations. Given the long-term nature of 9 properry tax reform, cities could not have anticipated the impact of the 1997 class rate changes nor 10 can cities project the impact of future changes. The $2 m911ion provided by the 1997 legisiature I 1 for grants where the class rate changes cause TIF district deficits, while critically needed, is likely 12 to be insufficient to cover every deficit, does not provide timely reimbursements, and is 13 administratively confusing. Additionaily, several cities have pledged only the city property tax 14 portion to a project. Under levy limits imposed by the 1997 legislature, these cities will be unable 15 to meet these obligations. 16 Response: Any future proposals to reform the property tax system must provide for state 17 resources in an amount sufficient to cover any and all TIF district deficits. Additionally, if 18 fhe $2 million is insufficient to cover the deficits caused by the 1997 class rate changes, the 19 legislatu� e should provide additional state resources so that TIF obiigations can be met and 20 third party bondholders are protected. The legislature should also bring clarification to the 21 administration of the grant process and should require timely reimbursement. The 22 legislature should repeal levy limits. The legislature shouid provide resources so these 1998 City Policies 15 1 projects are held harmless from the ramifications of property tas reform. 2 LE-3. Economic Development Programs 3 Issue: The Minnesota Investment Fund is not adequately funded. The State does not 4 authorize an adequate slate of tools for IocaI governments to assistjob creation, redevelop bli�ht 5 and decay, and provide adequate housing choices. Consequently, cities are not well equipped to 6 compete nationally and internationally for business development. 7 Response: 8 • More state resources should continue to be contributed to the Minnesota Investment 9 Fund. 10 • In the event that the LGA/IIIACA penalty is not eluninated, a portion of the revenues 1] should be contributed to the Minnesota Investment Fund. These funds would then be 12 available for cities to retain businesses in the state and to attract business looking to 13 relocate from other states. 14 • The state should establish a new grant program that would provide funds to cities to IS establish a Revolving Loan Fund targeted to gap �nancing for projects creating jobs. The 16 funds would be awarded to cities through a competitive grant program in which the 17 award is based on community need and local development capacity. The approved 18 applications would be funded strictly on the aForementioned criteria as weIl as Yhe city's 19 development program and development priorities. The State would not be in the business 20 of reviewing projects with respect to speci�c companies and specific loans. These grants 21 would be in an amount up to $250,000 and would facilitate four to �ve initial local loan 22 projects. Local governments should be given the flexibility to utilize these funds � League of .NIinnesota Cities � �-ro 1 throughout the city without any geographical restrictions. The funds to the communities Z would be used to develop subordinated mortgages that are integrafed with the primary 3 financing of a particular project. The loan could be utilized for retention as well as new 4 jobs. The respective community would be required to "recapture" the funds and also to 5 de��elop the appropriate collateral to protect the integrity of the Revolving Loan Fund. In 6 the event that the LGAlHACA penatty is not eliminated, a portion of the revenues should 7 also be contributed to the Revolving Loan Fund. ; 8 • Congress shouid remove the caps that have been placed on Industrial Development Bonds i 9 and acknowledge that the eartensive eligibility requirements now adequately limit their 10 use. 11 LE 4. Redevelopment of Developed Communities 12 Issue: Developed communities across the State of Minnesota are faced with the unique 13 circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and downtowns and 14 a lack of land for deve]opment. Redevelopment activities usually require large, up-front funds to 15 address multi-phase projects of extensive duration wUere site assemblage, demolition, relocation, or 16 pollution clean-up must occur before private-sector interest can be generated. The lack of a coherent 17 statewide policy and the State's unwillingness thus far to provide financial support has and will 18 continue to contribute to the increasing problem of urban sprawl. 14 Respc.nse: In recognition of the unique needs of redevelopment projects, the State should 20 make a commitment to reinvest in its developed communities and should undertake a 21 comprehensive approach �vhich provides financial assistance to address their redevelopment 1998 City Policies 17 �,Y Q l needs. 2 LE Property Tax Abatement Authority Issue: In an effort to increase the number of development tools available, the 19971egislature 4 authorized local units of govemment to grant property tax abatements. While generally supportive 5 of additional development tools, cities did not promote this legislation. Abatement authority was 6 never intended to replace existing ta�c increment financing authority. Abatement is not an adeguate 7 replacemenY for TIF, particularly in redevelopment projects which typically have higher costs. In 8 addition, abatements were placed within the parameters of levy limits, thus, for Yhe neYt two years, 9 the "increase" in taaces cannot be accessed to facilitate projects: 10 Response: TIF is still the primary v4able development tool available. Abatement authority 11 should be available but it should not be offered as a rationaIe to eliminate TIF. If abatement 12 authority is to be at all effective, tax abatement projects need to be considered "ouYside" of levy 13 limits. 14 LE-6. Brownfietds I S Issue: Brownfields are lands that are not suitable for development due to the presence of 16 chemical or other contaminants. Brownfrelds are a major cause of blight within communities 17 across the state through loss of local tax base, jobs, housing qualiry, public safery and community 18 confidence. Revitalizing this Iand is costly and requires the cooperation of city, counry, school, 19 regional, state and federal governments and the assistance of local economic development 20 organizations and citizens. As we move into an era where che chass creation of jobs is a necessity 18 League of Minnesota Cities � �r �-ro 1 and where increased tax base is a requirement for local governmenu to adequately face growing 2 financial pressures, efforts to revitalize brownfields must not oniy continue but be accelerated in 3 the upcoming years. The 1997 legislature re-authorized $7 million for the Department of Trade 4 and Economic Development's (DTED) contaminated site clean-up fund and this amount was added 5 to the Department's base. Additionally, $6.2 million will now be appropriated annually from the 6 Petrofund to DTED to be used to clean petroleum-related contamination without the requirement 7 of an identifiable tank source. Response: A comprehensive set of economic development programs must be maintained 9 for cities and other development agencies. The legislature should: ] 0 • increase funding for the Department of Trade and Economic Development's contaminated I 1 site clean-up fund; 12 • act to strengthen enforcement and wllection of revenues for the state contamination taY; 13 • continue support for and funding of local and regional programs to assist in the efforts to 14 remediate brown�elds; l5 • establish a fully-funded program to ailow cities and other development authorities to gain 16 control of and reclaim and revitalize brownfietds; 17 • protect existing tax increment �nancing provisions that provide for the remediation of 18 brownfields and modify restrictions to allow the pooling of district revenues to assist in 19 the financing of remediation of brownfields; 20 • estabtish an indemnification fund to provide financial security for institntions and 21 individuals as they invest in efforts to recycle brownfields in order to leverage private 22 investment in cities' efforts to increase their tax base and create jobs; and 23 • continue the petrofund as a�nancing mechanism for cleaning contaminated sites. 1998 City Policies 19 9�-�0 1 LE-7. Growtk Management and Annexation 2 Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, and 3 governmental impact for cities, counties, and state governments because it increases the costs of 4 providing government services and results in the loss of narural resource areas and prime 5 agricultural land. 6 Response: The League believes that the existing framework for guiding grovvth and 7 development primarily thraugh local plans and controls adopted by ]ocal governments should 8 form the basis of a statewide planning policy and that the state should not adopt a mandatory 4 comprehensive statewide planning process. Rather, the state should: 10 • provide additional �nancial and technical assistance to local go��ernments for cooperative I I planning and growth management issues, particuiarly where new comprehensive pIans 12 have been mandated by the legislature; 13 • clearly establish the public purposes served by existing statewide controls such as 14 shoreland zoning and wetlands conservation; clarify, simplify, and streamline these 15 controls; eliminate duptication in their administration; and fully deFend and hold 16 harmless any local government sued for a°taking" as a result of executing state land use 17 policies; 18 • give cities broader authority to ea�tend their zoreing, subd'evision, and other land use 19 controls up to two miles oufside the city`s boundaries regardless of the existence of county 20 or township controls, in order to ensure conformance with city facilities and services; 21 • clearly de�ne and differentiate between urban and rural development and restrict urban 22 growth outside city boundaries; 23 • require fhe Metropolitan Council to seek cooperation from the State of R'isconsin and 20 League of Minnesota Cities 9�-to I counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure ? responsible and controlled development, study expansion of i�Ietropolitan Council i authority in surrounding counties, and examine the positive and negative impacts of 4 mandatory regional or local land use controls and state-imposed development standards; 5 and 6 • facilitate the annexation of urban land to cities by amending state statutes regulating 7 annexation to raake it easier for cities to annex developed or developing ►and within 8 unincorporated areas. 9 LE -8. State andlor County Licensed Residential Facilities (group homes) 10 Issue: The need for more residentiai-based care facilities resulting from state policies makes 11 it clear that the state must also ensure there is sufficient funding to assure that residents living in 12 group homes and licensed facilities have appropriate care and supervision. In view of the 13 responsibilities cities have to accommodate group homes and residential-based facilities, it is 14 important that state and county units of government make every effort to work with local officials IS to make sure that adequate care and public safety concerns are addressed. Cities must also be 16 aware of special care needed by group home residents in case of public safety emergencies. Since 17 operators of certain residential facalities and services are not required to notify cities when they 18 intend to purchase housing for this purpose, cities have insufficient opportunity to address special 19 care and �ublic safety needs that these residences may require. 20 Response: The legislatnre shouid require state and county agencies which operate or 21 license companies that operate residential-based facilities notify cities in a timely manner and 22 allow opportunity for cities to respond regarding the status o#� facilitv license requests and 199$ City Policies Zl 9�-/O 1 renewals and the special care needed by residents in case of public safety emergencies. 2 Legislation should also include provisions requiring establishment of non-concentration 3 standards and direction to avoid clustering residential facilities. Licensing authorities must 4 also be responsible for removing any residents found incapabte of living in such an 5 environment, particularly so they do not become a danger to themselves or others. 6 LE -9. Affordable Housing 7 Issue: Many families are unable to afford housing, and cities ofren lack resources at the local 8 level to provide housing far families or to develop housing a(ternatives fo: aging populations that 9 are within their means, particularly in smaller cities. The resutting circumstances limit economic 10 development and weaken the city's tax base. 11 In areas outside the five MSA regions, housing stock is aging and generally older than in more 12 urban locations. U.S. Census figures for 1990 indicate that more than 30 percent oF housing units 13 in those areas were built prior to 194Q as compared with the high rate of new housing 14 construction within MSA locations, particularly in the twin cities metro area where 59 percent of 15 housing units built in the `80's are located. 16 Almost half the households in the state paying median rental housing costs exceeded the level 17 of affordability, according to the latest census. The ratio of housing affordability for low-income 18 renters is also increasing, raising more concern at the local level about the prospect that this 19 portion of the city population wili be less likely to become homeowners. Oider homeowners often 20 reside in housina that is affordable to first-time homebuyers, but o�ten want to remain in their 21 homes as long as possible. By the time they do move, the property may have become run-down. 22 As a result, the home often becomes rental property with minimal improvements undertaken by 22 League of Minnesota 9�-!0 1 the new owners. 2 Response: Federal, state, and local government must pursue policies which encourage 3 public-private partnerships to make it possible for cities, lending institutions, and developers 4 to initiate projects that meet locai housing needs. The state should continue to provide grants 5 and loans from state revenue sources and streamline multiple MHFA-administered programs 6 to create a larger pool of state funding with more flexible criteria and guidelines to make it 7 easier for cities to apply for and make use of state housing assistance programs. The state 8 can also assist cities by establishing priorities for the use of those funds on the basis of state 9 housing policy far which cities and developers can apply based on their specific project 10 activities and locally determined objectives. 11 State housing policy should focus more resources on preservation of existing housing stock 12 as an effective way to promote and retain affordable housing. More also needs to be done to 13 reduce the cost to older homeowners of moving into assisted living or other housing designed 14 for the elderly, such as patio homes and to match up �rst-time homebuyers with affordable 15 properties and to make more "6x-up" programs available at the local level. 16 Among the state-sponsored initiatives and policies the League supports to encourage 17 production of affordable housing are: 18 • exempting construction of low-income housing from the state sales tas; 19 • a state low-income housing tax credit program; 20 • making it easier for cities with affordable housing programs to use tas increment 21 financing or taY-exempt revenue bonds (IRBs); and 22 • exemp�ing public agencies, including HRAs, from the state deed and mortgage transfer 23 tax. 1998 City Policies 23 q �-/D Cities mnst also have sufficieret local aathority and the flexibility to undertake housing 2 projects to meeY their nnique housing needs and must be able to leverage federal and state 3 resources to do so. Bringing Yogether crime prevention specialists and those �vorking to 4 develop new affordable housing units shouJd also be encouraged to imprave access to 5 affordable housing while supporting neighborhood safety and commii�aity liia.bility. 6 LE-10. City Role in Telecommunications 7 Issue: Cities are facing increasingly complex challen;es in respondin� ro and plannin� tYcei; 8 own telecommunications futures. Cities need support at the state and federal (evel to assure tha[ 9 community residents, businesses and non-profit organizations benefit from the com�ergence of 10 electronic ittformation technology, telecommunications, communications, video, and cable 1 I television service delivery. 12 Response: Congress and the legislature should support and encourage local government 13 planning and authority to provide public services and assure the benefits of broadband 14 telecommunications and wireless communications for their communities and residents by: 15 • making it easier for cities to own and operate telecommunications utilities, in part by 16 amending Minn. Stat. § 23719 to authorize cities to construct and operate a telephone 17 exchange by a simple majority vote of its electorate, rather than the current 18 supermajority vote of 65%; 19 • recognizing the changing nature of the public-private partnership in which multiple 20 providers may compete to deliver telecommunications services; 21 • upholding ►ocal authority to establish telecommunications policies and plans that respond 22 to community needs; 24 League of Minnesota Cities g� �o 1 • preserving city authority over matters directly affecting communities, including: 2 construction standards, permitting, insYallation methods, construction scheduling and 3 coordination, degradation of rights-of-ways, cost recovery, city use of telecommunicafions 4 resources for local public, education, government access and I-Nets; 5 • aiding cities to develop community-based information services so that residents with 6 limited income benefit from access to local and wide-area broadband networks and information services; 8 • supporting local authority to require providers of open video systems to provide public, 9 educational and government access; 10 • making sure cities are allocated adequate spectrum on the 800 MHZ radio frequency for 11 public safety and emergency response. 12 Cities are encouraged to: 13 • develop a telecommunications plan identifying community priorities and values and 14 setting forth how the city intends to encourage competition in the local market while 15 ensuring taxpayer investment in public infrastructure is protected; 16 • determine how to implement new federal and state telecommunications laws and 17 regulations to create conditions to attract teleeommunications to make them widely 18 availabie to city residents and businesses; 19 • examine cunent ordinances to take into account how to respond to multipie requests to 20 instatl wireline communications or to erect cellular, personat communications service 21 (PCS) and other wireless communications towers and antennas; 22 • treat all providers on a neutral and nondiscriminatory basis; 23 • seek broad access to advanced telecommunications services including bandwidth and 1998 City Policies 25 � �-.�o 1 spectrum for public safety and emergency response; 2 • provide for institutional networks (I-Nets) through cable franchise aareements with local 3 operators !o acquire a portion of a broadband network and other ad� ance 4 telecommunications resources; 5 • consider installing city-owned and operated broadband netrvorks or forming partnerships 6 to do so where the marketplace fails to provide the infrastructure and/or services; 7 • investigate and develop applications for those networks to deliver public services using 8 advanced telecommunications; 9 • take an inventory of unused, under�sed and(or abandoned conduit in the right-of-way, in 10 easements, or on city-owned property to make use of those resources in developing needed 11 localinformation inFrastructure. 12 LE-11. Redesign of Electric Utility Regulation 13 Issue: Policymakers at the state and federal levels are considering ways in which to bring 14 competition into the electric utility industry. Without a cautious approach which incorporates 15 careful consideration of the implications of any deregulation scheme for all consumers of electric 16 energy, it is possible that only the largest consumers of electric energy would experience true cost 17 savings and other benefits ofren associated with competition while the smail customers, individuals 18 and small businesses, may actually see rate increases. Additionally, city interests in tax base 19 stabiiity and managing and obtaining compensation for the use of public rights of way by utility 20 companies are often overlooked in electric utility restructuring discussions. 21 Cunently, the discussion regarding possible deregulation of the eleccric power industry in 22 Minnesota has centered on electric utility taxation. Proponen[s of deregulation assert that if 26 League of Nlinnesota Cities q� (D 1 effective free market competition is to replace governmental regulation, state ta�c policy must be 2 changed to ensure competitive parity among both inuastate and intersTate producers. The main 3 focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or 4 personal property tax. Utilities subject to the tax argue that it places them at a competitive 5 disadvantage to non-Minnesota companies as weli as Minnesota Rural Electric Cooperatives (Co- 6 ops) and Municipals. However, accurate comparisons of tax burden are difficult, as other states 7 use completely differenc taxing systems. Additionally, Co-ops do pay the tax on some of their 8 property and Municipals make substantial payments in lieu of taxes. 9 Utility personal property can be a significant portion of the local tax base in all cities. Most 10 obviously affected are cities that have power plants. However, generation and transmission 11 equipment accounts for over haif of the personal property taxes paid by the IOUs, and exists in 12 nearly every city. Replacing the revenue that would be lost by cities, counties, school disuicts, 13 and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and 14 funding source of such a replacement revenue would be difficult to develop and administer, and 15 would be subject to reduction or elimination over time. 16 Response: A cautious, deliberative approach to restructuring the electric utility industry 17 is necessary to preserve the level of service to which Minnesota consumers of electric energy 18 have become accustomed. Additionally, it is crucial that cities have a place at the table in 19 deregulation discussions and that they retain their local authority to manage, and obtain 20 compensatioa for, the use of public rights of way, and that neither cities nor their taxpayers 21 are asked to shouider the burdens of any tas relief provided IOUs. Finally, every effort 22 should be made to ensure that additional responsibilities and financial burdens are not 23 shifted to the local level. 1998 City Policies 27 �' �-! 0 LE-12. Adequate Funding for Transportation Issue: Current funding for roads and for transit systems across all eovernment levels in the 3 state is not adequate. 4 Response: Minnesota should value, and adequately fund, all transportation sgstems in the 5 state. The state needs to provide an objective basis to determine the complete needs of the 6 road and transit systems, their present condition, and their impact on the economic health of 7 the state. This should include acknowledgment that delaying current expentlitures wiIl 8 increase costs in the future. The League of Minnesota Cities supports an increase in the gas 9 tas and urges removing fhe e�risting restrictions on its use so that gas tas revenues can be 10 used for all transportation projects and programs, not just road construction and 11 maintenance. The legislature should institute additional revenue sources that can be 12 dedicated to all transportation programs. Cities should receive revenues necessary to meet 13 present and future transportation needs. If lunding does not come from the stafe, cities 14 shouId have funding options available to them to raise the dollars necessary to adequately 15 fund roads and transit. 16 With the exception of funding for the state patrol, ali nontransportation programs should 17 be funded from a source other than the highway user distribution fund. The revenues of the 18 highway user distribution fund are coliected from transportation users and should be I9 dedicated to transportation-related services. 2o LE-13. State Aid for Urban Road Systems 21 Issue: Current rules governing municipal state aid e?cpenditures aze restricting the efficient use 28 League of i�'Iinnesota Cities 9�-to 1 of these funds and do not adequately acknowledge the constraints of road systems in urban city 2 environments. Response: Rules affecting the municipal state aid system need to be changed to 4 acknowledge the technical and practical restrictions on construction and reconstruction of 5 urban road systems. New municipal state aid design standards should not apply to 6 reconstruction of existing state aid streets that were originally constructed under different 7 standards. Future changes to state aid rules should ensure the involvement of elected officials 8 and engineering professionals in the decision-making process. 9 LE State Aid Roads in Contiguous Cities Under 5,000 10 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their collector 11 and arterial streets. 12 Response: State statute should be modified to encourage cooperation and improved 13 transportation systems by allowing contiguous cities that jointly represent a combined 14 population of 5,000 or more to be eligible for Municipal State Aid (M.S.A.). Participating 15 cities would enter into a formal joint powers agreement and establish a joint budget that would 16 be governed by a board of elected officials. Cities that participated in this joint entity would 17 not be required to undertake any formal consolidation activities. 18 Cities under 5,000 population that were not eligible for M.S.A. through this cooperative 19 agreement practice should be able to use county municipal accounts and the five percent 20 account of the highway user distribution fund. 21 Uses of county municipal accounts shou4d be statutorily modified so that counties can 22 dedicate these funds for local arteriais and collector streets within cities under 5,000 1998 City Policies 29 �'�-�o 1 population. In addition, the five percent set-aside account in the highway user distribution 2 fund should be used to meet this funding gap. 3 LE-15. Turnbacks of County and State Roads 4 Issue: As road funding becomes increasingly inadequate, more roads ate being "tumed back" to 5 cities from counties and the state. 6 Response: Turnbacks should not occur without direct funding or transfer of a funding 7 source. A process of negotiation and mediation should govern the timing, funding, and 8 condition of turned-back roads. City taxpayers should receive the same treatment as township 9 taxpayers. The requirement for a pnblic hearing, standards about the conditions of turnbacks, 10 and Yemporary mainteuance funding shouid a[so apply to county turnbacks to cities. At a 11 minimum, proposed roads to be turned back to a lower government level should be brought up 12 to the standards of the receiving government or should be compensated with a direct payment. 13 Direct funding should be pxovided for smaller cities that are not provided with turnback 14 financing through the municipal state aid system. 15 LE-16. Cooperation Between Counties and Cities Over County Roads Within 16 Cities 17 Issue: Some counties want increased control over county roads that lie within city boundazies. 1$ The statutory mechanism for resolving disputes between counties and cities over the construction, 19 reconstruction, or expansions of state-aid highways that extend within city corporate timits is 20 inadequate. Under current law, only The county may request that a dispute resolution board 21 (`boazd") be established and the boazd's role is not to assist the parties in attempting to resolve their 30 League of Minnesota 9� �o 1 dispute. Instead, the boazd has the authority only "to review the propose change, and make a 2 recommendation to the Commissioner." It is the Commissioner of Transportation who ultimateiy 3 makes the fmal decision on whether to "approve the establishment, construction, reconstruction, or 4 improvement of a county state-aid highway recommended by the boazd." The statute does not 5 outline any formal due process that must be followed to ensure fairness to all parties. Additionallp, 6 there is no mediation or non-binding azbitration prerequisite as exists in other azeas of law dealing 7 with dispute resolutions. Response: The Legislature should provide a mediation or non-binding arbitration 9 alternative to assist parties in reaching a resolution on their own �vithout involving the 10 Commissioner. Additionally, to ensure that sound recommendations are made by dispute 11 resolution boards, formal due process and speciSc criteria should be established. For 12 situations where negotiations do not produce an agreeable resolution, cities should be 13 authorized to request that a board be established. 14 LE-17. Management of Rights-of-Way I S Issue: Demand for all types of uses of rights-of-way, both surface and subsurface, is increasing 16 exponentiaily, forcing consideration by cities of how best to allocate this very limited resource. 17 Because public rights-of-way have been acquired at public expense through local property tax 18 sources or other local action, cities have traditionally had the fundamental responsibility and 19 attendant liability for facilitating the safety and convenience of all right-of-way users. Rights-of-way 20 management responsibilities are complex, numerous, and site specific, as are the particular interests 21 of cities in establishing a value for private use of public space in the local rights-of-way. These 22 factors underscore the fact that rational and expeditious decisions can only� be made at the local level. 1998 City Policies 31 q �-� a . i Cities support existing federal nondiscrimination requirements that local administration not 2 impose unreasonable delays or burdens on access, entry, or other reasonable use of rights-of-way. 3 Cities should be authorized, as provided in federal law, to reqaire telecommunications providers to 4 meet local requirements for pubiic, educationat, and government access to their networks as well as 5 financial and technical support for such actions. 6 Local rights-of-way are a iimited and valuable assei held in trust by municipalities for the pubIic. 7 Unlike other businesses which pay for tiie use of public rights-of-way, teIephone companies 8 currently pay property taxes only on a fraction of their faciIities Iocated in pubiic rights-of-way and 9 nothing for the vatue of the right to use them. 10 Response: 11 • The responsibility for managing and protecfing public rights-of-way must remain with 12 cities and ofher units of government entrusted with protecting the health, safety, and 13 convenience of fhe community. I4 • Construction and safety standards are of paramount importance to cities, and consistent I S with respective industries' desire for uniformity, should be developed by the municipal 16 engineering community for adoption by cities to ensure effective rights-of-way 17 management. 18 • Cities and other governmental units responsible for the protection and management of 19 public rights-of-way should be authorized to require reasonable compensation which 20 reflects the policy and fiscal objectives of their community. 21 • The courts should remain the primary forum for resolurion of allegations that communities 22 have exercised their authority in an unreasonable, arbitrary, or capricious manner. 32 League of Minnesota Cities Q.�=to LE-18. Communications Tnfrastructure 2 Issue: Cities must retain authority to provide for development of effective local information 3 in&astructure including public, educational, and govemment (PEG) access channels and institutional 4 nerivorks. Sufficient technical and financial support from telecommunications service providers is � 5 necessary to assure that both traditional and advanced services and applications, including both 6 wired and wireless telephony, video, data and Internet services as well as PEG access are localiy 7 available. Response: The legislature should support local authority to develop, own, and operate 9 information infrastructure and services to require that voice, video, and data communications 10 nehvorks provide channel spectrum and resources sufficient to meet local information and 11 communications needs, assure public safety and convenience, and provide local information 12 and community programming and services. 13 LE-19. Effective Telecommunications Competition 14 Issue: Effective telecommunications competition will not arrive simultaneously in all cities or 15 markets. In the transition to an effectively competitive marketplace, which will yield better services, 16 affordability and deployment of technology to meet community needs, consumers need protection 17 from possible market abuses. 18 Response: Federal, state, and local governments must coordinate efforts to protect 19 consumers and encourage emergence of effective competition to make it possible for 20 communities to participate in the global economy through a local information infrastructure 21 that provides benefits to residents, business, and industrv. 1998 City Policies 33 �r�-!a 1 LE-20. Local Zoning Regulation of Telecommunications Service Providers 2 Issue: Cities must have authority to govern the use of property by telecommunications service 3 providers through zoning regulations without unnecessary state and federal intervention. 4 Response: The Federal Communications Commission and the state legislature should 5 continue to uphold local government authority to adopt and enforce local zoning regulations of 6 telecommunications service providers as reaffirmed in the federal Telecommunications Act of 7 1996. 8 LE-21. ISTEA Reauthorization 9 Issue: Cities have an important stake in the reauthorization of the federal Intermodal Surface 10 Transportation Efficiency Act (ISTEA). Since its enactment in 1991, ISTEA has assured cities of a I 1 key role in planning as weIl as benefits of funding for project enhancements and pollution 12 mitigation. ISTEA expires on September 3Q at the end of this fiscal year. ISTEA has been 13 successfully implemented in Minnesota, with a sYrong focus on partnerships, local decision-mal:ing, 14 funding flexibility and emphasis on inter-modal transportation. 15 Response: Congress should reautharize ISTEA this session to continue support for the ne�v 16 era of transportation investments in which cities can work cooperatively with the Minnesota 17 Department of Transportation (MnDOT) to address local and regional transportation 18 interests. Putting in place locally developed criteria to evaluate programming of limited funds 19 has opened MnDOT programming to recognize regional priorities. Enhanced ISTEA 20 reauthorization �viil allo�r cities to continue to work within the current planning process to 21 address transportation needs. 22 The amount of ISTEA funding in the existing congressional and administration budget 34 League of Minnesota Cities ��-�o allocations does not meet growing needs. Trust fund revenues should be used solely for 2 transportation purposes, and the federal gas tax revenues should be transferred to the 3 Transportation Trust Fund (instead of being used for deficit reduction). 4 Regional planning is a strong component of the current ISTEA program. Congress should 5 support and encourage broadening the federal-state-local partnership and community 6 participation in transportation decision-making. All program categories in the existing ISTEA program should be maintained, in particular the Surface Transportation Program (STP), Transportation Improvement Program (TIP), 9 Enhancement and Safety, transit, Congestion/1�litigation Air Quality (CMAQ), and the 10 National Highway System (NHS) and Bridge Replacement programs. 11 Congress can aid local project imptementation by reducing unnecessarily burdensome 12 regulations and procedures, particularly for smail pro,yects for elements that have Iittle if any 13 negative effects on the environment. There is also a need to examine the relationship between 14 the metropolitan MPO boundary anci U.S. Census boundaries of the Twin Cities Metropolitan 15 Statistical Area (MSA). The MPO in the metro area needs to recognize the broad regional 16 implications of transportation in the 7 counties within Minnesota and the two counties in 17 Wisconsin that are within the MSA. 1s IMPROVING SERVICE DELIVERY 19 SD-1. Redesigning and Reinventing Government 20 Issue: Every level of government is reevaluating, reprioritizing, redesignin�, and renewing its 21 organizational structure and programs in response to financial realities and citizens' needs and City Policies 35 ��-�� 1 problems. Reforms, however, must be more than simply change for the sake of change or a 2 reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and 3 reassignments of govemmental entities and services should save money where feasible, deliver 4 improved services, serve essential needs and be equitably structured. Cities have and will continue 5 to pursue the use of cooperative agreements, the reevaluation of city programs and services, and 6 changesto organizationalstructures. 7 Response: The federal, state, and county governments should: 8 • ensure that in redesigning, reinventing or reassigning government services and programs 9 that the appropriate level of service to citizens is evaluated and citizen demands and 10 expectations are adequately addressed; 11 • promote local efforts through incentives rather than mandates; 12 • communicate and establish a process of negotiation before shifting responsibility for 13 delivering services from one level of government to another or seeking to reduce service 14 duplication; 15 • transfer authority for use of re�°enues dedicated to such programs or provide appropriate 16 and adequate alternatives; 17 • identify and repeal programs or discontinue services which are no longer necessary or 18 which can readily and fairly be pro��ided by the private sector; and 19 • employ existing government entities in redesign efforts rather than create new agencies or 20 units. 21 The League supports cooperative studies of the following issues: 22 • whether the enforcement of human rights laws can best be accomplished by a single state 23 system which would allow local governments to discontinue local enforcement programs; 36 League of Minnesota Cities 1 • whether there should be greater use of statewide or consolidated business licensing, 5�-i o 2 including licensing of sign contractors, to eliminate the need for some businesses to obtain a 3 permit in each city or county; 4 • whether the existing use and structure of Regional Development Commissions can be 5 imgroved; 6 • whether greater use cau be made of block grants to distribute funds related to 7 transportation, sewage treatment, and public water facilities; 8 • whether human services and health programs can be improved by further consolidating 9 their administration at the state and county levels of government; and 10 • whether state and federal environmental and water agencies can be combined or 11 eliminated to avoid inconsistent standards and duplication of responsibilities. 12 SD-2. Unfunded Mandates li Issue: The cost of federal and state mandated programs substitute the judgment of Congress and 14 the President and the legislature and the Governor for local budget priorities. These mandates force 15 cities to reduce funding for other basic services or to increase taxes and service charges. The passage 16 by the legislature of reporting requirements for new state mandates and the passage by Congress of 17 legislation restraining new federal mandates should help address the problem, but other steps aze still 18 necessary. 19 Response: 20 • Existing unfunded mandates should be reviewed and modified or repealed where possible. 21 • No additional statewide mandates should be enacted unless full funding for the mandate is Policies 37 y�-�� 1 provided by the level of government imposing it or a permanent stable revenue source is 2 established. 3 • Cities should not be forced to comply with unfunded mandates. 4 • Cities should be given the greatest flexibility possible in implementing mandates to ensure 5 that their cost is minimized. 6 SD-3. Civil Liability of Local Governments 7 Issue: One of the barriers to the delivery of governmental services and programs is the exposure 8 of tocat govemments and their officiats to civil damage ciaims. The state has acted to protect itself 9 and its local governmenTS by enacting exceprions and limitations to tiabiliry suits and authorizing 10 self-insurance and other mechanisms to deal with claims allowed by law. Additionally, the current ll law which requires district court approval of settlements of claims against municipalities which 12 exceed $10,000 has become burdensome for cities. 13 Response: The League supports: 14 � eliminating joint and several liability, or severely restricting its application to situations 15 where private or public tortfeasors are substantially at fault for the damages incurred; 16 • extending the protection of the state and municipal tort claims act to guasi-governmental 17 entities when performing public services such as firefighting; 18 • existing constitutiona[ safeguards for protecting public and private property interests 19 without any statutory expansion of property rights; and 20 • eliminating the district court approval of settlements requirement or, in the alternative, Z 1 increasing the threshold amount for district court approva] of settlemeats to �100,000. 38 League of Minnesota Cities 1 SD-4. Environmental Protection 2 Issue: State and federal environmental programs are improperly designed to meet their ��-ro 3 stated goals, and impose an undue burden on local governments because of a lack of federal or 4 state financial assistance. The refusal to finance these programs by the governments which pass 5 them has eliminated an essential restraining feature in program design and implementation. 6 Specific problems include: 7 • New programs or standards are continually adopted without regard to the existence, 8 attainability, or cost of existing programs and standards. 9 • Fragmented program adoption and 'unplementation does not ensure prioritization of 10 environmental matters or the establishment of comprehensive environmental protection I1 strategies. 12 •"One size fits all" implementation programs force remedial efforts by local governments for 13 nonexistent environmental problems. 14 • Permit fees and other cost transfer elements of federal and state programs do not provide an 15 incentive for environmental agency efficiency, policy prioritization, or risk assessment. 16 Response: 17 • A comprehensive effort to consolidate, reorganize, and manage state and federal 18 environmental agencies and programs should be undertaken and a partial or full 19 moratorium on new programs or requirements should be considered. 20 • Permit fees should be limited to fifty percent of the agency's direct operating costs in 21 order to promote efficient agency operation and sufficient legislati��e oversight. 22 • 5ufficient state and federal financial assistance should be provided to comply with state 1998 City Policies 9 �-iv. 1 and federal infrastructure requirements, particularly with regard to sewer and water 2 faciliries. 3 SD-5. Personnel, Pensions, and Labor Relations 4 Issue: Many state taws increase the cost of providing city service to residents by requiring 5 city govemments to provide certain leveis of compensation or benefits to public employees, 6 specify certain working conditions, or limit city governments' abiliry to effectively manage their 7 personnel resources. For instance, existing state laws limit governments' ability to effectively 8 address incompetence or misconduct of city employees specifying certain procedures to be 9 followed or standards of conduct. 10 Response: The state government should refrain from passing laws which regulate the 11 public sector workplace and should repeal or modify problematic e�sting taws and 12 regulations to encourage fuil tocal accountability. 13 The League of Minnesota Cities proposes Yhe following reforms: 14 Discipline and Discharge 15 • The state should modify veterans' preference and civil service laws which restrict the 16 ability of local governments to effectively discipline public employees. The legislature 17 should amend the law to: 18 • remove the right to multiple, duplicative disciplinary proceedings; 19 • limit any back-pay claims to a maximum of $100,000, and; 20 • timit the period in which fo request a hearing to 14 days (from the current 60 days). 21 • The state should disconYinue state and local civil service systems which are no longer 40 League of Minnesota Cities needed to ensure fair and accountable hiring and firing practices. 2 Data Practices ��-�o 3 • In light of security concerns, the state should amend the data practices act to reclassify all 4 employee address and telephone data as private data. 5 • The Information Policy Task Force created by the 19971egislature should consider the 6 impact of potential changes to the data practices act, particularly the commercial use and 7 sale of government information, on local units of government and take these into account 8 in any recommendation for legislative action. 9 Compensation limits 10 • The state should repeal laws limiting local government employee compensation levels to 11 the governor's salary. If repeal is not possible, the limit should be amended to be based 12 upon the governor's total compensation level. 13 PELRA 14 • The state should modify the definition of public employee to limit the application of 15 PELRA to employees working more than an annual average of 20 hours per week other 16 than on a temporary or seasonal basis. 17 • The state should change public sector bargaining laws to restrain arbitration awards 18 which exceed other internal class comparisons or outside cost of living limitations. 19 • The State should modify the definition of public employee to exclude police and fire 20 cadets. 21 Pensions 22 • The state should re�ise public employee pension laws to facilitate consolidation of local 1998 City Policies 41 9 �-/ a i pension plans and the transition to more attractive and fiscally-sound pension programs 2 such as defined contribution plans. 3 • The state should study initiatives to reform and make uniform pension plans for local 4 government employees. However, the League opposes increasing public employer 5 contribution levels or any proposal to have the public employer contribution level exceed 6 the contribution level required from emgloyees. 7• The state should adjust the eligibility thresholds for public pensions to reflect inf7ation, 8 adopt a process for automatic future adjustments, and timit eligibility for defined benefit 9 plans to employees working an average of at least 20 hours per week. 10 � The League opposes special legislation related to pension benefit increases that are not 1 I initiated by a previously adopted resolurion of the city council of the affected city, even if 12 the legislation provides an option that requires subsequent local approval. 13 In addition to these state reforms, the League of Minnesota Cities supports the following 14 policies regarding federal employment law: 15 Overtime compensation 16 • Congress should amend the Fair Labor Standards Act to eliminate its applicability to the 17 public sector or at least recognize unique circumstances in the public sector such as 18 accounting for all hours worked by salaried employees and allowing regular employees to 19 serve as volunteers, paid on-call firefighters, referees, coaches, and other community 20 service-oriented positions. 21 Peace officer bill of rights 22 • Congress should oppose a federal peace officer bill of rights, which would make internal 4Z League of Minnesota Cities investigation and enforcement more difficult and diminish local accountability. 2 SD-6. Election Issues 3 Issue: Improvements in absentee voting, voter registration, and the election process 4 are needed. 9�-!a 5 Response: The 19981egislature should develop a bipartisan election reform proposal that 6 simplifies absentee voting, provides more cities direct access to the statewide voter registration 7 system, clarifies restrictions on locating campaign signs within 100 feet of polling places, 8 modifies the voter fraud statute related to voter residency, and allows cities more flexibility in 9 appointing and compensating election judges. 10 SD-7. Local Election Authority 11 Issue: Local authority to schedule city elections and establish terms of office for local elected 12 officials has been increasingly restricted by the legislature, thereby diminishing regard for the role 13 of local self-government, particularly when state policy pre-empts home rule authority governing 14 city elections. 15 Response: The legislatnre should oppose further limits on either the number or the length 16 of terms city elected officials may serve, particularly when those terms have been established 17 by the electorate in home rule charter cities. State policy on uniform elections should continue 18 to recognize and uphold local authority to schedule city elections in November of either even- 19 or odd-numbered years. 1998 City Policies gF-ro ., 1 SD-8. City Costs for Enforcing State and Local Laws 2 Issue: Cities experience substantial costs enforcing state and local laws, particularly those related 3 to traffic, controlled substances, and incazceration of prisoners. The current method in our criminal 4 justice system of recovering costs for law enforcement and prosecution through fines is insufficient 5 to meet the costs incurred by local govemments. 6 Response: The legislature should review this issue and adopt measures thaY provide for 7 complete reimbursement of the costs incurred by locai governments in enforcing state and 8 locai laws. Solutions which should be considered include the following: 9 • increasing fine amounts; 10 • removing or modif}�ing state surcharges which conflict with cost recovery principles; and ll • requiring the defendant to pay the Full costs of enforcement and prosecution as part of any 12 sentence. 13 SD-9. Access to Information 1'echnology and Services 14 Issue: Congress and the state legislature should continue to provide a meanin�ful role for cities 15 in developin� and supporting access to information technology and services. 16 Respo�:se: The legislature should: 17 • enhance opportunities for cities to collaborate with community organizations, schools, 18 tibraries, and nonprofit organizafions and felecommunications service providers to make 19 training and advanced services available to community residents; 20 • take steps to ensure that businesses have access to advanced broadband networks; 21 • provide grants and technical assistance to encourage cities to expand use of information 4 � League of Minnesota Cities 9�- ro , i technolog,y to provide citizen access to government information and deliver services; 2. • monitor telecommunications service providers' compliance with requirements to make 3 public access to information available at a discount; 4 � encourage providers to make capacity for interactive forums available at the local level to 5 increase citizen participation in government; 6 • encourage expanded use of interactive teleconferencing, public access channels, and public 7 broadcast facilities to provide public access to government meetings; and 8 • support federal, state, and local authority to charge providers of cable and cable-like 9 services reasonable fees to support that capacity. 10 SD-10. Lawful Gambling Fund Expenditures 11 Issue: State law authorizes cities to collect up to 10 percent of the net profits from lawful 12 gambling operations conducted within their jurisdictions. These funds must be maintained in a 13 separate account and can be spent only for "lawful purposes." These purposes are defined in 14 statute more narrowly than the permissible public purpose expenditures for charitable 15 contributions to cities. The Gambling Control Board has the authority to demand that cities make 16 repayment to the fund for expenditures it deems out of compliance with the statutorily permitted 17 lawful purpose expenditures. 18 Response: Cities are in the best position to determine the use of funds that will bring the 19 most 6enefit to their citizens. The legislature should expand the permissible lawful gambling 20 fund expenditures to include any public purpose deemed appropriate by the city. 1998 City Poiicies 45 � k i SD-11. Design-buitd 2 Issue: The standard bid procedure cities are required to use in selecting contractors for 3 municipal buildings can be quite cosUy. Private sector development uses a process known as 4"design-build" in which various firms submit project proposals that include both a design and the 5 construction costs for that design. The selection is then based on the total package. By granting 6 specific statutory authority to use the design-build alternative to the Metropolitan Sports Facilities 7 Commission and state agencies including the Department of Revenue, the legisiature has 8 recognized the financial savings it can provide. In documented instances, cities have saved 9 taxpayers up to 10 percent of the total project cost by usin� the design-build aitemative. The 10 design-build process also permits improved project management and oversight. However, absent I 1 statutory authorization to use this aiternative, cities are vulnerable to lawsuits from unsuccessful 12 bidders. In addition, the design-build process for playground equipment can encourage greater 13 creativiry while still maintaining cost controls. Special legislation was enacted for the City of 14 Chanhassen in 1995 to experiment with using this process for purchasing playeround equipment. 15 Response: The legislature should authorize an eartension of the "design-build" procedure 16 to cities as a less expensive alternative to the standard bid procedure. 17 SD-12. Mobile Home Park Oversight 18 Issue: The State has preempted cities in the licensing of mobile home parks and has I9 Iimited the authoriry of cities to place new regulations on estabiished mobile home parks. 20 However, cities are responsible for dealing with the various housing and public safety challenges 21 mobile home parks may create. 4( Leaaue of Minnesota Cities + , y'� i I Response: Since the State has already taken the lead, the legislature should provide 2 sufficient resources and direct the Department of Health to conduct a study on the condition 3 of mobile home parks throughout the State of Minnesota. Cities and mobile home pazk 4 owners and residents should be involved in the study. The results of the study should be used 5 as a basis for policy discussions regarding ways in which the State can provide for increased 6 and improved oversight of mobile home parks and establish a statewide support system for 7 cities to rely on in dealing with the array of issues that arise in mobile home parks. 8 Outcomes of the study should include: 9 •"best practices" for the operation of mobile home parks; 10 • recommended state regulatory changes for the operation of mobile home parks; 11 • suggested ways cities can better address the issues presented by mobile home parks; and 12 • identification of inechanisms to provide assistance in �nancing mobile home park 13 upgrades. 14 SD-13. Proposed Plat Approval Authority 15 Issue: Current law generally grants cities the authority to approve proposed plats as part of 16 their police power responsibilities for regulating development. Certain counties want legislative 17 authorization to approve proposed plats which are contiguous with existing or proposed county 18 roads. 19 Response: Cities oppose extending county authority over plat approval. While counties 20 have a valid interest in proposed plat decisions, this does not warrant a duplication of 21 approval authority. An informal process of county review with the opportunity to offer 1998 City Policies 9�-/� � , comments and suggestions for unprovement is an appropriate cooperative mechanism which 2 is already in place and working well in many azeas of the state. 3 SD-14. Providing Information to Citizens 4 Issue: To keep the public updated and informed, state law requires local units of government 5 to publish various noti£ication documents in newspapers and often dictates which newspapers 6 receive cities' publication business. The number and variety of documents required to be 7 published and the costs of publication are burdensome. Technological advancements have 8 expanded the ways in which government can provide information To citizens. In many cases, 9 these new technologies are more efficient and cost effecrive. 10 Response: Cities should be authorized to take advantage of new technologies to increase 11 the dissemination of information to citizens and potentially lower the associated costs. 12 Specifically, the legislature should authorize local units of governmenY to designate an 13 appropriate daily/weekly publication, elect alternative means of communication such as city 14 newsletters, cable television, and the internet, and expand the use of summaries where 15 information is technical or lengthy. Additionally, the legislature should eliminate outdated or 16 unnecessary publication requirements. 17 SD-15. Creating a Minnesota GIS Program 18 Issue: Cities need Geographic Information Systems (GIS). Although only forty-five cities have 19 pazcel-based GIS, this improved method of local land record management is already paying 20 tremendous dividends to those with access to the technology, but it is costly and difficult to create, 48 League of Minnesota Cities ,� r g�- �D I maintain, and upgrade. Cities face serious obstacles to modemizing land records when maps, survey 2 controls, and electronic records management do not exist at the county level. VJithout state 3 investment to help local government modemize land management records, development of GIS will 4 continue to fall behind, with costly results for residents and taxpayers in those locations where land 5 pazcel data is not organized. A seamless land records database would encourage sustainable land-use 6 planning at both the state and local level. Response: The League endorses the recommendations put forth by the Govemor's Council 8 on Geographic Information to establish and fund a Minnesota GIS Program to provide 9 technical support and funding for local government development of GIS. 10 SD-16. State Licensing of Massage Therapists 11 Issue: The state does not currently regulate massage therapy, an emerging but rapidly growing 12 profession. In order to control prostitution and to provide for health and sanitation standards, several 13 cities have entered the traditional state domain of health-care licensure by enacting ordinances that 14 require all massage therapists to obtain a local professional license. These ordinances allow local I S law enforcement officers to differentiate between legitimate massage therapists, who have a city 16 license, and prostitution businesses fronting as massage therapy establishments. The lack of 17 statewide licensing of massage therapists has hampered law enforcement techniques and has caused 18 problems for cities attempting to regulate an entire health-caze profession without any statewide 19 standards. Currently, twenty-five states license massage therapists on a statewide level. Statewide 20 licensing of massa�e therapists would provide a clear set of educational standazds that massage 21 therapists must meet and w provide local law enforcement agencies with an easy tool to 22 distin�uish between prostitution and legitimate massage therapy. Statewide professional licensing 1998 City Policies 49 9� io , � � b' 1 would not disturb traditional powers over land use and business licensure. 2 Response: The League supports the statewide professional licensing of massage therapists 3 in order to aid local law enforcement efforts at controlling prostitution and other criminal 4 activity. �� League of Minnesota Cities Council File � I u - /v Green Sheet � 5a3 �o 0 R! G I N A L �OLUTION CITY OF S PAUL, NIINNESOTA /� Presented By \��\� \� � Re£erred To Committee: Date 1 WHEREAS, the league of Minnesota Cities, which represents 811 of Minnesota's 856 2 cities. as well as 10 urban towns and special districts, has led the coordination of 3 member cities in the development of the 1998 City Policies for Legislative and 4 Administrative Action which identifies issues as priorities for action during the 5 1998 legislative session; and 6 7 WF�REAS, the City of Saint Paul was an active participant in this coordinated effort 8 and the City approves generally of these priorities; now therefore be it 9 10 RESOLVED, the City Council of Saint Paul does hereby recommend for consideration by 11 the Minnesota State Legislature, 1998 City Policies for Legislative and 12 Administrative Action, submitted by the League of Minnesota Cities and does hereby 13 request that these issues be addressed by the Legislature during the 1998 session. 14 1 5 Requested by Department of: By: Form Approved by City Attorney Bv: By: Appx sy: ��-, / eK%(/C�/C� proved by Mayor for Submission to ancil � > � `��'�' � Adopted by Council: Date Adoption Certified by Counci Secretary N° 52360 �c_ ,.� DEF11RiMENiNFfICEnCOUNCIL � DATE INITIATED � Q IV r�5 Office 12/29/97 G RE EN SH E E CONTA PERSONBPHONE INITIAVDATE INITIAVDATE . � DEPARTMENTDIREC70R O pTYCOONCR Bill Hue enbeCkeZ 266-8 17 "5��" �a�rvnnoaNev �GITYQERK MUST BE ON CAUNCIL AGENDA BY IDATE) NUMBEfi FOp ❑ BUDGET DIRECTOq O FIN. 8 MGi SEPVICES DIR. qOUi1NG OPDEN O MAYOR (OR AS$ISTqNT) O 1 TOTAL # OF SIGNATURE PAGES (CIIP ALL LOCATIONS FOR SIGNATURE) � ACTION /iEQUESTED. City Gduncil appYOVal of the Polic3es fox Legislative and Administrative Action, as , submitted by the League of Minnesota Cities for the 1998 legislature. . RECOMMEN�ATIONS- App�ova (A) or Reject (R) pEHSONAL SERVICE CONTflACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PIANNING CAMMISSION _ CIVIL SERVICE COMMISSION �. Has this Derson/firm ever worked under a contract for this department? � _ CIB COMMITfEE YES NO _ SincF 2. Has this personRirm ever been a dry employee? - — YES NO _ DISTRICT COURT _ 3. D025 this pe/sonflirm po55e55 8 Skill not nOrm211y p055855Ctl by any cuRerrt city employee? " SUPPORTS WHICH COUNCIL OBJEClIVE? YES NO Explain alI yes anawera on aeperata aheet and attaeh to green aheet � INITIATING PROBLEM, ISSUE. OPPOpTUNITV (WM, What, When. Where. W�y} " The City of Saint Paul has been an active participant in developing the 1998 Legislative priorities for the League of Minnesota Cities. With the City Council's approval of these priorities, Saint Paul will be supporting the League in its efforts to work on behalf of Minnesota's cities. r:tE` , �; x�' ADVANTAGES iF APPRpVED: �;' Saint Paul, as a member of the League of Minnesota Cities and an active participant �;. in the League's activities, committees, etc., wi11 be a partner in supporting the ?" ' legislative priorities recommanded by the member cities. �- i,; DISADVANTA6ES IF APPROVED t� None. 0�� 29 1597 ��'s ��°� � DISADVANTAGES IF NOTAPPROVED: Saint Pau1 would not be a partner in supporting the League of Minnesota Cities 1998 - Legislative Policies. r .,' �� . � DEC 2 9 1997 _.� TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDI(dG SOURCE AC7lVITY NUMBER . FINANQAL INFORf.iATION: (EXPLAIN� '� 9fr-lo . � �. I�M� Eaaguc of Mirsnasota CiEies �"itiar p.oniolmg au¢nencr 145 Universitq Avenne West, St. Paul, MN 55103-2044 Plione: (612) 281-1200 • (800) 925-1122 Fax: (612) 281-1299 • TDA (612) 281-1290 October 24, 1997 Dear L.eague Members: I am pleased to submit the accompanying draft 1998 I,egislative Policies for your consideration. These policies were developed by more than 200 city officials serving on the I,eague's policy committees and their respective policy task forces. For those of you who served on a task force or policy committee, I would like to thank you for your time and efforts. The hard work and input of city o�cials is the necessary foundation for developing and implementing a successful legislative agenda for the L,eague of Minnesota Cities and its members. For those who could not participate in the policy committee process, your input in the I.eague's policy development process is still crucial. The League needs your review of the attached draft 1998 Legislative Policies and the proposed resolutions. Piease plan to attend the LMC Policy Adoption Conference on November 21 at the Minnetonka Ramada Plaza. If you cannot attend the conference and have concerns or suggestions, please contact any member of the Intergovernmental Relations staff at the League. On behalf of the Board of Directors and I.eague staff, please accept my sincere thanks for your contribution to this most important process. Sincerely, � Robert C. ong I.eague President City Attorney, City of Mounds View I:mdiedric�policies\pac\pres.ltr AN EQUAL OPPORTUNITY/AFFIftIvIATIVE ACTION EMPLOYER �'�-/a , CONTENTS Letter from the League President General Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii LeagueStaff ............................................................ iv Legislative Policy Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Policy Development Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Statement of Intent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii PART I --1998 POLICY GUIDELINE Improving Community Life CL-i. Livable Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART TI -- 199$ CITY POLICIES Improving Fiscal Futures FF-1. FF-2. FF-3. FF-4. FF-5. FF-6. FF-7. FF-8. FF-9. FF-10. RF-11. FF-12. FF-13. FF-14. FF-15. FF-16. State-Local Fiscal Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State Shared Revenues ............................................ Taxation of Municipal Bond Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . City Fiscal Year ................................................. Sales Tax on Local Government Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . Del3nquent Property Tax PenalYies and Interest . . . . . . . . . . . . . . . . . . . . . . . . . Payments far Services to Tax-Exempt Property . . . . . . . . . . . . . . . . . . . . . . . . Truth-in-Tasation ................................................ State Deductions from LGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reporting Requirements ........................................... FederalBudgetCutbacks .......................................... LocalPerformance Aid ............................................ Price of Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DevelopmentFees ................................................ Residential Nonhomestead Property Tax Relief . . . . . . . . . . . . . . . . . . . . . . . . . Electric Utility Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 4 5 5 6 6 7 7 8 8 8 9 9 10 il 11 Improving Local Economies LE-l. TasIncementFinancing .......................................... 12 LE-2. Property TaY Reform, Levy Limits, and TIF . . . . . . . . . . . . . . . . . . . . . . . . . . I S LE-3. Economic Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 LE-4. Redevelopment of Developed Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 LE-5. Property Tax Abatement Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1998 City Policies i �� io LE-6. LE-7. LE-8. LE-9. LE-10. LE-11. LE-12. LE-13. LE-14. LE-I5. LE-16. LE-17. LB-18. LE-19. LE-20. LE-21. Brownfields .................................................... 18 Growth Management and Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2p State and/or County Licensed Residential Facilities (group homes) . . . . . . . . . 21 Affordable Housing .............................................. 22 City Role in Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Redesign of Electric Utiiity ReguIation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Adequate Funding for Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 State Aid for Urban Road Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 State Aid Roads for Contiguous Cities Under 5,000 . . . . . . . . . . . . . . . . . . . . . 29 Tumbacks of County and State Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Cooperation Between Counfies and Cities Over County Roads Within Cities .................................................... 30 Management of Rights-of-Way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Communications Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Effective Tetecommunicarions Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Local Zoning Regulation of Telecommunications Service Providers ........ 34 ISTEA Reauthorization ............................................34 Improving Service Delivery SD-1. SD-2. SD-3. SD-4. SD-5. SD-6. SD-7. SD-8. SD-9. SD-10. SD-I1. SD-12. SD-13. SD-14. SD-15. SD-16. ii Redesigning and Reinventing Govemment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Unfunded Mandates .............................................. 37 Civil Liability ofLocal Govemments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Environmental Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Personnel, Pensions, and Labor Retations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 ElectionIssues .................................................. 43 Local Election Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 City Costs for Enforcing State and Local Laws . . . . . . . . . . . . . . . . . . . . . . . . . 44 Access to Information Technology and Services . . . . . . . . . . . . . . . . . . . . . . . . 44 Lawful Gambling Fund Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Design-Build .................................................... 46 Mobite Hame Park Oversight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Proposed Plat Approval Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Providing Information to Citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Creating a Minnesota GIS Program :................................. 48 State Licensing of Massage Therapists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 League of Minnesota Cities t � �o General Policy Statement One of the most important purposes of the League of Minnesota Cities is to serve as a vehicle for cities to define common problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 815 of Minnesota's 853 cities as well as 12 urban towns and 24 special distric�s. All sizes of communities aze represented among the League's members (the largest nonmember city has a population of 163) and each region of the state is represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies. There is a need for a governmental system which allows flexibility and authority for cities to meet challenges of governing and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and 2. The financial and technical requirements for goveming and providing services necessitate a continuing and strengthened partnership with federal, state, and local governments. This partnership particularly in the areas of finance, development, housing, environment, and transportation is critical for the successful operation of Minnesota's cities and the well-being of city residents. 1998 City Policies iii 9 �=lt� LEAGUE STAFF WORKING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications Gary CarIson, Director of Intergovernmentai Relations General revenue sources for cities including aid to cities and the property tax system, fiseal administration of cities, economic development and redevelopment, personnel, transportation Kevin Frazell, Director of Member Services Government innovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, telecommunications Ann Higgins, IntergovernmenYal Relations Representative Telecommunications, housing, elections and ethics, utflity service districts, transportation Andrea Stearns, Intergovernmental Relations Representative Tas increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing, pubiic safety, generat municipal governance Remi Stone, Intergovernmental ReIations Representative Growth management and land use, environmental protection, personnel Eric WiIIette, Legislative Policy Analyst General revenue sonrces for cities including aid to cities and the property tax system, fscal administration of cities, pensions iv League of Minnesota 4�-la Legislative Policy Committee Members Improv[ng Community Life Sue Gehrz, Chair, Mayor, Falcon Hei�hts Jean Andre, Assistant to Manager/HRA Coordinator, Golden Valley Jack Barlow, Councilmember, Lauderdale Bil1 Bamhart, Inter�ovemmeatai Relations, Minneapolis Robert Benke, Mayor New Bri�hton John Blahna, Mayor, Landfall Cathy Busho, Mayor, Rosemount KaThleen Caanody, Councilmember, Brooklyn Center Peter Connor, Nlayor, Owatonna Lorenzo Davis, Administratrve Intern, Ea�an John DoyVe, Councilmember, Marshall Michael Ericson, City Administrator, Watertown Pat Famell, Chief of Police, Rochester Sharon Feess, Councilmember, Brooklyn Park Evelyn Fox, Councilmember, Breckenridge Wendy Gorham, Councilmember, Mora Harlan Gorath, Councilmember, Fairmont Arly Gunderman, Councilmember, New Brighton Vivian Hart, GTS, St. Paul Sue Henry, Administrative Aide, St. Cloud Fran Hesch, Councilmember, Hopkins James Hurm, City Administrator, Shorewood John Jenkins, City Administrator, Ortonville Julianne Manship, Neighborhood Development Director, West St. Paul Sandra Masin, Councilmember, Ea�an Roberta Megard, Councilmember, St. Paul James M(adek, Mayor, Montgomery Ed Mylnar, Mayor, Lester Prairie Deb Moran, Councilmember, Bumsville Larry Nicholson, Councilmember, Moorhead John Olin�er, City Administrator, Mahtomedi Isobel Rapaich, Councilmem6er, Duluth Char Samuelsmi, Councilmember, New Brighton Barbara Sanderson, Councilmember, Grand Rapids Jolie Sasseville. Public Information Officer, Fer�us Falls Betty Sindt, Councilmember, Lakeville Grant Thorstad, Police OfficedDARE Instructor, Kosemount Blair Tremere, Assistant City Mana�er, Prior Lake Dawn Weitzei, Interim Deputy Clerk, Mounds View Duane Zaun, Mayor, Lakeville Improving Fiscal Futures Joy Tierney, Chair, Ntayor. Plymouth Steve Okins, Vice Chair. Finance Director, Willmar Dick Abraham, City Administrator, Lake City Karen Andzrson, Mayor, Minnetonka David Beaudet, Councilmember, Oak Park Hei�hts Steve B}ork, City Planner/Coordinator, St. Francis Thomas Burt, City Administrator, Rosemount Gino Businaro, Finance Director, Mound Dave Callister, City Administrator, Osseo Henry A. Duitsman, Mayor, Etk River Terry Dussault, Assistant to Mana�er, Blaine (altemate) Gary Eitel, City Administrator, Ro�ers Charlotte Ericksoq AdministratorlClerk, Minnetrista Jerry Faust, Councilmember, St. Anthony Ro�er V✓. Fraser, City Mana�er, Blaine Rick Getschow, City Administrator, Hector John Gretz, City Administrator, Apple Valley Rod Hale, Councilmember, Cottage Grove Jeff Haubrich, Assistant Council Administrator, Red Wing Steve Helget, Ciry Clerk/Administrator, Tyler Patrick Hent�es, City Mana�er, Mankato Susan Hoyt, Ciry Administrator, Falcon Hei�hTs Bill Huepenbecker, Inter�overnmental Director, St. Paul Gre� Isaackson, Clerk-Administrator, Cottonwood Joel Jamnik, Campbell Knutson, Ea�an Barbara Jeanetta, Assistant to Mana�er, New Bri�hton Elizabeth Kautz, Mayor, Burnsville James Keinath, City Administrator, Cimle Pines Dennis Kraft, City Manager, Robbinsdale Lynn Lander, City Administrator, Hermantown Bob Larson, City Administrator, Deephaven Ann Lenczewski, Counciimember, Bloomington Kathy Lueckert, Assistant City Manager, Plymouth Wes Mader, Councilmember, Prior Lake Michael McGuire, City Manager, Maplewood Stzve Mielke, City Mana�er, Hopkins EI Mlynar, Mayor, Lester Prairie John Moir, Finance Department, Minneapolis Ruih Nelsen, City Cterk, Hilitop Gary Neumann, Assistant Administrator, Rochester lohn Perino, Mayor, Atexandria David Pokorney, City Administrator, Chaska Bryan Read, City Administrator, Mont�omery Douelas Reeder, City Administrator, South St. Paul lohn W. Remkus, Finance Director, West St. Paul Robert Rys, City Administrator, Minnesota Lake Ryan Schroeder, City Adminisuator, Ramsey Alfred Schumann. Mayor, Eyota James Smith, Councilmember, Independence 1998 City Policies V 9�-/l� Gerald Sorenson, Administrative Services Director, Moorhead Pete Stolley, Public Works, Nor[hfield btalcolm Tilberg, City Mana�er, St James David Urbia, City Administrator, Blue Earth Gene VanOverbeke, Finance Director, Eagan Ieff VanWychen, inter�overnmental Relations, Minneapolis (alternate) Daniel Vogt, CityAdministrator, Brainerd Bill Waller, City Administramr, LaCrescent Cfiuck Whiting, Clerk Administrator, Mounds View James Willis, City Administrator, Inver Grove Heights Donn Wiski, Councilmember, Roseville Improving Local Economies Bonnie Cumberland, Chair, Mayor, Brainerd Duane Zahn, Vice Chair, Mayor, Lakeville Kirsten Barsness, Economic Development Director, Cotta�e Grove David Beaudet, Councilmember, Oak Park Hei�h[s Jerry Bohnsack, City Administrator, New Prague Gerald Brever, City Administrator, Staples Kevin Cattoll, Councilmember, Rosemount Victoria Cox, Councilmember, White Bear Lake lames Daniels, Administrator, Lake Minqetonka Commuaications Commission, Excelsior Leo W. Eldred, Councilmember, Moorhead Michaei Ericson, City Administrator, Watertown Keith Ford, Community Development A�ency, Minneapolis Matt Fulton, City Manager, New Bri�hton Allen Greenfield, Councilmember, Prior Lake Tom Hansert, Deputy Mana�erAdministrative Enterprises, Bumsville Duane Hebert, City Administrator, Renville Pat Heldt, Councilmember, Alexandria Jon Hohensteiq Assistant to Administrator, Ea�an Bill Huepenbecker. Intergovernmental Rela[ions Director, St Paul Marvin Johnsoq Mayor, [ndependence Ronald Johnson, City Administrator, Zumbrota Steven C. Jones, City Administrator, Mora Andrea Hart Kajer, Intergovernmental Relations Direc[or, Minneapolis (al[emate) Randy A. Kolb, Courtcilmember, Blairte Edward R. Larson, City Manager, Morris Lam Lee, Community Deve(opment Director, Blooming[on Gre� Lerud. City Mana�er, Milaca Don Levens. City Adminis[rator. Cokato James L. Mtadek. Mayor, Mont�omery Ron Moorse, City Administrator, Orono E. Craio Morris, Mayor, Lakeland V1 Mark Na�el, City Manaeer, Anoka Rhoda Newiin, Counciimember, Red Wing James Norman, City Mana�er, Montevideo Bruce Peterson, Community Development Director, Willmar Dan Ro�ness, Community pevelopment Director, Rosemount 1oe Rudberg, City Administrator, Becker Terry Schneider, Councilmember, Minnetonka Chad Shryock, City Administrator, Eagle Lake Robert Therres, City Administrator, Sartell Brian Wagner, City Coordinator, Lakefield Craig Waldron, City Administrator, Oakdale Danie! Wall, Mayor, Roseville Denny Wilde, City Administrator, Paynesville Betry Zachmann, City C(erk-1'reasurer, Winsted Improving Service Deli�ery David M. Senjem, Chair, Councilmember, Rochester Jerry Dulgar, Vice Chair. City Mana�er, Crystal Patricia Crawford, Clerk-Treasurer, Motley Laurie Elliott, Personnel Coordinator, Shoreview Brian Friisin�er, City Administrator, Arden Hills Theresa Goble, Finance Director, Brainerd Ken Hartun�, City Administrator, Bayport Mimi Hasselbalch, Councilmember, Vadnais Heights Andrea HaR Kajer, Inter�ovemmental Re[ations Director, Minneapolis (altemate) Mark Karnowski, City Administrator, Lindstrom Kay Kuhlmann, Councii Administrator, Red WinJ Myrna Maikkula, City Clerk, Brooklyn Park Kay McAloney, Personnel Director, Anoka Mary Helen Mische, Intergovemmental Relations Assistant, St. Pau( Judd Mowry, Councilmember, Tonka Bay Susan Olesen, Clerk, Burnsville Desyl Peterson, City Attprney, Minnetonka Isabel Rapaich, Councilmember, Duluth Dan Scott, City Mana�er_ North St. Paul Ceil Smith, AssistaM to City Manager, Edina Gtenda Spiotta, City Administrator, Carver Joyce Swadner, Elections Office, Minneapolis Blair Tremere, Assistant City Mana�er, Prior Lake Joyce Twistol, Personae! DirectodCiry Clerk, Blaine Kurt Ulrich, City Administrator, Champiin Susan Walsh, Administrative Assistant, Rosemount Rena Weber, Clerk/Coordinator, Cold Sprin� Liz Witt, Administrative Assistant, Ea�an Krista Wi[ty, MVCOG Director, Mankato Wally Wysopal, Assistant to Manaser/Personnei Officer, SL Louis Park League of Minnesota Cities � � �d League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past five months. The process began with a member survey of priority issues facing city o�cials. The process will not end with the policy adoption conference. The committees will schedule additional meetings during the upcoming legislative session co discuss additional issues, develop alternative solutions and to discuss strategies to implement the League's policies. Listed below is a b�ief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. Aprit/May June The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. The Lea;ue President accepts applications for committees and appoints policy commi[[ee members. The policy committees are: Improving Fiscal Futures Committee Improving Local Economies Improving Service Delivery In addition, the Improving Community Life Committee meets on a regular basis to discuss issues affecting "livable communities" and to develop the Improving Communiry Life policy guideline. July Committees meet to discuss issues raised in member survey. Commitees can atso form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August through September October November December January thraugh May Committees and task forces meet to discuss issues and problems, accept testimony and develop policy statements. Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the four above-mentioned committees. Policy Adoptfon Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for membership consideration. The Board adopts the Legislative Action Plan, based on input from the Policy Adoption Conference. Legisiative Session. Durin� che session, the policy committees and task forces will continue to meet on issues and strategies. Members can assist the League's leeislative efforts by volunteering to contac[ legislators on a variety of issues of interesc [o our ci[ies. 1998 City Policies vii 9 �-,la Statement of Intent There are many problems which limit the effectiveness of city government to improve community Iife, improve the fiscal future and service delivery of city government, and to unprove the local economy. What foltows are statements of the problems facing cities and the solutions proposed to help resolve these probiems. These statements of problems and proposed solutions form the policy of the League of Minnesota Cities. Additional and alternative solutions to these problems may be propose@ a8er the Policy Adoption Conference and the members of the League authorize its Board of Directozs to consider and support additional or alternative solutions, if necessary, to resolve the problems identified in this policy statement. viii League of Minnesota Cities 9�--Ia Part I 19�8 Policy Guidelines � 9�-�� IMPROVING COMMUIVITY LIFE CL-1. Livable Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local governments to work together in partnership to make every community "livable." PROBLEM: Cities in Minnesota are at various stages in meeting the goal of being "livable communities." SOLUTION: The definition of a"livable community" below will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabiing all Minnesota cities to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable communities. A LIVABLE COMIVLCJNITY IS: WHERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: " safe * a sense of belonging * welcome s engage in life-long learning activities that: * prepare them for responsible citizenship * enhance the enjoyment of life * prepare them for changing job markets • participate in the decision-making process of community leaders • celebrate community • want to make cheir home 1998 City Policies 1 � �-�� • have access to: * good paying jobs * adequate and affordable housing * choice of e�cient transportation systems including transit, pedestrians, and bicycles * gathering places * desired information * choice of cultural and recreational activities * affordable goods and services, including health care • are involved in the nurturing of youth • care about their homes, community, and the environment • get to know each other • have the benefit of strong family support and nurturing adults • WHERE LOCAL GOVERNMENT • is responsive to the needs of its citizens • is actively supported by enthusiastic volunteers • is open and user friendly � encourages and implements cooperation and collaboration • provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs � educates citizens of aIl ages on local, regional, and state issues and government processes • informs and communicates with citizens to foster participation in public policy decision-making • participates in youth development 2 League of Minnesota Cities �t � - lD Part II 1998 City Policies 9� /o IMPROVING FISCAL FIJTURES 1 FF'-1. State-Local Fiscal Relations 2 Issue: Minnesota�s state and local government finance system is compiex and inter�wined. 3 Cides rely on their partnership with the state to provide Iocal services. On the other hand, the 4 needs and desires of NSinnesota's communifles are many and wide-ranging. While the state's 5 revenue-sharin� system has been regarded as innovative and helpful, there exists a growing 6 need for local elected officials, those closest to the electorate, to be responsive to the service 7 needs of the local citizenry. To that end, cities need discretion and flexibility in determining 8 locairevenues. 9 The 1997 legislature made chan;es to Minnesota's property tax system that will impact the 10 ability of local governments to fund necessary services. The reimposiCion of levy limits, I 1 significant ciass rate compression, and changes in state funding of schools ail may have 12 unintended consequences. 13 Response: As the legislature considers additional property tax changes in 1998, it 14 should: 15 • carefully analyze the combined impacts of the 1497 tax bill and changing economic 16 circumstances on the taxpayer and on local governments so that policymakers can 17 better understand where the system may need further changes; 18 • repeal levy limits, which are inef�cient, ineffective, interfere with local accountability 19 and ignore loca3 circumstances; 20 • diversify available city revenue sources by generally authorizing local tases that 21 reduce reliance on the property tax; and 1998 City I • reduce the property tas burden for all dasses of property by increasing the state share 2 of school funding. Any increase in the state share of school funding must guarantee a 3 permanent reduction in the local property t� burden. The League supports paying 4 for the increased state costs through income and sales taxes. 5 The legislatare should not: 6 • replace all or part of LGA or HACA with state-mandated categorical aid programs, or local option taxing authority; 8 • switch from the classification sysfem to a market vatue based system, which would cause tremendous shifts of taY burden hetween classes of properfy. The League aiso 10 opposes apglying ait future levy increases to market value because this �vould further 11 complicate the property taY system; 12 • interfere in local decision making regarding service delivery; 13 • impose a state-levied property taY; and 14 • cut LGA or HACA to finance an increased stafe role in school finance. � 5 FF-2. State Shared Revenues 16 Issue; State revenue sharing programs address at least three problems with a stand-alone 17 Iocal government Finance system. First, the property tax base available to communities can 18 vary dramatically. These programs use state resources to equalize the ability of communities 19 to provide essential services without undue property tax burdens for local residents. 20 Second, nonresidents can take advantage of local services or create additionaI demands for 21 services without contributing to the Yaxes that support these services. LGA and HACA help 22 address the free rider problem where nonpaying individuals consume services without � League of Minnesota Cities 9 1 contributin� to the local tax base. 9 �r-�a 2 Third, allowina local units of government in Minnesota to only levy the property tax has 3 created an over-reliance on the property tax. LGA and HACA can reduce the overall reliance 4 of local �overnments on the property tax. 5 Response: LGA and HACA, or similar replaceinent revenues, must be continued and b additional state resources greater than the rate of inflation must be allocated to prevent 7 rapid future property tax increases. In addition, the HACA household gro�vth factor for 8 cities shouid Ue reinstated. � FF-3. Taxation of Municipal Bond Interest 10 Issue: The state law that grants a Cax exemptiQn for municipal bond interest is being I 1 reviewed and could bz repealed. A repeal of this exemption will raise borrowing costs for 12 cities. 13 Response: The state should maintain the tax exemption for municipal bond interest 14 income. I S FF-4. City Fiscal Year 16 Issue: The fiscal years for the state and cities are offset by six months. The state fiscal 17 year begins on July 1 while the city fiscal year begins on January 1. Lawmakers have 18 proposed chanainQ the city fiscal year to coincide with the state. Such a chan�e, while 19 providing questionablz benefits for cities. would not correspond with the current property tax 20 cycle, impair historical comparisons of data, force cities to retool accountin� systems, will 1993 City Policies 5 ��-�v 1 adversely impact city credit ratings, and could result in state funding gaps. 2 Response: The state should maintain current law and not change the city fiscal year to 3 coincide with the state �scal year. 4 FF-S. Sales Tax on Local Government Purchases 5 Issue: In 1992 when the state was experiencing a budget shortfall, ihe legislature repealed 6 the sales tax exemption for local government purchases. This action currently costs local 7 governments an estunated $"77.5 miilion annually. Because no additional state aids were adde@ 8 to offsetthe additional cost, this repeal has effectively increased locai property taxes to finance 9 state operations. 10 Response: The state should reinstate the sales tas exempfion for a11 local government 11 purchases. The exemption must not be coupled with cuts in LGA or HACA. 12 FF Delinquent Property Tas Penalties and Tnterest 13 Issue: Although city finances are affected by property tax delinquencies, cities do not 14 receive any associated penaities and interest on these delinquencies. PenaIties and interest are 15 split evenly between counties and schools. 16 Response: Cities and connties should receive a pro-rata distribution of 50 percent of 17 the penalties and inYerest collected on delinquent property tases with the remaining 50 18 percent to be distributed to schools. 6 League of Minnesota Cities 1 FF-7. Payments for Services to Tax-Exempt Property 2 Issue: Tasable property in many cities is being acquired by nonprofit and govemment 3 entities. Converting the properiy to taac-exempt status can lead to a serious taat base erosion 4 without any corresponding reduction in the service needs created by the property. 5 Response: Cities should be allo�ved to collect payments to cover costs of service in-lieu 6 of property taxes or special assessments from statutorily exempt property owners. 7 FF-8. Truth-in-Taxation 8 Issue: The legislature created the truth in taxation process in 1993 as a replacement for �'�-�v 9 state-mandated levy lunits. The 1997 legislature re-enacted levy limits for many cities, yet the 10 truth in taxation requirements remain. The 1997 legislature also changed the parcei-specific i l notice of proposed property taxes to separate the effects of local spending decisions on 12 proposed taxes from the effects of factors beyond local control such as changes in valuation or 13 legislative changes to the class rates or state aids. 14 Response: Changes made in 1997 to the truth in taxation notice will hopefully clarify 15 the roles and responsibilities of the state and local governments. But modifications may 16 be necessary if the new form proves to be too confusing to taspayers. In addition, cities 17 need more flexibility in the truth in taxation process. Cities shouid be able to schedule 18 their initial hearings that may conflict with others' hearings, if no other dates are 19 available. Cities should have the anthority to increase the final levy from the preliminary 20 levy. 1948 City Policies 7 II FF-9. Sfate Deductions from LGA Issue: State administrative costs are deducted from the LGA appropriation. This reduces the 3 property tas relief provided by LGA and creates hidden appropriations for state agencies. 4 Response: All appropriations from LGA resources that fund state operatians should 5 be repeated. 6 FF Reporting Requirements Issue; Budget and financial reporting requirements imposed on cities by the state often result 8 in duplication and additional costs. 9 Respor:se: Requirements for reportiag and ad�rertising financial and budget 10 information shonld be carefully weighed to balance the validity of fhe state's need for a 11 additionai information wifh the costs and burdens of compiling and submitting this 12 information. In addiHon, ail state agencies should be aware of the information already 13 required by others to avoid duplicarion of reporting requirements. 14 FF-ll. Federal Budget Cutbacks 15 Issue: Conb essionaI actions to balance the federal budget will reduce federal assistance to 16 the state and to tocal govexnments. t'7 Response: The state should aot reduce aids or increase fees to local governments as a 18 means for dealing with cutbacks in federai revenues. The state shouid take responsibility 19 for reductions in federal revenues rather than placing the burden on cities and their 20 propeth� taxpayers. 8 Leanue of Minnesota Cities ��-�� 1 FF-12. Local Performance Aid 2 Issue: When the 19961egislature created the local performance aid program, the legislation 3 was vague and the program was partially funded by cuts in HACA. In the future, the 4 requirements for applying for the aid could become an onerous mandate on cities and undermine 5 local decision-making. b Response: The League strongly supports efforts by cities to improve the efficiency and 7 effectiveness of their operations, including exercises such as Qerformance measurement 8 systems. However, these efforts should be local initiatives rather than state mandated 9 actions. Therefore, the League opposes LPA. If local performance aid is to be continued: 10 • The law must be c►arified and the qualification requirements must be attainable by all 1 I cities regardless of city size or staffing levels. 12 • A11 additional funding must come from new revenue sources rather than shifts of aid 13 from other programs such as LGA and HACA. 14 • The program must not bewme an anerous mandate requiring additional city resources. 15 • Any information on individual cities that is collected from the program must not be 16 used to simplistically compare cities. 17 FF Price of Government 18 Issue: The price of government legislation enacted in 1994 was intended to measure the 19 overall effect of state and local taxation over a long period of time. The targets measure 20 government revenues as a percent of personal income. Unfortunately, the tazgets have been 21 misinterpreted and used unfairly to criticize city tax and budget decisions. 1998 City Policies 9 9 �-�t? Response: The price oFgovernment statutes as they apply to local governments shoutd 2 be repealed, If the price of government law is to continue to be applied to local 3 governments, price of government calculations should be: 4 • based on the sum of levy and state aid, not just levy; and • based on long-term trends, not single year events. 6 FF DeveIopment Fees Issue: New development and the resulting growth creates an increased demand for 8 public infrastructure and other public facilities. Severe constraints on local fiscai resources and 9 dramatic forecasts for poputation growth have prompted ciries to critically reconsider ways in 10 which we pay for the inevitable costs associated with new development. Traditional financing 11 methods tend to subsidize new development at the expense oF the existing community, 12 discourage sound land use planning, place inefficient pressures on public facilities, and allow 13 underutilization of existing infrastructure. Consequently, local communities are exploring 14 metkods to assure that new development pays its fair shaze of the true costs of growth. Given the 15 existing authorization to impose fees on new development for water, sanitary and storm sewer, 16 and park purposes, it seems reasonable to extend the concept to additional public infrastructure 17 and facilities improvement also necessitated by new development. 18 Response: The legislatare should authorize cities to impose developmenf fees so fhat 19 new development pays its fair share of the off-site, as well as the on-site, costs of public 20 infrastructure and other public facilities needed to adequately serve new development. 10 League of Minnesota Cities q�- (o I FF-15. Residential Nonhomestead Property Tax Relief 2 Issue: Residential nonhomestead properties (one to three units) aze in need of property ta�c 3 relief. This is particulazly true of duplexes and triplexes, which did not enjoy the same amount 4 of property tax relief in the 1997 tas bill as did single unit rental property; therefore, these types 5 of property should be tased alike. Eliminating the distinction between single unit rental, 6 duplexes, and triplexes will simplify the property tax system by eliminating a class of property. However, granting rental property all the tas advantages of homesteaded property may 8 decrease homeownership and could have a destabilizing impact on Minnesota cities. Homestead 9 property should continue to enjoy preferential tax treatment relative to other classes of property. 10 Under no circumstances should the class rate applied to residential nonhomestead property be I 1 less than the ciass rate that is applied to second-tier homestead property. 12 Response: The League of Minnesota Cities supports maintaining the property tax 13 distinction between homestead and rental property. The League also supports combining 14 all one to three unit nonhomestead residential property into a single class of property with 15 a single class rate. This single class rate should be reduced to, but not below, the class rate 16 currentiy applied to second-tier homestead and rental property. 17 FF Electric Utility Taxation 18 Issue: Part of the discussion regarding possible deregulation of the electric power industry has 19 centered on electric utility taxation. Proponents of deregulation assert that if effective free market 20 competition is to replace govemmental regulation, state tax policy must be changed to "level the 21 playing field" or ensure competitive parity. The main focus of the Investor Owned Utilities (IOUs) 22 so far has been removal of the attached machinery or personal property tax. Utilities subject to the City Policies ll 9 �-!a 1 tax argue that iT places them at a competitive disadvantage to non-Minnesota companies, Rural 2 Electric Cooperatives (Co-ops), and Municipals. Ho�vever, accurate comparisons of tax burden are 3 difficult, as other states use completely different taxing sysTems. Additionally, Co-ops do pay the 4 tax on some of their property and Municipals make substantial payments in lieu of taxes. Utility personal property can be a significant portion of the local tax base in all cities. Most 6 obviously afFected aze cities that have power plants; however, transmission and distribution 7 equipment account for over half of the persona] proper�y taxes paid by the IOUs and exist in neazly 8 every city. Replacing the revenue that would be lost to cities, counties, school districts, and other 9 local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources 10 of such a replacement revenue would be difficult to decelop and administer, and could be subject to 11 reductions or elimination over time. Furthennore, replacement revenues or aids may not fully 12 address ttie problems created by a large tax base reduction. 13 Response: Cities oppose proposals for exempting the IOUs from the personal property tax. 14 Under no circumsfances should local units of govemment and their taxpayers be required to I S shouIder the burdens of tax relief for IOUs. Any effort to remove the personal property tax 26 mast make cities and other iocal taxing jurisdictions whole in all respects. i � IMPROVING LOCAL ECONOMIES 18 LE-1. Tas Increment Financing 19 Issue: The State of Minnesota has effectively delegated the responsibility for economic 20 development and redevelopment to cities. Unfortunately, neighboring states have given their 21 cities more development tools and, therefore, cities in these states have a competitive advantage lz League of Minnesota Cities i over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to 2 all cities in their economic development and redevelopment efforts. The State, whether based on a 3 lack of information or misinformation, has been critical of cities' use of the tool and has 4 implemented a series of restrictions over the past several years rather than partnering with cities 5 and encouraging their endeavors to improve and enhance the economic well-being of Minnesota 6 and the growth and redevelopment of its cities. Cities, required to assume the financial risks 7 associated with development decisions, have used tax increment financing responsibly and 8 examples of these positive uses abound. A legislative task force was created by the 1997 9 legislature and directed to recodify the tax increment statutes for the purpose of simplification 10 only, with no policy implications. 11 Response: To effectively compete with other states, Minnesota must provide its cities 12 greater flexibility in the use of tas increment financing and other economic development 13 programs. In light of substantial changes to the tax increment statutes over the past several 14 years, the legislature should not make major policy changes in 1998. The State should 15 partner with cities in economic development and redevelopment activities and encourage 16 cities' use of taac increment in achieving the laudable goals of long-term tas base stabilization 17 and growth, job creation, development of low-to-moderate income housing, remediation of 18 pollution, elimination of blight, recycling and redevelopment of the infrastructure, and 19 redevelopment of its communities. Counties and school districts are appropriately involved 20 in cities' �levelopment decisions through current "review and comment" requirements. The 21 legislature should reject any recommendations from the TIF recodification task force which 22 have policy implications. If 199$ becomes a year for major changes in TIF policy, the 23 legislature should: City Policies 13 1 • remove eicisting restrictions to property included in a deferred assessment program within 2 the last five years (e.g., green acres); 3 • authorize any ta�e increment districts approved after April 1, 1990 to pool increments in 4 the same manner as districts certi�ed prior to April 1, 1990; 5 • in light of levy limits, eliminate the LGA/HACA penalty currently imposed on districts or 6 allow an exception from levy Iimits. If fhe penalty is not eliminated, the restrictions on 7 the sowrce of payment should be removed; 8 • expand the use of tas increment financing to assist in the development of technological 9 infrastructure, job training, the restoration of historic structures and for non-retail 10 commercial projects (e.g., software companies, banks, and insurance companies); 11 • exempt redevelopment districts from the "five year rule;" and 12 � modify the housing district income quali�cation level requirements to allow the levels to 13 vary according to those specific to individual communities. 14 In any event, consistent with the legislative TIF task force's recodiScation, the 19981egislature 15 should make technical changes, including, but not limited to: 16 • requiring Yhe Department of Revenue's definition of tax increment fo be consistent with the 17 new statutory def►nition of tax increment; 18 • authorizing the use of federal grants and other funds for local contributions; 19 • removing the LGA/HACA penalTy imposed on housing districts established between the 20 penalty years of 1990 and 1993; 21 • requiring the Office of the State Auditor to simplify their TIF reporting forms in 22 consultation with those required fo complete the forms; 23 • authorizing TIF financial information to be published en a more simpiiTied format so that ii 14 League of Minnesota Cities provides the average taxpayer with useful information; and 2 � providing cities with adequate administration financing. 3 LE-2. Property Tax Reform, Levy Limits, and TIF 4 Issue: Future proposals to reform the property tax system from the investor-owned utilities, 5 commercial and industrial groups, or others could have significant implications for tax increment 6 financing districts. For example, if property class rates are further compressed, existing tax 7 increment financing districts could experience additional revenue shortfalls which, in turn, could 8 jeopardize the repayment of outstanding debt or other obligations. Given the long-term nature of 9 properry tax reform, cities could not have anticipated the impact of the 1997 class rate changes nor 10 can cities project the impact of future changes. The $2 m911ion provided by the 1997 legisiature I 1 for grants where the class rate changes cause TIF district deficits, while critically needed, is likely 12 to be insufficient to cover every deficit, does not provide timely reimbursements, and is 13 administratively confusing. Additionaily, several cities have pledged only the city property tax 14 portion to a project. Under levy limits imposed by the 1997 legislature, these cities will be unable 15 to meet these obligations. 16 Response: Any future proposals to reform the property tax system must provide for state 17 resources in an amount sufficient to cover any and all TIF district deficits. Additionally, if 18 fhe $2 million is insufficient to cover the deficits caused by the 1997 class rate changes, the 19 legislatu� e should provide additional state resources so that TIF obiigations can be met and 20 third party bondholders are protected. The legislature should also bring clarification to the 21 administration of the grant process and should require timely reimbursement. The 22 legislature should repeal levy limits. The legislature shouid provide resources so these 1998 City Policies 15 1 projects are held harmless from the ramifications of property tas reform. 2 LE-3. Economic Development Programs 3 Issue: The Minnesota Investment Fund is not adequately funded. The State does not 4 authorize an adequate slate of tools for IocaI governments to assistjob creation, redevelop bli�ht 5 and decay, and provide adequate housing choices. Consequently, cities are not well equipped to 6 compete nationally and internationally for business development. 7 Response: 8 • More state resources should continue to be contributed to the Minnesota Investment 9 Fund. 10 • In the event that the LGA/IIIACA penalty is not eluninated, a portion of the revenues 1] should be contributed to the Minnesota Investment Fund. These funds would then be 12 available for cities to retain businesses in the state and to attract business looking to 13 relocate from other states. 14 • The state should establish a new grant program that would provide funds to cities to IS establish a Revolving Loan Fund targeted to gap �nancing for projects creating jobs. The 16 funds would be awarded to cities through a competitive grant program in which the 17 award is based on community need and local development capacity. The approved 18 applications would be funded strictly on the aForementioned criteria as weIl as Yhe city's 19 development program and development priorities. The State would not be in the business 20 of reviewing projects with respect to speci�c companies and specific loans. These grants 21 would be in an amount up to $250,000 and would facilitate four to �ve initial local loan 22 projects. Local governments should be given the flexibility to utilize these funds � League of .NIinnesota Cities � �-ro 1 throughout the city without any geographical restrictions. The funds to the communities Z would be used to develop subordinated mortgages that are integrafed with the primary 3 financing of a particular project. The loan could be utilized for retention as well as new 4 jobs. The respective community would be required to "recapture" the funds and also to 5 de��elop the appropriate collateral to protect the integrity of the Revolving Loan Fund. In 6 the event that the LGAlHACA penatty is not eliminated, a portion of the revenues should 7 also be contributed to the Revolving Loan Fund. ; 8 • Congress shouid remove the caps that have been placed on Industrial Development Bonds i 9 and acknowledge that the eartensive eligibility requirements now adequately limit their 10 use. 11 LE 4. Redevelopment of Developed Communities 12 Issue: Developed communities across the State of Minnesota are faced with the unique 13 circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and downtowns and 14 a lack of land for deve]opment. Redevelopment activities usually require large, up-front funds to 15 address multi-phase projects of extensive duration wUere site assemblage, demolition, relocation, or 16 pollution clean-up must occur before private-sector interest can be generated. The lack of a coherent 17 statewide policy and the State's unwillingness thus far to provide financial support has and will 18 continue to contribute to the increasing problem of urban sprawl. 14 Respc.nse: In recognition of the unique needs of redevelopment projects, the State should 20 make a commitment to reinvest in its developed communities and should undertake a 21 comprehensive approach �vhich provides financial assistance to address their redevelopment 1998 City Policies 17 �,Y Q l needs. 2 LE Property Tax Abatement Authority Issue: In an effort to increase the number of development tools available, the 19971egislature 4 authorized local units of govemment to grant property tax abatements. While generally supportive 5 of additional development tools, cities did not promote this legislation. Abatement authority was 6 never intended to replace existing ta�c increment financing authority. Abatement is not an adeguate 7 replacemenY for TIF, particularly in redevelopment projects which typically have higher costs. In 8 addition, abatements were placed within the parameters of levy limits, thus, for Yhe neYt two years, 9 the "increase" in taaces cannot be accessed to facilitate projects: 10 Response: TIF is still the primary v4able development tool available. Abatement authority 11 should be available but it should not be offered as a rationaIe to eliminate TIF. If abatement 12 authority is to be at all effective, tax abatement projects need to be considered "ouYside" of levy 13 limits. 14 LE-6. Brownfietds I S Issue: Brownfields are lands that are not suitable for development due to the presence of 16 chemical or other contaminants. Brownfrelds are a major cause of blight within communities 17 across the state through loss of local tax base, jobs, housing qualiry, public safery and community 18 confidence. Revitalizing this Iand is costly and requires the cooperation of city, counry, school, 19 regional, state and federal governments and the assistance of local economic development 20 organizations and citizens. As we move into an era where che chass creation of jobs is a necessity 18 League of Minnesota Cities � �r �-ro 1 and where increased tax base is a requirement for local governmenu to adequately face growing 2 financial pressures, efforts to revitalize brownfields must not oniy continue but be accelerated in 3 the upcoming years. The 1997 legislature re-authorized $7 million for the Department of Trade 4 and Economic Development's (DTED) contaminated site clean-up fund and this amount was added 5 to the Department's base. Additionally, $6.2 million will now be appropriated annually from the 6 Petrofund to DTED to be used to clean petroleum-related contamination without the requirement 7 of an identifiable tank source. Response: A comprehensive set of economic development programs must be maintained 9 for cities and other development agencies. The legislature should: ] 0 • increase funding for the Department of Trade and Economic Development's contaminated I 1 site clean-up fund; 12 • act to strengthen enforcement and wllection of revenues for the state contamination taY; 13 • continue support for and funding of local and regional programs to assist in the efforts to 14 remediate brown�elds; l5 • establish a fully-funded program to ailow cities and other development authorities to gain 16 control of and reclaim and revitalize brownfietds; 17 • protect existing tax increment �nancing provisions that provide for the remediation of 18 brownfields and modify restrictions to allow the pooling of district revenues to assist in 19 the financing of remediation of brownfields; 20 • estabtish an indemnification fund to provide financial security for institntions and 21 individuals as they invest in efforts to recycle brownfields in order to leverage private 22 investment in cities' efforts to increase their tax base and create jobs; and 23 • continue the petrofund as a�nancing mechanism for cleaning contaminated sites. 1998 City Policies 19 9�-�0 1 LE-7. Growtk Management and Annexation 2 Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, and 3 governmental impact for cities, counties, and state governments because it increases the costs of 4 providing government services and results in the loss of narural resource areas and prime 5 agricultural land. 6 Response: The League believes that the existing framework for guiding grovvth and 7 development primarily thraugh local plans and controls adopted by ]ocal governments should 8 form the basis of a statewide planning policy and that the state should not adopt a mandatory 4 comprehensive statewide planning process. Rather, the state should: 10 • provide additional �nancial and technical assistance to local go��ernments for cooperative I I planning and growth management issues, particuiarly where new comprehensive pIans 12 have been mandated by the legislature; 13 • clearly establish the public purposes served by existing statewide controls such as 14 shoreland zoning and wetlands conservation; clarify, simplify, and streamline these 15 controls; eliminate duptication in their administration; and fully deFend and hold 16 harmless any local government sued for a°taking" as a result of executing state land use 17 policies; 18 • give cities broader authority to ea�tend their zoreing, subd'evision, and other land use 19 controls up to two miles oufside the city`s boundaries regardless of the existence of county 20 or township controls, in order to ensure conformance with city facilities and services; 21 • clearly de�ne and differentiate between urban and rural development and restrict urban 22 growth outside city boundaries; 23 • require fhe Metropolitan Council to seek cooperation from the State of R'isconsin and 20 League of Minnesota Cities 9�-to I counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure ? responsible and controlled development, study expansion of i�Ietropolitan Council i authority in surrounding counties, and examine the positive and negative impacts of 4 mandatory regional or local land use controls and state-imposed development standards; 5 and 6 • facilitate the annexation of urban land to cities by amending state statutes regulating 7 annexation to raake it easier for cities to annex developed or developing ►and within 8 unincorporated areas. 9 LE -8. State andlor County Licensed Residential Facilities (group homes) 10 Issue: The need for more residentiai-based care facilities resulting from state policies makes 11 it clear that the state must also ensure there is sufficient funding to assure that residents living in 12 group homes and licensed facilities have appropriate care and supervision. In view of the 13 responsibilities cities have to accommodate group homes and residential-based facilities, it is 14 important that state and county units of government make every effort to work with local officials IS to make sure that adequate care and public safety concerns are addressed. Cities must also be 16 aware of special care needed by group home residents in case of public safety emergencies. Since 17 operators of certain residential facalities and services are not required to notify cities when they 18 intend to purchase housing for this purpose, cities have insufficient opportunity to address special 19 care and �ublic safety needs that these residences may require. 20 Response: The legislatnre shouid require state and county agencies which operate or 21 license companies that operate residential-based facilities notify cities in a timely manner and 22 allow opportunity for cities to respond regarding the status o#� facilitv license requests and 199$ City Policies Zl 9�-/O 1 renewals and the special care needed by residents in case of public safety emergencies. 2 Legislation should also include provisions requiring establishment of non-concentration 3 standards and direction to avoid clustering residential facilities. Licensing authorities must 4 also be responsible for removing any residents found incapabte of living in such an 5 environment, particularly so they do not become a danger to themselves or others. 6 LE -9. Affordable Housing 7 Issue: Many families are unable to afford housing, and cities ofren lack resources at the local 8 level to provide housing far families or to develop housing a(ternatives fo: aging populations that 9 are within their means, particularly in smaller cities. The resutting circumstances limit economic 10 development and weaken the city's tax base. 11 In areas outside the five MSA regions, housing stock is aging and generally older than in more 12 urban locations. U.S. Census figures for 1990 indicate that more than 30 percent oF housing units 13 in those areas were built prior to 194Q as compared with the high rate of new housing 14 construction within MSA locations, particularly in the twin cities metro area where 59 percent of 15 housing units built in the `80's are located. 16 Almost half the households in the state paying median rental housing costs exceeded the level 17 of affordability, according to the latest census. The ratio of housing affordability for low-income 18 renters is also increasing, raising more concern at the local level about the prospect that this 19 portion of the city population wili be less likely to become homeowners. Oider homeowners often 20 reside in housina that is affordable to first-time homebuyers, but o�ten want to remain in their 21 homes as long as possible. By the time they do move, the property may have become run-down. 22 As a result, the home often becomes rental property with minimal improvements undertaken by 22 League of Minnesota 9�-!0 1 the new owners. 2 Response: Federal, state, and local government must pursue policies which encourage 3 public-private partnerships to make it possible for cities, lending institutions, and developers 4 to initiate projects that meet locai housing needs. The state should continue to provide grants 5 and loans from state revenue sources and streamline multiple MHFA-administered programs 6 to create a larger pool of state funding with more flexible criteria and guidelines to make it 7 easier for cities to apply for and make use of state housing assistance programs. The state 8 can also assist cities by establishing priorities for the use of those funds on the basis of state 9 housing policy far which cities and developers can apply based on their specific project 10 activities and locally determined objectives. 11 State housing policy should focus more resources on preservation of existing housing stock 12 as an effective way to promote and retain affordable housing. More also needs to be done to 13 reduce the cost to older homeowners of moving into assisted living or other housing designed 14 for the elderly, such as patio homes and to match up �rst-time homebuyers with affordable 15 properties and to make more "6x-up" programs available at the local level. 16 Among the state-sponsored initiatives and policies the League supports to encourage 17 production of affordable housing are: 18 • exempting construction of low-income housing from the state sales tas; 19 • a state low-income housing tax credit program; 20 • making it easier for cities with affordable housing programs to use tas increment 21 financing or taY-exempt revenue bonds (IRBs); and 22 • exemp�ing public agencies, including HRAs, from the state deed and mortgage transfer 23 tax. 1998 City Policies 23 q �-/D Cities mnst also have sufficieret local aathority and the flexibility to undertake housing 2 projects to meeY their nnique housing needs and must be able to leverage federal and state 3 resources to do so. Bringing Yogether crime prevention specialists and those �vorking to 4 develop new affordable housing units shouJd also be encouraged to imprave access to 5 affordable housing while supporting neighborhood safety and commii�aity liia.bility. 6 LE-10. City Role in Telecommunications 7 Issue: Cities are facing increasingly complex challen;es in respondin� ro and plannin� tYcei; 8 own telecommunications futures. Cities need support at the state and federal (evel to assure tha[ 9 community residents, businesses and non-profit organizations benefit from the com�ergence of 10 electronic ittformation technology, telecommunications, communications, video, and cable 1 I television service delivery. 12 Response: Congress and the legislature should support and encourage local government 13 planning and authority to provide public services and assure the benefits of broadband 14 telecommunications and wireless communications for their communities and residents by: 15 • making it easier for cities to own and operate telecommunications utilities, in part by 16 amending Minn. Stat. § 23719 to authorize cities to construct and operate a telephone 17 exchange by a simple majority vote of its electorate, rather than the current 18 supermajority vote of 65%; 19 • recognizing the changing nature of the public-private partnership in which multiple 20 providers may compete to deliver telecommunications services; 21 • upholding ►ocal authority to establish telecommunications policies and plans that respond 22 to community needs; 24 League of Minnesota Cities g� �o 1 • preserving city authority over matters directly affecting communities, including: 2 construction standards, permitting, insYallation methods, construction scheduling and 3 coordination, degradation of rights-of-ways, cost recovery, city use of telecommunicafions 4 resources for local public, education, government access and I-Nets; 5 • aiding cities to develop community-based information services so that residents with 6 limited income benefit from access to local and wide-area broadband networks and information services; 8 • supporting local authority to require providers of open video systems to provide public, 9 educational and government access; 10 • making sure cities are allocated adequate spectrum on the 800 MHZ radio frequency for 11 public safety and emergency response. 12 Cities are encouraged to: 13 • develop a telecommunications plan identifying community priorities and values and 14 setting forth how the city intends to encourage competition in the local market while 15 ensuring taxpayer investment in public infrastructure is protected; 16 • determine how to implement new federal and state telecommunications laws and 17 regulations to create conditions to attract teleeommunications to make them widely 18 availabie to city residents and businesses; 19 • examine cunent ordinances to take into account how to respond to multipie requests to 20 instatl wireline communications or to erect cellular, personat communications service 21 (PCS) and other wireless communications towers and antennas; 22 • treat all providers on a neutral and nondiscriminatory basis; 23 • seek broad access to advanced telecommunications services including bandwidth and 1998 City Policies 25 � �-.�o 1 spectrum for public safety and emergency response; 2 • provide for institutional networks (I-Nets) through cable franchise aareements with local 3 operators !o acquire a portion of a broadband network and other ad� ance 4 telecommunications resources; 5 • consider installing city-owned and operated broadband netrvorks or forming partnerships 6 to do so where the marketplace fails to provide the infrastructure and/or services; 7 • investigate and develop applications for those networks to deliver public services using 8 advanced telecommunications; 9 • take an inventory of unused, under�sed and(or abandoned conduit in the right-of-way, in 10 easements, or on city-owned property to make use of those resources in developing needed 11 localinformation inFrastructure. 12 LE-11. Redesign of Electric Utility Regulation 13 Issue: Policymakers at the state and federal levels are considering ways in which to bring 14 competition into the electric utility industry. Without a cautious approach which incorporates 15 careful consideration of the implications of any deregulation scheme for all consumers of electric 16 energy, it is possible that only the largest consumers of electric energy would experience true cost 17 savings and other benefits ofren associated with competition while the smail customers, individuals 18 and small businesses, may actually see rate increases. Additionally, city interests in tax base 19 stabiiity and managing and obtaining compensation for the use of public rights of way by utility 20 companies are often overlooked in electric utility restructuring discussions. 21 Cunently, the discussion regarding possible deregulation of the eleccric power industry in 22 Minnesota has centered on electric utility taxation. Proponen[s of deregulation assert that if 26 League of Nlinnesota Cities q� (D 1 effective free market competition is to replace governmental regulation, state ta�c policy must be 2 changed to ensure competitive parity among both inuastate and intersTate producers. The main 3 focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or 4 personal property tax. Utilities subject to the tax argue that it places them at a competitive 5 disadvantage to non-Minnesota companies as weli as Minnesota Rural Electric Cooperatives (Co- 6 ops) and Municipals. However, accurate comparisons of tax burden are difficult, as other states 7 use completely differenc taxing systems. Additionally, Co-ops do pay the tax on some of their 8 property and Municipals make substantial payments in lieu of taxes. 9 Utility personal property can be a significant portion of the local tax base in all cities. Most 10 obviously affected are cities that have power plants. However, generation and transmission 11 equipment accounts for over haif of the personal property taxes paid by the IOUs, and exists in 12 nearly every city. Replacing the revenue that would be lost by cities, counties, school disuicts, 13 and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and 14 funding source of such a replacement revenue would be difficult to develop and administer, and 15 would be subject to reduction or elimination over time. 16 Response: A cautious, deliberative approach to restructuring the electric utility industry 17 is necessary to preserve the level of service to which Minnesota consumers of electric energy 18 have become accustomed. Additionally, it is crucial that cities have a place at the table in 19 deregulation discussions and that they retain their local authority to manage, and obtain 20 compensatioa for, the use of public rights of way, and that neither cities nor their taxpayers 21 are asked to shouider the burdens of any tas relief provided IOUs. Finally, every effort 22 should be made to ensure that additional responsibilities and financial burdens are not 23 shifted to the local level. 1998 City Policies 27 �' �-! 0 LE-12. Adequate Funding for Transportation Issue: Current funding for roads and for transit systems across all eovernment levels in the 3 state is not adequate. 4 Response: Minnesota should value, and adequately fund, all transportation sgstems in the 5 state. The state needs to provide an objective basis to determine the complete needs of the 6 road and transit systems, their present condition, and their impact on the economic health of 7 the state. This should include acknowledgment that delaying current expentlitures wiIl 8 increase costs in the future. The League of Minnesota Cities supports an increase in the gas 9 tas and urges removing fhe e�risting restrictions on its use so that gas tas revenues can be 10 used for all transportation projects and programs, not just road construction and 11 maintenance. The legislature should institute additional revenue sources that can be 12 dedicated to all transportation programs. Cities should receive revenues necessary to meet 13 present and future transportation needs. If lunding does not come from the stafe, cities 14 shouId have funding options available to them to raise the dollars necessary to adequately 15 fund roads and transit. 16 With the exception of funding for the state patrol, ali nontransportation programs should 17 be funded from a source other than the highway user distribution fund. The revenues of the 18 highway user distribution fund are coliected from transportation users and should be I9 dedicated to transportation-related services. 2o LE-13. State Aid for Urban Road Systems 21 Issue: Current rules governing municipal state aid e?cpenditures aze restricting the efficient use 28 League of i�'Iinnesota Cities 9�-to 1 of these funds and do not adequately acknowledge the constraints of road systems in urban city 2 environments. Response: Rules affecting the municipal state aid system need to be changed to 4 acknowledge the technical and practical restrictions on construction and reconstruction of 5 urban road systems. New municipal state aid design standards should not apply to 6 reconstruction of existing state aid streets that were originally constructed under different 7 standards. Future changes to state aid rules should ensure the involvement of elected officials 8 and engineering professionals in the decision-making process. 9 LE State Aid Roads in Contiguous Cities Under 5,000 10 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their collector 11 and arterial streets. 12 Response: State statute should be modified to encourage cooperation and improved 13 transportation systems by allowing contiguous cities that jointly represent a combined 14 population of 5,000 or more to be eligible for Municipal State Aid (M.S.A.). Participating 15 cities would enter into a formal joint powers agreement and establish a joint budget that would 16 be governed by a board of elected officials. Cities that participated in this joint entity would 17 not be required to undertake any formal consolidation activities. 18 Cities under 5,000 population that were not eligible for M.S.A. through this cooperative 19 agreement practice should be able to use county municipal accounts and the five percent 20 account of the highway user distribution fund. 21 Uses of county municipal accounts shou4d be statutorily modified so that counties can 22 dedicate these funds for local arteriais and collector streets within cities under 5,000 1998 City Policies 29 �'�-�o 1 population. In addition, the five percent set-aside account in the highway user distribution 2 fund should be used to meet this funding gap. 3 LE-15. Turnbacks of County and State Roads 4 Issue: As road funding becomes increasingly inadequate, more roads ate being "tumed back" to 5 cities from counties and the state. 6 Response: Turnbacks should not occur without direct funding or transfer of a funding 7 source. A process of negotiation and mediation should govern the timing, funding, and 8 condition of turned-back roads. City taxpayers should receive the same treatment as township 9 taxpayers. The requirement for a pnblic hearing, standards about the conditions of turnbacks, 10 and Yemporary mainteuance funding shouid a[so apply to county turnbacks to cities. At a 11 minimum, proposed roads to be turned back to a lower government level should be brought up 12 to the standards of the receiving government or should be compensated with a direct payment. 13 Direct funding should be pxovided for smaller cities that are not provided with turnback 14 financing through the municipal state aid system. 15 LE-16. Cooperation Between Counties and Cities Over County Roads Within 16 Cities 17 Issue: Some counties want increased control over county roads that lie within city boundazies. 1$ The statutory mechanism for resolving disputes between counties and cities over the construction, 19 reconstruction, or expansions of state-aid highways that extend within city corporate timits is 20 inadequate. Under current law, only The county may request that a dispute resolution board 21 (`boazd") be established and the boazd's role is not to assist the parties in attempting to resolve their 30 League of Minnesota 9� �o 1 dispute. Instead, the boazd has the authority only "to review the propose change, and make a 2 recommendation to the Commissioner." It is the Commissioner of Transportation who ultimateiy 3 makes the fmal decision on whether to "approve the establishment, construction, reconstruction, or 4 improvement of a county state-aid highway recommended by the boazd." The statute does not 5 outline any formal due process that must be followed to ensure fairness to all parties. Additionallp, 6 there is no mediation or non-binding azbitration prerequisite as exists in other azeas of law dealing 7 with dispute resolutions. Response: The Legislature should provide a mediation or non-binding arbitration 9 alternative to assist parties in reaching a resolution on their own �vithout involving the 10 Commissioner. Additionally, to ensure that sound recommendations are made by dispute 11 resolution boards, formal due process and speciSc criteria should be established. For 12 situations where negotiations do not produce an agreeable resolution, cities should be 13 authorized to request that a board be established. 14 LE-17. Management of Rights-of-Way I S Issue: Demand for all types of uses of rights-of-way, both surface and subsurface, is increasing 16 exponentiaily, forcing consideration by cities of how best to allocate this very limited resource. 17 Because public rights-of-way have been acquired at public expense through local property tax 18 sources or other local action, cities have traditionally had the fundamental responsibility and 19 attendant liability for facilitating the safety and convenience of all right-of-way users. Rights-of-way 20 management responsibilities are complex, numerous, and site specific, as are the particular interests 21 of cities in establishing a value for private use of public space in the local rights-of-way. These 22 factors underscore the fact that rational and expeditious decisions can only� be made at the local level. 1998 City Policies 31 q �-� a . i Cities support existing federal nondiscrimination requirements that local administration not 2 impose unreasonable delays or burdens on access, entry, or other reasonable use of rights-of-way. 3 Cities should be authorized, as provided in federal law, to reqaire telecommunications providers to 4 meet local requirements for pubiic, educationat, and government access to their networks as well as 5 financial and technical support for such actions. 6 Local rights-of-way are a iimited and valuable assei held in trust by municipalities for the pubIic. 7 Unlike other businesses which pay for tiie use of public rights-of-way, teIephone companies 8 currently pay property taxes only on a fraction of their faciIities Iocated in pubiic rights-of-way and 9 nothing for the vatue of the right to use them. 10 Response: 11 • The responsibility for managing and protecfing public rights-of-way must remain with 12 cities and ofher units of government entrusted with protecting the health, safety, and 13 convenience of fhe community. I4 • Construction and safety standards are of paramount importance to cities, and consistent I S with respective industries' desire for uniformity, should be developed by the municipal 16 engineering community for adoption by cities to ensure effective rights-of-way 17 management. 18 • Cities and other governmental units responsible for the protection and management of 19 public rights-of-way should be authorized to require reasonable compensation which 20 reflects the policy and fiscal objectives of their community. 21 • The courts should remain the primary forum for resolurion of allegations that communities 22 have exercised their authority in an unreasonable, arbitrary, or capricious manner. 32 League of Minnesota Cities Q.�=to LE-18. Communications Tnfrastructure 2 Issue: Cities must retain authority to provide for development of effective local information 3 in&astructure including public, educational, and govemment (PEG) access channels and institutional 4 nerivorks. Sufficient technical and financial support from telecommunications service providers is � 5 necessary to assure that both traditional and advanced services and applications, including both 6 wired and wireless telephony, video, data and Internet services as well as PEG access are localiy 7 available. Response: The legislature should support local authority to develop, own, and operate 9 information infrastructure and services to require that voice, video, and data communications 10 nehvorks provide channel spectrum and resources sufficient to meet local information and 11 communications needs, assure public safety and convenience, and provide local information 12 and community programming and services. 13 LE-19. Effective Telecommunications Competition 14 Issue: Effective telecommunications competition will not arrive simultaneously in all cities or 15 markets. In the transition to an effectively competitive marketplace, which will yield better services, 16 affordability and deployment of technology to meet community needs, consumers need protection 17 from possible market abuses. 18 Response: Federal, state, and local governments must coordinate efforts to protect 19 consumers and encourage emergence of effective competition to make it possible for 20 communities to participate in the global economy through a local information infrastructure 21 that provides benefits to residents, business, and industrv. 1998 City Policies 33 �r�-!a 1 LE-20. Local Zoning Regulation of Telecommunications Service Providers 2 Issue: Cities must have authority to govern the use of property by telecommunications service 3 providers through zoning regulations without unnecessary state and federal intervention. 4 Response: The Federal Communications Commission and the state legislature should 5 continue to uphold local government authority to adopt and enforce local zoning regulations of 6 telecommunications service providers as reaffirmed in the federal Telecommunications Act of 7 1996. 8 LE-21. ISTEA Reauthorization 9 Issue: Cities have an important stake in the reauthorization of the federal Intermodal Surface 10 Transportation Efficiency Act (ISTEA). Since its enactment in 1991, ISTEA has assured cities of a I 1 key role in planning as weIl as benefits of funding for project enhancements and pollution 12 mitigation. ISTEA expires on September 3Q at the end of this fiscal year. ISTEA has been 13 successfully implemented in Minnesota, with a sYrong focus on partnerships, local decision-mal:ing, 14 funding flexibility and emphasis on inter-modal transportation. 15 Response: Congress should reautharize ISTEA this session to continue support for the ne�v 16 era of transportation investments in which cities can work cooperatively with the Minnesota 17 Department of Transportation (MnDOT) to address local and regional transportation 18 interests. Putting in place locally developed criteria to evaluate programming of limited funds 19 has opened MnDOT programming to recognize regional priorities. Enhanced ISTEA 20 reauthorization �viil allo�r cities to continue to work within the current planning process to 21 address transportation needs. 22 The amount of ISTEA funding in the existing congressional and administration budget 34 League of Minnesota Cities ��-�o allocations does not meet growing needs. Trust fund revenues should be used solely for 2 transportation purposes, and the federal gas tax revenues should be transferred to the 3 Transportation Trust Fund (instead of being used for deficit reduction). 4 Regional planning is a strong component of the current ISTEA program. Congress should 5 support and encourage broadening the federal-state-local partnership and community 6 participation in transportation decision-making. All program categories in the existing ISTEA program should be maintained, in particular the Surface Transportation Program (STP), Transportation Improvement Program (TIP), 9 Enhancement and Safety, transit, Congestion/1�litigation Air Quality (CMAQ), and the 10 National Highway System (NHS) and Bridge Replacement programs. 11 Congress can aid local project imptementation by reducing unnecessarily burdensome 12 regulations and procedures, particularly for smail pro,yects for elements that have Iittle if any 13 negative effects on the environment. There is also a need to examine the relationship between 14 the metropolitan MPO boundary anci U.S. Census boundaries of the Twin Cities Metropolitan 15 Statistical Area (MSA). The MPO in the metro area needs to recognize the broad regional 16 implications of transportation in the 7 counties within Minnesota and the two counties in 17 Wisconsin that are within the MSA. 1s IMPROVING SERVICE DELIVERY 19 SD-1. Redesigning and Reinventing Government 20 Issue: Every level of government is reevaluating, reprioritizing, redesignin�, and renewing its 21 organizational structure and programs in response to financial realities and citizens' needs and City Policies 35 ��-�� 1 problems. Reforms, however, must be more than simply change for the sake of change or a 2 reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and 3 reassignments of govemmental entities and services should save money where feasible, deliver 4 improved services, serve essential needs and be equitably structured. Cities have and will continue 5 to pursue the use of cooperative agreements, the reevaluation of city programs and services, and 6 changesto organizationalstructures. 7 Response: The federal, state, and county governments should: 8 • ensure that in redesigning, reinventing or reassigning government services and programs 9 that the appropriate level of service to citizens is evaluated and citizen demands and 10 expectations are adequately addressed; 11 • promote local efforts through incentives rather than mandates; 12 • communicate and establish a process of negotiation before shifting responsibility for 13 delivering services from one level of government to another or seeking to reduce service 14 duplication; 15 • transfer authority for use of re�°enues dedicated to such programs or provide appropriate 16 and adequate alternatives; 17 • identify and repeal programs or discontinue services which are no longer necessary or 18 which can readily and fairly be pro��ided by the private sector; and 19 • employ existing government entities in redesign efforts rather than create new agencies or 20 units. 21 The League supports cooperative studies of the following issues: 22 • whether the enforcement of human rights laws can best be accomplished by a single state 23 system which would allow local governments to discontinue local enforcement programs; 36 League of Minnesota Cities 1 • whether there should be greater use of statewide or consolidated business licensing, 5�-i o 2 including licensing of sign contractors, to eliminate the need for some businesses to obtain a 3 permit in each city or county; 4 • whether the existing use and structure of Regional Development Commissions can be 5 imgroved; 6 • whether greater use cau be made of block grants to distribute funds related to 7 transportation, sewage treatment, and public water facilities; 8 • whether human services and health programs can be improved by further consolidating 9 their administration at the state and county levels of government; and 10 • whether state and federal environmental and water agencies can be combined or 11 eliminated to avoid inconsistent standards and duplication of responsibilities. 12 SD-2. Unfunded Mandates li Issue: The cost of federal and state mandated programs substitute the judgment of Congress and 14 the President and the legislature and the Governor for local budget priorities. These mandates force 15 cities to reduce funding for other basic services or to increase taxes and service charges. The passage 16 by the legislature of reporting requirements for new state mandates and the passage by Congress of 17 legislation restraining new federal mandates should help address the problem, but other steps aze still 18 necessary. 19 Response: 20 • Existing unfunded mandates should be reviewed and modified or repealed where possible. 21 • No additional statewide mandates should be enacted unless full funding for the mandate is Policies 37 y�-�� 1 provided by the level of government imposing it or a permanent stable revenue source is 2 established. 3 • Cities should not be forced to comply with unfunded mandates. 4 • Cities should be given the greatest flexibility possible in implementing mandates to ensure 5 that their cost is minimized. 6 SD-3. Civil Liability of Local Governments 7 Issue: One of the barriers to the delivery of governmental services and programs is the exposure 8 of tocat govemments and their officiats to civil damage ciaims. The state has acted to protect itself 9 and its local governmenTS by enacting exceprions and limitations to tiabiliry suits and authorizing 10 self-insurance and other mechanisms to deal with claims allowed by law. Additionally, the current ll law which requires district court approval of settlements of claims against municipalities which 12 exceed $10,000 has become burdensome for cities. 13 Response: The League supports: 14 � eliminating joint and several liability, or severely restricting its application to situations 15 where private or public tortfeasors are substantially at fault for the damages incurred; 16 • extending the protection of the state and municipal tort claims act to guasi-governmental 17 entities when performing public services such as firefighting; 18 • existing constitutiona[ safeguards for protecting public and private property interests 19 without any statutory expansion of property rights; and 20 • eliminating the district court approval of settlements requirement or, in the alternative, Z 1 increasing the threshold amount for district court approva] of settlemeats to �100,000. 38 League of Minnesota Cities 1 SD-4. Environmental Protection 2 Issue: State and federal environmental programs are improperly designed to meet their ��-ro 3 stated goals, and impose an undue burden on local governments because of a lack of federal or 4 state financial assistance. The refusal to finance these programs by the governments which pass 5 them has eliminated an essential restraining feature in program design and implementation. 6 Specific problems include: 7 • New programs or standards are continually adopted without regard to the existence, 8 attainability, or cost of existing programs and standards. 9 • Fragmented program adoption and 'unplementation does not ensure prioritization of 10 environmental matters or the establishment of comprehensive environmental protection I1 strategies. 12 •"One size fits all" implementation programs force remedial efforts by local governments for 13 nonexistent environmental problems. 14 • Permit fees and other cost transfer elements of federal and state programs do not provide an 15 incentive for environmental agency efficiency, policy prioritization, or risk assessment. 16 Response: 17 • A comprehensive effort to consolidate, reorganize, and manage state and federal 18 environmental agencies and programs should be undertaken and a partial or full 19 moratorium on new programs or requirements should be considered. 20 • Permit fees should be limited to fifty percent of the agency's direct operating costs in 21 order to promote efficient agency operation and sufficient legislati��e oversight. 22 • 5ufficient state and federal financial assistance should be provided to comply with state 1998 City Policies 9 �-iv. 1 and federal infrastructure requirements, particularly with regard to sewer and water 2 faciliries. 3 SD-5. Personnel, Pensions, and Labor Relations 4 Issue: Many state taws increase the cost of providing city service to residents by requiring 5 city govemments to provide certain leveis of compensation or benefits to public employees, 6 specify certain working conditions, or limit city governments' abiliry to effectively manage their 7 personnel resources. For instance, existing state laws limit governments' ability to effectively 8 address incompetence or misconduct of city employees specifying certain procedures to be 9 followed or standards of conduct. 10 Response: The state government should refrain from passing laws which regulate the 11 public sector workplace and should repeal or modify problematic e�sting taws and 12 regulations to encourage fuil tocal accountability. 13 The League of Minnesota Cities proposes Yhe following reforms: 14 Discipline and Discharge 15 • The state should modify veterans' preference and civil service laws which restrict the 16 ability of local governments to effectively discipline public employees. The legislature 17 should amend the law to: 18 • remove the right to multiple, duplicative disciplinary proceedings; 19 • limit any back-pay claims to a maximum of $100,000, and; 20 • timit the period in which fo request a hearing to 14 days (from the current 60 days). 21 • The state should disconYinue state and local civil service systems which are no longer 40 League of Minnesota Cities needed to ensure fair and accountable hiring and firing practices. 2 Data Practices ��-�o 3 • In light of security concerns, the state should amend the data practices act to reclassify all 4 employee address and telephone data as private data. 5 • The Information Policy Task Force created by the 19971egislature should consider the 6 impact of potential changes to the data practices act, particularly the commercial use and 7 sale of government information, on local units of government and take these into account 8 in any recommendation for legislative action. 9 Compensation limits 10 • The state should repeal laws limiting local government employee compensation levels to 11 the governor's salary. If repeal is not possible, the limit should be amended to be based 12 upon the governor's total compensation level. 13 PELRA 14 • The state should modify the definition of public employee to limit the application of 15 PELRA to employees working more than an annual average of 20 hours per week other 16 than on a temporary or seasonal basis. 17 • The state should change public sector bargaining laws to restrain arbitration awards 18 which exceed other internal class comparisons or outside cost of living limitations. 19 • The State should modify the definition of public employee to exclude police and fire 20 cadets. 21 Pensions 22 • The state should re�ise public employee pension laws to facilitate consolidation of local 1998 City Policies 41 9 �-/ a i pension plans and the transition to more attractive and fiscally-sound pension programs 2 such as defined contribution plans. 3 • The state should study initiatives to reform and make uniform pension plans for local 4 government employees. However, the League opposes increasing public employer 5 contribution levels or any proposal to have the public employer contribution level exceed 6 the contribution level required from emgloyees. 7• The state should adjust the eligibility thresholds for public pensions to reflect inf7ation, 8 adopt a process for automatic future adjustments, and timit eligibility for defined benefit 9 plans to employees working an average of at least 20 hours per week. 10 � The League opposes special legislation related to pension benefit increases that are not 1 I initiated by a previously adopted resolurion of the city council of the affected city, even if 12 the legislation provides an option that requires subsequent local approval. 13 In addition to these state reforms, the League of Minnesota Cities supports the following 14 policies regarding federal employment law: 15 Overtime compensation 16 • Congress should amend the Fair Labor Standards Act to eliminate its applicability to the 17 public sector or at least recognize unique circumstances in the public sector such as 18 accounting for all hours worked by salaried employees and allowing regular employees to 19 serve as volunteers, paid on-call firefighters, referees, coaches, and other community 20 service-oriented positions. 21 Peace officer bill of rights 22 • Congress should oppose a federal peace officer bill of rights, which would make internal 4Z League of Minnesota Cities investigation and enforcement more difficult and diminish local accountability. 2 SD-6. Election Issues 3 Issue: Improvements in absentee voting, voter registration, and the election process 4 are needed. 9�-!a 5 Response: The 19981egislature should develop a bipartisan election reform proposal that 6 simplifies absentee voting, provides more cities direct access to the statewide voter registration 7 system, clarifies restrictions on locating campaign signs within 100 feet of polling places, 8 modifies the voter fraud statute related to voter residency, and allows cities more flexibility in 9 appointing and compensating election judges. 10 SD-7. Local Election Authority 11 Issue: Local authority to schedule city elections and establish terms of office for local elected 12 officials has been increasingly restricted by the legislature, thereby diminishing regard for the role 13 of local self-government, particularly when state policy pre-empts home rule authority governing 14 city elections. 15 Response: The legislatnre should oppose further limits on either the number or the length 16 of terms city elected officials may serve, particularly when those terms have been established 17 by the electorate in home rule charter cities. State policy on uniform elections should continue 18 to recognize and uphold local authority to schedule city elections in November of either even- 19 or odd-numbered years. 1998 City Policies gF-ro ., 1 SD-8. City Costs for Enforcing State and Local Laws 2 Issue: Cities experience substantial costs enforcing state and local laws, particularly those related 3 to traffic, controlled substances, and incazceration of prisoners. The current method in our criminal 4 justice system of recovering costs for law enforcement and prosecution through fines is insufficient 5 to meet the costs incurred by local govemments. 6 Response: The legislature should review this issue and adopt measures thaY provide for 7 complete reimbursement of the costs incurred by locai governments in enforcing state and 8 locai laws. Solutions which should be considered include the following: 9 • increasing fine amounts; 10 • removing or modif}�ing state surcharges which conflict with cost recovery principles; and ll • requiring the defendant to pay the Full costs of enforcement and prosecution as part of any 12 sentence. 13 SD-9. Access to Information 1'echnology and Services 14 Issue: Congress and the state legislature should continue to provide a meanin�ful role for cities 15 in developin� and supporting access to information technology and services. 16 Respo�:se: The legislature should: 17 • enhance opportunities for cities to collaborate with community organizations, schools, 18 tibraries, and nonprofit organizafions and felecommunications service providers to make 19 training and advanced services available to community residents; 20 • take steps to ensure that businesses have access to advanced broadband networks; 21 • provide grants and technical assistance to encourage cities to expand use of information 4 � League of Minnesota Cities 9�- ro , i technolog,y to provide citizen access to government information and deliver services; 2. • monitor telecommunications service providers' compliance with requirements to make 3 public access to information available at a discount; 4 � encourage providers to make capacity for interactive forums available at the local level to 5 increase citizen participation in government; 6 • encourage expanded use of interactive teleconferencing, public access channels, and public 7 broadcast facilities to provide public access to government meetings; and 8 • support federal, state, and local authority to charge providers of cable and cable-like 9 services reasonable fees to support that capacity. 10 SD-10. Lawful Gambling Fund Expenditures 11 Issue: State law authorizes cities to collect up to 10 percent of the net profits from lawful 12 gambling operations conducted within their jurisdictions. These funds must be maintained in a 13 separate account and can be spent only for "lawful purposes." These purposes are defined in 14 statute more narrowly than the permissible public purpose expenditures for charitable 15 contributions to cities. The Gambling Control Board has the authority to demand that cities make 16 repayment to the fund for expenditures it deems out of compliance with the statutorily permitted 17 lawful purpose expenditures. 18 Response: Cities are in the best position to determine the use of funds that will bring the 19 most 6enefit to their citizens. The legislature should expand the permissible lawful gambling 20 fund expenditures to include any public purpose deemed appropriate by the city. 1998 City Poiicies 45 � k i SD-11. Design-buitd 2 Issue: The standard bid procedure cities are required to use in selecting contractors for 3 municipal buildings can be quite cosUy. Private sector development uses a process known as 4"design-build" in which various firms submit project proposals that include both a design and the 5 construction costs for that design. The selection is then based on the total package. By granting 6 specific statutory authority to use the design-build alternative to the Metropolitan Sports Facilities 7 Commission and state agencies including the Department of Revenue, the legisiature has 8 recognized the financial savings it can provide. In documented instances, cities have saved 9 taxpayers up to 10 percent of the total project cost by usin� the design-build aitemative. The 10 design-build process also permits improved project management and oversight. However, absent I 1 statutory authorization to use this aiternative, cities are vulnerable to lawsuits from unsuccessful 12 bidders. In addition, the design-build process for playground equipment can encourage greater 13 creativiry while still maintaining cost controls. Special legislation was enacted for the City of 14 Chanhassen in 1995 to experiment with using this process for purchasing playeround equipment. 15 Response: The legislature should authorize an eartension of the "design-build" procedure 16 to cities as a less expensive alternative to the standard bid procedure. 17 SD-12. Mobile Home Park Oversight 18 Issue: The State has preempted cities in the licensing of mobile home parks and has I9 Iimited the authoriry of cities to place new regulations on estabiished mobile home parks. 20 However, cities are responsible for dealing with the various housing and public safety challenges 21 mobile home parks may create. 4( Leaaue of Minnesota Cities + , y'� i I Response: Since the State has already taken the lead, the legislature should provide 2 sufficient resources and direct the Department of Health to conduct a study on the condition 3 of mobile home parks throughout the State of Minnesota. Cities and mobile home pazk 4 owners and residents should be involved in the study. The results of the study should be used 5 as a basis for policy discussions regarding ways in which the State can provide for increased 6 and improved oversight of mobile home parks and establish a statewide support system for 7 cities to rely on in dealing with the array of issues that arise in mobile home parks. 8 Outcomes of the study should include: 9 •"best practices" for the operation of mobile home parks; 10 • recommended state regulatory changes for the operation of mobile home parks; 11 • suggested ways cities can better address the issues presented by mobile home parks; and 12 • identification of inechanisms to provide assistance in �nancing mobile home park 13 upgrades. 14 SD-13. Proposed Plat Approval Authority 15 Issue: Current law generally grants cities the authority to approve proposed plats as part of 16 their police power responsibilities for regulating development. Certain counties want legislative 17 authorization to approve proposed plats which are contiguous with existing or proposed county 18 roads. 19 Response: Cities oppose extending county authority over plat approval. While counties 20 have a valid interest in proposed plat decisions, this does not warrant a duplication of 21 approval authority. An informal process of county review with the opportunity to offer 1998 City Policies 9�-/� � , comments and suggestions for unprovement is an appropriate cooperative mechanism which 2 is already in place and working well in many azeas of the state. 3 SD-14. Providing Information to Citizens 4 Issue: To keep the public updated and informed, state law requires local units of government 5 to publish various noti£ication documents in newspapers and often dictates which newspapers 6 receive cities' publication business. The number and variety of documents required to be 7 published and the costs of publication are burdensome. Technological advancements have 8 expanded the ways in which government can provide information To citizens. In many cases, 9 these new technologies are more efficient and cost effecrive. 10 Response: Cities should be authorized to take advantage of new technologies to increase 11 the dissemination of information to citizens and potentially lower the associated costs. 12 Specifically, the legislature should authorize local units of governmenY to designate an 13 appropriate daily/weekly publication, elect alternative means of communication such as city 14 newsletters, cable television, and the internet, and expand the use of summaries where 15 information is technical or lengthy. Additionally, the legislature should eliminate outdated or 16 unnecessary publication requirements. 17 SD-15. Creating a Minnesota GIS Program 18 Issue: Cities need Geographic Information Systems (GIS). Although only forty-five cities have 19 pazcel-based GIS, this improved method of local land record management is already paying 20 tremendous dividends to those with access to the technology, but it is costly and difficult to create, 48 League of Minnesota Cities ,� r g�- �D I maintain, and upgrade. Cities face serious obstacles to modemizing land records when maps, survey 2 controls, and electronic records management do not exist at the county level. VJithout state 3 investment to help local government modemize land management records, development of GIS will 4 continue to fall behind, with costly results for residents and taxpayers in those locations where land 5 pazcel data is not organized. A seamless land records database would encourage sustainable land-use 6 planning at both the state and local level. Response: The League endorses the recommendations put forth by the Govemor's Council 8 on Geographic Information to establish and fund a Minnesota GIS Program to provide 9 technical support and funding for local government development of GIS. 10 SD-16. State Licensing of Massage Therapists 11 Issue: The state does not currently regulate massage therapy, an emerging but rapidly growing 12 profession. In order to control prostitution and to provide for health and sanitation standards, several 13 cities have entered the traditional state domain of health-care licensure by enacting ordinances that 14 require all massage therapists to obtain a local professional license. These ordinances allow local I S law enforcement officers to differentiate between legitimate massage therapists, who have a city 16 license, and prostitution businesses fronting as massage therapy establishments. The lack of 17 statewide licensing of massage therapists has hampered law enforcement techniques and has caused 18 problems for cities attempting to regulate an entire health-caze profession without any statewide 19 standards. Currently, twenty-five states license massage therapists on a statewide level. Statewide 20 licensing of massa�e therapists would provide a clear set of educational standazds that massage 21 therapists must meet and w provide local law enforcement agencies with an easy tool to 22 distin�uish between prostitution and legitimate massage therapy. Statewide professional licensing 1998 City Policies 49 9� io , � � b' 1 would not disturb traditional powers over land use and business licensure. 2 Response: The League supports the statewide professional licensing of massage therapists 3 in order to aid local law enforcement efforts at controlling prostitution and other criminal 4 activity. �� League of Minnesota Cities