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98-11Council File # � i� i �( N A L Green Sheet # RESOLUTION Presented Sy C OF SAINT PAUL, MINNESOTA �l IS Referred To Committee: Date 1 WHEREAS, the Association of Metropolitan Municipalities has adopted its 1998 2 Policies and Legislative Proposals to be considered by the Minnesota Legislature 3 during the 1998 session; and 4 5 WHEREAS� the City of Saint Paul was an active participant in the development of 6 these policies and legislative proposals and the City concur generally on these 7 policies and proposals, now there£ore be. it 8 9 RESOLVED, that the City Council of Saint Paul does hereby recommend for 10 consideration by the Minnesota Legislature the 1998 Policies and Legislative 11 Proposals submitted by the Association of Metropolitan Municipalities and does 12 hereby request that these issues be addressed by the Legislature during the 1998 13 session. 14 1 5 Requested by Department of: Byc Approved By: /v, By: Form Approved by City Attorney B Y � --�� Approved by Mayor for Submission to Council By: � i !�-� �U�C�'d,� t8-ll 5a 31o1 Adopted by Council: Date Adoption Certified by Counci Secretary N°_ 52361 w�._�� DEMR7M�ENTNFFIGEIC:OUNCIL OATE INITIATED I a �, r� or�s Office I12/29/97 G R EEN SH E E CONTACT PERSON 8 PMONE INITIAL/DATE INITIAUOATE � DEPAflTMENTDIRECTOR � pTYCOUNCIL RSSIGN CITVATTORNEY GTYCLERK Bill Hue enbecker 266-8517 NIINBERFOR MUST BE ON CqUNGR AGEN�A BY (DATE) PO��N� � BUDGET DIRECTOR a FIN 8 MGT. SER��CES DIR. Januar 7 1998 OPDER O y�qypFy �pR ASSISTANT� � TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REOUESTED. � City Council approval of the Association of Metropolitan Municipalities 1998 legislative priorities. RECOMMENDATIONS: Approve (A) or Reject (R) pERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING OUESTIONS: _ PLANNING CAMMISSION _ CIVIL SERVICE COMMISSION �- Has this person/firm ever worked under a Contract for ihis department� _ CIB COMMITTEE _ VES NO _ STAFF 2. Has this personffirm ever been a city employee? — VES NO _ DISTaiCr CoURi _ 3. Does this persoNfirm possess a skill oot normally possessed by any currenf ciry employee� SUPPORTS WHICH GOUNCIL OBJECTIVE'+ YES NO Explain all yea answers on separate sheet end ettach to green sheet INITIAT�NG GROBIEM. ISSUE, OPPORTUNIN(Who. What, When. Where. W�y) As a member of the Association of Metropolitan Municipalities, the City of Saint Paul has been an active participant in developing the Association's legislative policies and proposals for the 1998 legislative session. ADVANTAGE$ IFAPPROVED: Saint Paul will be an active paxtner_in supporting the legislative proposals and policies for the 1998 session. �ISADVANTAGES IFAPPfiOVED: None. cCLi��6'G� t?EC 29 i597 � :�°� f� ;^ OISADVANTAGES IF NOTAPPROVED: Saint Paul would not be a part or a supportive partner in the Association of Metropolitan Municipalities legislative agenda. C�1GY ��' DEC 2 9 1997 TOTAL AMOUNT OF THANSACTION $ COST/REVENUE BUDGETED (CIRCLE ONE) YES""" NO ` FUNDIfdG SOURCE 0.CTIVITV NUMBER PINANCIAL INFOflMATION (EXPLAIN) s� � Assotiation of Metropoiitan Manicipalities DATE: TO: FROM RE: October 10,1997 ANIMCityOfficials � rs��-� _ lL s`�,� (iCU'�'� C.�-� � ��u�'� 3�0 C;; � . RtCE��tD � b _ � � OGT 1 31997 Ci7Y CLERK � U LLETI N -::_�, ?�� 1 3 1S9? �.: �.. L "v=r�f EnclosedDraftofi 998 PolicyDocument/PolicyPriorities Enclosedaretherecommendationsforthe 19981egislafivepolicyprogramfromtheAMM'sfour standingcommittees. Pleasereviewthepolicieswithyourcitycouncilforactionatthe membership meeting scheduledforThursday,November 13 atthe SheratonMetrodome Hotel. A noti ce on the specifics ofthe meeting wiil be mailed to you within the next couple weeks. The AMM BoardofDirectorshasreviewedthe attachedpolicies andrecommends fuli membership adoptionas amendedbythetwo changes listedbelow. 1. Insert the words "blighted and/or" to the last sentence ofpolicy B-8 (REDEVELOPMENT NEEDS) on page 29. The state should make a financial commitment to investin redevelopment projects including an adequately funded program to allow development authorities to gain control of and develop €er-me�ly�bliEhted and/or contaminated sites, pursuant to local plans and priorities. 2. Deletepolicy V-I (CITY SPEED CONTROL) onpage 56. Please reviewthe 17 policies listed onthe back ofthis memo and numberyour topfzve priorities, with 1 beingthehighestand 5 the lowest. Bring yourpriorities to the PolicyAdoptionMeeting, ormail,faxorE-mailyourresponsestotheAMMoffice. Yourparticipationisimportant bec ause the policy priorities help deternune how stafftirne and resources are allocated. Bu1198.pm6 t4� UnivmiryAvmuc H�t Saim P�uC Mimaota 5no;-toq4 (6tz) n5-4oao fax z8�•nqq 9�— � I �; � Association of Metropolitan Municipalities � � Fj� • • • � , Policies & Legislative Proposals i45 Univercity Avenue Wect Saint Paul, Minnesota �io3-zo44 (b2}tg-4000 Fax: z8�•a99 � . � , ti�- � I INDEX PART ONE MUNICIPAL REVENUE AND TAXATION I. MUNICIPAL REVENUE A. LEVY/VALUE LIMITS 1. Levy Limits 2. Oppose Valuation or Operation Freezes B. PROPERTY TAX REFORM PRINCIPLES C. AID PROGRAM CONTINUATION 1. Local Government Aid (LGA) - 2. Homestead and Agricultural Credit Aid (HACA) 3. Oppose Conversion of City LGA and HACA to Schooi Aid D. TAX EXEMPT PROPERTY E. GENERAL FISCAL IMPACT POLICIES 1. Fiscal Note Continuation 2. Funding Shifts 3. State Revenue Stability 4. City Revenue Stability and Fund Balance 5. Sa1es Tax on Local Government Purchases F. LOCAL PERFORMANCE AID G. PRICE OF GOVERNMENT H. FISCAL DISPARITY FUND DISTRIBUTION i PAGE NUMBER i-10 3 3 3 3 5 5 5 6 6 6 6 7 7 7 8 � � I. TAXATION OF MUNICIPAL BOND INTEREST J. STATE OR METROPOLITAN IMPOSED FEE FOR SERVICE K. PERSONAL PROPERTY TAXATION - ELECTRIC UTILITY PART TINO GENERAL LEGISLATION II. GENERAL LEGISLATION A. MANDATES AND LOCAL AUTHORITY B. PUBLIC RIGHT-OF-WAY C. COUNTY PLAT APPROVAL AUTHORITY D. POLICE AND FIRE PENSION PROVISIONS 1. Amortization Aid 2. Employee Contribution Amount 3. Benefit Increases 4. Assumption Changes E. 911 TELEPHONE TAX F. 800 MHz RADIO SYSTEM G. PERMIT APPROVAL - ZONING H. ELECTIONS - ALLEY SYSTEM AUTHORITY PART THREE HOUSING AND ECONOMIC DEVELOPMENT III. HOUSING AND ECONOMIC DEVELOPMENT A. HOUSI1v�G AND NEIGHBORHOODS 1. Regulatory Impacts on Housing Costs 2. Mandatory Land Use Standazds 3. State Housing Policy and Financial Assistance 4. Metropolitan Housing Policy ;; R�-l� 9 9 10 11-16 13 13 13 14 14 14 14 14 14 15 15 16 17-30 19 19 20 20 21 �i�-�l 5. Local Housing Policy 22 6. Neighborhood Livability 22 7. State and/or County Licensed Residential Facilities (Group Homes) 23 8. Residential Non-Homestead Property Tax Relief 24 B. ECONOMIC DEVELOPMENT 1. Economic Development Responsibilities 2. Equal Treatment of Cities 3. Tax Increment Financing (TIF) 4. Responsible Use of TIF 5. Properry Tax Reform Impact on TIF 6. Other Development Tools 7. Development of Folluted Lands 8. Redevelopment Needs 9. Welfaze Reform/Workforce Readiness 10. Building Permit Fee Surcharge 11. Livable Wage Policy PART FOUR METROPOLITAN GOVERNANCE. STRUCTURE,_AND ISSUES IV. METROPOLITAN GOVERNANCE A. PURPOSE OF METROPOLITAN GOVERNANCE STRUCTURE B. CRITERIA FOR EXTENSION OF METROPOLITAN GOVERNANCE AUTHORITY C. METROPOLITAN GOVERNANCE STRUCTURE AND FUNDING i. Restructuring of Metropolitan Agencies 2. Funding for Regionally Provided Services 3. Regional TaY Rates and User Fees D. COMPREHENSIVE LAND USE PLANNING/GROWTH MANAGEMENT 1. Coordination of Local and Regional Plans 2. Metropolitan Council Focus on Planning 3. Growih Management Strategy 4. Metropolitan Land Planning Act Implementation 5. Local Plan Implementation 25 25 25 26 26 27 27 28 29 29 30 30 31-48 33 33 34 34 35 35 35 36 37 37 38 39 iii q�-t i E. METROPOLITAN COUNCIL BUDGET/WORK PROGRAM PROCESS 40 1. Budget Process 2. �Vork Program EvaIuation F. METROPOLITAN PARK AND OPEN SPACE FUNDING 1. Operation and Maintenance Funding 2. DevelopmendCapital Funding G. WATER RESOURCE MANAGEMENT 1. Water Supply 2. Surface and Groundwater Water Management 3. Regional Wastewater (Sewer) Treatment System H. WASTE STREAM MANAGEMENT I. LOCAL GOVERNANCE EXAMINATION PART FIVE TRANSPORTATION V. AMM TRANSPORTATION POLICY STATEMENT A. TRANSPORTATION FUNDING B. REGIONAL TRANSIT SYSTEM C. TRANSPORTATION INCENTIVES/DISINCENTIVES D. TRANSPORTATION UTILITY E. MSAS FUNDII�TG FOR COMBINED CITY STREET DEPARTMENTS F. HIGHWAY TURNBACKS AND FUNDING G. '3C' TRANSPORTATION PLANNING PROCESS - ELECTED OFFICIALS ROLE H. RAILROAD RIGHT-OF-WAY PRESERVATION 40 40 41 41 41 42 42 43 44 44 45 49-58 51 52 52 53 54 54 55 55 55 iv 5 ��/� I. CITY SPEED LIMIT CONTROL 56 J. MOTION IMAGING RECORDING SYSTEM (M.I.R.S.) - TRAFFIC LAW COMPLIANCE 56 K. AIRPORT NOISE MITIGATION L. ROAD ACCESS CHARGE M. METRO MOBILITY APPENDIX COMMITTEE ROSTERS Housing and Economic Development Metropolitan Agencies Revenue Transportation and General Government 56 58 58 59-64 61 62 63 64 v y�-a � I Municipal Revenue & Taxation Pages 1-10 9�-�I LEGISLATIVE POLICIES 1998 MUNICIPAL REVENUE AND TAXATION I-A LEVY/VALLJE LIMITS A-1 LEVI' LIMITS The Association of Meuopolitan Municipalities has consistently opposed levy lunit laws in that they apply uniform statewide restrictions to cities and are too inflexible to accommodate inflation, uncertainties in state and federal financial aids, and the diverse problems and circumstances faced by cities throughout the state. The AMM strongly opposes levy limits and urges the legislature to repeal the levy limits for 1999. A-2 OPPO5E VALUATION OR OPERATION FREEZES During past legislative sessions several proposals related to levy limitation through freezes have been made. As in the case of the previous levy limitations these type of artificial restrictions will work adversely for the taxpayers in the long run. Property valuation free2es wili create property tax disparities between current and new properry and will create large individual talc bill fluctuations when the freeze is lifted. Payroll or operating freezes cause larger increases at some later point. The AMM opposes imposition of artificial gimmicks such as valuation freezes, payroil freezes, or other limitations to the local government budget and taxing process. I-B PROPERTY TAX REFORM PRINCIPLES The AMM is supportive of reasonable and rational property tax reform and to that end provides a set of principles to guide in the development of a reform package. �i 8-�! 1 Property tax reform proposals should: Be simple and accountable as long as it is recagnized that the property tax sysYern must satisfy diverse financial needs. 2. Recognize city cash flow needs and not jeopardize existing development districts, tas increment finance districts, or enterprise zones. Assure that city revenue sources be diversified. The properry ta�c is considered a regressive tax and does not provide growth as does income and sales taYes. Cities must avoid becoming tota2ly dependan[ on property tax. 4. Protect cities' ability to determine and generate revenue and not be dependent on referenda. Assure that net property tas for FvIetro city taYpayers shall not increase as a result of property tax reform which reduces or diverts aids (LGA/FTACAj i.e. School property tas reduction equivalent to aid reduction. State aid shouid remain an essential componenf of the properfy tax system. Categorical aid programs should not become a substitute. A program such as income-adjusted circuit breaker and renter's credit should continue. 6. Stabilize city revenue sources so that cities may effectivety do both short and long range planning. Be based on a class rate taY capacity system not a combination of taz� capacity and market value. 8. Include elements that promote fairness and geographic baiance. i.e. there sfiouId be a semblance of equaliry and tases paid by income and type and size of property. Class raYes may be adjusted to provide more fairness and equity fo the system. However, care should be exercised and overall tax burdens analyzed before making major changes. As an example, C/I propecty taxes are high, but Minnesota exempts business equipment which is taxed in most states. The overall tax burden including property, income and sales should be considered before changing one or the other. 0 9��t� Local Government Aid should be distributed based both on need and property wealth and shouid not favor one region of the state at the e�pense of any other region. Recently proposed "power equalization" formulas would have resulted in a shift of state aid from metropolitan cities to greater Minnesota cities by failing to adequately recognize the needs of ineuopolitan cities and by inflating the population factor of greater Minnesota cities. If K-12 school funding is substantialiy changed, the principles of equity, accountability, and progressiveness should be observed. 9. Not include a new sales tax on local water or sewer utilities. I-C AID PROGRAM CONTINUATION In the event that an acceptable property tax reform is not achieved which incorporates the AMM principles, then the AMM supports the foliowing programs. C-i LOCAL GOVERNMENT AID (LGA) State aid to cities has existed for over two decades. LGA and other aid programs recognize three basic city problems 1) the need for revenue diversification, 2) properiy wealth differences, and 3) a state responsibility for various local services. Many programs and formulas have been tried over time to achieve an appropriate balance but have usuaily changed quickly. The cunent LGA formula seems to succeed reasonably well, although the modest growth factor will bazely maintain a current level. It will not reverse the trend towazd increased city property ta,z reliance nor help offset normal growth. AMM supports continued use of the implicit price deflator (IPD) to provide a minimum growth to LGA. Additional state resources should be provided to reverse local reliance on the property tas. AMD�I supports continuation of the current LGA formula. If changes are considered by the legislature, AMM will support only changes offered to the current formula that have a positive impatt on the metropolitan area. G2 HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA) HACA equals approximately 40% of locai city aid and is an integral part of the state and local governmental service financing system. Over time it has been decreased and for cities frozen except for increases associated with class rate reductions to prevent property tax shifts. Without an associated growth factor for HACA, levy rate increases will be greater than actual budget increases causing larger property tax increases. ��-ir HACA should be continued as part of the state and local fiscal relationship and the household growth adjustment reinsYated as weil as an inflationary factor, such as the IPD used for LGA, established. G3 OPPOSE CONVERSION OF CITY LGA AND HACA TO SCHOOL AID Past conversions of city LGA and HACA to school aid did not provide permanent relief from rising school tases nar is there any indication that such shifts would provide permanent future relief. Shifting aid from cities to schools will have the effect of not only increasing ciry property tax but probably overall property tax. The AtVIN1 strongly opposes conversion of city LGA and HACA to schooi aid. I-D TAX EXEMPT PROPERTX One of the glaring inequities in the Minnesota tax system involves the free local services that are provided to taa� exempt property owned by governmental and certain non-govetnmental organizations. It is widely acknowledged that such property benefits directly from local governmental services such as police and fire protection and street services provided by cities. The AMM encourages the state legislafure fo aufhorize cifies to establish a program of fees for fairly reimbursing municipalities by non-governarental organizations, except constitutionally exempt property, and from the state, county, other city and metropotitan agencies for the cost of services such as police, t"2re, and streets to their facilities. I-E GENERAL FISCAL IMPACT POLICIES E-1 FISCAL NOTE CONTINUATION Many Iaws are passed each year by the legislature which have a substantial effect on the fnancial viabiiity of cities. Some of these, such as revenue and tax measures, have an obvious and direct effect which is often calculated and reported during the hearing process. Many otfiers, such as workers compensation benefit increases, mandated activities, binding arbitration and other labor related legislation, social programs, etc., have costs which are not as obvious but which will now be known due to the increased fiscal note requirement passed in 1997. Cities and others will now be able to determine the real cost of a program or proposal and be able To use this data in determining the merits. The state should continue a policy of deliberate restraint on its mandated programs and extensively utilize the fiscal note statute identifying local government costs on any new mandated programs. 3 E-2 FUNDING SHIFTS The Minnesota House of Representatives Research Department annually prepares Major State Aids and TcLres: A Comparative Analysis. The statistics for 1985 - 1995 show an imbalance of state revenues collected and aids and crediu distributed between the metropolitan and eutstate areas. Around 65% of the State Revenue is collected in the metropolitan area while only about 47.9% (up .4% from 1994) of the aids and credits are redistributed in the metro area. In 1995 there was $.59 returned in aids and credits for each dollar collected in the metro area (down 1 centfrom 1994) whereas,there was $1.19 returned per $1.00 coliected in greater Minnesota (down 5 cents from 1994). The trend in the past four years has been slightly in favor of the metro area but there is still a vast imbalance in favor of outstate distribution per amount collected. If the imbalance continues, state tax and aid policies may jeopardize the future economic growth of the metro area to the detriment of the whole state. The AMM requests the legislature to continue to reduce the imbalance of aids versus revenue between metro and outstate cities and to consider how this distribution of resources effects the economic growth and vitality of the metro area and thus the entire state. E-3 STATE REVENUE STABILITY The AMM has consistently supported a state reserve fund to deal with unanticipated economic changes that could result in mid year cuts to various city aid programs, and to provide cash flow balances so that short term borrowing is unnecessary. It seems prudent to develop a mid term correction or unallotment process that does not penalize any one segment of the state budget recipients over another segment if the economy drops beyond a reasonable reserve balance. The AMM supports a continued state fund to provide for state budget cash flow needs and a reserve for unexpected budget shortfalls due to economic downturns. The AMM also encourages the legislature to adopt a uniform across the board unallotment process for major economic downturns. E-4 CITY REVENUE STABILITY AND FUND BALANCE Cities need substantial cash balances on hand to operate for the first six months of the fiscal/calendar year untii the first property tax receipts are paid in June and/or state aid is paid in July. The alternative to an operating fund balance would be to engage in costly borrowing which is not in the best interest of local tax payers or the state. Many cities accumulate over a period of years capital funds for fire engines, public works vehicles, etc. to save taxpayer dollars in interest costs. These funds may appear to be surplus reserves, but in reality are savings accounts for major purchases. Cities need to maintain some fund balance to meet emergency expenditures created by nahtral 7 ��' � � disasters, lawsuits, vital equipment breakdown and even unexpected mid year aid cuts. Finally bond rating firms require liquidity and a demonstrated ability to pay debt in order to receive a favorable bond rating which will in the long run save property tax dollars. The legislature should not attempt to control or restrict city fund balances. These funds are necessary to maintain fiscal viability to meet unexpected or emergency resource needs of city governments, to purchase capital goods and infrastructure, provide adequate cash flow and to maintain high level bond ratings. E-5 SALES TAX ON LOCAL GOVERNMENI' PURCHASES In 1992, the Legislature repealed the sales tax exemption for local government purchases. This action increased the costs for local govern� and local property taxes by an estimated $76.8 million for the states 1997 fiscal year. This repeal has effectively increased local property taxes to finance state operations. The Iegislature should reinstate the sales tax exemption for all local government purchases without requiring a reduction in other aids to restore the mandated property tas increase from 1992. I-F LOCAL PERFORMANCE AID The 1996 L,egislature created the local performance aid program. The legislation was vague, the program was partially funded by cuts in HACA and the requirements for applying for the aid could become an onerous mandate on cities. Cities do performance measurement and participate in joint powers to more effectively and e�cienfly provide services. There is no way that the state can establish performance or efficiency criteria that is relevant for and applicable to 855 cities ranging in size from 3 or 4 persons to 370,000 persons. The AMM opposes the Local Performance Aid Program. If a local performance aid program is mandated, then a new source of funds other than e�sting LGA or HACA should be provided. I-G PRICE OF GOVERNNIENT The price of government legisiation enacted in 1994 was intended to measure the overall effect of state and local taxation over a long period of time. The targets measure government revenues as a percent of personal income and are intended to be used as long range fiscal planning toois for the state. Unfortunately the price of government targets are being misused by several organizations to call for arbitrary reductions in local spending. The price of government calculatioa as regards local gor•ernments should be based on CI �'� � (1) changes in the sum of levy and state aids, and (2) examination of long term trends, not single year events. In addition considerafion should be given to service provision transfers between governmental units, increase demand for services by citizens, and legislative mandates or tax rate changes. I-H FISCAL DISPARITY FUND DISTRIBUTION Fiscal Disparities (F.D.) is a fiscal tool that shares Commercial/Industrial property value for tax purposes in the seven-county metropolitan area. Its prunary purpose is to help equalize, to some degree, the property tax wealth among the cities by sharing part of the growth in communities experiencing significant growth with those experiencing little growth. A secondary aspect is it tends toward equalizing taxes on similar C/I properties in various communities. Recently suggestions have been raised to use a percentage of the fiscal disparities funds for specific social or other programs in the metropolitan area. Because of the way F.D. is calculated, this would amount to a hidden property tax increase across the metropolitan area that impacts the property tax poorer cities the most. Fiscal disparities distribution is applied after levy certification so the property tax increase is automatic, not discretionary at the local level. Therefore, The AMM opposes use of �scal disparities to fund social or physical metropolitan programs since it results in a metropolitan-wide property tas increase hidden from the public with an excessive impact on communities with lower property wealth. I-I TAXATION OF MLJNICIPAL BOND INTEREST The state law that grants a tax exemption for municipal bond interest is being reviewed and could be repealed. A repeal of this exemption will raise borrowing costs for cities at a time when budgets are extremely tight and property tax increases are unacceptable to the taxpayer. The state shouid maintain the t� exemption for municipal bond interest income. I-J STATE OR ME�'ROPOLITAN IMPOSED FEE FOR 5ERVICE The 1993 legislature adopted a$5.21 fee for each municipal water hook up to pay for federally mandated water well testing. Local o�cials/cities were mandated to impose the fee and accept responsibility. It was not however imposed on trailer parks and certain other private interests. It has been reported that the fee has raised excess funds which were deposited in the state generalfund. In addition, the Metropolitan Council recently considered adding a surcharge on sewer chazges billed to cities to augment cutbacks in transit funding. The AMM stronaly opposed this proposal and it was abandoned. 7 R��ci The AMM opposes the state or meYropolitan council mandating fees in a manner that forces city officials to be held as the responsible culprits in levying and expiaining the purpose. The AMM also opposes fees that are not spread equitably to all and opposes over collection or use of a revenue generated for a specific purpose or from a specific enterprise to be used for other government expenses. I-K PERSONAL PROPERTY TAXATION - ELECTRIC UTILITY Discussion regarding possible deregulation of the electric power industry has centered on electric utility Yaxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed to "level the playing field" or ensure competitive parity. The Investor Owned Utilities (IOUs) view attached machinery or personal property tax as baniers to competitive parity arguing that it places them at a competitive disadvantage. Similarly, co-ops pay the tax on some of their property and municipals make substantial payments in lieu of talces. However, accurate comparisons of tax burden are di�cult, as other states use different taxing systems. Utility personal property can be a significant portion of the locai tax base in all cities. Most obvionsly affected are cities that have power plants; however, transmission and distribution equipment account for over half of the personal property taxes paid by the IOUs and exist in nearly every ciry. In addition, personal property taY is a significant portion of the metropolxtan f'�scal disparities pool redistributed to all Metro area local taxing districts. Replacing the revenue that would be lost to cities, counties, schooi districts and other local tasing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources of such a replacement revenue would be difficult to develop and administer, and could be subject to reductions or elimination over time. FurtIiermore, replacement revenues or aids may not fully address the problems created by a large tax base reduction. AMM opposes proposals for exempting the IOUs from the personal property taz�. Under no circumstances shouid local units of government and their taYpayers be required to shoulder the burdens of tas relief for IOUs. 10 9�-// II General Legislation Pages 11-16 �� -II �� GENERAL LEGISLATION II-A MANDATES AND LOCAL AUTHORITY The AMM has for many years opposed statutory changes that erode local authoriry or mandate activities which cost money to implement unless there is a direct state appropriation or provision to recover the costs. Unfunded mandated programs impact the ability of cities to provide the traditional services of public safety, snowplowing, street maintenance, etc. and in some cases cause a reduction of these services. The AMM opposes statutory changes which erode local control and authority or create mandated additional tasks requiring new or added local costs without a corresponding state appropriation or funding mechanism. II-B PUBLIC RIGHT-OF-WAY Legislation was passed in the 1997 session that basicaily upheld cities rights to maintain jurisdiction over public rights-of-way and to receive compensation for damage. The League of Minnesota Cities (LMC) is continuing efforts to work with the PUC, which was directed to establish statewide criteria, to arrive at fair and equitable standards to protect the publics interest. The AMM supports the continued effort of the LMC to protect the authority of cities to maintain jurisdiction over municipal public rights-of-way, to establish relevant criteria and to obtain reasonabie compensation for its degredation. II-C COUNTY PLAT APPROVAL AUTHORITY Current law generally grants cities the authorfty to approve proposed plats as part of their police power responsibilities for regulating development. Certain counties want legislative authorization to approve proposed plats which are contiguous with existing or proposed county roads. An informal process of counry review with the opportunity to offer comments and suggestions for improvement is an appropriate cooperative mechanism which is already in place and working well in some areas of the state. Cities oppose extending county authority over plat approval. While counties have a valid interest in proposed plat decisions, this does not warrant a transfer of approval authority. 13 ��-i� II-D POLICE AND FIRE PENSION PROVISIONS Local police and full-time fire reiief associations were phased out by the 19801egislature unless the local council opts to keep the relief association. All new employees will become part of the state police and fire PERA fund and the state will reimburse locaI units for a portion of the unfunded liability remaining in the local fund. Also, I979 Law set employee contributions at 8% and the Legisiative Retirement Commission has in the past establisfied a general policy requiring public safety emp2oyees to pay 40% of the normal pension costs. D-1 AMORTIZATION AID The ANIVI opposes legislation that provides for reducYions of state amortiaation aid to local police and fire relie£ associations. D-2 EMPLOYEE CONTRI$UTION AMOUNT Even though the employee contribution amount was set at 8%, in many funds this is not equivalent to 40% of the normal costs. The AMM urges that the contribution level be set at 40% of the normal cost of financing the bene�ts even if this amount exceeds 8% of base salary. D-3 BENEFIT INCREASES The AMM opposes any benefit increases for local police and fire relief associations unIess an increase, including any resulting deficit, is financed 50% by the employing city and 50% by emptoyees on a current basis. D-4 ASSUMP'PION CfIANGES The AMM supports changes in actuarial asswnptions relating to salaries and investmenY return to more truly reflect experiences. The ANIM opposes payment of any type of bonus to active or retired members (13th Check) as a part of actuarial assumption changes. TI-E 911 TELEPHONE TAX The Department of Administration has the authority to impose up to a 30 cent fee per month per tetephone line to offset the ongoing maintenance costs for 911 service for the 90 plus phone companies in the state providing at least a basic service. The current fee is 22 cents but will be increased for 800 MHz by 4 cents in July 1997. There has been some pressure to increase the fee beyond the 30 cent levei to provide outstate enhancements. The ?LNIM supports the current 91I access fee and use of that fee for enhanced upgrade 14 y�-�i and other costs hut any fee granted in e�ccess of 30 cents per line per month should be returned to the municipality where collected. II-F 800 MFIz RADIO SYSTEM The 1995 I,egislature authorized implementauon of a Metropolitan 800 MAz Radio System and created a goveming board as weil as identifying fundtng sources. It followed criteria put forth by the AMM to ensure that cities would have complete control of when or if they became a part of the system while insuring continued uninterrupted public safety service and fees levied only for locally occurring costs at the time of participation. The 1996 and 1997 L,egislatures provided more funding (both directly and in the form of sales tax relie� to provide for the implementation of the basic backbone system. A major remaining problem is funding for local governments who want to consider joining the system. The AMM will support the continuation of the Metropolitan 800 MHz Radio system legislation and board as long as the following criteria are part of the implementation: • Cities should not be forced to modify their current systems, purchase new equipment prematurely, or become part of the 800 MHz Radio system until they so choose; • The system should provide a phased transition so that there is guaranteed uninterrupted service; • The system should be technically capable of allowing communities the flexibility to form various coordinated arrangements for dispatching and service provision; and • The governance body for 800 MHa should continue to be representative of entities/users that ultimately must bear the cost but should not be dominated by any one group. Since there are both regional and local benefits to local government units joining the system, the AMM urges the Regionai Radio Board to seek a state appropriation to assist local units of government in joining the system. II-G PERMIT APPROVAL - ZONING Current law requires finai city action within 60 days of an application or 120 days if the appiicant is notified prior to the end of the first 60 days. However, if a decision on the application is not made within the time limit, the application as automatically approved. In the case of a rezoning which requires a super majority, i.e. 4 of 5 council votes, the new pemut approvai deadline has created a loophole to the zoning statute. If only 3 of 5 council members 15 l�-!) support the rezoning, they can simply table the apglication until time has expired and it then is automatically approved by a simple majority; thus, subverting the zoning statute. The permit approval statute delineating time limit requirements should be modified so that in the case of a rezoning application, a motion to table that e�rtends action beyond the 60 or 120 day time requirement constitutes a denial not an approval in order to uphold fhe super majority requirement of the zoning statute. II-H ELECTIONS - AT.LEY SYSTEM AUTHORITY In arder to create a more democratic process that ensures candidates are elected with a majority of votes cast, statutory cities should be permitted to adopt an alley system of filing for councIl seats. AMM supports permitting statutory cities to adopt an aliey system for filing for city council seats. i['7 9k-�► l III Housing and Economic Development Pages 17-30 17 9�-ll 0 AOUSING AND ECONOMIC DEVELOPMENT A HOUSING AND NEIGHBORHOODS The distribution and availabiliry of affordable housing throughout the metropolitan area is a continuing concern. All levels of government and the private sector, including non-profit groups, must work cooperatively to address this issue. Each player in the production of housing must contribute if the issues are to be addressed: The federal and state governments can best contribute by providing more direct financial assistance and by creating a tax climate conducive to the production and maintenance of affordable housing. The Metropolitan Council should continue to give high priority to housing planning and provide technical assistance and guidance to the public and private sectors so better decisions relative to present and future housing needs can be made. Local governments should not inhibit the production of affordable housing through excessive regulatory requirements. They should also work with the private sector, Minnesota Housing Finance Agency (MHFA) and the Metropolitan Council to make the best use of existing toois and programs which facilitate the production and maintenance of affordable housing. The private sector should work with government and the non-profit sector in an effort to increase the supply of affordable housing. The use of covenants, while generally desirable in improving the quality of development, should be scrutuuzed by private developers to ensure that they don't have the impact of undermining the creation of more affordable housing. Policy makers at all levels must become more cognizant of their actions, decisions and requirements which may have an undesirable unpact on housing affordability. A-1 REGULATORY IMPACTS ON HOUSING COSTS Policies, programs and regulations of various levels of government and buiider/developer practices can add unnecessarily to housing production costs. While these actions may appear to be worthwhile and beneficial, they may negatively unpact the production of affordable housing. Examples include but are not 1'united to zoning and subdivision ordinances, growth policies, building and energy codes, environmental regulations and private covenants. 19 �V Local officials should periodically review regulations such as zoning and subdivision ordinances to ensure that they do not prohibit the production of affordable housing or become exclusionary. Regional and state officials should examine their current and pending regulations and policies, in azeas such as SAC, growth policies, building and energy codes, environmental regalations and transportation policies, to determine if they can be modified to enhance the production of affordable and life cycle housing throughout the region. Developers/builders should work with local officials to encourage affordable and life cycle housing by not increasing housing costs through private covenants requiring amenities and standards which unnecessarily exceed local and state requirements. A-2 MANDATORY LAND USE STANDARDS State-unposed uniform standards for housing sryle, type and lot size are not appropriate because of the great diversity among cities and differences within cities relative to density of development, topography, age of housing stock, the mix of housing values and the level of municipal services. The legislature should not mandate uniform zoning and subdivision standards or remove additional land use regulation authority from local units of government. Cities should retain the authority to regulate the location, size, amount and type of housing within their boundaries. No legislative initiative is needed. Cities do have a responsibility, however, to encourage affordable and life-cycie housing opportunities. A-3 STATE HOUSING POLICY AND FINANCIAL ASSISTANCE The state must continue to be an acuve participant in providing funding for housing needs. Allocation of state resources should be based on a statewide housing policy formulated in conjunction with regional and local governments to address local housing needs. Financing strategies must be devised which carry out the long-range goals of providing and maintaining affordable and life cycle housing in rural and urban Minnesota, The state can best contribute to the affordable and life cycle housing supply by: Providing direct funding in the form of grants and loans from state-derived revenues. Consolidating many of the e�vsting small NIfIFA programs into a larger pool with more flexible criteria and guidelines for use, thereby decreasing administrative costs � �1$�// of applying for and administering such programs at the local level. • Setting general policy priorities for use of state funds basad on the state housing policy which can be accessed by local, non-pro�t and for-profit developers based on their specific activities. • Collaborating with the Metropolitan Council to provide technical assistance and information ahout state and federal housing funding programs, as well as providing easier access to these programs. • Aligning income/sales price limits of MEiFA programs with Livable Communities Criteria where possible. • Providing incentives through the state tax policy to benefit the maintenance and production of affordable and life cycle housing. Incentives to be considered but not limited to: (1) Sales tas exemption for the construction and operation of low income housing by public agencies. (2) A state low income honsing tax credit. (3) Removal of local housing authority levy limits. (4) Exempting the state deed and mortgage transfer tas exemption for public agencies. Defining a qualified housing district to include affordable owner occupied housing of which, at least half ineets the guidelines of the livable communities act or statewide moderate income housing limits, whichever applies. Recognizing that preservation of existing housing stock is a fundamental and cost effective means to promote and retain affordable and life cycle housing. Funding for housing programs should include rehabilitation and restoration, as well as new construction. A-4 METROPOLITAN AOUSING POLICY The regionai housing policy plan should be consistent with the Regional Blueprint and take into account the essential linkages between housing, jobs and job training opportunities, transportation and human service needs of low income residents. 21 q�- �t The Metropolitan Council, shouId continue to provide markeY analysis and up-Yadate data on regional and local housing affordabilify needs and trends in the metropolitan area so rational decisions about future housing needs can be made. The housing policy must consider the linkages between housing, jobs and training, transportation and human service needs as set forth in the Regional Blueprint and the Livable Commnnities Act. The Metropolitan Council should examine its growth managemenf strategy to better determine its effect on municipalities' ability to meet affordable housing goals. The Livabie Communities program was established to offer incentives to cities to preserve and develop affordable and Iife cycle housing. Program funding is offered as an incentive for cities to pursue the goals established by the Livable Cammunities legislation. The policies of the Metropolitan Council regarding Yhe award of funding under Livabte Communities should not be based on the acceptance or rejection by the community of specific honsing prob ams, but rather on the degree to which the appiication in quesfion will help the city meet its stated housing goaLs in its action plan. Communities should not be required to expand or reduce their approved Housing Action Plan goais to obtain Livable Communities funding. Major changes to the Livable Communities Act should not be made until the evaluation and report mandated by MS 473.254, section 6 has been completed. A-5 LOCAL HOUSING POLICY Housiag needs vary among cities in the metropolitan area. Some cities need more housing for low income persons while other cities need more upscale housing to retain and/or attract more moderate to upper income persons. Cities should retain authority to promote housing types which are in their best interest, while at the same time encoutage life-cycle housing opportunities for households of all income ieveis to meet regiona] goals. Cities need to have great flexibility in financing their housing goals if they are to meet the intent of ttze Metropolitan Land Planning and Livable Communities Acts. Cities must retain suffic4ent authority and flexibility to conduct and finance housing programs that meet their individual housing nee@s within a regional context. Local funds can be used to leverage federal, state and metropolitan resources when they meet commou policy goals. Cities should avail titemsetves of the reso�crces provided through the Livable Communities Act and the MI�'A programs. A-6 NEIGH$ORHOOD LIVABILITY Rapidly evolving sociat, demographic, economic and behavioral changes are converging on many cities and creating new challenges that exceed cities' capacity Yo deal effectively with their new environments. 22 �� i The challenges cities face, such as deteriorating neighborhoods, crime and drugs, need the cooperauve efforts of public, private and business interests to solve. The problems continue to grow though cities have taken efforts to face these challenges. Cities should take the tead through working with other appropriate groups and agencies in the development of local and regional strategies that will assist in addressing complex and growing neighborhood problems. These strategies should recognize that the physical and structural condition of the neighborhood is inextricably interrelated with the social welfare of the neighborhood and the educational and economic opportunities available to residents. Where legislation is directed to assist low income individuals and children in poverty, legislators must recognize the need for linkages between housing and human services, jobs and training, health care transportation, and educational opportunities. When the legislature considers low income programs, it should treat these activities in a comprehensive manner. The legislature should enact necessary legislation to identify and eliminate barriers that would act to deter individuals from achieving their goal of economic and personal success for themselves and/or their family. Current state law makes it difficult for income-based benefit providers to share eligibility information. The Data Practices Act should be modified to allow such sharing of information when fraud is suspected or to determine program eligibility. A-7 STATE AND/OR COUNTY LICENSED RESIDENTIAL FACILITIES (GROUP HOMES) Residential-based facilities (group homes) should not be concentrated. Over-concentration of such facilities could have a negative impact on the community and on facility residents. Cities have a responsibility to welcome such facilities on a fair share and rational basis. The AMM also believes that the state must ensure that residents living in residential-based facilities receive appropriate care and supervision relative to their disability or need to be housed in a group facility. The state's de-institutionalization policy is directly linked to the need for more residential-based care facilities in cities and the responsibility of the state to provide sufficient funding to ensure adequate care and supervision of the residents piaced in such facilities. The following principles should be in law or rule to regulate residential-based facilities: • State and county agencies must provide timely notification to cities of the status of facility license requests and renewals and provide adequate opportunity to respond. 23 9�-�I Cities must also be aware of the special care needed by residents of such facilities in case of public safety emergencies. Clustering of community residential faciliYies becaase of economic, geographic or other factors should be avoided. Standards of non-concentration for state or county-issued RFPs should be established. There must be an ongoing screening process, particularly in the corrections area, to ensure that persons placed in a residential facility will benefit from such an environment and will not be a danger to themselves or others. The licensing authority must be responsible for removing any persons found incapable of living peacefully in such an environment. Facilities licensed by the correcYions deparhnent should not be exempt from reasonable local land use regulations. A fair share concept should be considered within the metropolitan area. However, this concept should consider other factors including transportation facilities, jobs availability and other needed supporY services. The licensing authority and/or legislature should allow cities to participate in the search for facility locations in order to meet the needs of the providers, facility residents and the neighborhood. A-8 RESIDENTIAL NON-HOMES1'EAD PROPERTY TAX RELIEF Residentiai non-homestead properties (i to 3 units) are in need of properry taY relief. This is particutarly true of dupiexes and tripiexes, which did not enjoy the same amount of property talc relief in the 1997 tax bill as did single unit rental property. There is no policy rationale for distinguishing between single unit rental, duplexes, and triplexes; therefore, these types of property should be taYed alike. Eliminating the distinction between singIe unit rental, duplexes, and triplexes wiil simplify the properry tax system by eliminating a class of property. However, granting rentat properry all the ta�c advantages of homesteaded property wiIl encourage increased rentership and decreased homeownership and will have a destabilizing impact upon Minnesota cities. Homestead property should continue to enjoy preferential tax treatment relative to other classes of properry. Under no circumstance should the class rate applied to residential non-homestead property be less than the class rate that is applied to second tier homestead property. The AMM supports combining all 1, 2 and 3 unit non-homestead residential property into a single class of property with a single class rate. The ANIM supports maintaining the property tas class rate distinction between homestead and rental property. `� �'�- i� III-B ECONOMIC DEVELOPMENT All commnnities address economic development through their local land use regulations, with each city striving for "orderly development." However, metropolitan communities have varied development needs. Economic development is not just a matter of a greater taY base for the community, but requires tools that promote, regulate and service the development. Economic development is promoted through housing and redevelopment authorities, economic development authorities, port authorities, TIF, revenue and general obligation bonds and the Star Cities program. Comprehensive plans and land use controls serve as regulators and water, sewer, streets and other municipal services are unportant components of economic development. B-1 ECONOMIC DEVELOPMENT RESPONSIBILITIES Cities are the primary units of government responsible for economic development and redevelopment. They require adequate fiscal tools to address these issues in a timely and effective way. The state should acknowledge the valuable role cities play in developing and maintaining the economic health of the state. A state ecanomic development strategy should be developed through the process established by Laws 1997, Chapter 202 which promotes job creation and retention; fosters redevelopment to eliminate blight and decay; assists the clean up of polluted lands and provides adequate housing opportunities. In partnership with the state, cities should be charged with locally administering an economic development policy created by the legislature and governor through local economic development plans or policies. The state should acknowledge cities as the primary units of government responsible for implementing these strategies and land use controls. Additional tools should be developed for cities to accomplish these objectives. B-2 EQUAL TREATMENT OF CITIES All cities regardless of size or location should be treated fairly with respect to state authorized and funded economic development programs. New or revised programs designed to address specific economic circumstances within cities or counties should use problem de�nition as the criteria for participation rather than geographic location, size of city, class, etc. 25 �\� B-3 TAX INCREMENT FINANCING (TIF� TIF has enabled cities to plan and successfully carry out housing, economic development, pollution cleanup and redevelopment projects and has been the main tool available to cities to curb the spread of blight and support economic development. Although changes made during the 1995 and 1997 Sessions make the tool more usable, TIF authority over the years, has been seriously Iimited, reducing the abiiity of ciries to engage in needed development and redevelopment. The state should acknowledge cities as the primary goveznmental unit responsible for economic development; which includes the creation and retention of jobs, growth of the state's economy, elimination of blight and decay, development of affordable rental and owner-occupied housing and clean-up of contaminated soils. TIF is a proven tool for fulfilling these needs and examples of positive uses abound. The state should partner with cities in their economic development and redevelopment efforts thereby reducing the competitive advantage enjoyed by cities in adjacent states who have more economic devetopment toois. The AMM opposes further restrictive changes to tas increment statutes, and supports making the following changes if 1998 becomes a year for major changes in TIF policy: • Allow districts approved after April 1, 1990 to pool increments for affordable housing or pollution remediation. • Require the DepartmenY of Revenue's definition of tax increment to be consistent with the statutory definition of tas increment. • Eliminate the Local Government Aid (LGA) and Homestead and Agricultural Credit Aid (HACA) penalty currently imposed on newly created districts or allow an exception from levy limits. Also remove the restrictions on the source of payment if the penalty is not eliminated. • Remove existing restrictions to property included in a deferred assessment program within the last five years (e.g. green acres). • Remove the LGA/HACA penalty imposed on Housing TIF Districts that were established during the penalty years of 1990 through 1993. • Exempt redevelopment districts from the "five year rule." B-4 RESPONSIBLE USE OF TIF The state has imposed restrictions on the use of TIF partially because of the perception that it causes unne�essary competition between individual cities and regions of the state. There is also 26 9�-�� a perception that cities aze played against each other when developers consider projecu and development which would take place without TIF. Some counties and school districts also feel they should become more invoived in the decision making process. The review and comment requirements of the current TIF law should continue to be used to educate other local governments about proposed developmenY projects. Counties and school districts should respond to these overtures for evaluation and participation and take advantage of all available informational opportunities. Cities alone should be authorized to approve city initiated TIF Districts since it is cities who assume the financial risk. B-5 PROPERTY TAX REFORM IMPACT ON TIF Future property tax changes which include additional class rate compression or property tax exemption for investor owned utilities would have significant negative impacts on existing TIF districts. The AMM will support only property tax change proposals that include provisions to hold harmless existing tas increment financing districts or which provide sufficient state resources so that local TIF obligations can be met. Additionally, if the $2 million appropriated in 1997 is insufficient to cover deficits caused by the 1997 class rate changes, the legislature should provide additional resources so that TIF obligations can be met. B-6 OTHER DEVELOPMENT TOOLS Minnesota cities have the prunary governznental responsibility for economic development, but additional tools are necessary to carry out that responsibility. Prior to 1997, Tax Increment Financing (TIF) has been the major tool even though its effectiveness has been diminished by legislative actions in recent years. The 1997 L.egislature authorized local units of government property tax abatement authority as an additional tool even though it was not requested by local government. The legislature should exempt tax abatement projects from the levy limit restrictions imposed in 1997 to make tu� abatement an effective tool. It must be understood by the legislature that tax abatement authority is not a replacement for TIF. The Minnesota Investment Fund grant program should be continued in future bienniums. The state and federal funds that support this program should also be spread over the year to ensure projects across the state have access to the grants. 27 9�-�l B-7 DEVELOPMENT OF POLLUTED LANDS Most Minnesota cities have polluted land sites within their boundaries that remain unused or underdeveloped because of obstacles preventing clean up and reuse. Among the roadblocks are liability issues and up-frant costs of clean-up. Developers and Financiers are reluctant to expose themselves to such liability and clean-up costs often exceed the value of the land despiTe incentives for private sector intervention. Public sector subsidy is critical. The L,egislature passed several measures during the last few sessions to help dea] with the polluted lands problem including: The 1992 Land Recycling Act which was designed to promote the transfer and reuse of contaminated land by offering an exemption from liabiliry to those who are not otherwise liabie and voluntarily clean up a site. The 1993 TaY Act which made a step toward developing a pollution clean-up program and aclrnowledged that TIF is an appropriate tool to provide a portion of the funding. The 1995 Livable Communities Act which can provide about $7.0 million annually in grants for clean-up in the metropolitan area and reduces the local match for the Department of Trade and Economic Development (DTED) clean-up grants from 18 percent to 12 percent and allows the regional funds to be used as part of the local match. The Minnesota Superfund law was amended to authorize the Minnesota Pollution Control Agency (NIPCA) to consider the planned use of property when determining appropriate clean-up standards. The 1997 Legisiature appropriated $7 million to DTED for the statewide clean-up program of which up to two-thirds can be used in the metropolitan area and $6.2 million from the Petrofund to DTED to be used to clean up petroleum related contamination. The Iegislature should continue its strong commitment to polluted lands clean-up by: • Continuing the DTED clean-up grant program and increase funding substantially in future bienniums based on need and demand. • Allowing the existing clean-up tools to continue operating. • Requiring that condemnation commissioners consider the cost of correcting pollution problems in determining the final value of property. • EstabTishing an indemnification fund to provide financial security for institutions and individuals as they invest in projects to recycle contaminated sites in order to m 9�-/� leverage private investment in cities' efforts to increase their tas base and create jobs. Elimivating the requirement to match a portion of the clean-up grant program with local general funds. The Metropolitan Council should also continue its strong commitment to implementing its Regional Blueprint policies (revitalization of the urban core, compact development, containing sprawl, etc.) by levying the ma�mum allowed yearly for the ta�i base revitalization account of the LCA. B-8 REDEVELOPMENT NEEDS Many communities aze faced with the unique circumstances of deteriorating and obsolete structures in neighborhoods and downtowns and a lack of land for development. Redevelopment activities usually require significant up front financing to address multi-phased projects of extensive duration where site assemblage, demolition, relocation must occur in addition to pollution clean-up before private-sector interest can be generated. The lack of a coherent statewide policy and the State's unwillingness thus far to provide direct financial support for redevelopment has and will continue to contribute to the further deterioration of the urban tax and job base and exacerbate sprawl. The State should make a financial commitment to invest in redevelopment projects including an adequately funded program to allow development authorities to gain control of and develop formerly contaminated sites, pursuant to local plans and priorities. B-9 WELFARE REFORM/WORKFORCE READINESS In many instances, cities that have conducted aggressive, successful economic development programs, have ascertained a problem with respect to the availability of qualified, work-ready employees for their new and/or expanding companies. The "heated" economy and the low unemployment rate, has exacerbated this situation. In many instances, the lack of available, qualified employees has negated or curtailed communities otherwise promising economic development efforts. • The state should continue funding employee training programs such as The Pathways program and the Job Training Partnership Act. • Cities can serve as a catalyst in working with other public sector entities and the private sector to address workforce issues. ftL'7 t�- ll B-10 BUII.DING PERMIT FEE SURCHARGE Local units of government levy a half-percent surcharge on building pernuts which is paid to the state to operate the state Building Codes and Standards Division. Until the 1991 Legislature changed the law at the request of the governor, any excess fees over actual operating costs were proportionately rebated to local units to help pay for building o�cials training and continuing education costs. Local units of government are facing tough financial times and need every available resource, especially that which could be considered local money. The AMM recommends reinstating the language providing that unused building permit surcharge fees in excess of state building code division costs be returned to cities. B-11 LIVABLE WAGE POLICY The 1995 Legislature adopted an amendment that requires a business that receives state or local govemment assistance for economic development or job growth purposes must create a net increase of jobs in Minnesota within two years of receiving the assistance. If the job and wage goals are not met, the business must repay the assistance. Assistance is defined to mean a loan or grant in excess of $25,000 or TIF. Annual reports to DTED are also mandated. The amendment basically requires a net increase in jobs for any type of public economic assistance. Because the act does not specify the type of TIF district, it is assumed that alt types of districts, including housing districts, must retain a business and prevent relocation of that business. The AMM recommends that the current law be amended to incorporate the following: • A business be de�ned as an industrial entity and a for-pro�t corporation. • Assistance be a loan or grant equal to or greater than $250,000. TIF, for purposes of ttus act should not be considered assistance iE used for housing, redevelopment, or renewal districts. • Assistance may be used to retain and/or increase the number of jobs. • The state or local government providing the assistance be authorized to estabtish by agreement with the business the wage and job goals, as well as the means to repay the assistance or another remedy to satisfy the goals. 30 ��- // IV Metropolitan Governance Structure & Issues Pages 31-48 31 �V r /I � METROPOLITAN GOVERNANCE STRUC'TURE AND ISSUES IV METROPOLTTAN GOVERNANCE There are certain issues, concerns and problems which because of their complexity or breadth encompass the entire metropolitan area and can not be dealt with by a single local government or through a combination of local units. The region needs to deal with these regional issues through a regional governance structure which acts in cooperation with and as a partner with local units of government and officials. IV-A PURPOSE OF METROPOLITAN GOVERNANCE STRUCTURE The diversity in demographics and political subdivisions within our metropolitan area result in the need for planning on a metropolitan basis which must be done in cooperation with local government. There is also a need for a regional service delivery system to provide certain services or portions of services to most effectively and eff'iciently address the needs of the meuopolitan area. The AMM affirms its support for the e�stence of a metropolitan governance system to deal with appropriate regional issues and concerns. The purposes of the metropolitan governance system should be to facilitate region-wide planning with the cooperation and consideration of the affected local governmental units; to provide certain region-wide services that do not duplicate those that can be provided by local governmental wuts, either individually or jointly; and to ful�ll other speci�c responsibilities mandated by the state and federal governments. IV-B CRITERIA FOR EXTENSION OF METROPOLITAN GOVERNANCE AUTHORITY Executive, legislative or self directed initiatives to expand responsibility or authority of the Metropolitan Governance System must be carefully considered and limited in focus with indepth review by all those impacted by the proposed expansion. The legislature, if granting the metropolitan governance structure additional responsibility or authority, should be speciFic in the grant. Expansion or extension of authority should be considered only when one or more of the foliowing conditions exist: • The service, function, or activity has been shown to be needed and it can be demonstrated that it cannot or is not being effectively or efficiently provided through existing general purpose units of government; 33 ��-�� The service, function, or activity is not an appropriate state level or Iocal government level activity or function, Regional intervention is needed for protection of the region's investment in an existing metropolitan system. IV-C METROPOLTI'AN GO'VERNANCE STRUCTURE AND FUNDING The Meuopolitan Council was created in 1967 to coordinate "the planning and development" of the Metropolitan Area. The Council was mostly advisory, but was given responsibility for regional policy development and coordination in the areas of wasiewater treatment, transportation and airports. The Council was given limited approval authoriry for development proposals which were of inetropolitan (regional) significance but was not given direct operational authority. The Metropolitan Council's responsibility has been expanded over the years and was given direct operational responsibility for regional transit and wastewater ueatment in 1994. Gl RESTRUCTURING OF METROPOLITAN AGENCiES In 1994 the L,egislature eliminated the Regional Transit Board (RTB), the Metropolitan Transit Comznission (MTC) and the Metropolitan Waste Control Commission (MWCC) as freestanding agencies but there are still separate agencies for sports facilities and airports. There is a great deal of discussion as to how accountable the governance structure is. The ANINI recommends: Removing the metropolitan sports faciliries commission as a metropolitan agency if if continues in its present form, since the back-up tax liability is limited to one city which also appoints all commissioners except the chair, contingent upon its divestiture of lands and properties in cities not responsible for the back-up ta�c. If new sports facilities are built using �nancing that requires revenues from communities other than the City of Minneapolis, or would potentially impose talc liabiliries on other communities, the agency should be restractvred to ensure representation of all communities that are affected. Clarifying the status of the Metropolitan Airports Commission (MAC) so that it either becomes a metropolitan agency or a state directed agency. If the back up property tax remains limited to the seven county metropolitan azea then its membership should come from the metropolitan area. If the back up property tas is made state wide then the MAC should have statewide representation. 34 9y-�� The Advisory Council on Local Governments shouid study the governance structure of the MAC. G2 F`UNDING FOR REGIONALLY PROVIDED SERVICES The funding for the Metropolitan Council and it's regionally provided services is a combination of properry taxes, user fees and federal and state grants. There have been discussions to replace these multiple sources with a single new revenue source. The AMM believes it is appropriate to continue to fund the regional services and activities by the existing combination of user fees, property taxes, state and federal grants. The AMM believes this method provides better visibility of expenditures by the "payers" and therefore opposes the imposition of a single new source to replace the present funding sources. The AMM also believes that the linkage between revenues and expenditures for each service should remain visible by function at the regional level. C-3 REGIONAL TAX RATES AND USER FEES The Legislature controls the taxing authority of the Metropolitan Council and the Metropolitan Airports Commission (MAC) and it should continue to do so. User fees are deternuned by the Metropolitan entiry collecting the fees. The setting of user fees and the process for setting or changing fees has generally not been considered a problem except for isolated cases. The AMM believes: • User fees for regional services should not be dictated by the legislature but should be determined by the entities collecting the fees. • Ali fees should be consistent with regional system plans and goals. • An open visible process/procedure should be employed for user fee rate changes when changes are proposed in order to ensure public notice and opportunity for input. • A clear linkage between revenue and service should be maintained. IV-D COMPREHENSIVE LAND USE PLANNING/GROWTH MANAGEMENT Land use plaiming and regulation in the metropolitan azea is mostly governed by the statewide municipal planning act (M.S. 462} and the Metropolitan Land Planning Act (M.S. 473). While not a perfect framework, the guidelines and requirements in these laws have worked reasonably well for the affected entities. There is a perception, however, that existing pianning law and resource availabiliry might not be adequate to deal with cunent planning and 35 ��/' development issues facing this state, region and local units of government. The communiry based planning act passed in the 1997 session may help bat it may need to be strengthened to deal with the area immediately adjacent to the seven county metropolitan area. There is also room for improvement in the relationships and interactions between the Metropotitan Council and local governments. D-1 COORDINATION OF LOCAL AND REGIONAL PLANS Planning is an ongoing process, and several precepts should be kept in mind by local units of government, Metropolitan Council and the state as this metropolitan planning process continues. • The regional investment in metropolitan physical service systems; transportation, wastewater treatment, airports, and park and open space, should continue to be protected by preventing adverse impact on these systems due to lack of integration and coordination between regional and local pianning. • Designation of other regional plans as metropolitan systems plans should not be made unless there is a compelling metropolitan area wicle problem or concern that can best be addressed through a regional system designation. • Local governments must recognize the authority of the Metropolitan Council to plan for the regional systems; and the Metropolitan Conncil must recognize the authority of local governments to plan for their communiries so long as the regional systems are not jeopardized. • Local officials must have efFective input into the regional plawung process on an ongoing basis. In order to assure effective input, the Metropolitan Council should hold public hearings on all proposed amendments to the Metropolitan Development Guide. Adequate advance notice, including full text copies of all amendments, should be provided to all iocal governments. Following adoption of amendments, the Council should provide copies of the amended plan. Metropolitan system plans must be sufficiently specific in terms of locations, capacities, and timing to allow for consideration in local comprehensive pianning. System plans should clearly state the criteria by which local plans will be judged for consistency. System plans should also clearly state the criteria that the Council will use to find that a local plan has a substantial impact on or contains a substantial departure from metropolitan system plans. Timely and effective local planning assistance should be available to cities, including, but not limited to: staff support; research and technical data; specific guidelines for interpreting policies; systems statements; and procedural criteria for the review and evaluation of plans and amendments. 36 9��/� Procedures for Metropolitan Council review of local plan amendments must: * Recognize that the Council does not "approve" local comgrehensive plans, but rather only has authority to review and comment unless there is a substantial impact on or departure from the system plans; �` Be estabiished through an open� dialog with local governments to maintain trust and communications between the Council and local governments, wluch in the past has included a public hearing process; * Be sensitive to local government's need to act on plan amendment and development applicatiozvs within time constraints imposed by state law; * Provide for immediate effectuation of plan amendments which have no potential for substantial impact on systems plans; * Require the speci�c information needed for the Council to discharge its responsibilities under the law, but not prescribe content or format beyond what is specifically required by the Metropolitan Land Planning Act. D-2 METIiOPOLITAN COUNCIL FOCUS ON PLANNING The Metropolitan Councii is a planning and operating agency and is also responsible for administering the Livable Communities Act. There is a concern that the Council is subordinating its visionary and long range planning, data collection, and research functions to its operational and administrative functions. The Council also needs capacity to deal with emerging issues in a timely manner as well as provide for the important linkage between transportation/transit, housing and economic development as delineated in its Regional Blueprint. The Council must ensure that its planning, research and data collection and dissemination functions are ful�lled in a timely manner and consistent with its statutory obligations. Cities will be unable to meet their planning mandates unless they receive the needed information and data from the Council in a timely manner. D-3 GROWTH MANAGEMENT STRATEGY State legislators, Metropolitan councilmembers, local officiais and the public have expressed increased concern about the continued pattern of outward growth, or urban sprawl, in and beyond the seven county metropolitan area. Specific issues include constrained funding for expansion of regional systems, a desire to preserve the urban core, the need for affordable housing throughout the region, protection of agricultural uses, environmental nnpacts and a desire to promote development patterns consistent with maintenance of a viable public transportation system. 37 ��',� Studies have documented continued acceleration of often unplanned and uncontrolled growth in the next ring of counues surrounding the metropolitan area, including western Wisconsin. AMM members are concerned that imposing increased densiry requirements and increased regulation of growth witrun the seven counties covered by the Metropolitan Council, while leaving unaddressed the issue of exurban development outside the seven counties, will sunply accelerate the trend of leap-frog development and make it more difficult to produce affordable housing. Similar issues, albeit on a smaller scale, aze of concern to cities throughout Greater Minnesota, particularly the regional centers. The AMM strongly encourages the legislature to devise effective methods of ensuring responsible and controlied development in counties surrounding the metropolitan area. A strengthened community based planniug act may be the vehicle most appropriate to address these issues. Discussions should also be continued with of�cials in western Wisconsin to encourage their adoption of effective growth control measures. Further inveshnent in transportation infrastructure to connect with Wisconsin should be contingent upon its implementation of such controls. The AMM also enconrages the Metropolitan Council to continue its flexibie guided growth policy regarding Metropolitan Urban Service Area (MLTSA) expansion requests as outlined in the Regional Biueprint. However, the Metropolitan Council must recognize that until there are effecrive growth management strategies and tools beyond the metropolitan area, tightening of Mi1SA expansion criteria within the metropolitan area will cause one or more of the following; • Increased leap-frog development into adjacent counties and Wisconsin. • Increased housing costs within the metropolitan area. • Decreased economic growth due to increased development costs. • Increased development activity in the Rural Service Area. D-4 METROPOLITAN LAND PLANNING ACT IMPLEMENTATION Implementation of the Metropolitan Land Planning Act (MLPA) has an unpact on city financial and human resources ott an ongoing basis. Furthermore, the 1995 MLPA amendments sponsored by the Metropolitan Council created additional unfunded mandates for IocaI units of government. The AMM has long opposed unfunded mandates and spoke to this issue before the Metropolitan Council and at several legislative hearings. The legislahue in 1997 made it even more difficult to comply with mandated comprehensive plan updates by reinstating levy limits. � ��.�� The Metropolitan Council must consider and account for the capacity of and efforts by cities to produce and implement comprehensive plans as Council policies and systems statements are developed and adopted. All requirements for local plan preparation and implementation should be subject to fiscal impact evaluation before adoption and should be accompanied by meaningful �inancial assistance upon adoption. Due to its failure to provide funding and its reinstatement of levy limits the Legislature should do one or more of the following: Extend the deadline for completion of the comprehensive plan updates For at least one year Remove the prohibition of the Council approving local comprehensive plans after July 1, 1999 as contained in M.S. 473.1455 Fully fund the costs of updating the Local comprehensive plans or exempt the planning costs from the levy limits Additional planning mandates which create local costs to implement will be opposed by the AMM unless fully funded. A-5 LOCAL PLAN IMPLEMENTATION The Metropolitan Council has authority under the Metropolitan Land Pianning Act (MLPA) to review and comment on local comprehensive plans. However, it does not have the authoriry to review 1oca1 zoning ordinances and other "o�cial controls" which implement the local plans. The MLPA has since its inception required the adoption of official controls that implement the plans, and that local governments not adopt official controls in conflict with the plan or that would permit activities in conflict with metropolitan systems plans. Later, legislation was passed that indicated that conflicting zoning would supersede the comprehensive plan. In 1995, the law was charged once again to require that by the end of 1998 local governments shall conform their off'icial controls, including zoning, with their plans. The Metropolitan Council has indicated that there may be a need to find better ways to ensure tt�at local planning decisions impiement regional goals. They have suggested the establishment of a mechanism for appealing local decisions at a regional level. In addition to this suggestion, the Minnesota legislation directed the Advisory Councii on Communiry-Based Planning to recommend related to the establishment of an alternative dispute resolution system. The comprehensive plan serves as a guide for the orderly development of a community, but should not be equivalent or identical to a zonin� ordinance. Plans must be specific enough to be useful to guide local decision making, and to ensure compatibility of local decisions with regional system plans, but must not become a substitute for a zoning ordinance. 39 ��-ri The local ability to control the fate and future development of a community through the statutory authority to zone has been traditionally and historically granted to local government. Local government zoning decisions should not be conditioned upon approvals by any governnxent agency. Such delegation of local legislative authority would be inconsistent with local self determination and due process for landowners and citizens. The AMVI is open to the use of alternative dispute resolution techniques prior to resorting to the court system for resolving land use disputes. Proper use of alternative dispute resolution has the potential to reduce costs and time needed to negotiate solutions to disagreements among citizens, developers, local governments and the Metropolitan Council. However, the AMM strongly opposes the creation of an appeals board that could supersede City planning or zoning decisions. IV-E METROPOLITAN COUNCIL BUDGET/WORK PROGRAM PROCESS The Metropolitan Council, as restructured, is essentially a state agency with an annual operating budget exceeding 300 million dollars but unlike state agencies its budget is not subject to legislative approval. Therefore its annual budget document and supporting data must convey su�cient information so that the stakeholders can evaluate what services are being provided, at what cost, who pays and who benefits. E-1 BUDGET PROCESS The Metropolitan Council will face a continuing challenge in its budget process to provide the public with the appropriate information in a timety fashion so that the public can provide meaningful input and oversight. The Council should keep several principles in mind as it develops its annual budget for the restructured agency. Mandated and non-discretionary projects should be identi�ed along with their funding sources and projects and activities which are discretionary but totally or mostly funded by state or federal funds should also be identified. Previous year's expenditures history for ongoing activities should also be provided. The annual budget should delineate the services formerly provided by the MWCC, MTC and RTB and the expenses and revenues for those services should be ciearly identified and the linkages between expense and revenue maintained. Further, the funds or reserve funds raised for a particulaz ser��ice should not be used or co- mingled with the funds raised for any other service or activity. E-2 WORK PROGRAM EVALUATION The Council as a non-elected body and therefore not subject to "ballot box" accountability or direct legislative oversight in its work programlbudget development process, must take extra :1 9�-!/ caution to ascertain the effectiveness and/or necessity of current and planned programs and services. The ANIlVI believes that every major council program/priority should meet four tests: • The issue or problem being addressed is important to the well being of the region. • Council intervention or activity will produce a positive result. • Council effort or activity does not duplicate or serve as a substitute for a state level program or effort or what should be a state level activity. • Council is most appropriate agency to intervene or perform the activity. IV-F METROPOLITAN PARK AND OPEN SPACE FUNDIlVG The L.egislature established the Metropolitan Parks and Open Space System in 1974 and provided state/regional fiscal support for the acquisition and development of the System. However, the State and the Metropolitan area have failed to establish a long term stable financing plan for the Regional Park System. Failure to clearly define the role of regional parks within the State Fark System has led to long term instability relative to the acquisiCion and development of regional parks and created significant funding concerns for implementing agencies. F-1 OPERATION AND MAINTENANCE FUNDING Regional parks within the Metropolitan area provide the same basic function as state pazks provide in Greater Minnesota. The State does not fully acknowledge this similarity and does not provide an equitable amount of funding for the operation and maintenance of regional parks while covering 60 to 70 percent of the cost of state parks in Greater Minnesota. The Legislature and Governor should recognize the role of regional parks and provide appropriate funding to implementing agencies to assist them in the operation and maintenance of the regional parks and open space system. The state should provide 40 percent of the funding (statutory stated goal) to operate and maintain these facitities instead of less than 10 percent as has been recent practice. F-2 DEVELOPMENT/CAPITAL F'LINDING The Legislature for the past severai years has provided less than 25 percent of the funding requested for acquisition and development of regional parks by the Metropolitan Council. To allow for the orderly and planned development schedule for the regional parks and open space 41 qg--�l1 system, the Metropolitan Council is using previously granted authority and is issuing regional bonds backed by a regional property taY to make up part of the shortage. The regional parks essentially serve the role of state parks in the metro area and should be funded accordingly. Therefore, issuing regional bonds inappropriately shifts the burden of regional park funding from the state to metropolitan area property taspayers. Metro area tas payers are paying twice for state park service and this is not equitable. The Metropolitan Council should increase its efforts to obtain an equitable share of state funding in future legislative Funding cycles. IV-G WATER RESOURCE MANAGEMENT Water is a criticai resource fot this metropolitan area and it is necessary to plan and manage this resource to assure adequate supply, safeguard the public health, provide recreational opportunities and enhance economic opportunities. Many levels of govemment have a vested interest in protecting and managing water resources in an environmentally and economically sound manner and therefore it is in the public interest to clearly delineate each level's responsibility to prevent duplication, overlap, and conflicung reguirements. This delineation is particularly important to cities since they are the level that ultimately has ttte most "hands on" responsibility. The aspects of water resources which have received the most attention in recent years are surface water runoff, groundwater quality, water supply and water recharge areas (weflands). There is an interrelationship among all of these systems and there is need for coordination in managing them effectively. Local units of government should retain the basic responsibility for water resources management because they are the level closest to the problems but may need to look to the state and the Metropolitan Council for fmancial assistance and technical expertise necessary to implement this responsibility. G-1 WATER SUPPLY The AMM is in general agreement with the Water Supply Act passed in the 1993 legislative session. The thrust of this legislation is to promote water conservation, require contingency plans for water emergencies and to promote long range planning for local water supplies. Additionai legisiation pertaining to locaI or regional water supply planning is not warranted. However if legislation is proposed, it should be based on the following principles: • Local units should retain the basic responsibility for water supply planning and management as in current law. Additional mandates should be funded by the state. 42 �� // Potable water should not be designated a Regional System. (See policy D-1) The Metropolitan Council should continue its assessment of regional water supply, periodically report its findings, continue to evaluate water issues and provide technical and mediation assistance as needed. G-2 SURFACE AND GROUNDWATER WATER MANAGEMENT No one has the right to pollute either ground or surface water resources and in order to safeguard the public health and environment, it is necessary to preserve our water resources as critical state resources. Most water management organizations (WMO) and local units of government have done a good job of dealing with surface and groundwater management issues and have the ability to continue to do so in a cost effective manner. These existing structures should continue to be used to the greatest extent possible to address surface and groundwater management problems rather than create a new bureaucracy. There is no need for new urban water management structure but, it is clear that the current system which contains duplicate reviews and approvals of local plans and development ' projects/proposals should be streamlined. If legislation is considered for surface water management, it should be based on the following principles: The legislature should provide full funding if it mandates additional water management planning or implementing activities by local units of government. Local units of government should retain the basic responsibility for surface and groundwater management as they are the level closest to the problem. New state requirements should not add to local costs and duplicate reviews/approvals should be reduced or eliminated. The AMM would support the following initiatives/action: A thorough assessment of the Board of Water and Soil Resources (BWSR) structure and authorities to ascertain if it should continue to be the approval and oversight agency for surface water management planning and activities in the metropolitan area. A thorough assessment of the metropolitan area surface water management planning and permitting process with the objective of developing improvements in conflict resolution, better coordination between and among state and local agencies, and streamlining the project permit approvals process. 43 9� tl • Compliance by local units of government in outstate Minnesota with the same standards and requirements for surface water management as those imposed on local units within the metropolitan area. • A technical evaluation of the impact of 2 to 1 wetland replacement in the urbanized area on the goal of greater urban densities stated in the Metropolitan Council's Regional Blneprint. G3 REGIONAL WASTEWATER (SEWER) TREATMENT SYSTEM The metropolitan wastewater treatment and collection system, which was created in 1969, has contributed significantly to the unprovement of water quality in many of the major water resources of this area. As a result of a major study and analysis in the mid 1980s a uniform funding system was established. The metropolitan wastewaYer collection and treahnent system has been a major component of an integrated local-regional system wluch has helped improve the quality of the water in many of the major water resources of this area such as Lake Minnetonka, the Minnesota, Mississippi and St. Croix Rivers, White Bear Lake, etc. It is important that change not be made to this regional system that could lead to its breakup or to diminish its effectiveness. Since all users benefit equaIly fhroughout the system the regional rates should be uniform. IV-H WASTE STREAM MANAGEMENT In the mid to late 1980's the problem of managing the waste stream (for all types of waste) was a major concern at the local, regional, and state level. This resulted in major legislative initiatives, numerous "master plans," and ideas on the subject which were constantly changing. At the present the overall system is more settled with cities being responsible for collection and counties being responsible for disposal. The Metro Council role has been transferred to the State or defacto assumed by the seven-counry joint powers arrangement. L,egisIative initiatives are more in the line of fine-tuning with the major issue being liability within the polluted land arena. AMM endorses the concept that the "generators" of waste must bear the responsibility for funding its disposal. "Generator" includes the manufactures of products which become waste, the sellers of products which become waste and the consumer of products which become waste. Materials which cause special problems in the waste stream should bear the costs (through the cost of purchasing the materials) associated with the problems. Legislation should be initiated which provide financial incentives to manufacturers, retailers or consumers for reducing packaging volume, using recycled materials in its fabrication, or, particularly in the case of food and beverage containers, facilitating its .. 9�-l/ return. Fees, taYes, or deposits on packaging materials should be considered with these costs waived when content goals are met, volumes are minimized, or effective materials return systems are in place. The net revenue generated from fees/taxes above administrative costs should be used to promote or enhance local programs to reduce, reuse, and recycle packaging materials. AMM strongly supports the activities of the Office of Environmental Assistance (which replaced the former Office of Waste Management and assumed Metro Council duties), in particular its efforts in local government assistance and waste reduction education. Tlris of�ce should not become involved in regulatory activities but continue to focus on helping local governments manage waste effectively. AMM opposes any legislation which would limit local initiatives in waste stream management unless an overall state or metropolitan wide system is established which accomplishes the same goal or objective. The responsibilities now assigned to cities for solid waste management should remain with the cities. The AMM believes that the system ought to be flearible and based on performance standards and/or goals rather than mandated techniques. AMM believes that any funding system must guarantee distribution of the monies to all entities involved in the system and recognize all costs associated with the system. This means a significant portion of the funds raised through the sales tas should be distributed to cities which operate recycling programs. AMM also believes that the entire proceeds of the t� on solid waste should be dedicated to solid waste activities. AMM believes that host communities should not bear a financial liability associated with solid waste facilities. Costs incurred for monitoring operations and corrective action should be borne by facility operators or, in the absence of such regulations, be assumed by the State of Minnesota. The AMM supports the current compensation level allowed through surcharge fees as a minunum level; this compensation should be continued or increased. This form of compensation should be available to all types of solid waste facilities. AMM supports state and federal legislation that clari�es that municipal solid waste is not a hazardous substance and enables local governments involved in cleanups to have the opportunity to settle their potential liability quickly and safely. IV-I LOCAL GOVERNANCE EXAMINATION The basic system of local governance in Minnesota (cities, counties, and school districts augmented by special service districts) has been in place since at least the turn of the century. 45 9�-�i The only major change or innovation has been the creation of the metropolitan governance system for the Twin Cities area in the late 1960s and early 1970s. While the system has by and large worked well, there are an increasing number of events and issues which raise the question of how best should local governance be handled as the State enters the new century. These include at least the following: The incremental growth of responsibilities by the Metropolitan Council and the metropolitan governance system--[he most recent being the creation of the Metropolitan Radio Board--and the questions surrounding the exercise of such powers by an appointed body. 2. The continued devolution of responsibilities by the federal and state governments onto local government. In addition to funding questions this process raises numerous questions as to who should be assi�ned the responsibilities. The growth management strategy being implemented by the Metropolitan Council through its regional blueprint and system plans and the local comprehensive planning process. The process could lead to recommendations on financing of various services and some shifring in basic Iand use responsibilities. 4. The process of financing local government (especially for cities and schools). 5. The increasing role of counties in the provision of "area-wide" services. 6. The recognition that school districts are now often being asked to provide services which go beyond what is thought of as traditional education. The cumulative result is a system which often is not understood by the public, may have aspects which are not accountable and in a time of scarce public resources may not be as efficient as is desired. We commend the legislature for establishing the advisory council on local governments to study the roles and functions of local governments in the metropolitan area. The Office of Strategic and Long Range Planning should provide the necessary staff and administrative suppori as delineated in statute to enable this advisory council to fulfill its responsibilities. The advisory council is charged with studying and making recommendations on the appropriate roles and responsibiiities of local and regional government in the metropolitan area. The advisory council's goal should be to make recommendations for a governance system which is efficient in the delivery of services and is accountable to the etectorate and it should not assume the current governance structure is sacred or unchangable in making such recommendations. .� • Y �i ll Q Since it is unlikely that the advisory council can complete all its work within the time framework delinated in statute, the advisory council should recommend a process/procedure to complete t}us very important examination over a longer period of time. 47 9��1 u Transportation Pages 49-58 49 f � / V TRANSPORTATION AMM TRANSPORTATION POLICY STATEMENT Within the last two decades, the number of miles driven per day has doubled. Tra�c congestion is expected to increase by 35 percent by the year 2000, creating neazly 200 miles of severely congested highways. Ridership by bus, car and van pool, continues to decline and the regional transit system continues to be inadequately funded. There is a growing awareness that the true cost of driving an automobile, when factoring in energy use, pollution, productivity loss due to congestion, and the resulting cost of motor vehicle accidents, are bom by the general public at large not solely the driving public. A major part of peak hour traff'ic is workers commuting to or from work. Achieving a balance between workers and jobs in a geographic area can reduce the volume of intra area commuting and balance the directional use of the interconnecting roads. Economic stratification and an aging population is creating a larger pool of transit dependent individuals. Our cunent transit system is not capable of providing adequate transit services in the entire meuopolitan area. Local governmental units are facing funding shortfalls which prevent Yhem from adequately maintaining the current transportation network. AMM calls upon the legislature, MNDOT and the Metropolitan Council to develop a more comprehensive transportation program that more closely integrates all modes of transportation. This coordinated approach at the minimum must be designed to increase accessibility, improve air quality, and serve the transit dependent and handicapped. The AMM supports a comprehensive transportation policy that: • Incorporates traffic management into local and regional zoning and planning acdons; • Encourages tra�c management plans by all employers; • Creates a series of incentives aimed at increasing vehicle occupancy levels; • Discourages the use of development incentives for any project of significant size that does not contain a comprehensive traffic management plan; • Studies the concept of jobs to workers balance in the meuopolitan area; and • Establishes an adequate dedicated funding source for uansit. In addition, local units of government must be provided with adequate funding or the authority to maintain their current investments in the local uansportation infrastructure. It is imperative that as we prepare to move into the next century, our transportation network become multi-modal, offer flexibility, invest significantly in transit, and be designed to manage traffic. The following recommended legislative proposals aze designed to meet this overall goal. 51 �g V-A TRANSPORTATION FLINDING An e�cient transportation system is a vital element in planning for physical, economic, and social development at the state, regionai, and local levels. Funding for current roadway maintenance, reconstruction, and construction of new streets, bridges, and highways is a significant major element of a competitive and safe uansportation system. Also, because of the large economically diverse population of the Twin City Meuopolitan Area, it is an absolute necessiry to provide an effective and efficient public mass transit service augmented by a vaziery of programs, such as Rideshare and Project Mobility. Without a good transit system, many elderly, persons with disabilities, and transit dependent individuals residing in the area would be almost totaliy immobile. The need for both highway and transit funding has been and continues to increase, yet the resources dedicated or generally used for these purposes have either not kept pace or been diverted for other state priorities. Transit needs in the Metropolitan Area have become critical since in most cases highway expansion is physically or financially prohibitive. Therefore, capacity expansion can best be solved by transit alternatives. Funding should be multi-source with growth capability. Therefore, the AMM believes it is time to solve the problem on a permanent basis. Increased funding for both highways and transit especially in the Metropolitan Area is a critical need and should be given lugh priority by the legislature. Funding assurances for transit and highways should be dedicated in a consistent manner. The AMNI supports a gas tas increase including indexing to keep pace with highway maintenance and construction needs. As an addition to the tradifional gas tax and to provide funding for both highways and transit, the AM�I would support additional tas sources including MVET, a sales taY on gasoline at the pump allocated to transportation, or a statewide or metrowide half cent sales tas to be used for transit. Any arrangement that would substitute an alternate tax for the transit property tas in the Metropolitan area should continue to fund the current optout transit systems at comparable levels. As part of the combined strategy, the state legislature should consider using its bonding authority to provide transportation infrastructure. V-B REGIONAL TRANSIT SYSTEM The purpose of a transportation system is to provide inobility for people and accessibility to and for economic development and services. The most effective system will make maximum use of all transportation altematives and strategies where they are most appropriate, thus, 52 ��i► , creating a truly integrated system. Exclusive reliance on freeways is imprudent and cost prohibitive primarily due to social and economic upheaval of established neighborhoods for right of way acquisition. Transit unprovements are imperative, but even with implementation of various load increasing strategies, the capacity is finite and will reach unacceptable saturation limits within the foreseeable future. The AMM supports more coordination and integration of Transit, including exciusive transit ways, and highway planning and unplementation. The Regional Transit System should be a combination of integrated traffic management systems and be included in all planning documents. The system components should include HOV lanes, express buses, and exclusive transit ways which should be built to connect residents to job, retail, and commercial centers. The system should also include a variety of transit modes, including a taxi system, buses, pedestrian and bicycle facilities, and park and ride facilities adequate to connect the regional centers, major trip generators and communities, both urban and suburban. Bus systems and exclusive transit way systems should include ample regional park and ride facilities for automobiles, motorcycles and bicycles, with easy access, consistent with the planning of a regional entity to accommodate the needs of the public. Feeder systems should be a major consideration for bus park and ride and exclusive transit way stations. Plans should be considered which use van pools and bicycles as well as walking to feed the park and ride facilities for express buses and exclusive transit ways. The Metropolitan Council should work with local units of government to encourage appropriate land use controls along designated transit corridors to promote transit ridership. V-C TRANSPORTATION INCENTIVES/DISINCENTIVES The AMM supports the development of a comprehensive system which will facilitate an increase in the occupancy level of cars and enhance the use of transit within the Metropolitan area. AMM suggests the development and passage of legislation that includes a commuter trip reduction program and creates a series of tax incentives and/or impact fees that encourages multiple occupancy transit use. The state legislature is encouraged to consider exclusion from gross income the value of commuter transportation benefits provided by an employer and provide a tas deduction and tas credit for employers who provide commuter transportation benefits to employees. 53 9�-ti V-D TRANSPORTATION UTILTTY Many cities aze experiencing aging infrastructure, especially streets which are in need of replacement but because of few funding options continue to deteriorate. Chapter 429 bonds issued without election require a minimum of 20 percent assessment. However, the courts require a benefit proof that the assessment has actually increased the property value by the assessment value. For street replacement, challenged assessments often aze successful in court. A new funding mechanism similar to one that was created for stormsewers is needed. The AMM requests the legislature to authorize cities to establish a transportation utility for street maintenance and reconstruction, similar to the existing storm water utility, so that costs of improved facilities can be charged to the users. V-E MSAS FUNDING FOR COMBINED CITY STREET DEPARTMENTS The State of Minnesota developed in the late 1950s a system for distributing highway funding to MNDOT, counties, and communities with populations over 5,000. This system has worked reasonably effectively to construct and maintain an integrated transportation network within the state. In recent years, the legislature has enacted statutes which call for the investigation of benefit that would be obtained through consolidation of services and reallocation of resources. One such area that presents such an option is the consolidation of Public Works and Maintenance departments within cities, townships, and counties. Such an opportuniry for streamlining capital expenditures and cost-effective maintenance of an integrated street system might be best served by recognizing such consotidation through the use of the MunicipaI State Aid System (MSAS). In that, if two or more governmental units consolidate their maintenance departments, having in effect a 7oint Powers Agreement which reflects a single entity for budgeting and operations purposes, then the population of the governmental units participating in such a Joint Powers Agreement should be considered in determining the MSAS funding eligibility of these communities as per MS 162.09. The AMM urges the legislature to encourage cooperation and consolidation of local government services. The state aid system statutes should be amended to allow for the eligibility of combined population within incorporated municipalities having a joint powers public works and maintenance department and contiguous borders, to qualify for MSAS funding under the municipal state aid street system population cutoff rule of 5,000. 54 9��ii V-F HIGHWAY TURNBACKS AND F`UNDING Various commissions, boards, and organizations, have studied the possibility of reclassifying many roadways in the state as to appropriate use classifications and jurisdiction. This reassignment in the meuopolitan area is estimated to shift $6.1 million annually from the state and $1.2 million annually from the counties to the cities for an increase of $73 million annually for general maintenance and life cycle treatment (i.e. sealcoat, overlays, etc.). Current state law provides that the state and/or counry may declassify a trunk highway and turn it back to a local unit of government. The only provision is that it must be in good condition. The AMM supports jurisdictional reassignment or turnback of roads on a phased basis using functional classification and other appropriate criteria subject to a corresponding mechanism for adequate funding of roadway improvements and continuing maintenance. Cities do not currently have the �nancial capacity other than significant property taY increase to absorb the additional roadway responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated turnbacks. V-G '3C' TRANSPORTATION PLANNING PROCESS - ELECTED OFFICIALS ROLE Federai law and rules have long required that the Metropolitan Planning Organization (MPO) responsible for comprehensive transportation planning commonly referred to as the '3C' process (continuous, comprehensive, and cooperative) be composed at least partly of local elected officials. This process and requirement was reinforced by the federal ISTEA act of 1991. In this metro area the Metropolitan Council (MC) has been designated the MPO with a provision that there be a Transportation Advisory Board (TAB), which contains at least a majority of local elected officials, to implement the '3C' planning process. The AMM supports the continuation of current local elected of�cials involvement in the '3C' process through the Transportation Advisory Board to meet requirements of the Federal Intermodal Surface Transportation Act of 1991. V-H RAILROAD RIGHT-OF-WAY PRESERVATION Minnesota has lost over half its rail system as national carriers have abandoned lines. Abandoned rails represent a significant opportunity for future use for trails, natural resource access, light rail, highways or pipeline corridors. The AMM urges the legislature and state administrative departments to continue programs that ensure abandoned railroad grades be expediently preserved until such time that the future public use can be determined. 55 • 9�-�l V-I CITY SPEED LIMIT CONTROL Speed lunits on streets are currently established by the Commissioner of the Minnesota Department of Transportation. The speed limit for residential streets is established at 30 m.p.h. However, cities have developed with variable land use patterns, street layouts, densities, and also have varying topographical conditions. There are many local streets where 30 m.p.h. is not a reasonable or safe speed. Many other states in the area have a 25 m.p.h. speed limit for local streets. The AMM supports reducing the current 30 m.p.h. speed limit to 25 m.p.h. throughout the state. Tlus woutd address numerous safety issues throughout the state, but still maintain uniformity for the traveling public. V-J MOTION IMAGING RECORDING SYSTEM (M,I.R.S) - TRAFFIC LAW COiVIPLIAIV'CE Diminishing obedience with statutory laws, posted speed I'unit compliance, traffic signal lights (red) at intersections and railroad crossing (red lights and gates), is causing great concern for citizens and municipal govemments. E�cient enforcement would require significantly more personnel and taY dollars. Traffic caiming techniques are only minunally effective in a few areas and require additional maintenance. Motion Imaging Recording System technology is being empioyed in many states and numerous municipal jurisdictions in the United States including Arizona, California, Michigan, New York, Utah, and Colorado. It has been used for decades in many nations. Implementation growth is rapidiy accelerating. Benefits include unproved safety, fewer accidents, and lower insurance costs, improved uniformity in coverage and fairness of traffic law enforcement; and improved satisfaction by citizens. The technology is substantially tested and proven. Surveys of citizens in Minnesota have indicated strong support for traffic law enforcement through unproved technology (M.I.R.S.). The AMM requests legislative action authorizing utilization of motion imaging recording system technology on streets and highways to assist promotion of safety and traffic law compliance enforcement. V-K AIRPORT NOISE MITIGATION In 1995; the Minnesota L,egislature concluded the Dual Track Airport Planning Process by selecting the expansion aiternative to meet the state's major airport needs. The means of mitigating airport and aircraft noise nnpacts were not addressed in the legislation. Instead, the Metropolitan Airports Commission was charged with deveioping a mitigation package for 56 y�-�� legislative consideration in 1997. The decision to keep the airport at its current location for the benefit of the state and Meuopolitan area does create an obligation to ensure that every effort is exerted to resolve and mitigate noise issues within the affected communities. Noise mitigation programs need to be enhanced to beyond the cunent 60 DNL contours and for newly unpacted areas due to runway expansion/addition. Individual communities will continue to have an obligation to plan development and redevelopment in a manner compatible with airport operations, however, cosu associated with noise mitigation should be borne by the airport (MAC) and the state since the airport is considered a statewide faciliry. Enhanced mitigation programs should be proaided through state and MAC funds for areas impacted by airport activity, and areas beyond the current 60 DNL contour lines. A program of reduced subsidy should be initiated for several miles beyond the current contour cutoffs based on distance and noise level. Mitigation programs for low frequency noise should be created and constantly monitored for effectiveness. In addition to the traditional acquisition and sound insulation techniques, the Airport Area Community Protection Concept Package developed by affected cities, Metro Council, and MAC should be adopted. This package includes tools such as property value guarantees, preferential taz� programs, housing revitalization, expansion of tax increment financing authority and eligibility criteria and community development banks. Airport associated commercial development should be encouraged within the affected communities. Private use facilities on airport property, including leased facilities, should be required to make payments in lieu of property tazes and fiscal disparities contributions, such funds to be dedicated to mitigation activities. Noise monitoring systems, including low frequency noise measures, should be enhanced and operated independently to ensure noise abatement procedures compliance. This would determine that new standards for low frequency noise levels should be developed. Fines from violations should be returned to the affected communities to implement mitigation activities which are consistant with an overall noise mitigation plan. Landing fees, gate leases, facility leases, passenger charges, etc. should be evaluated as to national comparability and any incremental increase dedicated to the affected communities to implement mitigation activities which are consistant with an overall noise mitigation plan. 57 �Y V-L ROAD ACCESS CHARGE Growing communities are finding it increasingly difficult to finance construction of facilities needed for new residential, commercial, and industrial development. Assessment to ueveloping property for sewers and streets directly benefiting that property is a long standing legal option and is the most prevalent method used. However, there are often major streets that need to be constructed leading to new developments. Under current law only the abutting benefited property can be assessed and then only to the degree of benefit which in most cases is not nearly enough to pay for an upgraded roadway that services a larger population. The legislature has recognized similar situations and authorized charges to provide facilities not directly abutting the affected property. The most common comparison is park dedication fees on a per unit or area basis. Yn order to fairly provide for major street improvements of primary benefit to a particular subdivision development but not direcUy assessable and to allocate cost so that new growth pays its fair share, the legislature should authorize cities to establish at their option a road access charge to be levied on an area or per lot basis at the time that subdivisions are approved or at the time building permits are issued similar to park dedication fees. V-M METRO MOBILTTY The Metro Mobiliry program is a valuable tool for providing mobility to the transit dependent who are physically impaired. In 1994 the program served 25,000 individuals with 4400 rides per weekday at a public subsidy cost of $15 million. This subsidy cost has risen dramatically in the last several years. Examination of rider characteristics shows that 69 % of the individuals served are ambulatory as opposed to being in a wheelchair. AMM supports efforts which would better integrate services for the mobility impaired into the regular route system of MCTO; AMM supports prioritization of the program with an emphasis on work-related and essentiaitrips; AMM supports investigating alternative delivery methods especially for the ambulatory participants in the program. �:3 9fr-11 Appendix Pages 59-64 59 Aousing and Economic Development Committee Charlotte Shover (Chair) Beverly Aplikowski Kirstin Barsness Jan Callison Dan Donahue Mike Ericson John Goedeke Regina Harris Andrea Hart Kajer Jon Hohenstein Coral Houle Gordon Hughes Jim Hurm Dwight Johnson Mazvin Johnson Jane Kansier Joan Molenaar Gladys Morton Mazk Nagel Ron Rankin Mazk Sather Katy Sears Lindbiad Mazk Senn Kathy Thurber Craig Waldron Councilmember Councilmember Dir. of Economic Development Councilmember Manager Administrator Councilmember HRA Director IGR Asst. to City Manager Mayor Asst. Manager Administrator Manager Mayor Planning Coord. Councilmember Councilmember Manager Dir. of Community Dev. Manager Proj. Mgr-Planning Councilmember Councilmember Administrator Burnsville Arden Hills Cottage Grove Minnetonka New Hope Watertown Roseville Bloomington Minneapolis Eagan Bloomington Edina Shorewood Plymouth Independence Prior Lake Champlin St. Paul Anoka Minnetonka White Beaz Lake St. Paul Chanhassen Minneapolis Oakdale 9�-l/ 61 � �-1 I 1V�etropolitan Agencies CommitteP Terry Schneider (Chair) Bill Bamhart Kevin Batchelder Bob Brerton Dave Childs Sharon Feess Kevin Frazell Matt Fulton Tom Goodwin Ken Hartung Susan Hoyt Anne Hurlburt Larry Lee Tom Link Paul Malone Mary Helen Mische Steve North Steve O'Malley Joan Russell Don Rye James Smith Jill Smith Eric Thole Sherry Timmermann Kurt Ulrich Chuck Whiting Burl Zorn Councilmember IGR Representative Administrator Councilmember Manager Councilmember Dir. Member Services Manager Councilmember Administrator Administrator Dir. of Commun. Development Dir. of Commun. Development Dir. of Devel./Prot. Services Councilmember IGR Assistant Asst City Manager Deputy City Manager Councilmember Plauniug Director Councilmember Councilmember Councilmember Councilmember Administrator Administrator Councilmember Minnetonka Minneapolis Mendota Heights North St. Paul Minnetonka Brooklyn Pazk League of MN Cities New Brighton Apple Valley Bayport Falcon Heights Plymouth Bioomington Inver Grove Heights Arden Hills St. Paul Roseville Burnsville Golden Valley Prior Lake Independence Mendota Heights Stillwater Oakdale Champlin Mounds View Shakopee 6�► � �. Revenue Committee Frank Boyles (Chair) Gene Anderson Kazen Anderson Leslie Anderson Steve Bjork Curt Boganey Edwazd Burrell Tom Burt Dave Callister Joan Campbell Tom Cran Steven Devich Terry Dussault Margazet Egan John Gretz Terry Heaton Bill Huepenbecker Jim Keinath Jim Knutson Dennis Kraft Bob Lazson Ann Lenczewski Dennis Maetzold Mike McGuire Steven Mielke Michael Momson Douglas Reeder Janet Robert 7im Smith Jerry Splinter Russ Susag Joy Tierney Kurt Ulrich Gene Van Overbeke Jeff Van Wychen John Waliin John Weaver Jim Willis Liz Workman Manager Councilmember Mayor Finance Director Coord/Planner Manager Treas. & Finance Director Admnustrator Clerk-Administrator Councilmember Budget Analyst Adm. Services Dir. Asst. to Manager Finance Director Administrator Deputy Dir. of Adm. IGR Director Administrator Finance Director Manager Administrator Councilmember Councilmember Manager Manager Manager Administrator Councilmember Councilmember Manager Councilmember Mayor Administrator Finance Director TGR Representarive Treas. & Finance Director Councilmember Administrator Councilmember Prior Lake St. Paul Park Minnetonka Burnsville St. Francis Brooklyn Park Roseville Rosemount Osseo Minneapolis St. Paul Richfield Blaine New Brighton Apple Valley Bloomington St. Paul Circle Pines Anoka Robbinsdale Deephauen Bloomington Edina Maplewood Hopkins St. Anthony South St. Paul Oak Park Heights Independence Coon Rapids Richfield Plymouth Champlin Eagan Minneapolis Edina Anoka Inver Grove Heights Bumsville 9�-/ I 63 �.,_ _ � . _ �� Transportation and General Government Committee Pat Scott (Chair) Councilmember Gene Anderson Bill Bamhart Geralyn Barone Kevin Batchelder Lyle Berg Cathy Busho Tim Busse Sherry Butcher-Younghans Charlie Crichton Jerry Dulgar Dale Gustafson Bill Hargis Fran Hoffrnan Jon Hohenstein Gary Humphrey Chazles Lenthe Sandy Masin Mark McNeill Chazlie Meyer Mary Helen Mische Lynn Moratzka Viedols Muiznieks Gerald Otten Dave Schaaf Mark Senn Ceil Smith Russ Susag Bill Thompson Joy Tiemey Jerry Turnquist Dawn Weitzel Donn Wiski Bret Woodson Councilmember Godt Relations Rep. Asst. City Manager Administrator Transportation Engineer Mayor Asst. to City Manager Councilmember Counciimember Manager Councilmember Mayor Engineer Asst. to Administrator Councilmember Public Works Director Councilmember Administrator Manager IGR Assistant Councilmember Councilmember Councilmember Mayor Councilmember Asst. to the Manager Councilmember Mayor Mayor Councilmember Comm/Spec. Proj. Asst. Councilmember Asst. City Manager Minneapolis St. Paul Park Minneapolis Minnetonka Mendota Heights Bloomington Rosemount Maplewood Eden Prairie Bumsville Crystal Brooklyn Park Woodbury Edina Eagan Apple Valley Blaine Eagan Shakopee St. Louis Pazk St. Paul Hastings St. Paui Park New Hope Oak Pazk Heights Chanhassen Edina Richfield Coon Rapids Plymouth Oak Park Heights Richfield Roseville Prior Lake .� Council File # � i� i �( N A L Green Sheet # RESOLUTION Presented Sy C OF SAINT PAUL, MINNESOTA �l IS Referred To Committee: Date 1 WHEREAS, the Association of Metropolitan Municipalities has adopted its 1998 2 Policies and Legislative Proposals to be considered by the Minnesota Legislature 3 during the 1998 session; and 4 5 WHEREAS� the City of Saint Paul was an active participant in the development of 6 these policies and legislative proposals and the City concur generally on these 7 policies and proposals, now there£ore be. it 8 9 RESOLVED, that the City Council of Saint Paul does hereby recommend for 10 consideration by the Minnesota Legislature the 1998 Policies and Legislative 11 Proposals submitted by the Association of Metropolitan Municipalities and does 12 hereby request that these issues be addressed by the Legislature during the 1998 13 session. 14 1 5 Requested by Department of: Byc Approved By: /v, By: Form Approved by City Attorney B Y � --�� Approved by Mayor for Submission to Council By: � i !�-� �U�C�'d,� t8-ll 5a 31o1 Adopted by Council: Date Adoption Certified by Counci Secretary N°_ 52361 w�._�� DEMR7M�ENTNFFIGEIC:OUNCIL OATE INITIATED I a �, r� or�s Office I12/29/97 G R EEN SH E E CONTACT PERSON 8 PMONE INITIAL/DATE INITIAUOATE � DEPAflTMENTDIRECTOR � pTYCOUNCIL RSSIGN CITVATTORNEY GTYCLERK Bill Hue enbecker 266-8517 NIINBERFOR MUST BE ON CqUNGR AGEN�A BY (DATE) PO��N� � BUDGET DIRECTOR a FIN 8 MGT. SER��CES DIR. Januar 7 1998 OPDER O y�qypFy �pR ASSISTANT� � TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REOUESTED. � City Council approval of the Association of Metropolitan Municipalities 1998 legislative priorities. RECOMMENDATIONS: Approve (A) or Reject (R) pERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING OUESTIONS: _ PLANNING CAMMISSION _ CIVIL SERVICE COMMISSION �- Has this person/firm ever worked under a Contract for ihis department� _ CIB COMMITTEE _ VES NO _ STAFF 2. Has this personffirm ever been a city employee? — VES NO _ DISTaiCr CoURi _ 3. Does this persoNfirm possess a skill oot normally possessed by any currenf ciry employee� SUPPORTS WHICH GOUNCIL OBJECTIVE'+ YES NO Explain all yea answers on separate sheet end ettach to green sheet INITIAT�NG GROBIEM. ISSUE, OPPORTUNIN(Who. What, When. Where. W�y) As a member of the Association of Metropolitan Municipalities, the City of Saint Paul has been an active participant in developing the Association's legislative policies and proposals for the 1998 legislative session. ADVANTAGE$ IFAPPROVED: Saint Paul will be an active paxtner_in supporting the legislative proposals and policies for the 1998 session. �ISADVANTAGES IFAPPfiOVED: None. cCLi��6'G� t?EC 29 i597 � :�°� f� ;^ OISADVANTAGES IF NOTAPPROVED: Saint Paul would not be a part or a supportive partner in the Association of Metropolitan Municipalities legislative agenda. C�1GY ��' DEC 2 9 1997 TOTAL AMOUNT OF THANSACTION $ COST/REVENUE BUDGETED (CIRCLE ONE) YES""" NO ` FUNDIfdG SOURCE 0.CTIVITV NUMBER PINANCIAL INFOflMATION (EXPLAIN) s� � Assotiation of Metropoiitan Manicipalities DATE: TO: FROM RE: October 10,1997 ANIMCityOfficials � rs��-� _ lL s`�,� (iCU'�'� C.�-� � ��u�'� 3�0 C;; � . RtCE��tD � b _ � � OGT 1 31997 Ci7Y CLERK � U LLETI N -::_�, ?�� 1 3 1S9? �.: �.. L "v=r�f EnclosedDraftofi 998 PolicyDocument/PolicyPriorities Enclosedaretherecommendationsforthe 19981egislafivepolicyprogramfromtheAMM'sfour standingcommittees. Pleasereviewthepolicieswithyourcitycouncilforactionatthe membership meeting scheduledforThursday,November 13 atthe SheratonMetrodome Hotel. A noti ce on the specifics ofthe meeting wiil be mailed to you within the next couple weeks. The AMM BoardofDirectorshasreviewedthe attachedpolicies andrecommends fuli membership adoptionas amendedbythetwo changes listedbelow. 1. Insert the words "blighted and/or" to the last sentence ofpolicy B-8 (REDEVELOPMENT NEEDS) on page 29. The state should make a financial commitment to investin redevelopment projects including an adequately funded program to allow development authorities to gain control of and develop €er-me�ly�bliEhted and/or contaminated sites, pursuant to local plans and priorities. 2. Deletepolicy V-I (CITY SPEED CONTROL) onpage 56. Please reviewthe 17 policies listed onthe back ofthis memo and numberyour topfzve priorities, with 1 beingthehighestand 5 the lowest. Bring yourpriorities to the PolicyAdoptionMeeting, ormail,faxorE-mailyourresponsestotheAMMoffice. Yourparticipationisimportant bec ause the policy priorities help deternune how stafftirne and resources are allocated. Bu1198.pm6 t4� UnivmiryAvmuc H�t Saim P�uC Mimaota 5no;-toq4 (6tz) n5-4oao fax z8�•nqq 9�— � I �; � Association of Metropolitan Municipalities � � Fj� • • • � , Policies & Legislative Proposals i45 Univercity Avenue Wect Saint Paul, Minnesota �io3-zo44 (b2}tg-4000 Fax: z8�•a99 � . � , ti�- � I INDEX PART ONE MUNICIPAL REVENUE AND TAXATION I. MUNICIPAL REVENUE A. LEVY/VALUE LIMITS 1. Levy Limits 2. Oppose Valuation or Operation Freezes B. PROPERTY TAX REFORM PRINCIPLES C. AID PROGRAM CONTINUATION 1. Local Government Aid (LGA) - 2. Homestead and Agricultural Credit Aid (HACA) 3. Oppose Conversion of City LGA and HACA to Schooi Aid D. TAX EXEMPT PROPERTY E. GENERAL FISCAL IMPACT POLICIES 1. Fiscal Note Continuation 2. Funding Shifts 3. State Revenue Stability 4. City Revenue Stability and Fund Balance 5. Sa1es Tax on Local Government Purchases F. LOCAL PERFORMANCE AID G. PRICE OF GOVERNMENT H. FISCAL DISPARITY FUND DISTRIBUTION i PAGE NUMBER i-10 3 3 3 3 5 5 5 6 6 6 6 7 7 7 8 � � I. TAXATION OF MUNICIPAL BOND INTEREST J. STATE OR METROPOLITAN IMPOSED FEE FOR SERVICE K. PERSONAL PROPERTY TAXATION - ELECTRIC UTILITY PART TINO GENERAL LEGISLATION II. GENERAL LEGISLATION A. MANDATES AND LOCAL AUTHORITY B. PUBLIC RIGHT-OF-WAY C. COUNTY PLAT APPROVAL AUTHORITY D. POLICE AND FIRE PENSION PROVISIONS 1. Amortization Aid 2. Employee Contribution Amount 3. Benefit Increases 4. Assumption Changes E. 911 TELEPHONE TAX F. 800 MHz RADIO SYSTEM G. PERMIT APPROVAL - ZONING H. ELECTIONS - ALLEY SYSTEM AUTHORITY PART THREE HOUSING AND ECONOMIC DEVELOPMENT III. HOUSING AND ECONOMIC DEVELOPMENT A. HOUSI1v�G AND NEIGHBORHOODS 1. Regulatory Impacts on Housing Costs 2. Mandatory Land Use Standazds 3. State Housing Policy and Financial Assistance 4. Metropolitan Housing Policy ;; R�-l� 9 9 10 11-16 13 13 13 14 14 14 14 14 14 15 15 16 17-30 19 19 20 20 21 �i�-�l 5. Local Housing Policy 22 6. Neighborhood Livability 22 7. State and/or County Licensed Residential Facilities (Group Homes) 23 8. Residential Non-Homestead Property Tax Relief 24 B. ECONOMIC DEVELOPMENT 1. Economic Development Responsibilities 2. Equal Treatment of Cities 3. Tax Increment Financing (TIF) 4. Responsible Use of TIF 5. Properry Tax Reform Impact on TIF 6. Other Development Tools 7. Development of Folluted Lands 8. Redevelopment Needs 9. Welfaze Reform/Workforce Readiness 10. Building Permit Fee Surcharge 11. Livable Wage Policy PART FOUR METROPOLITAN GOVERNANCE. STRUCTURE,_AND ISSUES IV. METROPOLITAN GOVERNANCE A. PURPOSE OF METROPOLITAN GOVERNANCE STRUCTURE B. CRITERIA FOR EXTENSION OF METROPOLITAN GOVERNANCE AUTHORITY C. METROPOLITAN GOVERNANCE STRUCTURE AND FUNDING i. Restructuring of Metropolitan Agencies 2. Funding for Regionally Provided Services 3. Regional TaY Rates and User Fees D. COMPREHENSIVE LAND USE PLANNING/GROWTH MANAGEMENT 1. Coordination of Local and Regional Plans 2. Metropolitan Council Focus on Planning 3. Growih Management Strategy 4. Metropolitan Land Planning Act Implementation 5. Local Plan Implementation 25 25 25 26 26 27 27 28 29 29 30 30 31-48 33 33 34 34 35 35 35 36 37 37 38 39 iii q�-t i E. METROPOLITAN COUNCIL BUDGET/WORK PROGRAM PROCESS 40 1. Budget Process 2. �Vork Program EvaIuation F. METROPOLITAN PARK AND OPEN SPACE FUNDING 1. Operation and Maintenance Funding 2. DevelopmendCapital Funding G. WATER RESOURCE MANAGEMENT 1. Water Supply 2. Surface and Groundwater Water Management 3. Regional Wastewater (Sewer) Treatment System H. WASTE STREAM MANAGEMENT I. LOCAL GOVERNANCE EXAMINATION PART FIVE TRANSPORTATION V. AMM TRANSPORTATION POLICY STATEMENT A. TRANSPORTATION FUNDING B. REGIONAL TRANSIT SYSTEM C. TRANSPORTATION INCENTIVES/DISINCENTIVES D. TRANSPORTATION UTILITY E. MSAS FUNDII�TG FOR COMBINED CITY STREET DEPARTMENTS F. HIGHWAY TURNBACKS AND FUNDING G. '3C' TRANSPORTATION PLANNING PROCESS - ELECTED OFFICIALS ROLE H. RAILROAD RIGHT-OF-WAY PRESERVATION 40 40 41 41 41 42 42 43 44 44 45 49-58 51 52 52 53 54 54 55 55 55 iv 5 ��/� I. CITY SPEED LIMIT CONTROL 56 J. MOTION IMAGING RECORDING SYSTEM (M.I.R.S.) - TRAFFIC LAW COMPLIANCE 56 K. AIRPORT NOISE MITIGATION L. ROAD ACCESS CHARGE M. METRO MOBILITY APPENDIX COMMITTEE ROSTERS Housing and Economic Development Metropolitan Agencies Revenue Transportation and General Government 56 58 58 59-64 61 62 63 64 v y�-a � I Municipal Revenue & Taxation Pages 1-10 9�-�I LEGISLATIVE POLICIES 1998 MUNICIPAL REVENUE AND TAXATION I-A LEVY/VALLJE LIMITS A-1 LEVI' LIMITS The Association of Meuopolitan Municipalities has consistently opposed levy lunit laws in that they apply uniform statewide restrictions to cities and are too inflexible to accommodate inflation, uncertainties in state and federal financial aids, and the diverse problems and circumstances faced by cities throughout the state. The AMM strongly opposes levy limits and urges the legislature to repeal the levy limits for 1999. A-2 OPPO5E VALUATION OR OPERATION FREEZES During past legislative sessions several proposals related to levy limitation through freezes have been made. As in the case of the previous levy limitations these type of artificial restrictions will work adversely for the taxpayers in the long run. Property valuation free2es wili create property tax disparities between current and new properry and will create large individual talc bill fluctuations when the freeze is lifted. Payroll or operating freezes cause larger increases at some later point. The AMM opposes imposition of artificial gimmicks such as valuation freezes, payroil freezes, or other limitations to the local government budget and taxing process. I-B PROPERTY TAX REFORM PRINCIPLES The AMM is supportive of reasonable and rational property tax reform and to that end provides a set of principles to guide in the development of a reform package. �i 8-�! 1 Property tax reform proposals should: Be simple and accountable as long as it is recagnized that the property tax sysYern must satisfy diverse financial needs. 2. Recognize city cash flow needs and not jeopardize existing development districts, tas increment finance districts, or enterprise zones. Assure that city revenue sources be diversified. The properry ta�c is considered a regressive tax and does not provide growth as does income and sales taYes. Cities must avoid becoming tota2ly dependan[ on property tax. 4. Protect cities' ability to determine and generate revenue and not be dependent on referenda. Assure that net property tas for FvIetro city taYpayers shall not increase as a result of property tax reform which reduces or diverts aids (LGA/FTACAj i.e. School property tas reduction equivalent to aid reduction. State aid shouid remain an essential componenf of the properfy tax system. Categorical aid programs should not become a substitute. A program such as income-adjusted circuit breaker and renter's credit should continue. 6. Stabilize city revenue sources so that cities may effectivety do both short and long range planning. Be based on a class rate taY capacity system not a combination of taz� capacity and market value. 8. Include elements that promote fairness and geographic baiance. i.e. there sfiouId be a semblance of equaliry and tases paid by income and type and size of property. Class raYes may be adjusted to provide more fairness and equity fo the system. However, care should be exercised and overall tax burdens analyzed before making major changes. As an example, C/I propecty taxes are high, but Minnesota exempts business equipment which is taxed in most states. The overall tax burden including property, income and sales should be considered before changing one or the other. 0 9��t� Local Government Aid should be distributed based both on need and property wealth and shouid not favor one region of the state at the e�pense of any other region. Recently proposed "power equalization" formulas would have resulted in a shift of state aid from metropolitan cities to greater Minnesota cities by failing to adequately recognize the needs of ineuopolitan cities and by inflating the population factor of greater Minnesota cities. If K-12 school funding is substantialiy changed, the principles of equity, accountability, and progressiveness should be observed. 9. Not include a new sales tax on local water or sewer utilities. I-C AID PROGRAM CONTINUATION In the event that an acceptable property tax reform is not achieved which incorporates the AMM principles, then the AMM supports the foliowing programs. C-i LOCAL GOVERNMENT AID (LGA) State aid to cities has existed for over two decades. LGA and other aid programs recognize three basic city problems 1) the need for revenue diversification, 2) properiy wealth differences, and 3) a state responsibility for various local services. Many programs and formulas have been tried over time to achieve an appropriate balance but have usuaily changed quickly. The cunent LGA formula seems to succeed reasonably well, although the modest growth factor will bazely maintain a current level. It will not reverse the trend towazd increased city property ta,z reliance nor help offset normal growth. AMM supports continued use of the implicit price deflator (IPD) to provide a minimum growth to LGA. Additional state resources should be provided to reverse local reliance on the property tas. AMD�I supports continuation of the current LGA formula. If changes are considered by the legislature, AMM will support only changes offered to the current formula that have a positive impatt on the metropolitan area. G2 HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA) HACA equals approximately 40% of locai city aid and is an integral part of the state and local governmental service financing system. Over time it has been decreased and for cities frozen except for increases associated with class rate reductions to prevent property tax shifts. Without an associated growth factor for HACA, levy rate increases will be greater than actual budget increases causing larger property tax increases. ��-ir HACA should be continued as part of the state and local fiscal relationship and the household growth adjustment reinsYated as weil as an inflationary factor, such as the IPD used for LGA, established. G3 OPPOSE CONVERSION OF CITY LGA AND HACA TO SCHOOL AID Past conversions of city LGA and HACA to school aid did not provide permanent relief from rising school tases nar is there any indication that such shifts would provide permanent future relief. Shifting aid from cities to schools will have the effect of not only increasing ciry property tax but probably overall property tax. The AtVIN1 strongly opposes conversion of city LGA and HACA to schooi aid. I-D TAX EXEMPT PROPERTX One of the glaring inequities in the Minnesota tax system involves the free local services that are provided to taa� exempt property owned by governmental and certain non-govetnmental organizations. It is widely acknowledged that such property benefits directly from local governmental services such as police and fire protection and street services provided by cities. The AMM encourages the state legislafure fo aufhorize cifies to establish a program of fees for fairly reimbursing municipalities by non-governarental organizations, except constitutionally exempt property, and from the state, county, other city and metropotitan agencies for the cost of services such as police, t"2re, and streets to their facilities. I-E GENERAL FISCAL IMPACT POLICIES E-1 FISCAL NOTE CONTINUATION Many Iaws are passed each year by the legislature which have a substantial effect on the fnancial viabiiity of cities. Some of these, such as revenue and tax measures, have an obvious and direct effect which is often calculated and reported during the hearing process. Many otfiers, such as workers compensation benefit increases, mandated activities, binding arbitration and other labor related legislation, social programs, etc., have costs which are not as obvious but which will now be known due to the increased fiscal note requirement passed in 1997. Cities and others will now be able to determine the real cost of a program or proposal and be able To use this data in determining the merits. The state should continue a policy of deliberate restraint on its mandated programs and extensively utilize the fiscal note statute identifying local government costs on any new mandated programs. 3 E-2 FUNDING SHIFTS The Minnesota House of Representatives Research Department annually prepares Major State Aids and TcLres: A Comparative Analysis. The statistics for 1985 - 1995 show an imbalance of state revenues collected and aids and crediu distributed between the metropolitan and eutstate areas. Around 65% of the State Revenue is collected in the metropolitan area while only about 47.9% (up .4% from 1994) of the aids and credits are redistributed in the metro area. In 1995 there was $.59 returned in aids and credits for each dollar collected in the metro area (down 1 centfrom 1994) whereas,there was $1.19 returned per $1.00 coliected in greater Minnesota (down 5 cents from 1994). The trend in the past four years has been slightly in favor of the metro area but there is still a vast imbalance in favor of outstate distribution per amount collected. If the imbalance continues, state tax and aid policies may jeopardize the future economic growth of the metro area to the detriment of the whole state. The AMM requests the legislature to continue to reduce the imbalance of aids versus revenue between metro and outstate cities and to consider how this distribution of resources effects the economic growth and vitality of the metro area and thus the entire state. E-3 STATE REVENUE STABILITY The AMM has consistently supported a state reserve fund to deal with unanticipated economic changes that could result in mid year cuts to various city aid programs, and to provide cash flow balances so that short term borrowing is unnecessary. It seems prudent to develop a mid term correction or unallotment process that does not penalize any one segment of the state budget recipients over another segment if the economy drops beyond a reasonable reserve balance. The AMM supports a continued state fund to provide for state budget cash flow needs and a reserve for unexpected budget shortfalls due to economic downturns. The AMM also encourages the legislature to adopt a uniform across the board unallotment process for major economic downturns. E-4 CITY REVENUE STABILITY AND FUND BALANCE Cities need substantial cash balances on hand to operate for the first six months of the fiscal/calendar year untii the first property tax receipts are paid in June and/or state aid is paid in July. The alternative to an operating fund balance would be to engage in costly borrowing which is not in the best interest of local tax payers or the state. Many cities accumulate over a period of years capital funds for fire engines, public works vehicles, etc. to save taxpayer dollars in interest costs. These funds may appear to be surplus reserves, but in reality are savings accounts for major purchases. Cities need to maintain some fund balance to meet emergency expenditures created by nahtral 7 ��' � � disasters, lawsuits, vital equipment breakdown and even unexpected mid year aid cuts. Finally bond rating firms require liquidity and a demonstrated ability to pay debt in order to receive a favorable bond rating which will in the long run save property tax dollars. The legislature should not attempt to control or restrict city fund balances. These funds are necessary to maintain fiscal viability to meet unexpected or emergency resource needs of city governments, to purchase capital goods and infrastructure, provide adequate cash flow and to maintain high level bond ratings. E-5 SALES TAX ON LOCAL GOVERNMENI' PURCHASES In 1992, the Legislature repealed the sales tax exemption for local government purchases. This action increased the costs for local govern� and local property taxes by an estimated $76.8 million for the states 1997 fiscal year. This repeal has effectively increased local property taxes to finance state operations. The Iegislature should reinstate the sales tax exemption for all local government purchases without requiring a reduction in other aids to restore the mandated property tas increase from 1992. I-F LOCAL PERFORMANCE AID The 1996 L,egislature created the local performance aid program. The legislation was vague, the program was partially funded by cuts in HACA and the requirements for applying for the aid could become an onerous mandate on cities. Cities do performance measurement and participate in joint powers to more effectively and e�cienfly provide services. There is no way that the state can establish performance or efficiency criteria that is relevant for and applicable to 855 cities ranging in size from 3 or 4 persons to 370,000 persons. The AMM opposes the Local Performance Aid Program. If a local performance aid program is mandated, then a new source of funds other than e�sting LGA or HACA should be provided. I-G PRICE OF GOVERNNIENT The price of government legisiation enacted in 1994 was intended to measure the overall effect of state and local taxation over a long period of time. The targets measure government revenues as a percent of personal income and are intended to be used as long range fiscal planning toois for the state. Unfortunately the price of government targets are being misused by several organizations to call for arbitrary reductions in local spending. The price of government calculatioa as regards local gor•ernments should be based on CI �'� � (1) changes in the sum of levy and state aids, and (2) examination of long term trends, not single year events. In addition considerafion should be given to service provision transfers between governmental units, increase demand for services by citizens, and legislative mandates or tax rate changes. I-H FISCAL DISPARITY FUND DISTRIBUTION Fiscal Disparities (F.D.) is a fiscal tool that shares Commercial/Industrial property value for tax purposes in the seven-county metropolitan area. Its prunary purpose is to help equalize, to some degree, the property tax wealth among the cities by sharing part of the growth in communities experiencing significant growth with those experiencing little growth. A secondary aspect is it tends toward equalizing taxes on similar C/I properties in various communities. Recently suggestions have been raised to use a percentage of the fiscal disparities funds for specific social or other programs in the metropolitan area. Because of the way F.D. is calculated, this would amount to a hidden property tax increase across the metropolitan area that impacts the property tax poorer cities the most. Fiscal disparities distribution is applied after levy certification so the property tax increase is automatic, not discretionary at the local level. Therefore, The AMM opposes use of �scal disparities to fund social or physical metropolitan programs since it results in a metropolitan-wide property tas increase hidden from the public with an excessive impact on communities with lower property wealth. I-I TAXATION OF MLJNICIPAL BOND INTEREST The state law that grants a tax exemption for municipal bond interest is being reviewed and could be repealed. A repeal of this exemption will raise borrowing costs for cities at a time when budgets are extremely tight and property tax increases are unacceptable to the taxpayer. The state shouid maintain the t� exemption for municipal bond interest income. I-J STATE OR ME�'ROPOLITAN IMPOSED FEE FOR 5ERVICE The 1993 legislature adopted a$5.21 fee for each municipal water hook up to pay for federally mandated water well testing. Local o�cials/cities were mandated to impose the fee and accept responsibility. It was not however imposed on trailer parks and certain other private interests. It has been reported that the fee has raised excess funds which were deposited in the state generalfund. In addition, the Metropolitan Council recently considered adding a surcharge on sewer chazges billed to cities to augment cutbacks in transit funding. The AMM stronaly opposed this proposal and it was abandoned. 7 R��ci The AMM opposes the state or meYropolitan council mandating fees in a manner that forces city officials to be held as the responsible culprits in levying and expiaining the purpose. The AMM also opposes fees that are not spread equitably to all and opposes over collection or use of a revenue generated for a specific purpose or from a specific enterprise to be used for other government expenses. I-K PERSONAL PROPERTY TAXATION - ELECTRIC UTILITY Discussion regarding possible deregulation of the electric power industry has centered on electric utility Yaxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed to "level the playing field" or ensure competitive parity. The Investor Owned Utilities (IOUs) view attached machinery or personal property tax as baniers to competitive parity arguing that it places them at a competitive disadvantage. Similarly, co-ops pay the tax on some of their property and municipals make substantial payments in lieu of talces. However, accurate comparisons of tax burden are di�cult, as other states use different taxing systems. Utility personal property can be a significant portion of the locai tax base in all cities. Most obvionsly affected are cities that have power plants; however, transmission and distribution equipment account for over half of the personal property taxes paid by the IOUs and exist in nearly every ciry. In addition, personal property taY is a significant portion of the metropolxtan f'�scal disparities pool redistributed to all Metro area local taxing districts. Replacing the revenue that would be lost to cities, counties, schooi districts and other local tasing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources of such a replacement revenue would be difficult to develop and administer, and could be subject to reductions or elimination over time. FurtIiermore, replacement revenues or aids may not fully address the problems created by a large tax base reduction. AMM opposes proposals for exempting the IOUs from the personal property taz�. Under no circumstances shouid local units of government and their taYpayers be required to shoulder the burdens of tas relief for IOUs. 10 9�-// II General Legislation Pages 11-16 �� -II �� GENERAL LEGISLATION II-A MANDATES AND LOCAL AUTHORITY The AMM has for many years opposed statutory changes that erode local authoriry or mandate activities which cost money to implement unless there is a direct state appropriation or provision to recover the costs. Unfunded mandated programs impact the ability of cities to provide the traditional services of public safety, snowplowing, street maintenance, etc. and in some cases cause a reduction of these services. The AMM opposes statutory changes which erode local control and authority or create mandated additional tasks requiring new or added local costs without a corresponding state appropriation or funding mechanism. II-B PUBLIC RIGHT-OF-WAY Legislation was passed in the 1997 session that basicaily upheld cities rights to maintain jurisdiction over public rights-of-way and to receive compensation for damage. The League of Minnesota Cities (LMC) is continuing efforts to work with the PUC, which was directed to establish statewide criteria, to arrive at fair and equitable standards to protect the publics interest. The AMM supports the continued effort of the LMC to protect the authority of cities to maintain jurisdiction over municipal public rights-of-way, to establish relevant criteria and to obtain reasonabie compensation for its degredation. II-C COUNTY PLAT APPROVAL AUTHORITY Current law generally grants cities the authorfty to approve proposed plats as part of their police power responsibilities for regulating development. Certain counties want legislative authorization to approve proposed plats which are contiguous with existing or proposed county roads. An informal process of counry review with the opportunity to offer comments and suggestions for improvement is an appropriate cooperative mechanism which is already in place and working well in some areas of the state. Cities oppose extending county authority over plat approval. While counties have a valid interest in proposed plat decisions, this does not warrant a transfer of approval authority. 13 ��-i� II-D POLICE AND FIRE PENSION PROVISIONS Local police and full-time fire reiief associations were phased out by the 19801egislature unless the local council opts to keep the relief association. All new employees will become part of the state police and fire PERA fund and the state will reimburse locaI units for a portion of the unfunded liability remaining in the local fund. Also, I979 Law set employee contributions at 8% and the Legisiative Retirement Commission has in the past establisfied a general policy requiring public safety emp2oyees to pay 40% of the normal pension costs. D-1 AMORTIZATION AID The ANIVI opposes legislation that provides for reducYions of state amortiaation aid to local police and fire relie£ associations. D-2 EMPLOYEE CONTRI$UTION AMOUNT Even though the employee contribution amount was set at 8%, in many funds this is not equivalent to 40% of the normal costs. The AMM urges that the contribution level be set at 40% of the normal cost of financing the bene�ts even if this amount exceeds 8% of base salary. D-3 BENEFIT INCREASES The AMM opposes any benefit increases for local police and fire relief associations unIess an increase, including any resulting deficit, is financed 50% by the employing city and 50% by emptoyees on a current basis. D-4 ASSUMP'PION CfIANGES The AMM supports changes in actuarial asswnptions relating to salaries and investmenY return to more truly reflect experiences. The ANIM opposes payment of any type of bonus to active or retired members (13th Check) as a part of actuarial assumption changes. TI-E 911 TELEPHONE TAX The Department of Administration has the authority to impose up to a 30 cent fee per month per tetephone line to offset the ongoing maintenance costs for 911 service for the 90 plus phone companies in the state providing at least a basic service. The current fee is 22 cents but will be increased for 800 MHz by 4 cents in July 1997. There has been some pressure to increase the fee beyond the 30 cent levei to provide outstate enhancements. The ?LNIM supports the current 91I access fee and use of that fee for enhanced upgrade 14 y�-�i and other costs hut any fee granted in e�ccess of 30 cents per line per month should be returned to the municipality where collected. II-F 800 MFIz RADIO SYSTEM The 1995 I,egislature authorized implementauon of a Metropolitan 800 MAz Radio System and created a goveming board as weil as identifying fundtng sources. It followed criteria put forth by the AMM to ensure that cities would have complete control of when or if they became a part of the system while insuring continued uninterrupted public safety service and fees levied only for locally occurring costs at the time of participation. The 1996 and 1997 L,egislatures provided more funding (both directly and in the form of sales tax relie� to provide for the implementation of the basic backbone system. A major remaining problem is funding for local governments who want to consider joining the system. The AMM will support the continuation of the Metropolitan 800 MHz Radio system legislation and board as long as the following criteria are part of the implementation: • Cities should not be forced to modify their current systems, purchase new equipment prematurely, or become part of the 800 MHz Radio system until they so choose; • The system should provide a phased transition so that there is guaranteed uninterrupted service; • The system should be technically capable of allowing communities the flexibility to form various coordinated arrangements for dispatching and service provision; and • The governance body for 800 MHa should continue to be representative of entities/users that ultimately must bear the cost but should not be dominated by any one group. Since there are both regional and local benefits to local government units joining the system, the AMM urges the Regionai Radio Board to seek a state appropriation to assist local units of government in joining the system. II-G PERMIT APPROVAL - ZONING Current law requires finai city action within 60 days of an application or 120 days if the appiicant is notified prior to the end of the first 60 days. However, if a decision on the application is not made within the time limit, the application as automatically approved. In the case of a rezoning which requires a super majority, i.e. 4 of 5 council votes, the new pemut approvai deadline has created a loophole to the zoning statute. If only 3 of 5 council members 15 l�-!) support the rezoning, they can simply table the apglication until time has expired and it then is automatically approved by a simple majority; thus, subverting the zoning statute. The permit approval statute delineating time limit requirements should be modified so that in the case of a rezoning application, a motion to table that e�rtends action beyond the 60 or 120 day time requirement constitutes a denial not an approval in order to uphold fhe super majority requirement of the zoning statute. II-H ELECTIONS - AT.LEY SYSTEM AUTHORITY In arder to create a more democratic process that ensures candidates are elected with a majority of votes cast, statutory cities should be permitted to adopt an alley system of filing for councIl seats. AMM supports permitting statutory cities to adopt an aliey system for filing for city council seats. i['7 9k-�► l III Housing and Economic Development Pages 17-30 17 9�-ll 0 AOUSING AND ECONOMIC DEVELOPMENT A HOUSING AND NEIGHBORHOODS The distribution and availabiliry of affordable housing throughout the metropolitan area is a continuing concern. All levels of government and the private sector, including non-profit groups, must work cooperatively to address this issue. Each player in the production of housing must contribute if the issues are to be addressed: The federal and state governments can best contribute by providing more direct financial assistance and by creating a tax climate conducive to the production and maintenance of affordable housing. The Metropolitan Council should continue to give high priority to housing planning and provide technical assistance and guidance to the public and private sectors so better decisions relative to present and future housing needs can be made. Local governments should not inhibit the production of affordable housing through excessive regulatory requirements. They should also work with the private sector, Minnesota Housing Finance Agency (MHFA) and the Metropolitan Council to make the best use of existing toois and programs which facilitate the production and maintenance of affordable housing. The private sector should work with government and the non-profit sector in an effort to increase the supply of affordable housing. The use of covenants, while generally desirable in improving the quality of development, should be scrutuuzed by private developers to ensure that they don't have the impact of undermining the creation of more affordable housing. Policy makers at all levels must become more cognizant of their actions, decisions and requirements which may have an undesirable unpact on housing affordability. A-1 REGULATORY IMPACTS ON HOUSING COSTS Policies, programs and regulations of various levels of government and buiider/developer practices can add unnecessarily to housing production costs. While these actions may appear to be worthwhile and beneficial, they may negatively unpact the production of affordable housing. Examples include but are not 1'united to zoning and subdivision ordinances, growth policies, building and energy codes, environmental regulations and private covenants. 19 �V Local officials should periodically review regulations such as zoning and subdivision ordinances to ensure that they do not prohibit the production of affordable housing or become exclusionary. Regional and state officials should examine their current and pending regulations and policies, in azeas such as SAC, growth policies, building and energy codes, environmental regalations and transportation policies, to determine if they can be modified to enhance the production of affordable and life cycle housing throughout the region. Developers/builders should work with local officials to encourage affordable and life cycle housing by not increasing housing costs through private covenants requiring amenities and standards which unnecessarily exceed local and state requirements. A-2 MANDATORY LAND USE STANDARDS State-unposed uniform standards for housing sryle, type and lot size are not appropriate because of the great diversity among cities and differences within cities relative to density of development, topography, age of housing stock, the mix of housing values and the level of municipal services. The legislature should not mandate uniform zoning and subdivision standards or remove additional land use regulation authority from local units of government. Cities should retain the authority to regulate the location, size, amount and type of housing within their boundaries. No legislative initiative is needed. Cities do have a responsibility, however, to encourage affordable and life-cycie housing opportunities. A-3 STATE HOUSING POLICY AND FINANCIAL ASSISTANCE The state must continue to be an acuve participant in providing funding for housing needs. Allocation of state resources should be based on a statewide housing policy formulated in conjunction with regional and local governments to address local housing needs. Financing strategies must be devised which carry out the long-range goals of providing and maintaining affordable and life cycle housing in rural and urban Minnesota, The state can best contribute to the affordable and life cycle housing supply by: Providing direct funding in the form of grants and loans from state-derived revenues. Consolidating many of the e�vsting small NIfIFA programs into a larger pool with more flexible criteria and guidelines for use, thereby decreasing administrative costs � �1$�// of applying for and administering such programs at the local level. • Setting general policy priorities for use of state funds basad on the state housing policy which can be accessed by local, non-pro�t and for-profit developers based on their specific activities. • Collaborating with the Metropolitan Council to provide technical assistance and information ahout state and federal housing funding programs, as well as providing easier access to these programs. • Aligning income/sales price limits of MEiFA programs with Livable Communities Criteria where possible. • Providing incentives through the state tax policy to benefit the maintenance and production of affordable and life cycle housing. Incentives to be considered but not limited to: (1) Sales tas exemption for the construction and operation of low income housing by public agencies. (2) A state low income honsing tax credit. (3) Removal of local housing authority levy limits. (4) Exempting the state deed and mortgage transfer tas exemption for public agencies. Defining a qualified housing district to include affordable owner occupied housing of which, at least half ineets the guidelines of the livable communities act or statewide moderate income housing limits, whichever applies. Recognizing that preservation of existing housing stock is a fundamental and cost effective means to promote and retain affordable and life cycle housing. Funding for housing programs should include rehabilitation and restoration, as well as new construction. A-4 METROPOLITAN AOUSING POLICY The regionai housing policy plan should be consistent with the Regional Blueprint and take into account the essential linkages between housing, jobs and job training opportunities, transportation and human service needs of low income residents. 21 q�- �t The Metropolitan Council, shouId continue to provide markeY analysis and up-Yadate data on regional and local housing affordabilify needs and trends in the metropolitan area so rational decisions about future housing needs can be made. The housing policy must consider the linkages between housing, jobs and training, transportation and human service needs as set forth in the Regional Blueprint and the Livable Commnnities Act. The Metropolitan Council should examine its growth managemenf strategy to better determine its effect on municipalities' ability to meet affordable housing goals. The Livabie Communities program was established to offer incentives to cities to preserve and develop affordable and Iife cycle housing. Program funding is offered as an incentive for cities to pursue the goals established by the Livable Cammunities legislation. The policies of the Metropolitan Council regarding Yhe award of funding under Livabte Communities should not be based on the acceptance or rejection by the community of specific honsing prob ams, but rather on the degree to which the appiication in quesfion will help the city meet its stated housing goaLs in its action plan. Communities should not be required to expand or reduce their approved Housing Action Plan goais to obtain Livable Communities funding. Major changes to the Livable Communities Act should not be made until the evaluation and report mandated by MS 473.254, section 6 has been completed. A-5 LOCAL HOUSING POLICY Housiag needs vary among cities in the metropolitan area. Some cities need more housing for low income persons while other cities need more upscale housing to retain and/or attract more moderate to upper income persons. Cities should retain authority to promote housing types which are in their best interest, while at the same time encoutage life-cycle housing opportunities for households of all income ieveis to meet regiona] goals. Cities need to have great flexibility in financing their housing goals if they are to meet the intent of ttze Metropolitan Land Planning and Livable Communities Acts. Cities must retain suffic4ent authority and flexibility to conduct and finance housing programs that meet their individual housing nee@s within a regional context. Local funds can be used to leverage federal, state and metropolitan resources when they meet commou policy goals. Cities should avail titemsetves of the reso�crces provided through the Livable Communities Act and the MI�'A programs. A-6 NEIGH$ORHOOD LIVABILITY Rapidly evolving sociat, demographic, economic and behavioral changes are converging on many cities and creating new challenges that exceed cities' capacity Yo deal effectively with their new environments. 22 �� i The challenges cities face, such as deteriorating neighborhoods, crime and drugs, need the cooperauve efforts of public, private and business interests to solve. The problems continue to grow though cities have taken efforts to face these challenges. Cities should take the tead through working with other appropriate groups and agencies in the development of local and regional strategies that will assist in addressing complex and growing neighborhood problems. These strategies should recognize that the physical and structural condition of the neighborhood is inextricably interrelated with the social welfare of the neighborhood and the educational and economic opportunities available to residents. Where legislation is directed to assist low income individuals and children in poverty, legislators must recognize the need for linkages between housing and human services, jobs and training, health care transportation, and educational opportunities. When the legislature considers low income programs, it should treat these activities in a comprehensive manner. The legislature should enact necessary legislation to identify and eliminate barriers that would act to deter individuals from achieving their goal of economic and personal success for themselves and/or their family. Current state law makes it difficult for income-based benefit providers to share eligibility information. The Data Practices Act should be modified to allow such sharing of information when fraud is suspected or to determine program eligibility. A-7 STATE AND/OR COUNTY LICENSED RESIDENTIAL FACILITIES (GROUP HOMES) Residential-based facilities (group homes) should not be concentrated. Over-concentration of such facilities could have a negative impact on the community and on facility residents. Cities have a responsibility to welcome such facilities on a fair share and rational basis. The AMM also believes that the state must ensure that residents living in residential-based facilities receive appropriate care and supervision relative to their disability or need to be housed in a group facility. The state's de-institutionalization policy is directly linked to the need for more residential-based care facilities in cities and the responsibility of the state to provide sufficient funding to ensure adequate care and supervision of the residents piaced in such facilities. The following principles should be in law or rule to regulate residential-based facilities: • State and county agencies must provide timely notification to cities of the status of facility license requests and renewals and provide adequate opportunity to respond. 23 9�-�I Cities must also be aware of the special care needed by residents of such facilities in case of public safety emergencies. Clustering of community residential faciliYies becaase of economic, geographic or other factors should be avoided. Standards of non-concentration for state or county-issued RFPs should be established. There must be an ongoing screening process, particularly in the corrections area, to ensure that persons placed in a residential facility will benefit from such an environment and will not be a danger to themselves or others. The licensing authority must be responsible for removing any persons found incapable of living peacefully in such an environment. Facilities licensed by the correcYions deparhnent should not be exempt from reasonable local land use regulations. A fair share concept should be considered within the metropolitan area. However, this concept should consider other factors including transportation facilities, jobs availability and other needed supporY services. The licensing authority and/or legislature should allow cities to participate in the search for facility locations in order to meet the needs of the providers, facility residents and the neighborhood. A-8 RESIDENTIAL NON-HOMES1'EAD PROPERTY TAX RELIEF Residentiai non-homestead properties (i to 3 units) are in need of properry taY relief. This is particutarly true of dupiexes and tripiexes, which did not enjoy the same amount of property talc relief in the 1997 tax bill as did single unit rental property. There is no policy rationale for distinguishing between single unit rental, duplexes, and triplexes; therefore, these types of property should be taYed alike. Eliminating the distinction between singIe unit rental, duplexes, and triplexes wiil simplify the properry tax system by eliminating a class of property. However, granting rentat properry all the ta�c advantages of homesteaded property wiIl encourage increased rentership and decreased homeownership and will have a destabilizing impact upon Minnesota cities. Homestead property should continue to enjoy preferential tax treatment relative to other classes of properry. Under no circumstance should the class rate applied to residential non-homestead property be less than the class rate that is applied to second tier homestead property. The AMM supports combining all 1, 2 and 3 unit non-homestead residential property into a single class of property with a single class rate. The ANIM supports maintaining the property tas class rate distinction between homestead and rental property. `� �'�- i� III-B ECONOMIC DEVELOPMENT All commnnities address economic development through their local land use regulations, with each city striving for "orderly development." However, metropolitan communities have varied development needs. Economic development is not just a matter of a greater taY base for the community, but requires tools that promote, regulate and service the development. Economic development is promoted through housing and redevelopment authorities, economic development authorities, port authorities, TIF, revenue and general obligation bonds and the Star Cities program. Comprehensive plans and land use controls serve as regulators and water, sewer, streets and other municipal services are unportant components of economic development. B-1 ECONOMIC DEVELOPMENT RESPONSIBILITIES Cities are the primary units of government responsible for economic development and redevelopment. They require adequate fiscal tools to address these issues in a timely and effective way. The state should acknowledge the valuable role cities play in developing and maintaining the economic health of the state. A state ecanomic development strategy should be developed through the process established by Laws 1997, Chapter 202 which promotes job creation and retention; fosters redevelopment to eliminate blight and decay; assists the clean up of polluted lands and provides adequate housing opportunities. In partnership with the state, cities should be charged with locally administering an economic development policy created by the legislature and governor through local economic development plans or policies. The state should acknowledge cities as the primary units of government responsible for implementing these strategies and land use controls. Additional tools should be developed for cities to accomplish these objectives. B-2 EQUAL TREATMENT OF CITIES All cities regardless of size or location should be treated fairly with respect to state authorized and funded economic development programs. New or revised programs designed to address specific economic circumstances within cities or counties should use problem de�nition as the criteria for participation rather than geographic location, size of city, class, etc. 25 �\� B-3 TAX INCREMENT FINANCING (TIF� TIF has enabled cities to plan and successfully carry out housing, economic development, pollution cleanup and redevelopment projects and has been the main tool available to cities to curb the spread of blight and support economic development. Although changes made during the 1995 and 1997 Sessions make the tool more usable, TIF authority over the years, has been seriously Iimited, reducing the abiiity of ciries to engage in needed development and redevelopment. The state should acknowledge cities as the primary goveznmental unit responsible for economic development; which includes the creation and retention of jobs, growth of the state's economy, elimination of blight and decay, development of affordable rental and owner-occupied housing and clean-up of contaminated soils. TIF is a proven tool for fulfilling these needs and examples of positive uses abound. The state should partner with cities in their economic development and redevelopment efforts thereby reducing the competitive advantage enjoyed by cities in adjacent states who have more economic devetopment toois. The AMM opposes further restrictive changes to tas increment statutes, and supports making the following changes if 1998 becomes a year for major changes in TIF policy: • Allow districts approved after April 1, 1990 to pool increments for affordable housing or pollution remediation. • Require the DepartmenY of Revenue's definition of tax increment to be consistent with the statutory definition of tas increment. • Eliminate the Local Government Aid (LGA) and Homestead and Agricultural Credit Aid (HACA) penalty currently imposed on newly created districts or allow an exception from levy limits. Also remove the restrictions on the source of payment if the penalty is not eliminated. • Remove existing restrictions to property included in a deferred assessment program within the last five years (e.g. green acres). • Remove the LGA/HACA penalty imposed on Housing TIF Districts that were established during the penalty years of 1990 through 1993. • Exempt redevelopment districts from the "five year rule." B-4 RESPONSIBLE USE OF TIF The state has imposed restrictions on the use of TIF partially because of the perception that it causes unne�essary competition between individual cities and regions of the state. There is also 26 9�-�� a perception that cities aze played against each other when developers consider projecu and development which would take place without TIF. Some counties and school districts also feel they should become more invoived in the decision making process. The review and comment requirements of the current TIF law should continue to be used to educate other local governments about proposed developmenY projects. Counties and school districts should respond to these overtures for evaluation and participation and take advantage of all available informational opportunities. Cities alone should be authorized to approve city initiated TIF Districts since it is cities who assume the financial risk. B-5 PROPERTY TAX REFORM IMPACT ON TIF Future property tax changes which include additional class rate compression or property tax exemption for investor owned utilities would have significant negative impacts on existing TIF districts. The AMM will support only property tax change proposals that include provisions to hold harmless existing tas increment financing districts or which provide sufficient state resources so that local TIF obligations can be met. Additionally, if the $2 million appropriated in 1997 is insufficient to cover deficits caused by the 1997 class rate changes, the legislature should provide additional resources so that TIF obligations can be met. B-6 OTHER DEVELOPMENT TOOLS Minnesota cities have the prunary governznental responsibility for economic development, but additional tools are necessary to carry out that responsibility. Prior to 1997, Tax Increment Financing (TIF) has been the major tool even though its effectiveness has been diminished by legislative actions in recent years. The 1997 L.egislature authorized local units of government property tax abatement authority as an additional tool even though it was not requested by local government. The legislature should exempt tax abatement projects from the levy limit restrictions imposed in 1997 to make tu� abatement an effective tool. It must be understood by the legislature that tax abatement authority is not a replacement for TIF. The Minnesota Investment Fund grant program should be continued in future bienniums. The state and federal funds that support this program should also be spread over the year to ensure projects across the state have access to the grants. 27 9�-�l B-7 DEVELOPMENT OF POLLUTED LANDS Most Minnesota cities have polluted land sites within their boundaries that remain unused or underdeveloped because of obstacles preventing clean up and reuse. Among the roadblocks are liability issues and up-frant costs of clean-up. Developers and Financiers are reluctant to expose themselves to such liability and clean-up costs often exceed the value of the land despiTe incentives for private sector intervention. Public sector subsidy is critical. The L,egislature passed several measures during the last few sessions to help dea] with the polluted lands problem including: The 1992 Land Recycling Act which was designed to promote the transfer and reuse of contaminated land by offering an exemption from liabiliry to those who are not otherwise liabie and voluntarily clean up a site. The 1993 TaY Act which made a step toward developing a pollution clean-up program and aclrnowledged that TIF is an appropriate tool to provide a portion of the funding. The 1995 Livable Communities Act which can provide about $7.0 million annually in grants for clean-up in the metropolitan area and reduces the local match for the Department of Trade and Economic Development (DTED) clean-up grants from 18 percent to 12 percent and allows the regional funds to be used as part of the local match. The Minnesota Superfund law was amended to authorize the Minnesota Pollution Control Agency (NIPCA) to consider the planned use of property when determining appropriate clean-up standards. The 1997 Legisiature appropriated $7 million to DTED for the statewide clean-up program of which up to two-thirds can be used in the metropolitan area and $6.2 million from the Petrofund to DTED to be used to clean up petroleum related contamination. The Iegislature should continue its strong commitment to polluted lands clean-up by: • Continuing the DTED clean-up grant program and increase funding substantially in future bienniums based on need and demand. • Allowing the existing clean-up tools to continue operating. • Requiring that condemnation commissioners consider the cost of correcting pollution problems in determining the final value of property. • EstabTishing an indemnification fund to provide financial security for institutions and individuals as they invest in projects to recycle contaminated sites in order to m 9�-/� leverage private investment in cities' efforts to increase their tas base and create jobs. Elimivating the requirement to match a portion of the clean-up grant program with local general funds. The Metropolitan Council should also continue its strong commitment to implementing its Regional Blueprint policies (revitalization of the urban core, compact development, containing sprawl, etc.) by levying the ma�mum allowed yearly for the ta�i base revitalization account of the LCA. B-8 REDEVELOPMENT NEEDS Many communities aze faced with the unique circumstances of deteriorating and obsolete structures in neighborhoods and downtowns and a lack of land for development. Redevelopment activities usually require significant up front financing to address multi-phased projects of extensive duration where site assemblage, demolition, relocation must occur in addition to pollution clean-up before private-sector interest can be generated. The lack of a coherent statewide policy and the State's unwillingness thus far to provide direct financial support for redevelopment has and will continue to contribute to the further deterioration of the urban tax and job base and exacerbate sprawl. The State should make a financial commitment to invest in redevelopment projects including an adequately funded program to allow development authorities to gain control of and develop formerly contaminated sites, pursuant to local plans and priorities. B-9 WELFARE REFORM/WORKFORCE READINESS In many instances, cities that have conducted aggressive, successful economic development programs, have ascertained a problem with respect to the availability of qualified, work-ready employees for their new and/or expanding companies. The "heated" economy and the low unemployment rate, has exacerbated this situation. In many instances, the lack of available, qualified employees has negated or curtailed communities otherwise promising economic development efforts. • The state should continue funding employee training programs such as The Pathways program and the Job Training Partnership Act. • Cities can serve as a catalyst in working with other public sector entities and the private sector to address workforce issues. ftL'7 t�- ll B-10 BUII.DING PERMIT FEE SURCHARGE Local units of government levy a half-percent surcharge on building pernuts which is paid to the state to operate the state Building Codes and Standards Division. Until the 1991 Legislature changed the law at the request of the governor, any excess fees over actual operating costs were proportionately rebated to local units to help pay for building o�cials training and continuing education costs. Local units of government are facing tough financial times and need every available resource, especially that which could be considered local money. The AMM recommends reinstating the language providing that unused building permit surcharge fees in excess of state building code division costs be returned to cities. B-11 LIVABLE WAGE POLICY The 1995 Legislature adopted an amendment that requires a business that receives state or local govemment assistance for economic development or job growth purposes must create a net increase of jobs in Minnesota within two years of receiving the assistance. If the job and wage goals are not met, the business must repay the assistance. Assistance is defined to mean a loan or grant in excess of $25,000 or TIF. Annual reports to DTED are also mandated. The amendment basically requires a net increase in jobs for any type of public economic assistance. Because the act does not specify the type of TIF district, it is assumed that alt types of districts, including housing districts, must retain a business and prevent relocation of that business. The AMM recommends that the current law be amended to incorporate the following: • A business be de�ned as an industrial entity and a for-pro�t corporation. • Assistance be a loan or grant equal to or greater than $250,000. TIF, for purposes of ttus act should not be considered assistance iE used for housing, redevelopment, or renewal districts. • Assistance may be used to retain and/or increase the number of jobs. • The state or local government providing the assistance be authorized to estabtish by agreement with the business the wage and job goals, as well as the means to repay the assistance or another remedy to satisfy the goals. 30 ��- // IV Metropolitan Governance Structure & Issues Pages 31-48 31 �V r /I � METROPOLITAN GOVERNANCE STRUC'TURE AND ISSUES IV METROPOLTTAN GOVERNANCE There are certain issues, concerns and problems which because of their complexity or breadth encompass the entire metropolitan area and can not be dealt with by a single local government or through a combination of local units. The region needs to deal with these regional issues through a regional governance structure which acts in cooperation with and as a partner with local units of government and officials. IV-A PURPOSE OF METROPOLITAN GOVERNANCE STRUCTURE The diversity in demographics and political subdivisions within our metropolitan area result in the need for planning on a metropolitan basis which must be done in cooperation with local government. There is also a need for a regional service delivery system to provide certain services or portions of services to most effectively and eff'iciently address the needs of the meuopolitan area. The AMM affirms its support for the e�stence of a metropolitan governance system to deal with appropriate regional issues and concerns. The purposes of the metropolitan governance system should be to facilitate region-wide planning with the cooperation and consideration of the affected local governmental units; to provide certain region-wide services that do not duplicate those that can be provided by local governmental wuts, either individually or jointly; and to ful�ll other speci�c responsibilities mandated by the state and federal governments. IV-B CRITERIA FOR EXTENSION OF METROPOLITAN GOVERNANCE AUTHORITY Executive, legislative or self directed initiatives to expand responsibility or authority of the Metropolitan Governance System must be carefully considered and limited in focus with indepth review by all those impacted by the proposed expansion. The legislature, if granting the metropolitan governance structure additional responsibility or authority, should be speciFic in the grant. Expansion or extension of authority should be considered only when one or more of the foliowing conditions exist: • The service, function, or activity has been shown to be needed and it can be demonstrated that it cannot or is not being effectively or efficiently provided through existing general purpose units of government; 33 ��-�� The service, function, or activity is not an appropriate state level or Iocal government level activity or function, Regional intervention is needed for protection of the region's investment in an existing metropolitan system. IV-C METROPOLTI'AN GO'VERNANCE STRUCTURE AND FUNDING The Meuopolitan Council was created in 1967 to coordinate "the planning and development" of the Metropolitan Area. The Council was mostly advisory, but was given responsibility for regional policy development and coordination in the areas of wasiewater treatment, transportation and airports. The Council was given limited approval authoriry for development proposals which were of inetropolitan (regional) significance but was not given direct operational authority. The Metropolitan Council's responsibility has been expanded over the years and was given direct operational responsibility for regional transit and wastewater ueatment in 1994. Gl RESTRUCTURING OF METROPOLITAN AGENCiES In 1994 the L,egislature eliminated the Regional Transit Board (RTB), the Metropolitan Transit Comznission (MTC) and the Metropolitan Waste Control Commission (MWCC) as freestanding agencies but there are still separate agencies for sports facilities and airports. There is a great deal of discussion as to how accountable the governance structure is. The ANINI recommends: Removing the metropolitan sports faciliries commission as a metropolitan agency if if continues in its present form, since the back-up tax liability is limited to one city which also appoints all commissioners except the chair, contingent upon its divestiture of lands and properties in cities not responsible for the back-up ta�c. If new sports facilities are built using �nancing that requires revenues from communities other than the City of Minneapolis, or would potentially impose talc liabiliries on other communities, the agency should be restractvred to ensure representation of all communities that are affected. Clarifying the status of the Metropolitan Airports Commission (MAC) so that it either becomes a metropolitan agency or a state directed agency. If the back up property tax remains limited to the seven county metropolitan azea then its membership should come from the metropolitan area. If the back up property tas is made state wide then the MAC should have statewide representation. 34 9y-�� The Advisory Council on Local Governments shouid study the governance structure of the MAC. G2 F`UNDING FOR REGIONALLY PROVIDED SERVICES The funding for the Metropolitan Council and it's regionally provided services is a combination of properry taxes, user fees and federal and state grants. There have been discussions to replace these multiple sources with a single new revenue source. The AMM believes it is appropriate to continue to fund the regional services and activities by the existing combination of user fees, property taxes, state and federal grants. The AMM believes this method provides better visibility of expenditures by the "payers" and therefore opposes the imposition of a single new source to replace the present funding sources. The AMM also believes that the linkage between revenues and expenditures for each service should remain visible by function at the regional level. C-3 REGIONAL TAX RATES AND USER FEES The Legislature controls the taxing authority of the Metropolitan Council and the Metropolitan Airports Commission (MAC) and it should continue to do so. User fees are deternuned by the Metropolitan entiry collecting the fees. The setting of user fees and the process for setting or changing fees has generally not been considered a problem except for isolated cases. The AMM believes: • User fees for regional services should not be dictated by the legislature but should be determined by the entities collecting the fees. • Ali fees should be consistent with regional system plans and goals. • An open visible process/procedure should be employed for user fee rate changes when changes are proposed in order to ensure public notice and opportunity for input. • A clear linkage between revenue and service should be maintained. IV-D COMPREHENSIVE LAND USE PLANNING/GROWTH MANAGEMENT Land use plaiming and regulation in the metropolitan azea is mostly governed by the statewide municipal planning act (M.S. 462} and the Metropolitan Land Planning Act (M.S. 473). While not a perfect framework, the guidelines and requirements in these laws have worked reasonably well for the affected entities. There is a perception, however, that existing pianning law and resource availabiliry might not be adequate to deal with cunent planning and 35 ��/' development issues facing this state, region and local units of government. The communiry based planning act passed in the 1997 session may help bat it may need to be strengthened to deal with the area immediately adjacent to the seven county metropolitan area. There is also room for improvement in the relationships and interactions between the Metropotitan Council and local governments. D-1 COORDINATION OF LOCAL AND REGIONAL PLANS Planning is an ongoing process, and several precepts should be kept in mind by local units of government, Metropolitan Council and the state as this metropolitan planning process continues. • The regional investment in metropolitan physical service systems; transportation, wastewater treatment, airports, and park and open space, should continue to be protected by preventing adverse impact on these systems due to lack of integration and coordination between regional and local pianning. • Designation of other regional plans as metropolitan systems plans should not be made unless there is a compelling metropolitan area wicle problem or concern that can best be addressed through a regional system designation. • Local governments must recognize the authority of the Metropolitan Council to plan for the regional systems; and the Metropolitan Conncil must recognize the authority of local governments to plan for their communiries so long as the regional systems are not jeopardized. • Local officials must have efFective input into the regional plawung process on an ongoing basis. In order to assure effective input, the Metropolitan Council should hold public hearings on all proposed amendments to the Metropolitan Development Guide. Adequate advance notice, including full text copies of all amendments, should be provided to all iocal governments. Following adoption of amendments, the Council should provide copies of the amended plan. Metropolitan system plans must be sufficiently specific in terms of locations, capacities, and timing to allow for consideration in local comprehensive pianning. System plans should clearly state the criteria by which local plans will be judged for consistency. System plans should also clearly state the criteria that the Council will use to find that a local plan has a substantial impact on or contains a substantial departure from metropolitan system plans. Timely and effective local planning assistance should be available to cities, including, but not limited to: staff support; research and technical data; specific guidelines for interpreting policies; systems statements; and procedural criteria for the review and evaluation of plans and amendments. 36 9��/� Procedures for Metropolitan Council review of local plan amendments must: * Recognize that the Council does not "approve" local comgrehensive plans, but rather only has authority to review and comment unless there is a substantial impact on or departure from the system plans; �` Be estabiished through an open� dialog with local governments to maintain trust and communications between the Council and local governments, wluch in the past has included a public hearing process; * Be sensitive to local government's need to act on plan amendment and development applicatiozvs within time constraints imposed by state law; * Provide for immediate effectuation of plan amendments which have no potential for substantial impact on systems plans; * Require the speci�c information needed for the Council to discharge its responsibilities under the law, but not prescribe content or format beyond what is specifically required by the Metropolitan Land Planning Act. D-2 METIiOPOLITAN COUNCIL FOCUS ON PLANNING The Metropolitan Councii is a planning and operating agency and is also responsible for administering the Livable Communities Act. There is a concern that the Council is subordinating its visionary and long range planning, data collection, and research functions to its operational and administrative functions. The Council also needs capacity to deal with emerging issues in a timely manner as well as provide for the important linkage between transportation/transit, housing and economic development as delineated in its Regional Blueprint. The Council must ensure that its planning, research and data collection and dissemination functions are ful�lled in a timely manner and consistent with its statutory obligations. Cities will be unable to meet their planning mandates unless they receive the needed information and data from the Council in a timely manner. D-3 GROWTH MANAGEMENT STRATEGY State legislators, Metropolitan councilmembers, local officiais and the public have expressed increased concern about the continued pattern of outward growth, or urban sprawl, in and beyond the seven county metropolitan area. Specific issues include constrained funding for expansion of regional systems, a desire to preserve the urban core, the need for affordable housing throughout the region, protection of agricultural uses, environmental nnpacts and a desire to promote development patterns consistent with maintenance of a viable public transportation system. 37 ��',� Studies have documented continued acceleration of often unplanned and uncontrolled growth in the next ring of counues surrounding the metropolitan area, including western Wisconsin. AMM members are concerned that imposing increased densiry requirements and increased regulation of growth witrun the seven counties covered by the Metropolitan Council, while leaving unaddressed the issue of exurban development outside the seven counties, will sunply accelerate the trend of leap-frog development and make it more difficult to produce affordable housing. Similar issues, albeit on a smaller scale, aze of concern to cities throughout Greater Minnesota, particularly the regional centers. The AMM strongly encourages the legislature to devise effective methods of ensuring responsible and controlied development in counties surrounding the metropolitan area. A strengthened community based planniug act may be the vehicle most appropriate to address these issues. Discussions should also be continued with of�cials in western Wisconsin to encourage their adoption of effective growth control measures. Further inveshnent in transportation infrastructure to connect with Wisconsin should be contingent upon its implementation of such controls. The AMM also enconrages the Metropolitan Council to continue its flexibie guided growth policy regarding Metropolitan Urban Service Area (MLTSA) expansion requests as outlined in the Regional Biueprint. However, the Metropolitan Council must recognize that until there are effecrive growth management strategies and tools beyond the metropolitan area, tightening of Mi1SA expansion criteria within the metropolitan area will cause one or more of the following; • Increased leap-frog development into adjacent counties and Wisconsin. • Increased housing costs within the metropolitan area. • Decreased economic growth due to increased development costs. • Increased development activity in the Rural Service Area. D-4 METROPOLITAN LAND PLANNING ACT IMPLEMENTATION Implementation of the Metropolitan Land Planning Act (MLPA) has an unpact on city financial and human resources ott an ongoing basis. Furthermore, the 1995 MLPA amendments sponsored by the Metropolitan Council created additional unfunded mandates for IocaI units of government. The AMM has long opposed unfunded mandates and spoke to this issue before the Metropolitan Council and at several legislative hearings. The legislahue in 1997 made it even more difficult to comply with mandated comprehensive plan updates by reinstating levy limits. � ��.�� The Metropolitan Council must consider and account for the capacity of and efforts by cities to produce and implement comprehensive plans as Council policies and systems statements are developed and adopted. All requirements for local plan preparation and implementation should be subject to fiscal impact evaluation before adoption and should be accompanied by meaningful �inancial assistance upon adoption. Due to its failure to provide funding and its reinstatement of levy limits the Legislature should do one or more of the following: Extend the deadline for completion of the comprehensive plan updates For at least one year Remove the prohibition of the Council approving local comprehensive plans after July 1, 1999 as contained in M.S. 473.1455 Fully fund the costs of updating the Local comprehensive plans or exempt the planning costs from the levy limits Additional planning mandates which create local costs to implement will be opposed by the AMM unless fully funded. A-5 LOCAL PLAN IMPLEMENTATION The Metropolitan Council has authority under the Metropolitan Land Pianning Act (MLPA) to review and comment on local comprehensive plans. However, it does not have the authoriry to review 1oca1 zoning ordinances and other "o�cial controls" which implement the local plans. The MLPA has since its inception required the adoption of official controls that implement the plans, and that local governments not adopt official controls in conflict with the plan or that would permit activities in conflict with metropolitan systems plans. Later, legislation was passed that indicated that conflicting zoning would supersede the comprehensive plan. In 1995, the law was charged once again to require that by the end of 1998 local governments shall conform their off'icial controls, including zoning, with their plans. The Metropolitan Council has indicated that there may be a need to find better ways to ensure tt�at local planning decisions impiement regional goals. They have suggested the establishment of a mechanism for appealing local decisions at a regional level. In addition to this suggestion, the Minnesota legislation directed the Advisory Councii on Communiry-Based Planning to recommend related to the establishment of an alternative dispute resolution system. The comprehensive plan serves as a guide for the orderly development of a community, but should not be equivalent or identical to a zonin� ordinance. Plans must be specific enough to be useful to guide local decision making, and to ensure compatibility of local decisions with regional system plans, but must not become a substitute for a zoning ordinance. 39 ��-ri The local ability to control the fate and future development of a community through the statutory authority to zone has been traditionally and historically granted to local government. Local government zoning decisions should not be conditioned upon approvals by any governnxent agency. Such delegation of local legislative authority would be inconsistent with local self determination and due process for landowners and citizens. The AMVI is open to the use of alternative dispute resolution techniques prior to resorting to the court system for resolving land use disputes. Proper use of alternative dispute resolution has the potential to reduce costs and time needed to negotiate solutions to disagreements among citizens, developers, local governments and the Metropolitan Council. However, the AMM strongly opposes the creation of an appeals board that could supersede City planning or zoning decisions. IV-E METROPOLITAN COUNCIL BUDGET/WORK PROGRAM PROCESS The Metropolitan Council, as restructured, is essentially a state agency with an annual operating budget exceeding 300 million dollars but unlike state agencies its budget is not subject to legislative approval. Therefore its annual budget document and supporting data must convey su�cient information so that the stakeholders can evaluate what services are being provided, at what cost, who pays and who benefits. E-1 BUDGET PROCESS The Metropolitan Council will face a continuing challenge in its budget process to provide the public with the appropriate information in a timety fashion so that the public can provide meaningful input and oversight. The Council should keep several principles in mind as it develops its annual budget for the restructured agency. Mandated and non-discretionary projects should be identi�ed along with their funding sources and projects and activities which are discretionary but totally or mostly funded by state or federal funds should also be identified. Previous year's expenditures history for ongoing activities should also be provided. The annual budget should delineate the services formerly provided by the MWCC, MTC and RTB and the expenses and revenues for those services should be ciearly identified and the linkages between expense and revenue maintained. Further, the funds or reserve funds raised for a particulaz ser��ice should not be used or co- mingled with the funds raised for any other service or activity. E-2 WORK PROGRAM EVALUATION The Council as a non-elected body and therefore not subject to "ballot box" accountability or direct legislative oversight in its work programlbudget development process, must take extra :1 9�-!/ caution to ascertain the effectiveness and/or necessity of current and planned programs and services. The ANIlVI believes that every major council program/priority should meet four tests: • The issue or problem being addressed is important to the well being of the region. • Council intervention or activity will produce a positive result. • Council effort or activity does not duplicate or serve as a substitute for a state level program or effort or what should be a state level activity. • Council is most appropriate agency to intervene or perform the activity. IV-F METROPOLITAN PARK AND OPEN SPACE FUNDIlVG The L.egislature established the Metropolitan Parks and Open Space System in 1974 and provided state/regional fiscal support for the acquisition and development of the System. However, the State and the Metropolitan area have failed to establish a long term stable financing plan for the Regional Park System. Failure to clearly define the role of regional parks within the State Fark System has led to long term instability relative to the acquisiCion and development of regional parks and created significant funding concerns for implementing agencies. F-1 OPERATION AND MAINTENANCE FUNDING Regional parks within the Metropolitan area provide the same basic function as state pazks provide in Greater Minnesota. The State does not fully acknowledge this similarity and does not provide an equitable amount of funding for the operation and maintenance of regional parks while covering 60 to 70 percent of the cost of state parks in Greater Minnesota. The Legislature and Governor should recognize the role of regional parks and provide appropriate funding to implementing agencies to assist them in the operation and maintenance of the regional parks and open space system. The state should provide 40 percent of the funding (statutory stated goal) to operate and maintain these facitities instead of less than 10 percent as has been recent practice. F-2 DEVELOPMENT/CAPITAL F'LINDING The Legislature for the past severai years has provided less than 25 percent of the funding requested for acquisition and development of regional parks by the Metropolitan Council. To allow for the orderly and planned development schedule for the regional parks and open space 41 qg--�l1 system, the Metropolitan Council is using previously granted authority and is issuing regional bonds backed by a regional property taY to make up part of the shortage. The regional parks essentially serve the role of state parks in the metro area and should be funded accordingly. Therefore, issuing regional bonds inappropriately shifts the burden of regional park funding from the state to metropolitan area property taspayers. Metro area tas payers are paying twice for state park service and this is not equitable. The Metropolitan Council should increase its efforts to obtain an equitable share of state funding in future legislative Funding cycles. IV-G WATER RESOURCE MANAGEMENT Water is a criticai resource fot this metropolitan area and it is necessary to plan and manage this resource to assure adequate supply, safeguard the public health, provide recreational opportunities and enhance economic opportunities. Many levels of govemment have a vested interest in protecting and managing water resources in an environmentally and economically sound manner and therefore it is in the public interest to clearly delineate each level's responsibility to prevent duplication, overlap, and conflicung reguirements. This delineation is particularly important to cities since they are the level that ultimately has ttte most "hands on" responsibility. The aspects of water resources which have received the most attention in recent years are surface water runoff, groundwater quality, water supply and water recharge areas (weflands). There is an interrelationship among all of these systems and there is need for coordination in managing them effectively. Local units of government should retain the basic responsibility for water resources management because they are the level closest to the problems but may need to look to the state and the Metropolitan Council for fmancial assistance and technical expertise necessary to implement this responsibility. G-1 WATER SUPPLY The AMM is in general agreement with the Water Supply Act passed in the 1993 legislative session. The thrust of this legislation is to promote water conservation, require contingency plans for water emergencies and to promote long range planning for local water supplies. Additionai legisiation pertaining to locaI or regional water supply planning is not warranted. However if legislation is proposed, it should be based on the following principles: • Local units should retain the basic responsibility for water supply planning and management as in current law. Additional mandates should be funded by the state. 42 �� // Potable water should not be designated a Regional System. (See policy D-1) The Metropolitan Council should continue its assessment of regional water supply, periodically report its findings, continue to evaluate water issues and provide technical and mediation assistance as needed. G-2 SURFACE AND GROUNDWATER WATER MANAGEMENT No one has the right to pollute either ground or surface water resources and in order to safeguard the public health and environment, it is necessary to preserve our water resources as critical state resources. Most water management organizations (WMO) and local units of government have done a good job of dealing with surface and groundwater management issues and have the ability to continue to do so in a cost effective manner. These existing structures should continue to be used to the greatest extent possible to address surface and groundwater management problems rather than create a new bureaucracy. There is no need for new urban water management structure but, it is clear that the current system which contains duplicate reviews and approvals of local plans and development ' projects/proposals should be streamlined. If legislation is considered for surface water management, it should be based on the following principles: The legislature should provide full funding if it mandates additional water management planning or implementing activities by local units of government. Local units of government should retain the basic responsibility for surface and groundwater management as they are the level closest to the problem. New state requirements should not add to local costs and duplicate reviews/approvals should be reduced or eliminated. The AMM would support the following initiatives/action: A thorough assessment of the Board of Water and Soil Resources (BWSR) structure and authorities to ascertain if it should continue to be the approval and oversight agency for surface water management planning and activities in the metropolitan area. A thorough assessment of the metropolitan area surface water management planning and permitting process with the objective of developing improvements in conflict resolution, better coordination between and among state and local agencies, and streamlining the project permit approvals process. 43 9� tl • Compliance by local units of government in outstate Minnesota with the same standards and requirements for surface water management as those imposed on local units within the metropolitan area. • A technical evaluation of the impact of 2 to 1 wetland replacement in the urbanized area on the goal of greater urban densities stated in the Metropolitan Council's Regional Blneprint. G3 REGIONAL WASTEWATER (SEWER) TREATMENT SYSTEM The metropolitan wastewater treatment and collection system, which was created in 1969, has contributed significantly to the unprovement of water quality in many of the major water resources of this area. As a result of a major study and analysis in the mid 1980s a uniform funding system was established. The metropolitan wastewaYer collection and treahnent system has been a major component of an integrated local-regional system wluch has helped improve the quality of the water in many of the major water resources of this area such as Lake Minnetonka, the Minnesota, Mississippi and St. Croix Rivers, White Bear Lake, etc. It is important that change not be made to this regional system that could lead to its breakup or to diminish its effectiveness. Since all users benefit equaIly fhroughout the system the regional rates should be uniform. IV-H WASTE STREAM MANAGEMENT In the mid to late 1980's the problem of managing the waste stream (for all types of waste) was a major concern at the local, regional, and state level. This resulted in major legislative initiatives, numerous "master plans," and ideas on the subject which were constantly changing. At the present the overall system is more settled with cities being responsible for collection and counties being responsible for disposal. The Metro Council role has been transferred to the State or defacto assumed by the seven-counry joint powers arrangement. L,egisIative initiatives are more in the line of fine-tuning with the major issue being liability within the polluted land arena. AMM endorses the concept that the "generators" of waste must bear the responsibility for funding its disposal. "Generator" includes the manufactures of products which become waste, the sellers of products which become waste and the consumer of products which become waste. Materials which cause special problems in the waste stream should bear the costs (through the cost of purchasing the materials) associated with the problems. Legislation should be initiated which provide financial incentives to manufacturers, retailers or consumers for reducing packaging volume, using recycled materials in its fabrication, or, particularly in the case of food and beverage containers, facilitating its .. 9�-l/ return. Fees, taYes, or deposits on packaging materials should be considered with these costs waived when content goals are met, volumes are minimized, or effective materials return systems are in place. The net revenue generated from fees/taxes above administrative costs should be used to promote or enhance local programs to reduce, reuse, and recycle packaging materials. AMM strongly supports the activities of the Office of Environmental Assistance (which replaced the former Office of Waste Management and assumed Metro Council duties), in particular its efforts in local government assistance and waste reduction education. Tlris of�ce should not become involved in regulatory activities but continue to focus on helping local governments manage waste effectively. AMM opposes any legislation which would limit local initiatives in waste stream management unless an overall state or metropolitan wide system is established which accomplishes the same goal or objective. The responsibilities now assigned to cities for solid waste management should remain with the cities. The AMM believes that the system ought to be flearible and based on performance standards and/or goals rather than mandated techniques. AMM believes that any funding system must guarantee distribution of the monies to all entities involved in the system and recognize all costs associated with the system. This means a significant portion of the funds raised through the sales tas should be distributed to cities which operate recycling programs. AMM also believes that the entire proceeds of the t� on solid waste should be dedicated to solid waste activities. AMM believes that host communities should not bear a financial liability associated with solid waste facilities. Costs incurred for monitoring operations and corrective action should be borne by facility operators or, in the absence of such regulations, be assumed by the State of Minnesota. The AMM supports the current compensation level allowed through surcharge fees as a minunum level; this compensation should be continued or increased. This form of compensation should be available to all types of solid waste facilities. AMM supports state and federal legislation that clari�es that municipal solid waste is not a hazardous substance and enables local governments involved in cleanups to have the opportunity to settle their potential liability quickly and safely. IV-I LOCAL GOVERNANCE EXAMINATION The basic system of local governance in Minnesota (cities, counties, and school districts augmented by special service districts) has been in place since at least the turn of the century. 45 9�-�i The only major change or innovation has been the creation of the metropolitan governance system for the Twin Cities area in the late 1960s and early 1970s. While the system has by and large worked well, there are an increasing number of events and issues which raise the question of how best should local governance be handled as the State enters the new century. These include at least the following: The incremental growth of responsibilities by the Metropolitan Council and the metropolitan governance system--[he most recent being the creation of the Metropolitan Radio Board--and the questions surrounding the exercise of such powers by an appointed body. 2. The continued devolution of responsibilities by the federal and state governments onto local government. In addition to funding questions this process raises numerous questions as to who should be assi�ned the responsibilities. The growth management strategy being implemented by the Metropolitan Council through its regional blueprint and system plans and the local comprehensive planning process. The process could lead to recommendations on financing of various services and some shifring in basic Iand use responsibilities. 4. The process of financing local government (especially for cities and schools). 5. The increasing role of counties in the provision of "area-wide" services. 6. The recognition that school districts are now often being asked to provide services which go beyond what is thought of as traditional education. The cumulative result is a system which often is not understood by the public, may have aspects which are not accountable and in a time of scarce public resources may not be as efficient as is desired. We commend the legislature for establishing the advisory council on local governments to study the roles and functions of local governments in the metropolitan area. The Office of Strategic and Long Range Planning should provide the necessary staff and administrative suppori as delineated in statute to enable this advisory council to fulfill its responsibilities. The advisory council is charged with studying and making recommendations on the appropriate roles and responsibiiities of local and regional government in the metropolitan area. The advisory council's goal should be to make recommendations for a governance system which is efficient in the delivery of services and is accountable to the etectorate and it should not assume the current governance structure is sacred or unchangable in making such recommendations. .� • Y �i ll Q Since it is unlikely that the advisory council can complete all its work within the time framework delinated in statute, the advisory council should recommend a process/procedure to complete t}us very important examination over a longer period of time. 47 9��1 u Transportation Pages 49-58 49 f � / V TRANSPORTATION AMM TRANSPORTATION POLICY STATEMENT Within the last two decades, the number of miles driven per day has doubled. Tra�c congestion is expected to increase by 35 percent by the year 2000, creating neazly 200 miles of severely congested highways. Ridership by bus, car and van pool, continues to decline and the regional transit system continues to be inadequately funded. There is a growing awareness that the true cost of driving an automobile, when factoring in energy use, pollution, productivity loss due to congestion, and the resulting cost of motor vehicle accidents, are bom by the general public at large not solely the driving public. A major part of peak hour traff'ic is workers commuting to or from work. Achieving a balance between workers and jobs in a geographic area can reduce the volume of intra area commuting and balance the directional use of the interconnecting roads. Economic stratification and an aging population is creating a larger pool of transit dependent individuals. Our cunent transit system is not capable of providing adequate transit services in the entire meuopolitan area. Local governmental units are facing funding shortfalls which prevent Yhem from adequately maintaining the current transportation network. AMM calls upon the legislature, MNDOT and the Metropolitan Council to develop a more comprehensive transportation program that more closely integrates all modes of transportation. This coordinated approach at the minimum must be designed to increase accessibility, improve air quality, and serve the transit dependent and handicapped. The AMM supports a comprehensive transportation policy that: • Incorporates traffic management into local and regional zoning and planning acdons; • Encourages tra�c management plans by all employers; • Creates a series of incentives aimed at increasing vehicle occupancy levels; • Discourages the use of development incentives for any project of significant size that does not contain a comprehensive traffic management plan; • Studies the concept of jobs to workers balance in the meuopolitan area; and • Establishes an adequate dedicated funding source for uansit. In addition, local units of government must be provided with adequate funding or the authority to maintain their current investments in the local uansportation infrastructure. It is imperative that as we prepare to move into the next century, our transportation network become multi-modal, offer flexibility, invest significantly in transit, and be designed to manage traffic. The following recommended legislative proposals aze designed to meet this overall goal. 51 �g V-A TRANSPORTATION FLINDING An e�cient transportation system is a vital element in planning for physical, economic, and social development at the state, regionai, and local levels. Funding for current roadway maintenance, reconstruction, and construction of new streets, bridges, and highways is a significant major element of a competitive and safe uansportation system. Also, because of the large economically diverse population of the Twin City Meuopolitan Area, it is an absolute necessiry to provide an effective and efficient public mass transit service augmented by a vaziery of programs, such as Rideshare and Project Mobility. Without a good transit system, many elderly, persons with disabilities, and transit dependent individuals residing in the area would be almost totaliy immobile. The need for both highway and transit funding has been and continues to increase, yet the resources dedicated or generally used for these purposes have either not kept pace or been diverted for other state priorities. Transit needs in the Metropolitan Area have become critical since in most cases highway expansion is physically or financially prohibitive. Therefore, capacity expansion can best be solved by transit alternatives. Funding should be multi-source with growth capability. Therefore, the AMM believes it is time to solve the problem on a permanent basis. Increased funding for both highways and transit especially in the Metropolitan Area is a critical need and should be given lugh priority by the legislature. Funding assurances for transit and highways should be dedicated in a consistent manner. The AMNI supports a gas tas increase including indexing to keep pace with highway maintenance and construction needs. As an addition to the tradifional gas tax and to provide funding for both highways and transit, the AM�I would support additional tas sources including MVET, a sales taY on gasoline at the pump allocated to transportation, or a statewide or metrowide half cent sales tas to be used for transit. Any arrangement that would substitute an alternate tax for the transit property tas in the Metropolitan area should continue to fund the current optout transit systems at comparable levels. As part of the combined strategy, the state legislature should consider using its bonding authority to provide transportation infrastructure. V-B REGIONAL TRANSIT SYSTEM The purpose of a transportation system is to provide inobility for people and accessibility to and for economic development and services. The most effective system will make maximum use of all transportation altematives and strategies where they are most appropriate, thus, 52 ��i► , creating a truly integrated system. Exclusive reliance on freeways is imprudent and cost prohibitive primarily due to social and economic upheaval of established neighborhoods for right of way acquisition. Transit unprovements are imperative, but even with implementation of various load increasing strategies, the capacity is finite and will reach unacceptable saturation limits within the foreseeable future. The AMM supports more coordination and integration of Transit, including exciusive transit ways, and highway planning and unplementation. The Regional Transit System should be a combination of integrated traffic management systems and be included in all planning documents. The system components should include HOV lanes, express buses, and exclusive transit ways which should be built to connect residents to job, retail, and commercial centers. The system should also include a variety of transit modes, including a taxi system, buses, pedestrian and bicycle facilities, and park and ride facilities adequate to connect the regional centers, major trip generators and communities, both urban and suburban. Bus systems and exclusive transit way systems should include ample regional park and ride facilities for automobiles, motorcycles and bicycles, with easy access, consistent with the planning of a regional entity to accommodate the needs of the public. Feeder systems should be a major consideration for bus park and ride and exclusive transit way stations. Plans should be considered which use van pools and bicycles as well as walking to feed the park and ride facilities for express buses and exclusive transit ways. The Metropolitan Council should work with local units of government to encourage appropriate land use controls along designated transit corridors to promote transit ridership. V-C TRANSPORTATION INCENTIVES/DISINCENTIVES The AMM supports the development of a comprehensive system which will facilitate an increase in the occupancy level of cars and enhance the use of transit within the Metropolitan area. AMM suggests the development and passage of legislation that includes a commuter trip reduction program and creates a series of tax incentives and/or impact fees that encourages multiple occupancy transit use. The state legislature is encouraged to consider exclusion from gross income the value of commuter transportation benefits provided by an employer and provide a tas deduction and tas credit for employers who provide commuter transportation benefits to employees. 53 9�-ti V-D TRANSPORTATION UTILTTY Many cities aze experiencing aging infrastructure, especially streets which are in need of replacement but because of few funding options continue to deteriorate. Chapter 429 bonds issued without election require a minimum of 20 percent assessment. However, the courts require a benefit proof that the assessment has actually increased the property value by the assessment value. For street replacement, challenged assessments often aze successful in court. A new funding mechanism similar to one that was created for stormsewers is needed. The AMM requests the legislature to authorize cities to establish a transportation utility for street maintenance and reconstruction, similar to the existing storm water utility, so that costs of improved facilities can be charged to the users. V-E MSAS FUNDING FOR COMBINED CITY STREET DEPARTMENTS The State of Minnesota developed in the late 1950s a system for distributing highway funding to MNDOT, counties, and communities with populations over 5,000. This system has worked reasonably effectively to construct and maintain an integrated transportation network within the state. In recent years, the legislature has enacted statutes which call for the investigation of benefit that would be obtained through consolidation of services and reallocation of resources. One such area that presents such an option is the consolidation of Public Works and Maintenance departments within cities, townships, and counties. Such an opportuniry for streamlining capital expenditures and cost-effective maintenance of an integrated street system might be best served by recognizing such consotidation through the use of the MunicipaI State Aid System (MSAS). In that, if two or more governmental units consolidate their maintenance departments, having in effect a 7oint Powers Agreement which reflects a single entity for budgeting and operations purposes, then the population of the governmental units participating in such a Joint Powers Agreement should be considered in determining the MSAS funding eligibility of these communities as per MS 162.09. The AMM urges the legislature to encourage cooperation and consolidation of local government services. The state aid system statutes should be amended to allow for the eligibility of combined population within incorporated municipalities having a joint powers public works and maintenance department and contiguous borders, to qualify for MSAS funding under the municipal state aid street system population cutoff rule of 5,000. 54 9��ii V-F HIGHWAY TURNBACKS AND F`UNDING Various commissions, boards, and organizations, have studied the possibility of reclassifying many roadways in the state as to appropriate use classifications and jurisdiction. This reassignment in the meuopolitan area is estimated to shift $6.1 million annually from the state and $1.2 million annually from the counties to the cities for an increase of $73 million annually for general maintenance and life cycle treatment (i.e. sealcoat, overlays, etc.). Current state law provides that the state and/or counry may declassify a trunk highway and turn it back to a local unit of government. The only provision is that it must be in good condition. The AMM supports jurisdictional reassignment or turnback of roads on a phased basis using functional classification and other appropriate criteria subject to a corresponding mechanism for adequate funding of roadway improvements and continuing maintenance. Cities do not currently have the �nancial capacity other than significant property taY increase to absorb the additional roadway responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated turnbacks. V-G '3C' TRANSPORTATION PLANNING PROCESS - ELECTED OFFICIALS ROLE Federai law and rules have long required that the Metropolitan Planning Organization (MPO) responsible for comprehensive transportation planning commonly referred to as the '3C' process (continuous, comprehensive, and cooperative) be composed at least partly of local elected officials. This process and requirement was reinforced by the federal ISTEA act of 1991. In this metro area the Metropolitan Council (MC) has been designated the MPO with a provision that there be a Transportation Advisory Board (TAB), which contains at least a majority of local elected officials, to implement the '3C' planning process. The AMM supports the continuation of current local elected of�cials involvement in the '3C' process through the Transportation Advisory Board to meet requirements of the Federal Intermodal Surface Transportation Act of 1991. V-H RAILROAD RIGHT-OF-WAY PRESERVATION Minnesota has lost over half its rail system as national carriers have abandoned lines. Abandoned rails represent a significant opportunity for future use for trails, natural resource access, light rail, highways or pipeline corridors. The AMM urges the legislature and state administrative departments to continue programs that ensure abandoned railroad grades be expediently preserved until such time that the future public use can be determined. 55 • 9�-�l V-I CITY SPEED LIMIT CONTROL Speed lunits on streets are currently established by the Commissioner of the Minnesota Department of Transportation. The speed limit for residential streets is established at 30 m.p.h. However, cities have developed with variable land use patterns, street layouts, densities, and also have varying topographical conditions. There are many local streets where 30 m.p.h. is not a reasonable or safe speed. Many other states in the area have a 25 m.p.h. speed limit for local streets. The AMM supports reducing the current 30 m.p.h. speed limit to 25 m.p.h. throughout the state. Tlus woutd address numerous safety issues throughout the state, but still maintain uniformity for the traveling public. V-J MOTION IMAGING RECORDING SYSTEM (M,I.R.S) - TRAFFIC LAW COiVIPLIAIV'CE Diminishing obedience with statutory laws, posted speed I'unit compliance, traffic signal lights (red) at intersections and railroad crossing (red lights and gates), is causing great concern for citizens and municipal govemments. E�cient enforcement would require significantly more personnel and taY dollars. Traffic caiming techniques are only minunally effective in a few areas and require additional maintenance. Motion Imaging Recording System technology is being empioyed in many states and numerous municipal jurisdictions in the United States including Arizona, California, Michigan, New York, Utah, and Colorado. It has been used for decades in many nations. Implementation growth is rapidiy accelerating. Benefits include unproved safety, fewer accidents, and lower insurance costs, improved uniformity in coverage and fairness of traffic law enforcement; and improved satisfaction by citizens. The technology is substantially tested and proven. Surveys of citizens in Minnesota have indicated strong support for traffic law enforcement through unproved technology (M.I.R.S.). The AMM requests legislative action authorizing utilization of motion imaging recording system technology on streets and highways to assist promotion of safety and traffic law compliance enforcement. V-K AIRPORT NOISE MITIGATION In 1995; the Minnesota L,egislature concluded the Dual Track Airport Planning Process by selecting the expansion aiternative to meet the state's major airport needs. The means of mitigating airport and aircraft noise nnpacts were not addressed in the legislation. Instead, the Metropolitan Airports Commission was charged with deveioping a mitigation package for 56 y�-�� legislative consideration in 1997. The decision to keep the airport at its current location for the benefit of the state and Meuopolitan area does create an obligation to ensure that every effort is exerted to resolve and mitigate noise issues within the affected communities. Noise mitigation programs need to be enhanced to beyond the cunent 60 DNL contours and for newly unpacted areas due to runway expansion/addition. Individual communities will continue to have an obligation to plan development and redevelopment in a manner compatible with airport operations, however, cosu associated with noise mitigation should be borne by the airport (MAC) and the state since the airport is considered a statewide faciliry. Enhanced mitigation programs should be proaided through state and MAC funds for areas impacted by airport activity, and areas beyond the current 60 DNL contour lines. A program of reduced subsidy should be initiated for several miles beyond the current contour cutoffs based on distance and noise level. Mitigation programs for low frequency noise should be created and constantly monitored for effectiveness. In addition to the traditional acquisition and sound insulation techniques, the Airport Area Community Protection Concept Package developed by affected cities, Metro Council, and MAC should be adopted. This package includes tools such as property value guarantees, preferential taz� programs, housing revitalization, expansion of tax increment financing authority and eligibility criteria and community development banks. Airport associated commercial development should be encouraged within the affected communities. Private use facilities on airport property, including leased facilities, should be required to make payments in lieu of property tazes and fiscal disparities contributions, such funds to be dedicated to mitigation activities. Noise monitoring systems, including low frequency noise measures, should be enhanced and operated independently to ensure noise abatement procedures compliance. This would determine that new standards for low frequency noise levels should be developed. Fines from violations should be returned to the affected communities to implement mitigation activities which are consistant with an overall noise mitigation plan. Landing fees, gate leases, facility leases, passenger charges, etc. should be evaluated as to national comparability and any incremental increase dedicated to the affected communities to implement mitigation activities which are consistant with an overall noise mitigation plan. 57 �Y V-L ROAD ACCESS CHARGE Growing communities are finding it increasingly difficult to finance construction of facilities needed for new residential, commercial, and industrial development. Assessment to ueveloping property for sewers and streets directly benefiting that property is a long standing legal option and is the most prevalent method used. However, there are often major streets that need to be constructed leading to new developments. Under current law only the abutting benefited property can be assessed and then only to the degree of benefit which in most cases is not nearly enough to pay for an upgraded roadway that services a larger population. The legislature has recognized similar situations and authorized charges to provide facilities not directly abutting the affected property. The most common comparison is park dedication fees on a per unit or area basis. Yn order to fairly provide for major street improvements of primary benefit to a particular subdivision development but not direcUy assessable and to allocate cost so that new growth pays its fair share, the legislature should authorize cities to establish at their option a road access charge to be levied on an area or per lot basis at the time that subdivisions are approved or at the time building permits are issued similar to park dedication fees. V-M METRO MOBILTTY The Metro Mobiliry program is a valuable tool for providing mobility to the transit dependent who are physically impaired. In 1994 the program served 25,000 individuals with 4400 rides per weekday at a public subsidy cost of $15 million. This subsidy cost has risen dramatically in the last several years. Examination of rider characteristics shows that 69 % of the individuals served are ambulatory as opposed to being in a wheelchair. AMM supports efforts which would better integrate services for the mobility impaired into the regular route system of MCTO; AMM supports prioritization of the program with an emphasis on work-related and essentiaitrips; AMM supports investigating alternative delivery methods especially for the ambulatory participants in the program. �:3 9fr-11 Appendix Pages 59-64 59 Aousing and Economic Development Committee Charlotte Shover (Chair) Beverly Aplikowski Kirstin Barsness Jan Callison Dan Donahue Mike Ericson John Goedeke Regina Harris Andrea Hart Kajer Jon Hohenstein Coral Houle Gordon Hughes Jim Hurm Dwight Johnson Mazvin Johnson Jane Kansier Joan Molenaar Gladys Morton Mazk Nagel Ron Rankin Mazk Sather Katy Sears Lindbiad Mazk Senn Kathy Thurber Craig Waldron Councilmember Councilmember Dir. of Economic Development Councilmember Manager Administrator Councilmember HRA Director IGR Asst. to City Manager Mayor Asst. Manager Administrator Manager Mayor Planning Coord. Councilmember Councilmember Manager Dir. of Community Dev. Manager Proj. Mgr-Planning Councilmember Councilmember Administrator Burnsville Arden Hills Cottage Grove Minnetonka New Hope Watertown Roseville Bloomington Minneapolis Eagan Bloomington Edina Shorewood Plymouth Independence Prior Lake Champlin St. Paul Anoka Minnetonka White Beaz Lake St. Paul Chanhassen Minneapolis Oakdale 9�-l/ 61 � �-1 I 1V�etropolitan Agencies CommitteP Terry Schneider (Chair) Bill Bamhart Kevin Batchelder Bob Brerton Dave Childs Sharon Feess Kevin Frazell Matt Fulton Tom Goodwin Ken Hartung Susan Hoyt Anne Hurlburt Larry Lee Tom Link Paul Malone Mary Helen Mische Steve North Steve O'Malley Joan Russell Don Rye James Smith Jill Smith Eric Thole Sherry Timmermann Kurt Ulrich Chuck Whiting Burl Zorn Councilmember IGR Representative Administrator Councilmember Manager Councilmember Dir. Member Services Manager Councilmember Administrator Administrator Dir. of Commun. Development Dir. of Commun. Development Dir. of Devel./Prot. Services Councilmember IGR Assistant Asst City Manager Deputy City Manager Councilmember Plauniug Director Councilmember Councilmember Councilmember Councilmember Administrator Administrator Councilmember Minnetonka Minneapolis Mendota Heights North St. Paul Minnetonka Brooklyn Pazk League of MN Cities New Brighton Apple Valley Bayport Falcon Heights Plymouth Bioomington Inver Grove Heights Arden Hills St. Paul Roseville Burnsville Golden Valley Prior Lake Independence Mendota Heights Stillwater Oakdale Champlin Mounds View Shakopee 6�► � �. Revenue Committee Frank Boyles (Chair) Gene Anderson Kazen Anderson Leslie Anderson Steve Bjork Curt Boganey Edwazd Burrell Tom Burt Dave Callister Joan Campbell Tom Cran Steven Devich Terry Dussault Margazet Egan John Gretz Terry Heaton Bill Huepenbecker Jim Keinath Jim Knutson Dennis Kraft Bob Lazson Ann Lenczewski Dennis Maetzold Mike McGuire Steven Mielke Michael Momson Douglas Reeder Janet Robert 7im Smith Jerry Splinter Russ Susag Joy Tierney Kurt Ulrich Gene Van Overbeke Jeff Van Wychen John Waliin John Weaver Jim Willis Liz Workman Manager Councilmember Mayor Finance Director Coord/Planner Manager Treas. & Finance Director Admnustrator Clerk-Administrator Councilmember Budget Analyst Adm. Services Dir. Asst. to Manager Finance Director Administrator Deputy Dir. of Adm. IGR Director Administrator Finance Director Manager Administrator Councilmember Councilmember Manager Manager Manager Administrator Councilmember Councilmember Manager Councilmember Mayor Administrator Finance Director TGR Representarive Treas. & Finance Director Councilmember Administrator Councilmember Prior Lake St. Paul Park Minnetonka Burnsville St. Francis Brooklyn Park Roseville Rosemount Osseo Minneapolis St. Paul Richfield Blaine New Brighton Apple Valley Bloomington St. Paul Circle Pines Anoka Robbinsdale Deephauen Bloomington Edina Maplewood Hopkins St. Anthony South St. Paul Oak Park Heights Independence Coon Rapids Richfield Plymouth Champlin Eagan Minneapolis Edina Anoka Inver Grove Heights Bumsville 9�-/ I 63 �.,_ _ � . _ �� Transportation and General Government Committee Pat Scott (Chair) Councilmember Gene Anderson Bill Bamhart Geralyn Barone Kevin Batchelder Lyle Berg Cathy Busho Tim Busse Sherry Butcher-Younghans Charlie Crichton Jerry Dulgar Dale Gustafson Bill Hargis Fran Hoffrnan Jon Hohenstein Gary Humphrey Chazles Lenthe Sandy Masin Mark McNeill Chazlie Meyer Mary Helen Mische Lynn Moratzka Viedols Muiznieks Gerald Otten Dave Schaaf Mark Senn Ceil Smith Russ Susag Bill Thompson Joy Tiemey Jerry Turnquist Dawn Weitzel Donn Wiski Bret Woodson Councilmember Godt Relations Rep. Asst. City Manager Administrator Transportation Engineer Mayor Asst. to City Manager Councilmember Counciimember Manager Councilmember Mayor Engineer Asst. to Administrator Councilmember Public Works Director Councilmember Administrator Manager IGR Assistant Councilmember Councilmember Councilmember Mayor Councilmember Asst. to the Manager Councilmember Mayor Mayor Councilmember Comm/Spec. Proj. Asst. Councilmember Asst. City Manager Minneapolis St. Paul Park Minneapolis Minnetonka Mendota Heights Bloomington Rosemount Maplewood Eden Prairie Bumsville Crystal Brooklyn Park Woodbury Edina Eagan Apple Valley Blaine Eagan Shakopee St. Louis Pazk St. Paul Hastings St. Paui Park New Hope Oak Pazk Heights Chanhassen Edina Richfield Coon Rapids Plymouth Oak Park Heights Richfield Roseville Prior Lake .� Council File # � i� i �( N A L Green Sheet # RESOLUTION Presented Sy C OF SAINT PAUL, MINNESOTA �l IS Referred To Committee: Date 1 WHEREAS, the Association of Metropolitan Municipalities has adopted its 1998 2 Policies and Legislative Proposals to be considered by the Minnesota Legislature 3 during the 1998 session; and 4 5 WHEREAS� the City of Saint Paul was an active participant in the development of 6 these policies and legislative proposals and the City concur generally on these 7 policies and proposals, now there£ore be. it 8 9 RESOLVED, that the City Council of Saint Paul does hereby recommend for 10 consideration by the Minnesota Legislature the 1998 Policies and Legislative 11 Proposals submitted by the Association of Metropolitan Municipalities and does 12 hereby request that these issues be addressed by the Legislature during the 1998 13 session. 14 1 5 Requested by Department of: Byc Approved By: /v, By: Form Approved by City Attorney B Y � --�� Approved by Mayor for Submission to Council By: � i !�-� �U�C�'d,� t8-ll 5a 31o1 Adopted by Council: Date Adoption Certified by Counci Secretary N°_ 52361 w�._�� DEMR7M�ENTNFFIGEIC:OUNCIL OATE INITIATED I a �, r� or�s Office I12/29/97 G R EEN SH E E CONTACT PERSON 8 PMONE INITIAL/DATE INITIAUOATE � DEPAflTMENTDIRECTOR � pTYCOUNCIL RSSIGN CITVATTORNEY GTYCLERK Bill Hue enbecker 266-8517 NIINBERFOR MUST BE ON CqUNGR AGEN�A BY (DATE) PO��N� � BUDGET DIRECTOR a FIN 8 MGT. SER��CES DIR. Januar 7 1998 OPDER O y�qypFy �pR ASSISTANT� � TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REOUESTED. � City Council approval of the Association of Metropolitan Municipalities 1998 legislative priorities. RECOMMENDATIONS: Approve (A) or Reject (R) pERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING OUESTIONS: _ PLANNING CAMMISSION _ CIVIL SERVICE COMMISSION �- Has this person/firm ever worked under a Contract for ihis department� _ CIB COMMITTEE _ VES NO _ STAFF 2. Has this personffirm ever been a city employee? — VES NO _ DISTaiCr CoURi _ 3. Does this persoNfirm possess a skill oot normally possessed by any currenf ciry employee� SUPPORTS WHICH GOUNCIL OBJECTIVE'+ YES NO Explain all yea answers on separate sheet end ettach to green sheet INITIAT�NG GROBIEM. ISSUE, OPPORTUNIN(Who. What, When. Where. W�y) As a member of the Association of Metropolitan Municipalities, the City of Saint Paul has been an active participant in developing the Association's legislative policies and proposals for the 1998 legislative session. ADVANTAGE$ IFAPPROVED: Saint Paul will be an active paxtner_in supporting the legislative proposals and policies for the 1998 session. �ISADVANTAGES IFAPPfiOVED: None. cCLi��6'G� t?EC 29 i597 � :�°� f� ;^ OISADVANTAGES IF NOTAPPROVED: Saint Paul would not be a part or a supportive partner in the Association of Metropolitan Municipalities legislative agenda. C�1GY ��' DEC 2 9 1997 TOTAL AMOUNT OF THANSACTION $ COST/REVENUE BUDGETED (CIRCLE ONE) YES""" NO ` FUNDIfdG SOURCE 0.CTIVITV NUMBER PINANCIAL INFOflMATION (EXPLAIN) s� � Assotiation of Metropoiitan Manicipalities DATE: TO: FROM RE: October 10,1997 ANIMCityOfficials � rs��-� _ lL s`�,� (iCU'�'� C.�-� � ��u�'� 3�0 C;; � . RtCE��tD � b _ � � OGT 1 31997 Ci7Y CLERK � U LLETI N -::_�, ?�� 1 3 1S9? �.: �.. L "v=r�f EnclosedDraftofi 998 PolicyDocument/PolicyPriorities Enclosedaretherecommendationsforthe 19981egislafivepolicyprogramfromtheAMM'sfour standingcommittees. Pleasereviewthepolicieswithyourcitycouncilforactionatthe membership meeting scheduledforThursday,November 13 atthe SheratonMetrodome Hotel. A noti ce on the specifics ofthe meeting wiil be mailed to you within the next couple weeks. The AMM BoardofDirectorshasreviewedthe attachedpolicies andrecommends fuli membership adoptionas amendedbythetwo changes listedbelow. 1. Insert the words "blighted and/or" to the last sentence ofpolicy B-8 (REDEVELOPMENT NEEDS) on page 29. The state should make a financial commitment to investin redevelopment projects including an adequately funded program to allow development authorities to gain control of and develop €er-me�ly�bliEhted and/or contaminated sites, pursuant to local plans and priorities. 2. Deletepolicy V-I (CITY SPEED CONTROL) onpage 56. Please reviewthe 17 policies listed onthe back ofthis memo and numberyour topfzve priorities, with 1 beingthehighestand 5 the lowest. Bring yourpriorities to the PolicyAdoptionMeeting, ormail,faxorE-mailyourresponsestotheAMMoffice. Yourparticipationisimportant bec ause the policy priorities help deternune how stafftirne and resources are allocated. Bu1198.pm6 t4� UnivmiryAvmuc H�t Saim P�uC Mimaota 5no;-toq4 (6tz) n5-4oao fax z8�•nqq 9�— � I �; � Association of Metropolitan Municipalities � � Fj� • • • � , Policies & Legislative Proposals i45 Univercity Avenue Wect Saint Paul, Minnesota �io3-zo44 (b2}tg-4000 Fax: z8�•a99 � . � , ti�- � I INDEX PART ONE MUNICIPAL REVENUE AND TAXATION I. MUNICIPAL REVENUE A. LEVY/VALUE LIMITS 1. Levy Limits 2. Oppose Valuation or Operation Freezes B. PROPERTY TAX REFORM PRINCIPLES C. AID PROGRAM CONTINUATION 1. Local Government Aid (LGA) - 2. Homestead and Agricultural Credit Aid (HACA) 3. Oppose Conversion of City LGA and HACA to Schooi Aid D. TAX EXEMPT PROPERTY E. GENERAL FISCAL IMPACT POLICIES 1. Fiscal Note Continuation 2. Funding Shifts 3. State Revenue Stability 4. City Revenue Stability and Fund Balance 5. Sa1es Tax on Local Government Purchases F. LOCAL PERFORMANCE AID G. PRICE OF GOVERNMENT H. FISCAL DISPARITY FUND DISTRIBUTION i PAGE NUMBER i-10 3 3 3 3 5 5 5 6 6 6 6 7 7 7 8 � � I. TAXATION OF MUNICIPAL BOND INTEREST J. STATE OR METROPOLITAN IMPOSED FEE FOR SERVICE K. PERSONAL PROPERTY TAXATION - ELECTRIC UTILITY PART TINO GENERAL LEGISLATION II. GENERAL LEGISLATION A. MANDATES AND LOCAL AUTHORITY B. PUBLIC RIGHT-OF-WAY C. COUNTY PLAT APPROVAL AUTHORITY D. POLICE AND FIRE PENSION PROVISIONS 1. Amortization Aid 2. Employee Contribution Amount 3. Benefit Increases 4. Assumption Changes E. 911 TELEPHONE TAX F. 800 MHz RADIO SYSTEM G. PERMIT APPROVAL - ZONING H. ELECTIONS - ALLEY SYSTEM AUTHORITY PART THREE HOUSING AND ECONOMIC DEVELOPMENT III. HOUSING AND ECONOMIC DEVELOPMENT A. HOUSI1v�G AND NEIGHBORHOODS 1. Regulatory Impacts on Housing Costs 2. Mandatory Land Use Standazds 3. State Housing Policy and Financial Assistance 4. Metropolitan Housing Policy ;; R�-l� 9 9 10 11-16 13 13 13 14 14 14 14 14 14 15 15 16 17-30 19 19 20 20 21 �i�-�l 5. Local Housing Policy 22 6. Neighborhood Livability 22 7. State and/or County Licensed Residential Facilities (Group Homes) 23 8. Residential Non-Homestead Property Tax Relief 24 B. ECONOMIC DEVELOPMENT 1. Economic Development Responsibilities 2. Equal Treatment of Cities 3. Tax Increment Financing (TIF) 4. Responsible Use of TIF 5. Properry Tax Reform Impact on TIF 6. Other Development Tools 7. Development of Folluted Lands 8. Redevelopment Needs 9. Welfaze Reform/Workforce Readiness 10. Building Permit Fee Surcharge 11. Livable Wage Policy PART FOUR METROPOLITAN GOVERNANCE. STRUCTURE,_AND ISSUES IV. METROPOLITAN GOVERNANCE A. PURPOSE OF METROPOLITAN GOVERNANCE STRUCTURE B. CRITERIA FOR EXTENSION OF METROPOLITAN GOVERNANCE AUTHORITY C. METROPOLITAN GOVERNANCE STRUCTURE AND FUNDING i. Restructuring of Metropolitan Agencies 2. Funding for Regionally Provided Services 3. Regional TaY Rates and User Fees D. COMPREHENSIVE LAND USE PLANNING/GROWTH MANAGEMENT 1. Coordination of Local and Regional Plans 2. Metropolitan Council Focus on Planning 3. Growih Management Strategy 4. Metropolitan Land Planning Act Implementation 5. Local Plan Implementation 25 25 25 26 26 27 27 28 29 29 30 30 31-48 33 33 34 34 35 35 35 36 37 37 38 39 iii q�-t i E. METROPOLITAN COUNCIL BUDGET/WORK PROGRAM PROCESS 40 1. Budget Process 2. �Vork Program EvaIuation F. METROPOLITAN PARK AND OPEN SPACE FUNDING 1. Operation and Maintenance Funding 2. DevelopmendCapital Funding G. WATER RESOURCE MANAGEMENT 1. Water Supply 2. Surface and Groundwater Water Management 3. Regional Wastewater (Sewer) Treatment System H. WASTE STREAM MANAGEMENT I. LOCAL GOVERNANCE EXAMINATION PART FIVE TRANSPORTATION V. AMM TRANSPORTATION POLICY STATEMENT A. TRANSPORTATION FUNDING B. REGIONAL TRANSIT SYSTEM C. TRANSPORTATION INCENTIVES/DISINCENTIVES D. TRANSPORTATION UTILITY E. MSAS FUNDII�TG FOR COMBINED CITY STREET DEPARTMENTS F. HIGHWAY TURNBACKS AND FUNDING G. '3C' TRANSPORTATION PLANNING PROCESS - ELECTED OFFICIALS ROLE H. RAILROAD RIGHT-OF-WAY PRESERVATION 40 40 41 41 41 42 42 43 44 44 45 49-58 51 52 52 53 54 54 55 55 55 iv 5 ��/� I. CITY SPEED LIMIT CONTROL 56 J. MOTION IMAGING RECORDING SYSTEM (M.I.R.S.) - TRAFFIC LAW COMPLIANCE 56 K. AIRPORT NOISE MITIGATION L. ROAD ACCESS CHARGE M. METRO MOBILITY APPENDIX COMMITTEE ROSTERS Housing and Economic Development Metropolitan Agencies Revenue Transportation and General Government 56 58 58 59-64 61 62 63 64 v y�-a � I Municipal Revenue & Taxation Pages 1-10 9�-�I LEGISLATIVE POLICIES 1998 MUNICIPAL REVENUE AND TAXATION I-A LEVY/VALLJE LIMITS A-1 LEVI' LIMITS The Association of Meuopolitan Municipalities has consistently opposed levy lunit laws in that they apply uniform statewide restrictions to cities and are too inflexible to accommodate inflation, uncertainties in state and federal financial aids, and the diverse problems and circumstances faced by cities throughout the state. The AMM strongly opposes levy limits and urges the legislature to repeal the levy limits for 1999. A-2 OPPO5E VALUATION OR OPERATION FREEZES During past legislative sessions several proposals related to levy limitation through freezes have been made. As in the case of the previous levy limitations these type of artificial restrictions will work adversely for the taxpayers in the long run. Property valuation free2es wili create property tax disparities between current and new properry and will create large individual talc bill fluctuations when the freeze is lifted. Payroll or operating freezes cause larger increases at some later point. The AMM opposes imposition of artificial gimmicks such as valuation freezes, payroil freezes, or other limitations to the local government budget and taxing process. I-B PROPERTY TAX REFORM PRINCIPLES The AMM is supportive of reasonable and rational property tax reform and to that end provides a set of principles to guide in the development of a reform package. �i 8-�! 1 Property tax reform proposals should: Be simple and accountable as long as it is recagnized that the property tax sysYern must satisfy diverse financial needs. 2. Recognize city cash flow needs and not jeopardize existing development districts, tas increment finance districts, or enterprise zones. Assure that city revenue sources be diversified. The properry ta�c is considered a regressive tax and does not provide growth as does income and sales taYes. Cities must avoid becoming tota2ly dependan[ on property tax. 4. Protect cities' ability to determine and generate revenue and not be dependent on referenda. Assure that net property tas for FvIetro city taYpayers shall not increase as a result of property tax reform which reduces or diverts aids (LGA/FTACAj i.e. School property tas reduction equivalent to aid reduction. State aid shouid remain an essential componenf of the properfy tax system. Categorical aid programs should not become a substitute. A program such as income-adjusted circuit breaker and renter's credit should continue. 6. Stabilize city revenue sources so that cities may effectivety do both short and long range planning. Be based on a class rate taY capacity system not a combination of taz� capacity and market value. 8. Include elements that promote fairness and geographic baiance. i.e. there sfiouId be a semblance of equaliry and tases paid by income and type and size of property. Class raYes may be adjusted to provide more fairness and equity fo the system. However, care should be exercised and overall tax burdens analyzed before making major changes. As an example, C/I propecty taxes are high, but Minnesota exempts business equipment which is taxed in most states. The overall tax burden including property, income and sales should be considered before changing one or the other. 0 9��t� Local Government Aid should be distributed based both on need and property wealth and shouid not favor one region of the state at the e�pense of any other region. Recently proposed "power equalization" formulas would have resulted in a shift of state aid from metropolitan cities to greater Minnesota cities by failing to adequately recognize the needs of ineuopolitan cities and by inflating the population factor of greater Minnesota cities. If K-12 school funding is substantialiy changed, the principles of equity, accountability, and progressiveness should be observed. 9. Not include a new sales tax on local water or sewer utilities. I-C AID PROGRAM CONTINUATION In the event that an acceptable property tax reform is not achieved which incorporates the AMM principles, then the AMM supports the foliowing programs. C-i LOCAL GOVERNMENT AID (LGA) State aid to cities has existed for over two decades. LGA and other aid programs recognize three basic city problems 1) the need for revenue diversification, 2) properiy wealth differences, and 3) a state responsibility for various local services. Many programs and formulas have been tried over time to achieve an appropriate balance but have usuaily changed quickly. The cunent LGA formula seems to succeed reasonably well, although the modest growth factor will bazely maintain a current level. It will not reverse the trend towazd increased city property ta,z reliance nor help offset normal growth. AMM supports continued use of the implicit price deflator (IPD) to provide a minimum growth to LGA. Additional state resources should be provided to reverse local reliance on the property tas. AMD�I supports continuation of the current LGA formula. If changes are considered by the legislature, AMM will support only changes offered to the current formula that have a positive impatt on the metropolitan area. G2 HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA) HACA equals approximately 40% of locai city aid and is an integral part of the state and local governmental service financing system. Over time it has been decreased and for cities frozen except for increases associated with class rate reductions to prevent property tax shifts. Without an associated growth factor for HACA, levy rate increases will be greater than actual budget increases causing larger property tax increases. ��-ir HACA should be continued as part of the state and local fiscal relationship and the household growth adjustment reinsYated as weil as an inflationary factor, such as the IPD used for LGA, established. G3 OPPOSE CONVERSION OF CITY LGA AND HACA TO SCHOOL AID Past conversions of city LGA and HACA to school aid did not provide permanent relief from rising school tases nar is there any indication that such shifts would provide permanent future relief. Shifting aid from cities to schools will have the effect of not only increasing ciry property tax but probably overall property tax. The AtVIN1 strongly opposes conversion of city LGA and HACA to schooi aid. I-D TAX EXEMPT PROPERTX One of the glaring inequities in the Minnesota tax system involves the free local services that are provided to taa� exempt property owned by governmental and certain non-govetnmental organizations. It is widely acknowledged that such property benefits directly from local governmental services such as police and fire protection and street services provided by cities. The AMM encourages the state legislafure fo aufhorize cifies to establish a program of fees for fairly reimbursing municipalities by non-governarental organizations, except constitutionally exempt property, and from the state, county, other city and metropotitan agencies for the cost of services such as police, t"2re, and streets to their facilities. I-E GENERAL FISCAL IMPACT POLICIES E-1 FISCAL NOTE CONTINUATION Many Iaws are passed each year by the legislature which have a substantial effect on the fnancial viabiiity of cities. Some of these, such as revenue and tax measures, have an obvious and direct effect which is often calculated and reported during the hearing process. Many otfiers, such as workers compensation benefit increases, mandated activities, binding arbitration and other labor related legislation, social programs, etc., have costs which are not as obvious but which will now be known due to the increased fiscal note requirement passed in 1997. Cities and others will now be able to determine the real cost of a program or proposal and be able To use this data in determining the merits. The state should continue a policy of deliberate restraint on its mandated programs and extensively utilize the fiscal note statute identifying local government costs on any new mandated programs. 3 E-2 FUNDING SHIFTS The Minnesota House of Representatives Research Department annually prepares Major State Aids and TcLres: A Comparative Analysis. The statistics for 1985 - 1995 show an imbalance of state revenues collected and aids and crediu distributed between the metropolitan and eutstate areas. Around 65% of the State Revenue is collected in the metropolitan area while only about 47.9% (up .4% from 1994) of the aids and credits are redistributed in the metro area. In 1995 there was $.59 returned in aids and credits for each dollar collected in the metro area (down 1 centfrom 1994) whereas,there was $1.19 returned per $1.00 coliected in greater Minnesota (down 5 cents from 1994). The trend in the past four years has been slightly in favor of the metro area but there is still a vast imbalance in favor of outstate distribution per amount collected. If the imbalance continues, state tax and aid policies may jeopardize the future economic growth of the metro area to the detriment of the whole state. The AMM requests the legislature to continue to reduce the imbalance of aids versus revenue between metro and outstate cities and to consider how this distribution of resources effects the economic growth and vitality of the metro area and thus the entire state. E-3 STATE REVENUE STABILITY The AMM has consistently supported a state reserve fund to deal with unanticipated economic changes that could result in mid year cuts to various city aid programs, and to provide cash flow balances so that short term borrowing is unnecessary. It seems prudent to develop a mid term correction or unallotment process that does not penalize any one segment of the state budget recipients over another segment if the economy drops beyond a reasonable reserve balance. The AMM supports a continued state fund to provide for state budget cash flow needs and a reserve for unexpected budget shortfalls due to economic downturns. The AMM also encourages the legislature to adopt a uniform across the board unallotment process for major economic downturns. E-4 CITY REVENUE STABILITY AND FUND BALANCE Cities need substantial cash balances on hand to operate for the first six months of the fiscal/calendar year untii the first property tax receipts are paid in June and/or state aid is paid in July. The alternative to an operating fund balance would be to engage in costly borrowing which is not in the best interest of local tax payers or the state. Many cities accumulate over a period of years capital funds for fire engines, public works vehicles, etc. to save taxpayer dollars in interest costs. These funds may appear to be surplus reserves, but in reality are savings accounts for major purchases. Cities need to maintain some fund balance to meet emergency expenditures created by nahtral 7 ��' � � disasters, lawsuits, vital equipment breakdown and even unexpected mid year aid cuts. Finally bond rating firms require liquidity and a demonstrated ability to pay debt in order to receive a favorable bond rating which will in the long run save property tax dollars. The legislature should not attempt to control or restrict city fund balances. These funds are necessary to maintain fiscal viability to meet unexpected or emergency resource needs of city governments, to purchase capital goods and infrastructure, provide adequate cash flow and to maintain high level bond ratings. E-5 SALES TAX ON LOCAL GOVERNMENI' PURCHASES In 1992, the Legislature repealed the sales tax exemption for local government purchases. This action increased the costs for local govern� and local property taxes by an estimated $76.8 million for the states 1997 fiscal year. This repeal has effectively increased local property taxes to finance state operations. The Iegislature should reinstate the sales tax exemption for all local government purchases without requiring a reduction in other aids to restore the mandated property tas increase from 1992. I-F LOCAL PERFORMANCE AID The 1996 L,egislature created the local performance aid program. The legislation was vague, the program was partially funded by cuts in HACA and the requirements for applying for the aid could become an onerous mandate on cities. Cities do performance measurement and participate in joint powers to more effectively and e�cienfly provide services. There is no way that the state can establish performance or efficiency criteria that is relevant for and applicable to 855 cities ranging in size from 3 or 4 persons to 370,000 persons. The AMM opposes the Local Performance Aid Program. If a local performance aid program is mandated, then a new source of funds other than e�sting LGA or HACA should be provided. I-G PRICE OF GOVERNNIENT The price of government legisiation enacted in 1994 was intended to measure the overall effect of state and local taxation over a long period of time. The targets measure government revenues as a percent of personal income and are intended to be used as long range fiscal planning toois for the state. Unfortunately the price of government targets are being misused by several organizations to call for arbitrary reductions in local spending. The price of government calculatioa as regards local gor•ernments should be based on CI �'� � (1) changes in the sum of levy and state aids, and (2) examination of long term trends, not single year events. In addition considerafion should be given to service provision transfers between governmental units, increase demand for services by citizens, and legislative mandates or tax rate changes. I-H FISCAL DISPARITY FUND DISTRIBUTION Fiscal Disparities (F.D.) is a fiscal tool that shares Commercial/Industrial property value for tax purposes in the seven-county metropolitan area. Its prunary purpose is to help equalize, to some degree, the property tax wealth among the cities by sharing part of the growth in communities experiencing significant growth with those experiencing little growth. A secondary aspect is it tends toward equalizing taxes on similar C/I properties in various communities. Recently suggestions have been raised to use a percentage of the fiscal disparities funds for specific social or other programs in the metropolitan area. Because of the way F.D. is calculated, this would amount to a hidden property tax increase across the metropolitan area that impacts the property tax poorer cities the most. Fiscal disparities distribution is applied after levy certification so the property tax increase is automatic, not discretionary at the local level. Therefore, The AMM opposes use of �scal disparities to fund social or physical metropolitan programs since it results in a metropolitan-wide property tas increase hidden from the public with an excessive impact on communities with lower property wealth. I-I TAXATION OF MLJNICIPAL BOND INTEREST The state law that grants a tax exemption for municipal bond interest is being reviewed and could be repealed. A repeal of this exemption will raise borrowing costs for cities at a time when budgets are extremely tight and property tax increases are unacceptable to the taxpayer. The state shouid maintain the t� exemption for municipal bond interest income. I-J STATE OR ME�'ROPOLITAN IMPOSED FEE FOR 5ERVICE The 1993 legislature adopted a$5.21 fee for each municipal water hook up to pay for federally mandated water well testing. Local o�cials/cities were mandated to impose the fee and accept responsibility. It was not however imposed on trailer parks and certain other private interests. It has been reported that the fee has raised excess funds which were deposited in the state generalfund. In addition, the Metropolitan Council recently considered adding a surcharge on sewer chazges billed to cities to augment cutbacks in transit funding. The AMM stronaly opposed this proposal and it was abandoned. 7 R��ci The AMM opposes the state or meYropolitan council mandating fees in a manner that forces city officials to be held as the responsible culprits in levying and expiaining the purpose. The AMM also opposes fees that are not spread equitably to all and opposes over collection or use of a revenue generated for a specific purpose or from a specific enterprise to be used for other government expenses. I-K PERSONAL PROPERTY TAXATION - ELECTRIC UTILITY Discussion regarding possible deregulation of the electric power industry has centered on electric utility Yaxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed to "level the playing field" or ensure competitive parity. The Investor Owned Utilities (IOUs) view attached machinery or personal property tax as baniers to competitive parity arguing that it places them at a competitive disadvantage. Similarly, co-ops pay the tax on some of their property and municipals make substantial payments in lieu of talces. However, accurate comparisons of tax burden are di�cult, as other states use different taxing systems. Utility personal property can be a significant portion of the locai tax base in all cities. Most obvionsly affected are cities that have power plants; however, transmission and distribution equipment account for over half of the personal property taxes paid by the IOUs and exist in nearly every ciry. In addition, personal property taY is a significant portion of the metropolxtan f'�scal disparities pool redistributed to all Metro area local taxing districts. Replacing the revenue that would be lost to cities, counties, schooi districts and other local tasing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources of such a replacement revenue would be difficult to develop and administer, and could be subject to reductions or elimination over time. FurtIiermore, replacement revenues or aids may not fully address the problems created by a large tax base reduction. AMM opposes proposals for exempting the IOUs from the personal property taz�. Under no circumstances shouid local units of government and their taYpayers be required to shoulder the burdens of tas relief for IOUs. 10 9�-// II General Legislation Pages 11-16 �� -II �� GENERAL LEGISLATION II-A MANDATES AND LOCAL AUTHORITY The AMM has for many years opposed statutory changes that erode local authoriry or mandate activities which cost money to implement unless there is a direct state appropriation or provision to recover the costs. Unfunded mandated programs impact the ability of cities to provide the traditional services of public safety, snowplowing, street maintenance, etc. and in some cases cause a reduction of these services. The AMM opposes statutory changes which erode local control and authority or create mandated additional tasks requiring new or added local costs without a corresponding state appropriation or funding mechanism. II-B PUBLIC RIGHT-OF-WAY Legislation was passed in the 1997 session that basicaily upheld cities rights to maintain jurisdiction over public rights-of-way and to receive compensation for damage. The League of Minnesota Cities (LMC) is continuing efforts to work with the PUC, which was directed to establish statewide criteria, to arrive at fair and equitable standards to protect the publics interest. The AMM supports the continued effort of the LMC to protect the authority of cities to maintain jurisdiction over municipal public rights-of-way, to establish relevant criteria and to obtain reasonabie compensation for its degredation. II-C COUNTY PLAT APPROVAL AUTHORITY Current law generally grants cities the authorfty to approve proposed plats as part of their police power responsibilities for regulating development. Certain counties want legislative authorization to approve proposed plats which are contiguous with existing or proposed county roads. An informal process of counry review with the opportunity to offer comments and suggestions for improvement is an appropriate cooperative mechanism which is already in place and working well in some areas of the state. Cities oppose extending county authority over plat approval. While counties have a valid interest in proposed plat decisions, this does not warrant a transfer of approval authority. 13 ��-i� II-D POLICE AND FIRE PENSION PROVISIONS Local police and full-time fire reiief associations were phased out by the 19801egislature unless the local council opts to keep the relief association. All new employees will become part of the state police and fire PERA fund and the state will reimburse locaI units for a portion of the unfunded liability remaining in the local fund. Also, I979 Law set employee contributions at 8% and the Legisiative Retirement Commission has in the past establisfied a general policy requiring public safety emp2oyees to pay 40% of the normal pension costs. D-1 AMORTIZATION AID The ANIVI opposes legislation that provides for reducYions of state amortiaation aid to local police and fire relie£ associations. D-2 EMPLOYEE CONTRI$UTION AMOUNT Even though the employee contribution amount was set at 8%, in many funds this is not equivalent to 40% of the normal costs. The AMM urges that the contribution level be set at 40% of the normal cost of financing the bene�ts even if this amount exceeds 8% of base salary. D-3 BENEFIT INCREASES The AMM opposes any benefit increases for local police and fire relief associations unIess an increase, including any resulting deficit, is financed 50% by the employing city and 50% by emptoyees on a current basis. D-4 ASSUMP'PION CfIANGES The AMM supports changes in actuarial asswnptions relating to salaries and investmenY return to more truly reflect experiences. The ANIM opposes payment of any type of bonus to active or retired members (13th Check) as a part of actuarial assumption changes. TI-E 911 TELEPHONE TAX The Department of Administration has the authority to impose up to a 30 cent fee per month per tetephone line to offset the ongoing maintenance costs for 911 service for the 90 plus phone companies in the state providing at least a basic service. The current fee is 22 cents but will be increased for 800 MHz by 4 cents in July 1997. There has been some pressure to increase the fee beyond the 30 cent levei to provide outstate enhancements. The ?LNIM supports the current 91I access fee and use of that fee for enhanced upgrade 14 y�-�i and other costs hut any fee granted in e�ccess of 30 cents per line per month should be returned to the municipality where collected. II-F 800 MFIz RADIO SYSTEM The 1995 I,egislature authorized implementauon of a Metropolitan 800 MAz Radio System and created a goveming board as weil as identifying fundtng sources. It followed criteria put forth by the AMM to ensure that cities would have complete control of when or if they became a part of the system while insuring continued uninterrupted public safety service and fees levied only for locally occurring costs at the time of participation. The 1996 and 1997 L,egislatures provided more funding (both directly and in the form of sales tax relie� to provide for the implementation of the basic backbone system. A major remaining problem is funding for local governments who want to consider joining the system. The AMM will support the continuation of the Metropolitan 800 MHz Radio system legislation and board as long as the following criteria are part of the implementation: • Cities should not be forced to modify their current systems, purchase new equipment prematurely, or become part of the 800 MHz Radio system until they so choose; • The system should provide a phased transition so that there is guaranteed uninterrupted service; • The system should be technically capable of allowing communities the flexibility to form various coordinated arrangements for dispatching and service provision; and • The governance body for 800 MHa should continue to be representative of entities/users that ultimately must bear the cost but should not be dominated by any one group. Since there are both regional and local benefits to local government units joining the system, the AMM urges the Regionai Radio Board to seek a state appropriation to assist local units of government in joining the system. II-G PERMIT APPROVAL - ZONING Current law requires finai city action within 60 days of an application or 120 days if the appiicant is notified prior to the end of the first 60 days. However, if a decision on the application is not made within the time limit, the application as automatically approved. In the case of a rezoning which requires a super majority, i.e. 4 of 5 council votes, the new pemut approvai deadline has created a loophole to the zoning statute. If only 3 of 5 council members 15 l�-!) support the rezoning, they can simply table the apglication until time has expired and it then is automatically approved by a simple majority; thus, subverting the zoning statute. The permit approval statute delineating time limit requirements should be modified so that in the case of a rezoning application, a motion to table that e�rtends action beyond the 60 or 120 day time requirement constitutes a denial not an approval in order to uphold fhe super majority requirement of the zoning statute. II-H ELECTIONS - AT.LEY SYSTEM AUTHORITY In arder to create a more democratic process that ensures candidates are elected with a majority of votes cast, statutory cities should be permitted to adopt an alley system of filing for councIl seats. AMM supports permitting statutory cities to adopt an aliey system for filing for city council seats. i['7 9k-�► l III Housing and Economic Development Pages 17-30 17 9�-ll 0 AOUSING AND ECONOMIC DEVELOPMENT A HOUSING AND NEIGHBORHOODS The distribution and availabiliry of affordable housing throughout the metropolitan area is a continuing concern. All levels of government and the private sector, including non-profit groups, must work cooperatively to address this issue. Each player in the production of housing must contribute if the issues are to be addressed: The federal and state governments can best contribute by providing more direct financial assistance and by creating a tax climate conducive to the production and maintenance of affordable housing. The Metropolitan Council should continue to give high priority to housing planning and provide technical assistance and guidance to the public and private sectors so better decisions relative to present and future housing needs can be made. Local governments should not inhibit the production of affordable housing through excessive regulatory requirements. They should also work with the private sector, Minnesota Housing Finance Agency (MHFA) and the Metropolitan Council to make the best use of existing toois and programs which facilitate the production and maintenance of affordable housing. The private sector should work with government and the non-profit sector in an effort to increase the supply of affordable housing. The use of covenants, while generally desirable in improving the quality of development, should be scrutuuzed by private developers to ensure that they don't have the impact of undermining the creation of more affordable housing. Policy makers at all levels must become more cognizant of their actions, decisions and requirements which may have an undesirable unpact on housing affordability. A-1 REGULATORY IMPACTS ON HOUSING COSTS Policies, programs and regulations of various levels of government and buiider/developer practices can add unnecessarily to housing production costs. While these actions may appear to be worthwhile and beneficial, they may negatively unpact the production of affordable housing. Examples include but are not 1'united to zoning and subdivision ordinances, growth policies, building and energy codes, environmental regulations and private covenants. 19 �V Local officials should periodically review regulations such as zoning and subdivision ordinances to ensure that they do not prohibit the production of affordable housing or become exclusionary. Regional and state officials should examine their current and pending regulations and policies, in azeas such as SAC, growth policies, building and energy codes, environmental regalations and transportation policies, to determine if they can be modified to enhance the production of affordable and life cycle housing throughout the region. Developers/builders should work with local officials to encourage affordable and life cycle housing by not increasing housing costs through private covenants requiring amenities and standards which unnecessarily exceed local and state requirements. A-2 MANDATORY LAND USE STANDARDS State-unposed uniform standards for housing sryle, type and lot size are not appropriate because of the great diversity among cities and differences within cities relative to density of development, topography, age of housing stock, the mix of housing values and the level of municipal services. The legislature should not mandate uniform zoning and subdivision standards or remove additional land use regulation authority from local units of government. Cities should retain the authority to regulate the location, size, amount and type of housing within their boundaries. No legislative initiative is needed. Cities do have a responsibility, however, to encourage affordable and life-cycie housing opportunities. A-3 STATE HOUSING POLICY AND FINANCIAL ASSISTANCE The state must continue to be an acuve participant in providing funding for housing needs. Allocation of state resources should be based on a statewide housing policy formulated in conjunction with regional and local governments to address local housing needs. Financing strategies must be devised which carry out the long-range goals of providing and maintaining affordable and life cycle housing in rural and urban Minnesota, The state can best contribute to the affordable and life cycle housing supply by: Providing direct funding in the form of grants and loans from state-derived revenues. Consolidating many of the e�vsting small NIfIFA programs into a larger pool with more flexible criteria and guidelines for use, thereby decreasing administrative costs � �1$�// of applying for and administering such programs at the local level. • Setting general policy priorities for use of state funds basad on the state housing policy which can be accessed by local, non-pro�t and for-profit developers based on their specific activities. • Collaborating with the Metropolitan Council to provide technical assistance and information ahout state and federal housing funding programs, as well as providing easier access to these programs. • Aligning income/sales price limits of MEiFA programs with Livable Communities Criteria where possible. • Providing incentives through the state tax policy to benefit the maintenance and production of affordable and life cycle housing. Incentives to be considered but not limited to: (1) Sales tas exemption for the construction and operation of low income housing by public agencies. (2) A state low income honsing tax credit. (3) Removal of local housing authority levy limits. (4) Exempting the state deed and mortgage transfer tas exemption for public agencies. Defining a qualified housing district to include affordable owner occupied housing of which, at least half ineets the guidelines of the livable communities act or statewide moderate income housing limits, whichever applies. Recognizing that preservation of existing housing stock is a fundamental and cost effective means to promote and retain affordable and life cycle housing. Funding for housing programs should include rehabilitation and restoration, as well as new construction. A-4 METROPOLITAN AOUSING POLICY The regionai housing policy plan should be consistent with the Regional Blueprint and take into account the essential linkages between housing, jobs and job training opportunities, transportation and human service needs of low income residents. 21 q�- �t The Metropolitan Council, shouId continue to provide markeY analysis and up-Yadate data on regional and local housing affordabilify needs and trends in the metropolitan area so rational decisions about future housing needs can be made. The housing policy must consider the linkages between housing, jobs and training, transportation and human service needs as set forth in the Regional Blueprint and the Livable Commnnities Act. The Metropolitan Council should examine its growth managemenf strategy to better determine its effect on municipalities' ability to meet affordable housing goals. The Livabie Communities program was established to offer incentives to cities to preserve and develop affordable and Iife cycle housing. Program funding is offered as an incentive for cities to pursue the goals established by the Livable Cammunities legislation. The policies of the Metropolitan Council regarding Yhe award of funding under Livabte Communities should not be based on the acceptance or rejection by the community of specific honsing prob ams, but rather on the degree to which the appiication in quesfion will help the city meet its stated housing goaLs in its action plan. Communities should not be required to expand or reduce their approved Housing Action Plan goais to obtain Livable Communities funding. Major changes to the Livable Communities Act should not be made until the evaluation and report mandated by MS 473.254, section 6 has been completed. A-5 LOCAL HOUSING POLICY Housiag needs vary among cities in the metropolitan area. Some cities need more housing for low income persons while other cities need more upscale housing to retain and/or attract more moderate to upper income persons. Cities should retain authority to promote housing types which are in their best interest, while at the same time encoutage life-cycle housing opportunities for households of all income ieveis to meet regiona] goals. Cities need to have great flexibility in financing their housing goals if they are to meet the intent of ttze Metropolitan Land Planning and Livable Communities Acts. Cities must retain suffic4ent authority and flexibility to conduct and finance housing programs that meet their individual housing nee@s within a regional context. Local funds can be used to leverage federal, state and metropolitan resources when they meet commou policy goals. Cities should avail titemsetves of the reso�crces provided through the Livable Communities Act and the MI�'A programs. A-6 NEIGH$ORHOOD LIVABILITY Rapidly evolving sociat, demographic, economic and behavioral changes are converging on many cities and creating new challenges that exceed cities' capacity Yo deal effectively with their new environments. 22 �� i The challenges cities face, such as deteriorating neighborhoods, crime and drugs, need the cooperauve efforts of public, private and business interests to solve. The problems continue to grow though cities have taken efforts to face these challenges. Cities should take the tead through working with other appropriate groups and agencies in the development of local and regional strategies that will assist in addressing complex and growing neighborhood problems. These strategies should recognize that the physical and structural condition of the neighborhood is inextricably interrelated with the social welfare of the neighborhood and the educational and economic opportunities available to residents. Where legislation is directed to assist low income individuals and children in poverty, legislators must recognize the need for linkages between housing and human services, jobs and training, health care transportation, and educational opportunities. When the legislature considers low income programs, it should treat these activities in a comprehensive manner. The legislature should enact necessary legislation to identify and eliminate barriers that would act to deter individuals from achieving their goal of economic and personal success for themselves and/or their family. Current state law makes it difficult for income-based benefit providers to share eligibility information. The Data Practices Act should be modified to allow such sharing of information when fraud is suspected or to determine program eligibility. A-7 STATE AND/OR COUNTY LICENSED RESIDENTIAL FACILITIES (GROUP HOMES) Residential-based facilities (group homes) should not be concentrated. Over-concentration of such facilities could have a negative impact on the community and on facility residents. Cities have a responsibility to welcome such facilities on a fair share and rational basis. The AMM also believes that the state must ensure that residents living in residential-based facilities receive appropriate care and supervision relative to their disability or need to be housed in a group facility. The state's de-institutionalization policy is directly linked to the need for more residential-based care facilities in cities and the responsibility of the state to provide sufficient funding to ensure adequate care and supervision of the residents piaced in such facilities. The following principles should be in law or rule to regulate residential-based facilities: • State and county agencies must provide timely notification to cities of the status of facility license requests and renewals and provide adequate opportunity to respond. 23 9�-�I Cities must also be aware of the special care needed by residents of such facilities in case of public safety emergencies. Clustering of community residential faciliYies becaase of economic, geographic or other factors should be avoided. Standards of non-concentration for state or county-issued RFPs should be established. There must be an ongoing screening process, particularly in the corrections area, to ensure that persons placed in a residential facility will benefit from such an environment and will not be a danger to themselves or others. The licensing authority must be responsible for removing any persons found incapable of living peacefully in such an environment. Facilities licensed by the correcYions deparhnent should not be exempt from reasonable local land use regulations. A fair share concept should be considered within the metropolitan area. However, this concept should consider other factors including transportation facilities, jobs availability and other needed supporY services. The licensing authority and/or legislature should allow cities to participate in the search for facility locations in order to meet the needs of the providers, facility residents and the neighborhood. A-8 RESIDENTIAL NON-HOMES1'EAD PROPERTY TAX RELIEF Residentiai non-homestead properties (i to 3 units) are in need of properry taY relief. This is particutarly true of dupiexes and tripiexes, which did not enjoy the same amount of property talc relief in the 1997 tax bill as did single unit rental property. There is no policy rationale for distinguishing between single unit rental, duplexes, and triplexes; therefore, these types of property should be taYed alike. Eliminating the distinction between singIe unit rental, duplexes, and triplexes wiil simplify the properry tax system by eliminating a class of property. However, granting rentat properry all the ta�c advantages of homesteaded property wiIl encourage increased rentership and decreased homeownership and will have a destabilizing impact upon Minnesota cities. Homestead property should continue to enjoy preferential tax treatment relative to other classes of properry. Under no circumstance should the class rate applied to residential non-homestead property be less than the class rate that is applied to second tier homestead property. The AMM supports combining all 1, 2 and 3 unit non-homestead residential property into a single class of property with a single class rate. The ANIM supports maintaining the property tas class rate distinction between homestead and rental property. `� �'�- i� III-B ECONOMIC DEVELOPMENT All commnnities address economic development through their local land use regulations, with each city striving for "orderly development." However, metropolitan communities have varied development needs. Economic development is not just a matter of a greater taY base for the community, but requires tools that promote, regulate and service the development. Economic development is promoted through housing and redevelopment authorities, economic development authorities, port authorities, TIF, revenue and general obligation bonds and the Star Cities program. Comprehensive plans and land use controls serve as regulators and water, sewer, streets and other municipal services are unportant components of economic development. B-1 ECONOMIC DEVELOPMENT RESPONSIBILITIES Cities are the primary units of government responsible for economic development and redevelopment. They require adequate fiscal tools to address these issues in a timely and effective way. The state should acknowledge the valuable role cities play in developing and maintaining the economic health of the state. A state ecanomic development strategy should be developed through the process established by Laws 1997, Chapter 202 which promotes job creation and retention; fosters redevelopment to eliminate blight and decay; assists the clean up of polluted lands and provides adequate housing opportunities. In partnership with the state, cities should be charged with locally administering an economic development policy created by the legislature and governor through local economic development plans or policies. The state should acknowledge cities as the primary units of government responsible for implementing these strategies and land use controls. Additional tools should be developed for cities to accomplish these objectives. B-2 EQUAL TREATMENT OF CITIES All cities regardless of size or location should be treated fairly with respect to state authorized and funded economic development programs. New or revised programs designed to address specific economic circumstances within cities or counties should use problem de�nition as the criteria for participation rather than geographic location, size of city, class, etc. 25 �\� B-3 TAX INCREMENT FINANCING (TIF� TIF has enabled cities to plan and successfully carry out housing, economic development, pollution cleanup and redevelopment projects and has been the main tool available to cities to curb the spread of blight and support economic development. Although changes made during the 1995 and 1997 Sessions make the tool more usable, TIF authority over the years, has been seriously Iimited, reducing the abiiity of ciries to engage in needed development and redevelopment. The state should acknowledge cities as the primary goveznmental unit responsible for economic development; which includes the creation and retention of jobs, growth of the state's economy, elimination of blight and decay, development of affordable rental and owner-occupied housing and clean-up of contaminated soils. TIF is a proven tool for fulfilling these needs and examples of positive uses abound. The state should partner with cities in their economic development and redevelopment efforts thereby reducing the competitive advantage enjoyed by cities in adjacent states who have more economic devetopment toois. The AMM opposes further restrictive changes to tas increment statutes, and supports making the following changes if 1998 becomes a year for major changes in TIF policy: • Allow districts approved after April 1, 1990 to pool increments for affordable housing or pollution remediation. • Require the DepartmenY of Revenue's definition of tax increment to be consistent with the statutory definition of tas increment. • Eliminate the Local Government Aid (LGA) and Homestead and Agricultural Credit Aid (HACA) penalty currently imposed on newly created districts or allow an exception from levy limits. Also remove the restrictions on the source of payment if the penalty is not eliminated. • Remove existing restrictions to property included in a deferred assessment program within the last five years (e.g. green acres). • Remove the LGA/HACA penalty imposed on Housing TIF Districts that were established during the penalty years of 1990 through 1993. • Exempt redevelopment districts from the "five year rule." B-4 RESPONSIBLE USE OF TIF The state has imposed restrictions on the use of TIF partially because of the perception that it causes unne�essary competition between individual cities and regions of the state. There is also 26 9�-�� a perception that cities aze played against each other when developers consider projecu and development which would take place without TIF. Some counties and school districts also feel they should become more invoived in the decision making process. The review and comment requirements of the current TIF law should continue to be used to educate other local governments about proposed developmenY projects. Counties and school districts should respond to these overtures for evaluation and participation and take advantage of all available informational opportunities. Cities alone should be authorized to approve city initiated TIF Districts since it is cities who assume the financial risk. B-5 PROPERTY TAX REFORM IMPACT ON TIF Future property tax changes which include additional class rate compression or property tax exemption for investor owned utilities would have significant negative impacts on existing TIF districts. The AMM will support only property tax change proposals that include provisions to hold harmless existing tas increment financing districts or which provide sufficient state resources so that local TIF obligations can be met. Additionally, if the $2 million appropriated in 1997 is insufficient to cover deficits caused by the 1997 class rate changes, the legislature should provide additional resources so that TIF obligations can be met. B-6 OTHER DEVELOPMENT TOOLS Minnesota cities have the prunary governznental responsibility for economic development, but additional tools are necessary to carry out that responsibility. Prior to 1997, Tax Increment Financing (TIF) has been the major tool even though its effectiveness has been diminished by legislative actions in recent years. The 1997 L.egislature authorized local units of government property tax abatement authority as an additional tool even though it was not requested by local government. The legislature should exempt tax abatement projects from the levy limit restrictions imposed in 1997 to make tu� abatement an effective tool. It must be understood by the legislature that tax abatement authority is not a replacement for TIF. The Minnesota Investment Fund grant program should be continued in future bienniums. The state and federal funds that support this program should also be spread over the year to ensure projects across the state have access to the grants. 27 9�-�l B-7 DEVELOPMENT OF POLLUTED LANDS Most Minnesota cities have polluted land sites within their boundaries that remain unused or underdeveloped because of obstacles preventing clean up and reuse. Among the roadblocks are liability issues and up-frant costs of clean-up. Developers and Financiers are reluctant to expose themselves to such liability and clean-up costs often exceed the value of the land despiTe incentives for private sector intervention. Public sector subsidy is critical. The L,egislature passed several measures during the last few sessions to help dea] with the polluted lands problem including: The 1992 Land Recycling Act which was designed to promote the transfer and reuse of contaminated land by offering an exemption from liabiliry to those who are not otherwise liabie and voluntarily clean up a site. The 1993 TaY Act which made a step toward developing a pollution clean-up program and aclrnowledged that TIF is an appropriate tool to provide a portion of the funding. The 1995 Livable Communities Act which can provide about $7.0 million annually in grants for clean-up in the metropolitan area and reduces the local match for the Department of Trade and Economic Development (DTED) clean-up grants from 18 percent to 12 percent and allows the regional funds to be used as part of the local match. The Minnesota Superfund law was amended to authorize the Minnesota Pollution Control Agency (NIPCA) to consider the planned use of property when determining appropriate clean-up standards. The 1997 Legisiature appropriated $7 million to DTED for the statewide clean-up program of which up to two-thirds can be used in the metropolitan area and $6.2 million from the Petrofund to DTED to be used to clean up petroleum related contamination. The Iegislature should continue its strong commitment to polluted lands clean-up by: • Continuing the DTED clean-up grant program and increase funding substantially in future bienniums based on need and demand. • Allowing the existing clean-up tools to continue operating. • Requiring that condemnation commissioners consider the cost of correcting pollution problems in determining the final value of property. • EstabTishing an indemnification fund to provide financial security for institutions and individuals as they invest in projects to recycle contaminated sites in order to m 9�-/� leverage private investment in cities' efforts to increase their tas base and create jobs. Elimivating the requirement to match a portion of the clean-up grant program with local general funds. The Metropolitan Council should also continue its strong commitment to implementing its Regional Blueprint policies (revitalization of the urban core, compact development, containing sprawl, etc.) by levying the ma�mum allowed yearly for the ta�i base revitalization account of the LCA. B-8 REDEVELOPMENT NEEDS Many communities aze faced with the unique circumstances of deteriorating and obsolete structures in neighborhoods and downtowns and a lack of land for development. Redevelopment activities usually require significant up front financing to address multi-phased projects of extensive duration where site assemblage, demolition, relocation must occur in addition to pollution clean-up before private-sector interest can be generated. The lack of a coherent statewide policy and the State's unwillingness thus far to provide direct financial support for redevelopment has and will continue to contribute to the further deterioration of the urban tax and job base and exacerbate sprawl. The State should make a financial commitment to invest in redevelopment projects including an adequately funded program to allow development authorities to gain control of and develop formerly contaminated sites, pursuant to local plans and priorities. B-9 WELFARE REFORM/WORKFORCE READINESS In many instances, cities that have conducted aggressive, successful economic development programs, have ascertained a problem with respect to the availability of qualified, work-ready employees for their new and/or expanding companies. The "heated" economy and the low unemployment rate, has exacerbated this situation. In many instances, the lack of available, qualified employees has negated or curtailed communities otherwise promising economic development efforts. • The state should continue funding employee training programs such as The Pathways program and the Job Training Partnership Act. • Cities can serve as a catalyst in working with other public sector entities and the private sector to address workforce issues. ftL'7 t�- ll B-10 BUII.DING PERMIT FEE SURCHARGE Local units of government levy a half-percent surcharge on building pernuts which is paid to the state to operate the state Building Codes and Standards Division. Until the 1991 Legislature changed the law at the request of the governor, any excess fees over actual operating costs were proportionately rebated to local units to help pay for building o�cials training and continuing education costs. Local units of government are facing tough financial times and need every available resource, especially that which could be considered local money. The AMM recommends reinstating the language providing that unused building permit surcharge fees in excess of state building code division costs be returned to cities. B-11 LIVABLE WAGE POLICY The 1995 Legislature adopted an amendment that requires a business that receives state or local govemment assistance for economic development or job growth purposes must create a net increase of jobs in Minnesota within two years of receiving the assistance. If the job and wage goals are not met, the business must repay the assistance. Assistance is defined to mean a loan or grant in excess of $25,000 or TIF. Annual reports to DTED are also mandated. The amendment basically requires a net increase in jobs for any type of public economic assistance. Because the act does not specify the type of TIF district, it is assumed that alt types of districts, including housing districts, must retain a business and prevent relocation of that business. The AMM recommends that the current law be amended to incorporate the following: • A business be de�ned as an industrial entity and a for-pro�t corporation. • Assistance be a loan or grant equal to or greater than $250,000. TIF, for purposes of ttus act should not be considered assistance iE used for housing, redevelopment, or renewal districts. • Assistance may be used to retain and/or increase the number of jobs. • The state or local government providing the assistance be authorized to estabtish by agreement with the business the wage and job goals, as well as the means to repay the assistance or another remedy to satisfy the goals. 30 ��- // IV Metropolitan Governance Structure & Issues Pages 31-48 31 �V r /I � METROPOLITAN GOVERNANCE STRUC'TURE AND ISSUES IV METROPOLTTAN GOVERNANCE There are certain issues, concerns and problems which because of their complexity or breadth encompass the entire metropolitan area and can not be dealt with by a single local government or through a combination of local units. The region needs to deal with these regional issues through a regional governance structure which acts in cooperation with and as a partner with local units of government and officials. IV-A PURPOSE OF METROPOLITAN GOVERNANCE STRUCTURE The diversity in demographics and political subdivisions within our metropolitan area result in the need for planning on a metropolitan basis which must be done in cooperation with local government. There is also a need for a regional service delivery system to provide certain services or portions of services to most effectively and eff'iciently address the needs of the meuopolitan area. The AMM affirms its support for the e�stence of a metropolitan governance system to deal with appropriate regional issues and concerns. The purposes of the metropolitan governance system should be to facilitate region-wide planning with the cooperation and consideration of the affected local governmental units; to provide certain region-wide services that do not duplicate those that can be provided by local governmental wuts, either individually or jointly; and to ful�ll other speci�c responsibilities mandated by the state and federal governments. IV-B CRITERIA FOR EXTENSION OF METROPOLITAN GOVERNANCE AUTHORITY Executive, legislative or self directed initiatives to expand responsibility or authority of the Metropolitan Governance System must be carefully considered and limited in focus with indepth review by all those impacted by the proposed expansion. The legislature, if granting the metropolitan governance structure additional responsibility or authority, should be speciFic in the grant. Expansion or extension of authority should be considered only when one or more of the foliowing conditions exist: • The service, function, or activity has been shown to be needed and it can be demonstrated that it cannot or is not being effectively or efficiently provided through existing general purpose units of government; 33 ��-�� The service, function, or activity is not an appropriate state level or Iocal government level activity or function, Regional intervention is needed for protection of the region's investment in an existing metropolitan system. IV-C METROPOLTI'AN GO'VERNANCE STRUCTURE AND FUNDING The Meuopolitan Council was created in 1967 to coordinate "the planning and development" of the Metropolitan Area. The Council was mostly advisory, but was given responsibility for regional policy development and coordination in the areas of wasiewater treatment, transportation and airports. The Council was given limited approval authoriry for development proposals which were of inetropolitan (regional) significance but was not given direct operational authority. The Metropolitan Council's responsibility has been expanded over the years and was given direct operational responsibility for regional transit and wastewater ueatment in 1994. Gl RESTRUCTURING OF METROPOLITAN AGENCiES In 1994 the L,egislature eliminated the Regional Transit Board (RTB), the Metropolitan Transit Comznission (MTC) and the Metropolitan Waste Control Commission (MWCC) as freestanding agencies but there are still separate agencies for sports facilities and airports. There is a great deal of discussion as to how accountable the governance structure is. The ANINI recommends: Removing the metropolitan sports faciliries commission as a metropolitan agency if if continues in its present form, since the back-up tax liability is limited to one city which also appoints all commissioners except the chair, contingent upon its divestiture of lands and properties in cities not responsible for the back-up ta�c. If new sports facilities are built using �nancing that requires revenues from communities other than the City of Minneapolis, or would potentially impose talc liabiliries on other communities, the agency should be restractvred to ensure representation of all communities that are affected. Clarifying the status of the Metropolitan Airports Commission (MAC) so that it either becomes a metropolitan agency or a state directed agency. If the back up property tax remains limited to the seven county metropolitan azea then its membership should come from the metropolitan area. If the back up property tas is made state wide then the MAC should have statewide representation. 34 9y-�� The Advisory Council on Local Governments shouid study the governance structure of the MAC. G2 F`UNDING FOR REGIONALLY PROVIDED SERVICES The funding for the Metropolitan Council and it's regionally provided services is a combination of properry taxes, user fees and federal and state grants. There have been discussions to replace these multiple sources with a single new revenue source. The AMM believes it is appropriate to continue to fund the regional services and activities by the existing combination of user fees, property taxes, state and federal grants. The AMM believes this method provides better visibility of expenditures by the "payers" and therefore opposes the imposition of a single new source to replace the present funding sources. The AMM also believes that the linkage between revenues and expenditures for each service should remain visible by function at the regional level. C-3 REGIONAL TAX RATES AND USER FEES The Legislature controls the taxing authority of the Metropolitan Council and the Metropolitan Airports Commission (MAC) and it should continue to do so. User fees are deternuned by the Metropolitan entiry collecting the fees. The setting of user fees and the process for setting or changing fees has generally not been considered a problem except for isolated cases. The AMM believes: • User fees for regional services should not be dictated by the legislature but should be determined by the entities collecting the fees. • Ali fees should be consistent with regional system plans and goals. • An open visible process/procedure should be employed for user fee rate changes when changes are proposed in order to ensure public notice and opportunity for input. • A clear linkage between revenue and service should be maintained. IV-D COMPREHENSIVE LAND USE PLANNING/GROWTH MANAGEMENT Land use plaiming and regulation in the metropolitan azea is mostly governed by the statewide municipal planning act (M.S. 462} and the Metropolitan Land Planning Act (M.S. 473). While not a perfect framework, the guidelines and requirements in these laws have worked reasonably well for the affected entities. There is a perception, however, that existing pianning law and resource availabiliry might not be adequate to deal with cunent planning and 35 ��/' development issues facing this state, region and local units of government. The communiry based planning act passed in the 1997 session may help bat it may need to be strengthened to deal with the area immediately adjacent to the seven county metropolitan area. There is also room for improvement in the relationships and interactions between the Metropotitan Council and local governments. D-1 COORDINATION OF LOCAL AND REGIONAL PLANS Planning is an ongoing process, and several precepts should be kept in mind by local units of government, Metropolitan Council and the state as this metropolitan planning process continues. • The regional investment in metropolitan physical service systems; transportation, wastewater treatment, airports, and park and open space, should continue to be protected by preventing adverse impact on these systems due to lack of integration and coordination between regional and local pianning. • Designation of other regional plans as metropolitan systems plans should not be made unless there is a compelling metropolitan area wicle problem or concern that can best be addressed through a regional system designation. • Local governments must recognize the authority of the Metropolitan Council to plan for the regional systems; and the Metropolitan Conncil must recognize the authority of local governments to plan for their communiries so long as the regional systems are not jeopardized. • Local officials must have efFective input into the regional plawung process on an ongoing basis. In order to assure effective input, the Metropolitan Council should hold public hearings on all proposed amendments to the Metropolitan Development Guide. Adequate advance notice, including full text copies of all amendments, should be provided to all iocal governments. Following adoption of amendments, the Council should provide copies of the amended plan. Metropolitan system plans must be sufficiently specific in terms of locations, capacities, and timing to allow for consideration in local comprehensive pianning. System plans should clearly state the criteria by which local plans will be judged for consistency. System plans should also clearly state the criteria that the Council will use to find that a local plan has a substantial impact on or contains a substantial departure from metropolitan system plans. Timely and effective local planning assistance should be available to cities, including, but not limited to: staff support; research and technical data; specific guidelines for interpreting policies; systems statements; and procedural criteria for the review and evaluation of plans and amendments. 36 9��/� Procedures for Metropolitan Council review of local plan amendments must: * Recognize that the Council does not "approve" local comgrehensive plans, but rather only has authority to review and comment unless there is a substantial impact on or departure from the system plans; �` Be estabiished through an open� dialog with local governments to maintain trust and communications between the Council and local governments, wluch in the past has included a public hearing process; * Be sensitive to local government's need to act on plan amendment and development applicatiozvs within time constraints imposed by state law; * Provide for immediate effectuation of plan amendments which have no potential for substantial impact on systems plans; * Require the speci�c information needed for the Council to discharge its responsibilities under the law, but not prescribe content or format beyond what is specifically required by the Metropolitan Land Planning Act. D-2 METIiOPOLITAN COUNCIL FOCUS ON PLANNING The Metropolitan Councii is a planning and operating agency and is also responsible for administering the Livable Communities Act. There is a concern that the Council is subordinating its visionary and long range planning, data collection, and research functions to its operational and administrative functions. The Council also needs capacity to deal with emerging issues in a timely manner as well as provide for the important linkage between transportation/transit, housing and economic development as delineated in its Regional Blueprint. The Council must ensure that its planning, research and data collection and dissemination functions are ful�lled in a timely manner and consistent with its statutory obligations. Cities will be unable to meet their planning mandates unless they receive the needed information and data from the Council in a timely manner. D-3 GROWTH MANAGEMENT STRATEGY State legislators, Metropolitan councilmembers, local officiais and the public have expressed increased concern about the continued pattern of outward growth, or urban sprawl, in and beyond the seven county metropolitan area. Specific issues include constrained funding for expansion of regional systems, a desire to preserve the urban core, the need for affordable housing throughout the region, protection of agricultural uses, environmental nnpacts and a desire to promote development patterns consistent with maintenance of a viable public transportation system. 37 ��',� Studies have documented continued acceleration of often unplanned and uncontrolled growth in the next ring of counues surrounding the metropolitan area, including western Wisconsin. AMM members are concerned that imposing increased densiry requirements and increased regulation of growth witrun the seven counties covered by the Metropolitan Council, while leaving unaddressed the issue of exurban development outside the seven counties, will sunply accelerate the trend of leap-frog development and make it more difficult to produce affordable housing. Similar issues, albeit on a smaller scale, aze of concern to cities throughout Greater Minnesota, particularly the regional centers. The AMM strongly encourages the legislature to devise effective methods of ensuring responsible and controlied development in counties surrounding the metropolitan area. A strengthened community based planniug act may be the vehicle most appropriate to address these issues. Discussions should also be continued with of�cials in western Wisconsin to encourage their adoption of effective growth control measures. Further inveshnent in transportation infrastructure to connect with Wisconsin should be contingent upon its implementation of such controls. The AMM also enconrages the Metropolitan Council to continue its flexibie guided growth policy regarding Metropolitan Urban Service Area (MLTSA) expansion requests as outlined in the Regional Biueprint. However, the Metropolitan Council must recognize that until there are effecrive growth management strategies and tools beyond the metropolitan area, tightening of Mi1SA expansion criteria within the metropolitan area will cause one or more of the following; • Increased leap-frog development into adjacent counties and Wisconsin. • Increased housing costs within the metropolitan area. • Decreased economic growth due to increased development costs. • Increased development activity in the Rural Service Area. D-4 METROPOLITAN LAND PLANNING ACT IMPLEMENTATION Implementation of the Metropolitan Land Planning Act (MLPA) has an unpact on city financial and human resources ott an ongoing basis. Furthermore, the 1995 MLPA amendments sponsored by the Metropolitan Council created additional unfunded mandates for IocaI units of government. The AMM has long opposed unfunded mandates and spoke to this issue before the Metropolitan Council and at several legislative hearings. The legislahue in 1997 made it even more difficult to comply with mandated comprehensive plan updates by reinstating levy limits. � ��.�� The Metropolitan Council must consider and account for the capacity of and efforts by cities to produce and implement comprehensive plans as Council policies and systems statements are developed and adopted. All requirements for local plan preparation and implementation should be subject to fiscal impact evaluation before adoption and should be accompanied by meaningful �inancial assistance upon adoption. Due to its failure to provide funding and its reinstatement of levy limits the Legislature should do one or more of the following: Extend the deadline for completion of the comprehensive plan updates For at least one year Remove the prohibition of the Council approving local comprehensive plans after July 1, 1999 as contained in M.S. 473.1455 Fully fund the costs of updating the Local comprehensive plans or exempt the planning costs from the levy limits Additional planning mandates which create local costs to implement will be opposed by the AMM unless fully funded. A-5 LOCAL PLAN IMPLEMENTATION The Metropolitan Council has authority under the Metropolitan Land Pianning Act (MLPA) to review and comment on local comprehensive plans. However, it does not have the authoriry to review 1oca1 zoning ordinances and other "o�cial controls" which implement the local plans. The MLPA has since its inception required the adoption of official controls that implement the plans, and that local governments not adopt official controls in conflict with the plan or that would permit activities in conflict with metropolitan systems plans. Later, legislation was passed that indicated that conflicting zoning would supersede the comprehensive plan. In 1995, the law was charged once again to require that by the end of 1998 local governments shall conform their off'icial controls, including zoning, with their plans. The Metropolitan Council has indicated that there may be a need to find better ways to ensure tt�at local planning decisions impiement regional goals. They have suggested the establishment of a mechanism for appealing local decisions at a regional level. In addition to this suggestion, the Minnesota legislation directed the Advisory Councii on Communiry-Based Planning to recommend related to the establishment of an alternative dispute resolution system. The comprehensive plan serves as a guide for the orderly development of a community, but should not be equivalent or identical to a zonin� ordinance. Plans must be specific enough to be useful to guide local decision making, and to ensure compatibility of local decisions with regional system plans, but must not become a substitute for a zoning ordinance. 39 ��-ri The local ability to control the fate and future development of a community through the statutory authority to zone has been traditionally and historically granted to local government. Local government zoning decisions should not be conditioned upon approvals by any governnxent agency. Such delegation of local legislative authority would be inconsistent with local self determination and due process for landowners and citizens. The AMVI is open to the use of alternative dispute resolution techniques prior to resorting to the court system for resolving land use disputes. Proper use of alternative dispute resolution has the potential to reduce costs and time needed to negotiate solutions to disagreements among citizens, developers, local governments and the Metropolitan Council. However, the AMM strongly opposes the creation of an appeals board that could supersede City planning or zoning decisions. IV-E METROPOLITAN COUNCIL BUDGET/WORK PROGRAM PROCESS The Metropolitan Council, as restructured, is essentially a state agency with an annual operating budget exceeding 300 million dollars but unlike state agencies its budget is not subject to legislative approval. Therefore its annual budget document and supporting data must convey su�cient information so that the stakeholders can evaluate what services are being provided, at what cost, who pays and who benefits. E-1 BUDGET PROCESS The Metropolitan Council will face a continuing challenge in its budget process to provide the public with the appropriate information in a timety fashion so that the public can provide meaningful input and oversight. The Council should keep several principles in mind as it develops its annual budget for the restructured agency. Mandated and non-discretionary projects should be identi�ed along with their funding sources and projects and activities which are discretionary but totally or mostly funded by state or federal funds should also be identified. Previous year's expenditures history for ongoing activities should also be provided. The annual budget should delineate the services formerly provided by the MWCC, MTC and RTB and the expenses and revenues for those services should be ciearly identified and the linkages between expense and revenue maintained. Further, the funds or reserve funds raised for a particulaz ser��ice should not be used or co- mingled with the funds raised for any other service or activity. E-2 WORK PROGRAM EVALUATION The Council as a non-elected body and therefore not subject to "ballot box" accountability or direct legislative oversight in its work programlbudget development process, must take extra :1 9�-!/ caution to ascertain the effectiveness and/or necessity of current and planned programs and services. The ANIlVI believes that every major council program/priority should meet four tests: • The issue or problem being addressed is important to the well being of the region. • Council intervention or activity will produce a positive result. • Council effort or activity does not duplicate or serve as a substitute for a state level program or effort or what should be a state level activity. • Council is most appropriate agency to intervene or perform the activity. IV-F METROPOLITAN PARK AND OPEN SPACE FUNDIlVG The L.egislature established the Metropolitan Parks and Open Space System in 1974 and provided state/regional fiscal support for the acquisition and development of the System. However, the State and the Metropolitan area have failed to establish a long term stable financing plan for the Regional Park System. Failure to clearly define the role of regional parks within the State Fark System has led to long term instability relative to the acquisiCion and development of regional parks and created significant funding concerns for implementing agencies. F-1 OPERATION AND MAINTENANCE FUNDING Regional parks within the Metropolitan area provide the same basic function as state pazks provide in Greater Minnesota. The State does not fully acknowledge this similarity and does not provide an equitable amount of funding for the operation and maintenance of regional parks while covering 60 to 70 percent of the cost of state parks in Greater Minnesota. The Legislature and Governor should recognize the role of regional parks and provide appropriate funding to implementing agencies to assist them in the operation and maintenance of the regional parks and open space system. The state should provide 40 percent of the funding (statutory stated goal) to operate and maintain these facitities instead of less than 10 percent as has been recent practice. F-2 DEVELOPMENT/CAPITAL F'LINDING The Legislature for the past severai years has provided less than 25 percent of the funding requested for acquisition and development of regional parks by the Metropolitan Council. To allow for the orderly and planned development schedule for the regional parks and open space 41 qg--�l1 system, the Metropolitan Council is using previously granted authority and is issuing regional bonds backed by a regional property taY to make up part of the shortage. The regional parks essentially serve the role of state parks in the metro area and should be funded accordingly. Therefore, issuing regional bonds inappropriately shifts the burden of regional park funding from the state to metropolitan area property taspayers. Metro area tas payers are paying twice for state park service and this is not equitable. The Metropolitan Council should increase its efforts to obtain an equitable share of state funding in future legislative Funding cycles. IV-G WATER RESOURCE MANAGEMENT Water is a criticai resource fot this metropolitan area and it is necessary to plan and manage this resource to assure adequate supply, safeguard the public health, provide recreational opportunities and enhance economic opportunities. Many levels of govemment have a vested interest in protecting and managing water resources in an environmentally and economically sound manner and therefore it is in the public interest to clearly delineate each level's responsibility to prevent duplication, overlap, and conflicung reguirements. This delineation is particularly important to cities since they are the level that ultimately has ttte most "hands on" responsibility. The aspects of water resources which have received the most attention in recent years are surface water runoff, groundwater quality, water supply and water recharge areas (weflands). There is an interrelationship among all of these systems and there is need for coordination in managing them effectively. Local units of government should retain the basic responsibility for water resources management because they are the level closest to the problems but may need to look to the state and the Metropolitan Council for fmancial assistance and technical expertise necessary to implement this responsibility. G-1 WATER SUPPLY The AMM is in general agreement with the Water Supply Act passed in the 1993 legislative session. The thrust of this legislation is to promote water conservation, require contingency plans for water emergencies and to promote long range planning for local water supplies. Additionai legisiation pertaining to locaI or regional water supply planning is not warranted. However if legislation is proposed, it should be based on the following principles: • Local units should retain the basic responsibility for water supply planning and management as in current law. Additional mandates should be funded by the state. 42 �� // Potable water should not be designated a Regional System. (See policy D-1) The Metropolitan Council should continue its assessment of regional water supply, periodically report its findings, continue to evaluate water issues and provide technical and mediation assistance as needed. G-2 SURFACE AND GROUNDWATER WATER MANAGEMENT No one has the right to pollute either ground or surface water resources and in order to safeguard the public health and environment, it is necessary to preserve our water resources as critical state resources. Most water management organizations (WMO) and local units of government have done a good job of dealing with surface and groundwater management issues and have the ability to continue to do so in a cost effective manner. These existing structures should continue to be used to the greatest extent possible to address surface and groundwater management problems rather than create a new bureaucracy. There is no need for new urban water management structure but, it is clear that the current system which contains duplicate reviews and approvals of local plans and development ' projects/proposals should be streamlined. If legislation is considered for surface water management, it should be based on the following principles: The legislature should provide full funding if it mandates additional water management planning or implementing activities by local units of government. Local units of government should retain the basic responsibility for surface and groundwater management as they are the level closest to the problem. New state requirements should not add to local costs and duplicate reviews/approvals should be reduced or eliminated. The AMM would support the following initiatives/action: A thorough assessment of the Board of Water and Soil Resources (BWSR) structure and authorities to ascertain if it should continue to be the approval and oversight agency for surface water management planning and activities in the metropolitan area. A thorough assessment of the metropolitan area surface water management planning and permitting process with the objective of developing improvements in conflict resolution, better coordination between and among state and local agencies, and streamlining the project permit approvals process. 43 9� tl • Compliance by local units of government in outstate Minnesota with the same standards and requirements for surface water management as those imposed on local units within the metropolitan area. • A technical evaluation of the impact of 2 to 1 wetland replacement in the urbanized area on the goal of greater urban densities stated in the Metropolitan Council's Regional Blneprint. G3 REGIONAL WASTEWATER (SEWER) TREATMENT SYSTEM The metropolitan wastewater treatment and collection system, which was created in 1969, has contributed significantly to the unprovement of water quality in many of the major water resources of this area. As a result of a major study and analysis in the mid 1980s a uniform funding system was established. The metropolitan wastewaYer collection and treahnent system has been a major component of an integrated local-regional system wluch has helped improve the quality of the water in many of the major water resources of this area such as Lake Minnetonka, the Minnesota, Mississippi and St. Croix Rivers, White Bear Lake, etc. It is important that change not be made to this regional system that could lead to its breakup or to diminish its effectiveness. Since all users benefit equaIly fhroughout the system the regional rates should be uniform. IV-H WASTE STREAM MANAGEMENT In the mid to late 1980's the problem of managing the waste stream (for all types of waste) was a major concern at the local, regional, and state level. This resulted in major legislative initiatives, numerous "master plans," and ideas on the subject which were constantly changing. At the present the overall system is more settled with cities being responsible for collection and counties being responsible for disposal. The Metro Council role has been transferred to the State or defacto assumed by the seven-counry joint powers arrangement. L,egisIative initiatives are more in the line of fine-tuning with the major issue being liability within the polluted land arena. AMM endorses the concept that the "generators" of waste must bear the responsibility for funding its disposal. "Generator" includes the manufactures of products which become waste, the sellers of products which become waste and the consumer of products which become waste. Materials which cause special problems in the waste stream should bear the costs (through the cost of purchasing the materials) associated with the problems. Legislation should be initiated which provide financial incentives to manufacturers, retailers or consumers for reducing packaging volume, using recycled materials in its fabrication, or, particularly in the case of food and beverage containers, facilitating its .. 9�-l/ return. Fees, taYes, or deposits on packaging materials should be considered with these costs waived when content goals are met, volumes are minimized, or effective materials return systems are in place. The net revenue generated from fees/taxes above administrative costs should be used to promote or enhance local programs to reduce, reuse, and recycle packaging materials. AMM strongly supports the activities of the Office of Environmental Assistance (which replaced the former Office of Waste Management and assumed Metro Council duties), in particular its efforts in local government assistance and waste reduction education. Tlris of�ce should not become involved in regulatory activities but continue to focus on helping local governments manage waste effectively. AMM opposes any legislation which would limit local initiatives in waste stream management unless an overall state or metropolitan wide system is established which accomplishes the same goal or objective. The responsibilities now assigned to cities for solid waste management should remain with the cities. The AMM believes that the system ought to be flearible and based on performance standards and/or goals rather than mandated techniques. AMM believes that any funding system must guarantee distribution of the monies to all entities involved in the system and recognize all costs associated with the system. This means a significant portion of the funds raised through the sales tas should be distributed to cities which operate recycling programs. AMM also believes that the entire proceeds of the t� on solid waste should be dedicated to solid waste activities. AMM believes that host communities should not bear a financial liability associated with solid waste facilities. Costs incurred for monitoring operations and corrective action should be borne by facility operators or, in the absence of such regulations, be assumed by the State of Minnesota. The AMM supports the current compensation level allowed through surcharge fees as a minunum level; this compensation should be continued or increased. This form of compensation should be available to all types of solid waste facilities. AMM supports state and federal legislation that clari�es that municipal solid waste is not a hazardous substance and enables local governments involved in cleanups to have the opportunity to settle their potential liability quickly and safely. IV-I LOCAL GOVERNANCE EXAMINATION The basic system of local governance in Minnesota (cities, counties, and school districts augmented by special service districts) has been in place since at least the turn of the century. 45 9�-�i The only major change or innovation has been the creation of the metropolitan governance system for the Twin Cities area in the late 1960s and early 1970s. While the system has by and large worked well, there are an increasing number of events and issues which raise the question of how best should local governance be handled as the State enters the new century. These include at least the following: The incremental growth of responsibilities by the Metropolitan Council and the metropolitan governance system--[he most recent being the creation of the Metropolitan Radio Board--and the questions surrounding the exercise of such powers by an appointed body. 2. The continued devolution of responsibilities by the federal and state governments onto local government. In addition to funding questions this process raises numerous questions as to who should be assi�ned the responsibilities. The growth management strategy being implemented by the Metropolitan Council through its regional blueprint and system plans and the local comprehensive planning process. The process could lead to recommendations on financing of various services and some shifring in basic Iand use responsibilities. 4. The process of financing local government (especially for cities and schools). 5. The increasing role of counties in the provision of "area-wide" services. 6. The recognition that school districts are now often being asked to provide services which go beyond what is thought of as traditional education. The cumulative result is a system which often is not understood by the public, may have aspects which are not accountable and in a time of scarce public resources may not be as efficient as is desired. We commend the legislature for establishing the advisory council on local governments to study the roles and functions of local governments in the metropolitan area. The Office of Strategic and Long Range Planning should provide the necessary staff and administrative suppori as delineated in statute to enable this advisory council to fulfill its responsibilities. The advisory council is charged with studying and making recommendations on the appropriate roles and responsibiiities of local and regional government in the metropolitan area. The advisory council's goal should be to make recommendations for a governance system which is efficient in the delivery of services and is accountable to the etectorate and it should not assume the current governance structure is sacred or unchangable in making such recommendations. .� • Y �i ll Q Since it is unlikely that the advisory council can complete all its work within the time framework delinated in statute, the advisory council should recommend a process/procedure to complete t}us very important examination over a longer period of time. 47 9��1 u Transportation Pages 49-58 49 f � / V TRANSPORTATION AMM TRANSPORTATION POLICY STATEMENT Within the last two decades, the number of miles driven per day has doubled. Tra�c congestion is expected to increase by 35 percent by the year 2000, creating neazly 200 miles of severely congested highways. Ridership by bus, car and van pool, continues to decline and the regional transit system continues to be inadequately funded. There is a growing awareness that the true cost of driving an automobile, when factoring in energy use, pollution, productivity loss due to congestion, and the resulting cost of motor vehicle accidents, are bom by the general public at large not solely the driving public. A major part of peak hour traff'ic is workers commuting to or from work. Achieving a balance between workers and jobs in a geographic area can reduce the volume of intra area commuting and balance the directional use of the interconnecting roads. Economic stratification and an aging population is creating a larger pool of transit dependent individuals. Our cunent transit system is not capable of providing adequate transit services in the entire meuopolitan area. Local governmental units are facing funding shortfalls which prevent Yhem from adequately maintaining the current transportation network. AMM calls upon the legislature, MNDOT and the Metropolitan Council to develop a more comprehensive transportation program that more closely integrates all modes of transportation. This coordinated approach at the minimum must be designed to increase accessibility, improve air quality, and serve the transit dependent and handicapped. The AMM supports a comprehensive transportation policy that: • Incorporates traffic management into local and regional zoning and planning acdons; • Encourages tra�c management plans by all employers; • Creates a series of incentives aimed at increasing vehicle occupancy levels; • Discourages the use of development incentives for any project of significant size that does not contain a comprehensive traffic management plan; • Studies the concept of jobs to workers balance in the meuopolitan area; and • Establishes an adequate dedicated funding source for uansit. In addition, local units of government must be provided with adequate funding or the authority to maintain their current investments in the local uansportation infrastructure. It is imperative that as we prepare to move into the next century, our transportation network become multi-modal, offer flexibility, invest significantly in transit, and be designed to manage traffic. The following recommended legislative proposals aze designed to meet this overall goal. 51 �g V-A TRANSPORTATION FLINDING An e�cient transportation system is a vital element in planning for physical, economic, and social development at the state, regionai, and local levels. Funding for current roadway maintenance, reconstruction, and construction of new streets, bridges, and highways is a significant major element of a competitive and safe uansportation system. Also, because of the large economically diverse population of the Twin City Meuopolitan Area, it is an absolute necessiry to provide an effective and efficient public mass transit service augmented by a vaziery of programs, such as Rideshare and Project Mobility. Without a good transit system, many elderly, persons with disabilities, and transit dependent individuals residing in the area would be almost totaliy immobile. The need for both highway and transit funding has been and continues to increase, yet the resources dedicated or generally used for these purposes have either not kept pace or been diverted for other state priorities. Transit needs in the Metropolitan Area have become critical since in most cases highway expansion is physically or financially prohibitive. Therefore, capacity expansion can best be solved by transit alternatives. Funding should be multi-source with growth capability. Therefore, the AMM believes it is time to solve the problem on a permanent basis. Increased funding for both highways and transit especially in the Metropolitan Area is a critical need and should be given lugh priority by the legislature. Funding assurances for transit and highways should be dedicated in a consistent manner. The AMNI supports a gas tas increase including indexing to keep pace with highway maintenance and construction needs. As an addition to the tradifional gas tax and to provide funding for both highways and transit, the AM�I would support additional tas sources including MVET, a sales taY on gasoline at the pump allocated to transportation, or a statewide or metrowide half cent sales tas to be used for transit. Any arrangement that would substitute an alternate tax for the transit property tas in the Metropolitan area should continue to fund the current optout transit systems at comparable levels. As part of the combined strategy, the state legislature should consider using its bonding authority to provide transportation infrastructure. V-B REGIONAL TRANSIT SYSTEM The purpose of a transportation system is to provide inobility for people and accessibility to and for economic development and services. The most effective system will make maximum use of all transportation altematives and strategies where they are most appropriate, thus, 52 ��i► , creating a truly integrated system. Exclusive reliance on freeways is imprudent and cost prohibitive primarily due to social and economic upheaval of established neighborhoods for right of way acquisition. Transit unprovements are imperative, but even with implementation of various load increasing strategies, the capacity is finite and will reach unacceptable saturation limits within the foreseeable future. The AMM supports more coordination and integration of Transit, including exciusive transit ways, and highway planning and unplementation. The Regional Transit System should be a combination of integrated traffic management systems and be included in all planning documents. The system components should include HOV lanes, express buses, and exclusive transit ways which should be built to connect residents to job, retail, and commercial centers. The system should also include a variety of transit modes, including a taxi system, buses, pedestrian and bicycle facilities, and park and ride facilities adequate to connect the regional centers, major trip generators and communities, both urban and suburban. Bus systems and exclusive transit way systems should include ample regional park and ride facilities for automobiles, motorcycles and bicycles, with easy access, consistent with the planning of a regional entity to accommodate the needs of the public. Feeder systems should be a major consideration for bus park and ride and exclusive transit way stations. Plans should be considered which use van pools and bicycles as well as walking to feed the park and ride facilities for express buses and exclusive transit ways. The Metropolitan Council should work with local units of government to encourage appropriate land use controls along designated transit corridors to promote transit ridership. V-C TRANSPORTATION INCENTIVES/DISINCENTIVES The AMM supports the development of a comprehensive system which will facilitate an increase in the occupancy level of cars and enhance the use of transit within the Metropolitan area. AMM suggests the development and passage of legislation that includes a commuter trip reduction program and creates a series of tax incentives and/or impact fees that encourages multiple occupancy transit use. The state legislature is encouraged to consider exclusion from gross income the value of commuter transportation benefits provided by an employer and provide a tas deduction and tas credit for employers who provide commuter transportation benefits to employees. 53 9�-ti V-D TRANSPORTATION UTILTTY Many cities aze experiencing aging infrastructure, especially streets which are in need of replacement but because of few funding options continue to deteriorate. Chapter 429 bonds issued without election require a minimum of 20 percent assessment. However, the courts require a benefit proof that the assessment has actually increased the property value by the assessment value. For street replacement, challenged assessments often aze successful in court. A new funding mechanism similar to one that was created for stormsewers is needed. The AMM requests the legislature to authorize cities to establish a transportation utility for street maintenance and reconstruction, similar to the existing storm water utility, so that costs of improved facilities can be charged to the users. V-E MSAS FUNDING FOR COMBINED CITY STREET DEPARTMENTS The State of Minnesota developed in the late 1950s a system for distributing highway funding to MNDOT, counties, and communities with populations over 5,000. This system has worked reasonably effectively to construct and maintain an integrated transportation network within the state. In recent years, the legislature has enacted statutes which call for the investigation of benefit that would be obtained through consolidation of services and reallocation of resources. One such area that presents such an option is the consolidation of Public Works and Maintenance departments within cities, townships, and counties. Such an opportuniry for streamlining capital expenditures and cost-effective maintenance of an integrated street system might be best served by recognizing such consotidation through the use of the MunicipaI State Aid System (MSAS). In that, if two or more governmental units consolidate their maintenance departments, having in effect a 7oint Powers Agreement which reflects a single entity for budgeting and operations purposes, then the population of the governmental units participating in such a Joint Powers Agreement should be considered in determining the MSAS funding eligibility of these communities as per MS 162.09. The AMM urges the legislature to encourage cooperation and consolidation of local government services. The state aid system statutes should be amended to allow for the eligibility of combined population within incorporated municipalities having a joint powers public works and maintenance department and contiguous borders, to qualify for MSAS funding under the municipal state aid street system population cutoff rule of 5,000. 54 9��ii V-F HIGHWAY TURNBACKS AND F`UNDING Various commissions, boards, and organizations, have studied the possibility of reclassifying many roadways in the state as to appropriate use classifications and jurisdiction. This reassignment in the meuopolitan area is estimated to shift $6.1 million annually from the state and $1.2 million annually from the counties to the cities for an increase of $73 million annually for general maintenance and life cycle treatment (i.e. sealcoat, overlays, etc.). Current state law provides that the state and/or counry may declassify a trunk highway and turn it back to a local unit of government. The only provision is that it must be in good condition. The AMM supports jurisdictional reassignment or turnback of roads on a phased basis using functional classification and other appropriate criteria subject to a corresponding mechanism for adequate funding of roadway improvements and continuing maintenance. Cities do not currently have the �nancial capacity other than significant property taY increase to absorb the additional roadway responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated turnbacks. V-G '3C' TRANSPORTATION PLANNING PROCESS - ELECTED OFFICIALS ROLE Federai law and rules have long required that the Metropolitan Planning Organization (MPO) responsible for comprehensive transportation planning commonly referred to as the '3C' process (continuous, comprehensive, and cooperative) be composed at least partly of local elected officials. This process and requirement was reinforced by the federal ISTEA act of 1991. In this metro area the Metropolitan Council (MC) has been designated the MPO with a provision that there be a Transportation Advisory Board (TAB), which contains at least a majority of local elected officials, to implement the '3C' planning process. The AMM supports the continuation of current local elected of�cials involvement in the '3C' process through the Transportation Advisory Board to meet requirements of the Federal Intermodal Surface Transportation Act of 1991. V-H RAILROAD RIGHT-OF-WAY PRESERVATION Minnesota has lost over half its rail system as national carriers have abandoned lines. Abandoned rails represent a significant opportunity for future use for trails, natural resource access, light rail, highways or pipeline corridors. The AMM urges the legislature and state administrative departments to continue programs that ensure abandoned railroad grades be expediently preserved until such time that the future public use can be determined. 55 • 9�-�l V-I CITY SPEED LIMIT CONTROL Speed lunits on streets are currently established by the Commissioner of the Minnesota Department of Transportation. The speed limit for residential streets is established at 30 m.p.h. However, cities have developed with variable land use patterns, street layouts, densities, and also have varying topographical conditions. There are many local streets where 30 m.p.h. is not a reasonable or safe speed. Many other states in the area have a 25 m.p.h. speed limit for local streets. The AMM supports reducing the current 30 m.p.h. speed limit to 25 m.p.h. throughout the state. Tlus woutd address numerous safety issues throughout the state, but still maintain uniformity for the traveling public. V-J MOTION IMAGING RECORDING SYSTEM (M,I.R.S) - TRAFFIC LAW COiVIPLIAIV'CE Diminishing obedience with statutory laws, posted speed I'unit compliance, traffic signal lights (red) at intersections and railroad crossing (red lights and gates), is causing great concern for citizens and municipal govemments. E�cient enforcement would require significantly more personnel and taY dollars. Traffic caiming techniques are only minunally effective in a few areas and require additional maintenance. Motion Imaging Recording System technology is being empioyed in many states and numerous municipal jurisdictions in the United States including Arizona, California, Michigan, New York, Utah, and Colorado. It has been used for decades in many nations. Implementation growth is rapidiy accelerating. Benefits include unproved safety, fewer accidents, and lower insurance costs, improved uniformity in coverage and fairness of traffic law enforcement; and improved satisfaction by citizens. The technology is substantially tested and proven. Surveys of citizens in Minnesota have indicated strong support for traffic law enforcement through unproved technology (M.I.R.S.). The AMM requests legislative action authorizing utilization of motion imaging recording system technology on streets and highways to assist promotion of safety and traffic law compliance enforcement. V-K AIRPORT NOISE MITIGATION In 1995; the Minnesota L,egislature concluded the Dual Track Airport Planning Process by selecting the expansion aiternative to meet the state's major airport needs. The means of mitigating airport and aircraft noise nnpacts were not addressed in the legislation. Instead, the Metropolitan Airports Commission was charged with deveioping a mitigation package for 56 y�-�� legislative consideration in 1997. The decision to keep the airport at its current location for the benefit of the state and Meuopolitan area does create an obligation to ensure that every effort is exerted to resolve and mitigate noise issues within the affected communities. Noise mitigation programs need to be enhanced to beyond the cunent 60 DNL contours and for newly unpacted areas due to runway expansion/addition. Individual communities will continue to have an obligation to plan development and redevelopment in a manner compatible with airport operations, however, cosu associated with noise mitigation should be borne by the airport (MAC) and the state since the airport is considered a statewide faciliry. Enhanced mitigation programs should be proaided through state and MAC funds for areas impacted by airport activity, and areas beyond the current 60 DNL contour lines. A program of reduced subsidy should be initiated for several miles beyond the current contour cutoffs based on distance and noise level. Mitigation programs for low frequency noise should be created and constantly monitored for effectiveness. In addition to the traditional acquisition and sound insulation techniques, the Airport Area Community Protection Concept Package developed by affected cities, Metro Council, and MAC should be adopted. This package includes tools such as property value guarantees, preferential taz� programs, housing revitalization, expansion of tax increment financing authority and eligibility criteria and community development banks. Airport associated commercial development should be encouraged within the affected communities. Private use facilities on airport property, including leased facilities, should be required to make payments in lieu of property tazes and fiscal disparities contributions, such funds to be dedicated to mitigation activities. Noise monitoring systems, including low frequency noise measures, should be enhanced and operated independently to ensure noise abatement procedures compliance. This would determine that new standards for low frequency noise levels should be developed. Fines from violations should be returned to the affected communities to implement mitigation activities which are consistant with an overall noise mitigation plan. Landing fees, gate leases, facility leases, passenger charges, etc. should be evaluated as to national comparability and any incremental increase dedicated to the affected communities to implement mitigation activities which are consistant with an overall noise mitigation plan. 57 �Y V-L ROAD ACCESS CHARGE Growing communities are finding it increasingly difficult to finance construction of facilities needed for new residential, commercial, and industrial development. Assessment to ueveloping property for sewers and streets directly benefiting that property is a long standing legal option and is the most prevalent method used. However, there are often major streets that need to be constructed leading to new developments. Under current law only the abutting benefited property can be assessed and then only to the degree of benefit which in most cases is not nearly enough to pay for an upgraded roadway that services a larger population. The legislature has recognized similar situations and authorized charges to provide facilities not directly abutting the affected property. The most common comparison is park dedication fees on a per unit or area basis. Yn order to fairly provide for major street improvements of primary benefit to a particular subdivision development but not direcUy assessable and to allocate cost so that new growth pays its fair share, the legislature should authorize cities to establish at their option a road access charge to be levied on an area or per lot basis at the time that subdivisions are approved or at the time building permits are issued similar to park dedication fees. V-M METRO MOBILTTY The Metro Mobiliry program is a valuable tool for providing mobility to the transit dependent who are physically impaired. In 1994 the program served 25,000 individuals with 4400 rides per weekday at a public subsidy cost of $15 million. This subsidy cost has risen dramatically in the last several years. Examination of rider characteristics shows that 69 % of the individuals served are ambulatory as opposed to being in a wheelchair. AMM supports efforts which would better integrate services for the mobility impaired into the regular route system of MCTO; AMM supports prioritization of the program with an emphasis on work-related and essentiaitrips; AMM supports investigating alternative delivery methods especially for the ambulatory participants in the program. �:3 9fr-11 Appendix Pages 59-64 59 Aousing and Economic Development Committee Charlotte Shover (Chair) Beverly Aplikowski Kirstin Barsness Jan Callison Dan Donahue Mike Ericson John Goedeke Regina Harris Andrea Hart Kajer Jon Hohenstein Coral Houle Gordon Hughes Jim Hurm Dwight Johnson Mazvin Johnson Jane Kansier Joan Molenaar Gladys Morton Mazk Nagel Ron Rankin Mazk Sather Katy Sears Lindbiad Mazk Senn Kathy Thurber Craig Waldron Councilmember Councilmember Dir. of Economic Development Councilmember Manager Administrator Councilmember HRA Director IGR Asst. to City Manager Mayor Asst. Manager Administrator Manager Mayor Planning Coord. Councilmember Councilmember Manager Dir. of Community Dev. Manager Proj. Mgr-Planning Councilmember Councilmember Administrator Burnsville Arden Hills Cottage Grove Minnetonka New Hope Watertown Roseville Bloomington Minneapolis Eagan Bloomington Edina Shorewood Plymouth Independence Prior Lake Champlin St. Paul Anoka Minnetonka White Beaz Lake St. Paul Chanhassen Minneapolis Oakdale 9�-l/ 61 � �-1 I 1V�etropolitan Agencies CommitteP Terry Schneider (Chair) Bill Bamhart Kevin Batchelder Bob Brerton Dave Childs Sharon Feess Kevin Frazell Matt Fulton Tom Goodwin Ken Hartung Susan Hoyt Anne Hurlburt Larry Lee Tom Link Paul Malone Mary Helen Mische Steve North Steve O'Malley Joan Russell Don Rye James Smith Jill Smith Eric Thole Sherry Timmermann Kurt Ulrich Chuck Whiting Burl Zorn Councilmember IGR Representative Administrator Councilmember Manager Councilmember Dir. Member Services Manager Councilmember Administrator Administrator Dir. of Commun. Development Dir. of Commun. Development Dir. of Devel./Prot. Services Councilmember IGR Assistant Asst City Manager Deputy City Manager Councilmember Plauniug Director Councilmember Councilmember Councilmember Councilmember Administrator Administrator Councilmember Minnetonka Minneapolis Mendota Heights North St. Paul Minnetonka Brooklyn Pazk League of MN Cities New Brighton Apple Valley Bayport Falcon Heights Plymouth Bioomington Inver Grove Heights Arden Hills St. Paul Roseville Burnsville Golden Valley Prior Lake Independence Mendota Heights Stillwater Oakdale Champlin Mounds View Shakopee 6�► � �. Revenue Committee Frank Boyles (Chair) Gene Anderson Kazen Anderson Leslie Anderson Steve Bjork Curt Boganey Edwazd Burrell Tom Burt Dave Callister Joan Campbell Tom Cran Steven Devich Terry Dussault Margazet Egan John Gretz Terry Heaton Bill Huepenbecker Jim Keinath Jim Knutson Dennis Kraft Bob Lazson Ann Lenczewski Dennis Maetzold Mike McGuire Steven Mielke Michael Momson Douglas Reeder Janet Robert 7im Smith Jerry Splinter Russ Susag Joy Tierney Kurt Ulrich Gene Van Overbeke Jeff Van Wychen John Waliin John Weaver Jim Willis Liz Workman Manager Councilmember Mayor Finance Director Coord/Planner Manager Treas. & Finance Director Admnustrator Clerk-Administrator Councilmember Budget Analyst Adm. Services Dir. Asst. to Manager Finance Director Administrator Deputy Dir. of Adm. IGR Director Administrator Finance Director Manager Administrator Councilmember Councilmember Manager Manager Manager Administrator Councilmember Councilmember Manager Councilmember Mayor Administrator Finance Director TGR Representarive Treas. & Finance Director Councilmember Administrator Councilmember Prior Lake St. Paul Park Minnetonka Burnsville St. Francis Brooklyn Park Roseville Rosemount Osseo Minneapolis St. Paul Richfield Blaine New Brighton Apple Valley Bloomington St. Paul Circle Pines Anoka Robbinsdale Deephauen Bloomington Edina Maplewood Hopkins St. Anthony South St. Paul Oak Park Heights Independence Coon Rapids Richfield Plymouth Champlin Eagan Minneapolis Edina Anoka Inver Grove Heights Bumsville 9�-/ I 63 �.,_ _ � . _ �� Transportation and General Government Committee Pat Scott (Chair) Councilmember Gene Anderson Bill Bamhart Geralyn Barone Kevin Batchelder Lyle Berg Cathy Busho Tim Busse Sherry Butcher-Younghans Charlie Crichton Jerry Dulgar Dale Gustafson Bill Hargis Fran Hoffrnan Jon Hohenstein Gary Humphrey Chazles Lenthe Sandy Masin Mark McNeill Chazlie Meyer Mary Helen Mische Lynn Moratzka Viedols Muiznieks Gerald Otten Dave Schaaf Mark Senn Ceil Smith Russ Susag Bill Thompson Joy Tiemey Jerry Turnquist Dawn Weitzel Donn Wiski Bret Woodson Councilmember Godt Relations Rep. Asst. City Manager Administrator Transportation Engineer Mayor Asst. to City Manager Councilmember Counciimember Manager Councilmember Mayor Engineer Asst. to Administrator Councilmember Public Works Director Councilmember Administrator Manager IGR Assistant Councilmember Councilmember Councilmember Mayor Councilmember Asst. to the Manager Councilmember Mayor Mayor Councilmember Comm/Spec. Proj. Asst. Councilmember Asst. City Manager Minneapolis St. Paul Park Minneapolis Minnetonka Mendota Heights Bloomington Rosemount Maplewood Eden Prairie Bumsville Crystal Brooklyn Park Woodbury Edina Eagan Apple Valley Blaine Eagan Shakopee St. Louis Pazk St. Paul Hastings St. Paui Park New Hope Oak Pazk Heights Chanhassen Edina Richfield Coon Rapids Plymouth Oak Park Heights Richfield Roseville Prior Lake .�