91-2169 �R���NA�- ouncil F..le �� Q�o7��Q "
. �
Green Sheet ��
RESOLUTI
CITY OF S NT , NNESOTA
Presented By
Referred To - � D
WHEREAS, the Fiscal Dispari ies program, passed by the Minnesota Legislature in
1971, was a revolutionary measure to address the uneven effects of economic growth among
metropolitan cities; and
WHEREAS, the purposes of the Fiscal Disparities law are (1) to promote fairness
through tax base sharing by redistributing part of each year' s metropolitan tax base
growth and (2) to eliminate unreasonable competition among municipalities; and
WHEREAS, the Metropolitan Council and the Citizens League continue to support the
current Fiscal Disparities distribution; and
WHEREAS, disparities in commercial and industrial growth are the inevitable result
of land availability and regional planning; and
WHEREAS, these disparities result in an unfair burden for residents of cities with
relatively low growth; and
WHEREAS, higher tax rates in these cities make it even more difficult to attract
new businesses, perpetuating a cycle of increasing disparity; and
WHEREAS, proposals to reduce the redistributive benefits of Fiscal Disparities run
counter to the overall economic well-being of the Metropolitan Area;
NOW, THEREFORE, BE IT RESOLVED, that the City of Saint Paul strongly opposes any
changes in the Fiscal Disparities law that would reduce the redistribution formula in
current law; and
BE IT FINALLY RESOLVED, that the City of Saint Paul supports other changes in the
Fiscal Disparities law that would further lessen the tax base disparities among
�urisdictions within the Metropolitan Area.
1�� Y� Nays Absent Requested by Department of:
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By:
Adopted by Council: Date �EC 5 �99� Form Approved by City Attorney
Adoption Ce f" by Counci Se /etary BY�
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gy: v F- Approved by Mayor for Submission to
Council
Approved by yor: Date ��� � �91
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DEPARTMENT/OFFICE/COUNCIL DATE INITIATED *TD ��O�H
city Council 11/25/91 GREEN SHEET �� �
INITIAUDATE INITIAUDATE
CONTACT PERSON�PHONE �DEPARTMENT DIRECTOR �CITY COUNCIL
Counc i lmember �11CJ x4 4 7 3 ASSIGN �CITY ATTORNEY �CITY CLERK
MUST BE ON COUNCIL AQENDA BY(DATE) NUMBER FOR ❑BUDGET DIRECTOR �FIN.8 MGT.SERVICES DIR.
ROUTING
OHDEFi �MAYOR(OR ASSISTAN� �
TOTAL#OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED:
Opposing any change in the current fiscal disparities law that would reduce
the redistribution formula in current law.
RECOMMENDATIONS:Approve(A)«Re�ect(R) pERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING DUESTIONS:
_PLANNINO COMMISSION _CIVIL SERVICE COMMISSION �• Has this person/firm ever worked under a contract for this department?
_CIB COMMI77EE _ YES NO
_STAFF _ 2• Has this person/firm ever been a city employee?
YES NO
_DI3TRIC7 COUR7 _ 3. Does this persoNfirm possess a skill not normally possessed by any current city employee?
SUPPORTS WHICH COUNCIL OBJECTIVE? YES NO
Explaln all yes enswsra on ssparate sheet and attach to preen sheet
INITIATING PROBIEM,ISSUE,OPPORTUNITY(Who.Whet,When,Where,Why):
There have been discussions at the State Capitol about changing the fiscal
disparities laws in ways that would adversely effect St. Paul.
ADVANTAOES IF APPROVED:
The City will work to ensure the continuation of revenue distribution
according to the current fiscal disparities formula.
DISADVANTAOES IF APPROVED:
None.
DISADVANTACiES IF NOT APPROVED:
The City will risk the possibility of not preempting any adverse changes in
the fiscal disparities laws.
TOTAL AMOUNT OF TRANSACTION S COST/REVENUE BUDGETED(CtRCLE ONE) YES NO
FUNDING SOURCE ACTIVITY NUMBER
FINANCIAL INFORMATION:(EXPLAIN) ���(
�W
NOTE: COMPLETE�DIRECTIONS ARE INCLUDED IN THE GREEN SHEET INSTRUCTIONAL
MANUAL AVAILABLE IN THE PURCHASING OFFICE(PHONE NO. 298-4225).
ROUTING ORDER:
Below are correct routings for the five most frequent rypes of documents:
CONTRACTS(assumes suthorized budget exists) COUNCIL RESOLUTION (Amend Budgets/Accept.Grants)
1. Outside Agency 1. Department Director
2. Department Director 2. City Attorney
3. Ciry Attorney 3. Budget Director
4. Mayor(for contracts over$15,000) 4. Mayor/Assistant
5. Human Rights(for contracts over$50,000) 5. City Council
6. Finance and Management Services Director 6. Chief Accountant, Finance and Management Services
T. Finance Accounting
ADMINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION(all others,and Ordinances)
1. Activity Manager 1. Department Director
2. Department Accountant 2. Ciry Attorney
3. Department Director 3. Mayor Assistant
4. Budget Director 4. Ciry Council
5. City Clerk
6. Chief Accountant, Finance and Management Services
ADMINISTRATIVE ORDERS(all others)
1. Department Director
2. City Attomey
3. Finance and Management Services Director
4. City Clerk
TOTAL NUMBER OF SIGNATURE PAGES
Indicate the�of pages on which signatures are required and papercllp w flag
each of these pages.
ACTION REQUESTED
Describe what the project/request seeks to accomplish in either chronologi-
cal order or order of importance,whichever is most appropriate for the
issue.Do not write complete sentences. Begin each item in your list with
a verb.
RECOMMENDATIONS
Complete if the issue in question has been presented before any body,public
or private.
SUPPORTS WHICH COUNCIL OBJECTIVE?
Indicate which Council objective(s)your projecUrequest supports by listing
the key word(s) (HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT,
BUDGET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.)
PERSONAL SERVICE CONTRACTS:
This information will be used to determine the cirys liability for workers compensation claims,taxes and proper civil service hiring rules.
INITIATING PROBLEM, ISSUE,OPPORTUNITY
Explain the situation or conditions that created a need for your project
or request.
ADVANTAGES IF APPROVED
Indicate whether this is simply an annual budget procedure required by law/
charter or whether there are specific ways in which the City of Saint Paul
and its cltizens will benefit from this projecUaction.
DISADVANTAGES IF APPROVED
What negative effects or major changes to existing or past processes might
this project/request produce if it is passed (e.g.,traffic delays, noise,
tax increases or assessments)?To Whom?When? For how long?
DISADVANTAC3ES IF NOT APPROVED
What will be the negative consequences if the promised action is not
approved?Inabiliry to deliver service7 Continued high traffic, noise,
accident rate?Loss of revenue? .
FINANCIAL IMPACT
Although you must tailor the information you provide here to the issue you
are addressing, in general you must answer two questions:How much is it
going to cost?Who is going to pay?
��9�`a�✓
FISCAL DISPARITIES
BRIEFING PAPER
Backqround
The Fiscal Disparities law was enacted in 1971 to promote fairness
by redistributing a portion of inetropolitan tax base growth and to
eliminate unreasonable competition among localities. Each year,
metropolitan municipalities put forty percent of their
commercial/industrial tax base growth since 1971 into a metro pool.
The funds from the pool are then redistributed so that all
communities share in the growth of the region.
Issue
The reallocation of property taxes provided by the Fiscal
Disparities law results in a reduction of the tax burden for
Saint Paul tax payers. If the program were eliminated, Saint Paul
tax payers would have to pay approximately $7 million in additional
taxes.
A variety of bills were introduced during the 1991 legislative
session that attempted to change or eliminate the program.
Challenges to the law have included efforts to reduce the
contribution fraction which would shrink the pool and thereby
lessen its redistributive effect. Others have sought to. remove or
change the base year which would mean including an older portion of
the tax base. Mature cities like Saint Paul would have to
contribute more to the pool while receiving less. Despite these
challenges, only a few technical changes were made to the law last
session.
Recommendation
The City of Saint Paul strongly opposes any additional changes to
the Fiscal Disparities law that would reduce the redistributive
formula of the current law. The City would support any changes to
the law that would further lessen tax base disparities among
jurisdictions within the Metropolitan Area.
. ����y ✓
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�� T A B L E O F C O N T E N T S
,
Initiate PAGE
CSSP (Apprvd by Committee, 9/13/91j . . . . . . . . . . . . 3
Property Tax Relief:
Local Government Aid {Apprvd by Committee, 10/18/91} . . 5
Constitutional Dedication of Sales Tax
{Apprvd by Committee, 10/18/91} . . 7
Fiscal Disparities {Apprvd by Committee, 10/18/91) . . . . . 8
Polluted Lands tApproved by Council, 9/19/91} . . . . . . . 10
MELSA Funding {Apprvd by Committee, 10/18/91} . . . . . . . 13
Housing Issues {Apprvd by Committee, 11/22/91) . . . . . . . 17
HRA Expansion of Powers {Apprvd by Committee, 10/18/91� . . 24
Substantial Support
Metropolitan Parks/Como Park Dept Service
{Apprvd by Committee, 10/18/91} . . 27
URAP {Apprvd by Committee, 10/18/91) . . . . . . . . . . . . 32
Public Safety Issues {Apprvd by Committee, 11/22/91} . . . . 34
Maternal Child Health {Apprvd by Committee, 10/18/91} . . . 39
Parking Tag Income {Apprvd by Committee, 10/18/91} . . . . . 41
Housing Court {Apprvd by Committee, 10/18/91} . . . . . . . 43
Photo Cop {No recommendation, lack of quorum, 11/8/91) . . . 45
Metropolitan Transportation Trust Fund
{No recommendation, lack of quorum, 11/8/91} . 47
Immunization Transferability/Medical Records
{Apprvd by Committee, 10/18/91} . . 49
Metropolitan State University
{No recommendation, lack of quorum, 11/8/91} . 51
Presidential Primary Funding
{No recommendation, lack of quorum, 11/8/91} . 53
Cultural Tourism/Historical Preservation District
{No recommendation, lack of quorum, 11/8/91j . 55
Monitor
. Health Care Access (Apprvd by Committee, 10/18/91} . . . . . 58
Ayd Mill Road {Apprvd by Committee, 10/18/91? . . . . . . . 60
Service Charge Definition Change
� {Apprvd by Committee, 10/18/91� . . 62