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91-2187 OR1GlNAL , Council File �` � �0 � � 3g Green Sheet � RES UTION CITY OF SAIN UL, MINNESOTA Presented By Referred To Co t WHEREAS, the City collects service charges for both taxable and tax-exempt properties; and WHEREAB, when property owners challenge service charges, the City has the burden of proving that the property value increased by the amount of the service charge through a "market value" analysis; and WHEREAS, market value analysis is appropriate to measure the benefit derived by a property ,from a capital improvement, but it improperly reflects the benefit associated with service charges for ongoing operation and maintenance; and WHEREAS, the League of Minnesota Cities is working to clarify state law on this issue; NOW, THEREF03�E, BE IT RESOLVED, that the City of Saint Paul supports 'the League of Minnesota Cities in its efforts to change Minnesota Statutes, 1990 Chapter 429.101 to expand the definition of benefit to include properties that are deemed to have received the service. Yeas Navs Absent Requeated by Department of: smon � osw z � on � acca ee ettman une �` By: Adopted by Council: Date DEC 5 1991 Form Approved by City Attorney Adoption Ce if' by � urye�il ecretary By: 1 , BY' Approved by Mayor for Submission to Approved by yor: Da F';"`�" Q ���I� Council gy: �'�,/��i::�r By: ` �� ��� 1 �.'91 . e� °�� �.�zc. 1,��'i�a��7 DEPARTMENT/OFFICE/COUNCIL DATE INITIATED N� 18 912 � city counci� 11/25/91 GREEN SHEET - CONTACT PEHSON 8 PHONE INITIAUDATE �NITIAUDATE �DEPARTMENT DIRECTOR �CITY COUNCIL Councilmember Lon x4473 g ASSIGN �CITY ATTORNEY �CITY CLERK MUST BE ON COUNCIL AQENDA BY(DATE) NUMBER FOR �BUDGET DIRECTOR �FIN.&MGT.SERVICES DIR. ROUTING ORDER Q MAYOR(OR ASSISTAN� � TOTAL#OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REOUESTED: Supports the efforts of the League of Minnesota Cities to clarify the definition of assessable service charges. RECOMMENDATIONS:Approve(A)or Reject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PLANNING COMMISSION _CIVIL SERVICE COMMISSION �• Has this person/firm ever worked under e contrect for this department? _CI8 COMMITTEE _ YES NO 2. Has this person/firm ever been a city employee? _STAFF - YES NO _DI3TRICT COURT _ 3. Does this person/firm possess a skill not normally possessed by any current city employee7 SUPPORTS WHICH COUNCIL 08JECTIVE7 YES NO Explain all yes answera on separate sheet and sttach to green shest INITIATINO PR�LEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why): Current State definitions of services for which charges may be assessed leave out many services that cities routinely provide but for which they are not compensated. ADVANTAOES IF APPROVED: The City will be able to be fairly recompensed for the services it provides. DISADVANTAGES IF APPROVED: None. DISADVANTAQES IF NOT APPROVED: The City will continue to provide services to businesses without receiving payment. TOTAL AMOUNT OF TRANSACTION S COST/REVENUE BUDGETED(CIRCLE ONE) YES NO FUNDING SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION:(EXPLAIN) d�v 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 types of documents: CONTRACTS(assumes authorized budget exists) COUNCIL RESOLUTION (Amend Budgets/Accept.Grants) 1. Outside Agency 1. Department Director 2. Department Director 2. Ciry Attomey 3, City 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 7. Finance Accounting ADMINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION (all others,and Ordinances) 1. Activity Manager 1. Department Director 2. Department Accountent 2. City Attorney 3. Department Director 3. Mayor Assistant 4. Budget Director 4. Ciry Council 5. Ciry Cierk 6. Chief Accountant, Finance and Management Services ADMINISTRATIVE ORDERS(all others) 1. Department Director 2. City Attorney 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 or ftag each of thsae peyss. ACTION REQUESTED Describe what the proJecUrequest 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 woM(s) (HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT, BUDCiET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.) PERSONAL SERVICE CONTRACTS: This information will be used to determine the ciry's 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 simpty an annual budget procedure required by law/ charter or whether there are specifiic ways in which the City of Saint Paul and its citizens will benefit from this projecUaction. DISADVANTAC�ES IF APPROVED What negative effects or major changes to existing or past processes might this projecUrequest 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? Inability to deliver service?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 gofng to cost?Who is going to pay? � ����a��� � SERVICE CHARGE DEFINITION CHANGE BRIEFING PAPER Backqround The City of Saint Paul collects service charges for various ongoing operation and maintenance activities such as street maintenance and nuisance abatements. These service charges are collected from both taxable and tax-exempt properties. When a property owner appeals the cost of a service charge to the District Court, the City must prove the property increased in value by the amount of the service charge through an analysis based on appraised market values of the property before and after the service was provided. Issue This "market value" test is appropriate when applied to capital improvement assessments; however, the test can lead to absurd results when applied to ongoing operation and maintenance service charges. City staff have been aware of this issue for many years and have attempted various remedies. 1992 will be the third year we will propose this legislative change. The importance of this issue is easily perceived when one looks at the number and types of programs that are considered service charges and the amounts of money collected by the City. For instance, the street mztintenance service charge has been collected for over 100 years and currently brings in $7 . 5 million annually. The intention of many such assessments is not to produce revenue, but simply recover costs. Case law has established the "market value" test as an appropriate test for capital improvements such as new streets, sewers, etc. which are levied pursuant to the other sections of Chapter 429 . Section 429 . 101, by its reference to the term "benefitted properties" without further explanation, has essentially limited the defense of service charge appeals to this "market value" analysis. The League of Minnesota Cities has been working to correct this problem in the law's language. Recommendation The City of Saint Paul supports efforts by the League of Minnesota Cities to clarify the definition of assessable service charges. . �'i a��� � � G?o. 10! S��' �C� CS�..i�G:.S, • �P�CI�i. P.SS�SS?;�I�i �GAit.ST Ech�:'I:'�D _RO?�.,_ . . . S�b�±�•ision . . O:dlr,ances. _n adcScio.^. to aav othe: mechoC au c::o_!���. bv la1 or cna:cer, the bo��er.,in6 boe;• o� an; cunici�a'_i ty ':dv '�:0�"'_C° i0= ihe CO_�et:�OR Oi L'Tl^yc1G SD?C'-c� C�Z_a°_S �OC G:: O: ci.; L2=: 7i �RE COS� O� �cj 5�10�� 1C°� Oi iUb�1SR re^O�'c� i:OC Si4e:Z�kS� �C\ ;!??C ?�1�:,�:1'c:10.^. i�0.'".. 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COSLS 0: C^° S2�'�?C° Z.^.C' S:lc�� i10i exceed ii?° ZCLL'c: ^�; ,o o:o�•�ce the se= _c� ihe couac:l c,ay oy orci:ance adep� -�6L'!��'_O^5•C0.^.S:s ter.: �'1�P �i.15 S2C ilOC: CO �c}:2 :r'_S 2L�;:Oi 1 i}' e=�eC.: , i:1C�L'C:i16� c� .he ODC10II Of �I12 COI:IIC��� 0:0��5:0.^.5 iC: a'_eC-P.,�^ ;J::Wc:�i r�spor.sib:licy uoon t7e property ovrie: o: occu;.a:^..`:o do �;�e �o.E: pe=sor.a?�y (excepc ir. :he case of s�:eet s�_'_a't::ir.g or o:he: dust ;reat�e.^,: , ���2V ie'Jcl�� Cl2° Lrl���;�lTl�� Cc:?, c11fi _2�0�'�� Oi �ilE �oe=�:-o:: o� a st:eet li;h:ir.b sys:er�) uco:� no�ice be�ore the �o:k is unde::ai:en, �n� fo= collectior. fron :he prope::� ot^�er or oche: pe=son ser�ec o* t:^.e chzrges vnea due before un�aic c':ar��s are Waoe a special assess�e:�c. _ _ . - ��'j-�/�7` j V T A B L E O F C O N T E N T S Initiate PAGE CSSP {Apprvd by Committee, 9/13/91? . . . . . . . . . . . . 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 {Approved 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, li/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, 11/8/91) . 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 _