HomeMy WebLinkAboutCity Council Packet 01-17-2006 SpecialAgenda
City of Plymouth
Special City Council Meeting
Tuesday, January 17, 2006
6:00 p.m.
Plymouth Creek Center,
Conference Room 2,
Lower Level
1. Call to Order
2. Update Goals and Legislative Priorities
2.1 Resolution in Support of amendment to Minnesota
Constitution regarding motor vehicle sales tax revenue
Res2006-041)
3. Amend 2006 Council Meeting Schedule
3.1 Resolution Amending Resolution No. 2005-466
Establishing 2006 Regular Council Meeting and Board
of Equalization Meeting Dates (Res2006-042)
4. Adjourn
Agenda Number:
TO: Mayor and City Council
FROM: Laurie Ahrens, City Manager
SUBJECT: Establish 2006 Council Goals including Legislative Priorities
DATE: January 12, 2006, for Council study session of January 17, 2006
1. ACTION REQUESTED: Establish 2006 Council goals and legislative priorities.
2. BACKGROUND: In the year following a local election, the Council has typically
adopted a new slate of goals for the subsequent two-year period. One year later, the
Council affirms and modifies those goals for the second year.
Attached are the 2005 City Council Goals. The Council should discuss this list and
modify as desired. Many of these goals are in process and will continue to take
significant resources during 2006 for completion. Examples are the Comprehensive
Plan update, capital project completion, and pond maintenance implementation. I
would also like to propose that the Budget Principles Goal be continued for another
year, with emphasis on human resource issues such as staffing, compensation
philosophy, and benefits.
The City Council also establishes legislative priorities as part of the goal -setting
process. The 2005 legislative list is attached, along with information on several issues
the Council may wish to consider:
Constitutional amendment, MVST dedication
Authority of local government regarding franchising of cable services
Additional items for discussion are:
Market Value Homestead Credit
Development impact fees — ability to fund infrastructure with development
Highway 169
Tax policy issue raised at the 2005 Truth in Taxation hearing. (An individual
had purchased a home under an affordability program which resulted in a
covenant that prevents them from realizing any increase in market value.
However, taxes are levied on the full market value each year.)
City of Plymouth
Resolution 2005-142
Affirming 2005 City Council Goals
Be it resolved that the following goals and issues for study are hereby adopted by the City
Council for 2005:
Goals:
Initiate Comprehensive Plan process for Northwest Plymouth
Enhance street maintenance and street reconstruction program including
utilities; develop funding strategies
Complete capital projects — public safety building expansion; water
treatment plants, reservoir, and wells
Evaluate budget principles and city program priorities, with emphasis on
Council input, prior to budget process
Legislative Priorities (attached)
Issues for Study:
Implement Pond Maintenance Program
Develop Redevelopment Policy/Strategy
Discuss proposed Hennepin County Library expansion in context with the
City Center area
Consider options relating to high speed wireless services
Study and address Transportation and Transit issues
Adopted by the City Council on March 29, 2005.
Goals I Status
Initiate Comprehensive Plan process for
Northwest Plymouth. The City will begin
reviewing Plymouth's Comprehensive Plan
including Northwest Plymouth, the last largely
undeveloped area of the city. The
Comprehensive Plan is a planning tool that
outlines long term plans for City water and
sanitary sewer service, land use, parks, trails
and transportation. The Comprehensive Plan
review process will include opportunities for
citizen input. The Metropolitan Council, a
regional planning body appointed by the
governor, must review any changes to
Plymouth's plan.
Enhance street maintenance and street
reconstruction program including utilities;
develop funding strategies. The City will look
at options for stepping up the maintenance and
reconstruction schedule for City streets.
Plymouth has 280 miles of City road that has a
replacement cost of more than $300 million.
Developing a long-term maintenance and
financing plan to protect the taxpayer
investment in City roads is essential as
Plymouth's streets mature.
Complete capital projects - public safety
building expansion; water treatment plants,
reservoir, and wells. The projects are aimed at
meeting the changing needs of public safety
and the increasing demand for water from
Plymouth's growing population.
Evaluate budget principles and City
program priorities, with emphasis on
Council input, prior to budget process. To
maximize the effectiveness of each taxpayer
dollar, the City Council will work closely with
City staff prior to development of the 2006
budget. This will ensure that the proposed
budget allocates tax dollars to the areas of
highest priority.
The City began the update of the Comprehensive Plan in fall
2005. Northwest Plymouth is the initial focus of the
Comprehensive Plan update. Northwest Plymouth is
generally located west of Fernbrook Lane and north of the
Canadian Pacific Railroad. The Comprehensive Plan update
is addressing the largely undeveloped northwest area as two
separate planning areas.
Seven public meetings were held from September to
December 2005. Several more meetings will be scheduled in
2006 to gain public feedback. City officials plan to complete
the initial phase of the update by the summer of 2006. The
second phase, a general update of planning issues
throughout Plymouth, will take place after that.
The City Council adopted a budget for 2006 that places
emphasis on street improvements. The City plans a
combination of increased maintenance, reconstruction and
temporary overlays. The City also revised its assessment
policy for street projects to better fund street improvements.
All projects are well underway. The Public Safety Building
expansion and renovation is expected to be complete in
early 2006. Two new wells are online. The Central Water
Treatment Plant was finished in late 2005. The final phase
of improvements to the Zachary Treatment Plant will be
complete in spring 2006. The six million gallon
underground water reservoir at Vicksburg Lane and Schmidt
Lake Road will be finished in summer 2006.
Identify major budget priorities. Council and staff held two
budget study sessions to review and fine-tune budget
proposal prior to public hearings on the proposal.
CITY OF PLYMOUTH
2005 LEGISLATIVE PRIORITY ISSUES
Local Control. The City of Plymouth believes that local control is the cornerstone of
representative local government. We urge legislators to put decision-making on local issues in
the hands of local officials. This leaves no question about who is responsible and increases
accountability. We oppose legislation that erodes local control or creates mandates without a
corresponding state appropriation or funding mechanism.
Taxpayer Bill of Rights. State imposed limits on local government decision making, such as
Minnesota's proposed Taxpayer Bill of Rights legislation, are inconsistent with local
accountability and are rigid formula mechanisms that counter representative democracy and
challenge local units of government to plan with financial confidence.
Levy Limits. Levy limits should not be re-enacted. Local government officials should have the
ability to make decisions on local taxation and service levels.
Street Utility Fees. The City supports the Legislature allowing revenue options for cities, such
as street utility fees, particularly if levy limits or other restrictive measures remain in place.
Wine Sales in Grocery Stores. Eliminating the sale of alcohol to minors has been a top priority
of the City of Plymouth for several years. The City conducts compliance checks and has adopted
a Best Practices Program. The City of Plymouth opposes wine sales in grocery stores or other
venues where currently prohibited. The limit on points of sale for alcohol aids in preventing
youth access to alcohol.
Emergency Preparedness. Additional measures have been identified as necessary for improved
emergency preparedness at the state and local levels including training for local fire and law
enforcement personnel, additional detection and decontamination capability, additional
vaccinations/antidotes and protective equipment, and improved interagency communications.
The Legislature should support and fund these activities at both state and local levels to improve
our readiness to meet emergency conditions that may arise from either natural disasters or
terrorist attacks.
CriMNet. The City of Plymouth urges continued support and funding of CriMNet, as well as
improvements to enhance the integrity of the system.
Firefighter Staffing. Shortage of paid -on-call and volunteer firefighters is a statewide issue.
The City of Plymouth encourages the State to enact legislation to enhance recruitment and
retention of paid -on-call and volunteer firefighters. Consideration could be given to providing
tax credits and supplemental disability insurance.
Affordable and Life Cycle Housing. Economic and demographic trends indicate that
Minnesota's population is aging and workers need more affordable housing closer to where they
work. The region's population age 65 and older will likely double from the year 2000 to 2020.
Jobs in Plymouth are projected to increase approximately 27% during the same period. Housing
is both a statewide and local issue. The City urges the Legislature to maintain and increase
resources to the extent possible in order to encourage the development of affordable housing for
both of these groups. Local property taxes should not be relied upon to fund housing programs
because this increases the cost of housing for those most in need and has regressive impacts.
Surface Water Quality Plans. As mandated by the State, the City Council has adopted a
surface water quality plan and committed significant local funds for implementation. Because
lakes and watersheds often cross municipal boundaries, the City Council requests that the State
maintain and increase funding or bonding, to the extent possible, for water quality improvements
to enhance funding at the local level.
Transportation Funding. The entire economy benefits from a sound and adequately funded
transportation system. To adequately address growing congestion, this system must be multi-
modal. Consequently, significantly greater resources are needed to provide high quality,
efficient systems that include both transit and highways. The City encourages the Legislature to
identify long-term funding sources with growth potential that will increase transportation
funding to levels that will allow the building of high quality, efficient metropolitan and local
transit and highway systems. In addition, local elected officials should continue to be included
in MnDOT's decision-making process when state -aid roads and highways are planned in a city.
The City supports preservation of opt -out transit status.
Sales tax exemption on local government purchases. When the State was experiencing a
budget shortfall in 1992, the Legislature repealed the sales tax exemption for local government
purchases. Cities now pay state sales tax for purchases of items such as road maintenance
equipment and building materials. Since the Legislature provided no additional state aids to
offset the cost, this policy effectively increased local property taxes to finance state government
operations. The City supports legislation to reinstate the sales tax exemption for all local
government purchases.
Controlled Substance Laws. The City supports increased penalties for manufacture and
possession of methamphetamine.
Local control of residential speed limits. State law currently controls speed limits on
residential streets, with limited exception. Legislation is requested to allow more flexibility for
local officials to establish speed limits for residential streets that do not have an impact on
neighboring cities.
Construction Delays by Utility Companies. The City has experienced significant project
delays due to lack of timely response by utility companies in relocating utilities. Legislation is
requested to require that if a utility company fails to relocate utilities in a timely manner and
causes a delay in a construction project, the City shall be held harmless.
Zero Depth Pools. A provision in Minnesota Rule 4717.1850, Subp. 2B(1) states that a zero
depth pool may be allowed or used in Minnesota only if a lifeguard is present at the zero depth
area at all times in the pool is in use. The City proposes that this be overridden to allow use by
persons of 18 years or older without the requirement of a lifeguard.
I-494 and I-169 Median Barriers. Over the past decade, the stretch of I-494 in Plymouth has
been the site of more than 20 serious accidents in which 10 people died and 14 suffered life-
threatening injuries. Of those, 11 involved vehicles that crossed the median and crashed into
oncoming traffic. This segment of roadway is not slated to be improved by the Minnesota
Department of Transportation until 2014 or later. Similarly, Highway 169 from 26th Avenue to
Bass Lake Road has many cross-over incidents resulting in death and serious injury. That
roadway has no planned improvements through 2030. To improve safety along the road, the
City requests the installation of temporary cable median barriers.
Highway and Street Projects Cost Rider. The City opposes the Highway and Street Projects
Cost Rider (ICR) proposed by utility companies. This would add a line item for purported
government required relocations." The vast majority of utility relocations are done because the
utility company wants to do the replacement while the streets are disrupted. The City's work
rarely creates a situation that requires a utility line relocation.
Combined MPCA and OEA. The City opposes the combination of the Minnesota Pollution
Control Agency and the Office of Environmental Assistance into a new Department of
Environmental Protection due to concerns that recycling issues may receive less emphasis and
SCORE funding could be jeopardized or reallocated.
CITY OF PLYMOUTH
RESOLUTION NO. 2005-417
SUPPORTING CONTINUED AUTHORITY OF LOCAL
GOVERNMENT REGARDING FRANCHISING OF CABLE SERVICES
WHEREAS, the City of Plymouth, Minnesota (herein "City") through its City Council
adopts this Resolution to express its concern about proposals coming before Congress that will
adversely affect the ability of local governments to continue to franchise cable services; and
WHEREAS, the Minnesota Cities of Plymouth, Brooklyn Center, Brooklyn Park, Crystal,
Golden Valley, Maple Grove, New Hope, Osseo, and Robbinsdale created a joint consortium
known as the Northwest Suburbs Cable Communications Commission (herein "NWSCCC")
approximately twenty (20) years ago to streamline cable television administration in our area and
to ensure that the needs and interests of each member city was represented in regard to the initial
development, installation and continued operation of cable television through our cities' public
rights-of-way; and
WHEREAS, NWSCCC has proven to be an effective, efficient model for developing and
administering cable franchises, addressing concerns about the use of public right-of-way, and
handling customer service issues; and
WHEREAS, NWSCCC has developed a national standard for providing local
programming that promotes civic involvement, public awareness of community news and events
via public, educational and government cable channels; and
WHEREAS, NWSCCC has provided each member city with the tools to efficiently
televise city meetings, and provide citizens with gavel -to -gavel coverage and easy access to their
local government officials and the decision -malting process; and
WHEREAS, by providing gavel -to -gavel coverage of local government meetings and
local news, NWSCCC has promoted openness and accountability, a key ingredient to successful
government and strong communities; and
WHEREAS, the NWSCCC has advised the City of recent proposals which Congress is
considering that would change the role of local governments in granting cable franchises and
negotiating franchise agreements with local cable operators that meet the unique needs and
interests of communities; and
WHEREAS, on behalf of the City and other communities that are part of the NWSCCC,
the NWSCCC has written to Congressional members requesting help with the preservation of
local control, a copy of which letter is attached; and
WHEREAS, because Congress is giving increasing consideration to principles that
threaten the interest of the City and other members of the NWSCCC as well as cities throughout
the country, the City believes that through this Resolution now is the time for local government
to take a stand to protect the local authority and it is absolutely essential for Congressional
representatives to fully understand the importance of retaining the current structure of local
franchising authority, which has proven itself to be an effective system for governing the
utilization of public rights-of-way by private industry offering cable and related services; and has
spawned an important local communications tool; and
WHEREAS, many communities throughout the country, including the City and the other
members of the NWSCCC consortium, expended substantial sums to negotiate franchises that
ensure that local needs are met, including the development of local community programs and
televised public meetings of community interest; and
WHEREAS NWSCCC and its member cities have worked diligently with cable service
providers to offer service to all citizens within the franchise area without regard to location or
income status; and
WHEREAS, certain Congressional legislation has the potential to destroy these
community benefits, robbing communities of rightful sources of revenue for utilization of public
right-of-way, and
WHEREAS, the proposals under consideration would eliminate the ability of the City
and other NWSCCC cities to:
Cablecast city meetings,
Replace aging cable television equipment;
Provide the award-winning local newscasts and community programming
covering our franchise area;
Offer public access facilities for to allow citizens to produce local, community -
oriented and diverse programming services; and
Ensure that all citizens of the community are offered access to cable television
regardless of their income status or location.
NOW, THEREFORE, in a regular meeting assembled of the City, it is resolved as
follows:
1. That the City hereby vigorously opposes any federal legislation that will reduce
the right of local governments to approve and administer franchised cable services; to charge
reasonable franchise fees for the use of the right-of-way; to establish benefit requirements
including public, educational, and governmental access channels, including funding, facilities,
and equipment for such channels; and to require dedicated capacity or institutional network
systems for educational and governmental purposes.
2. That representatives serving the City and each of the Member Cities of the
NWSCCC, within the United States Senate and House of Representatives be made aware of this
Resolution, and that they be invited to confer with community leaders to become better informed
on the special needs and interests of the City and other Member Cities of the NWSCCC, and to
commit to fight against any form of legislation that will reduce the rights of localities with regard
to local franchising and cable system administration and enforcement.
3. That a copy of this Resolution shall be provided to each of the Member Cities that
is part of the NWSCCC and shall be also through a certified copy delivered immediately after its
passage to the members of the U.S. Congress serving this City.
Adopted by the Plymouth City Council on November 8, 2005.
Sec. 9 (CONSTITUTIONAL AMENDMENT PROPOSED]
An amendment to the Minnesota Constitution is proposed to the people If the amendment is adopted
two sections will be added to article XIV to read:
Sec. 12. Beginning with the fiscal year starting July 1 2007 through June 30 2008 59 75 percent of the
revenue from a tax imposed by the state on the sale of a new or used motor vehicle must be apportioned for the
transportation purposes described in section 13 From July 1 2008 through June 30 2009 64 35 percent of the
revenue from a tax imposed by the state on the sale of a new or used motor vehicle must be apportioned for the
transportation purposes described in section 13 then the revenue apportioned for transportation purposes must
be increased by ten percent for each subsequent fiscal year through June 30 2011 and then the revenue must be
apportioned 100 percent for transportation purposes after June 30 2011
Sec. 13. The revenue apportioned in section 12 must be allocated for the following transportation
purposes: not more than 60 percent must be deposited in the highway user tax distribution fund and not less
than 40 percent must be deposited in a fund dedicated solely to public transit assistance as defined by law.
Sec. INSUBMISSION TO VOTERS]
The Constitutional amendment proposed in section 12 must be presented to the people at the 2006
general election. The question submitted must be:
Shall the Minnesota Constitution be amended to dedicate revenue from a tax on the sale of new and
used motor vehicles over a five-year period so that after June 30 2011 all of the revenue is dedicated at least
40 percent for public transit assistance and not more than 60 percent for highway purposes?
Yes .................
No..................
THE /
IRANSPORTATIO_N"')
ALLIANCE
HigMrryt' =sk ohl-V*Wwv •Air
Sample Resolution
Whereas, Minnesota's transportation infrastructure forms the backbone of the state's economy and a has a
direct impact on future economic development;
Whereas, too many Minnesotans are being killed in traffic crashes on dangerous roadways;
Whereas, funding for highway and transit systems in Minnesota has remained stagnant and is failing to keep
pace with growing population and growing demands;
Whereas, local governments throughout the state are struggling to maintain local transportation systems while
the state's gas tax has not been increased since 1988 and transit budgets have been cut in recent years;
Whereas, the Minnesota Legislature has repeatedly turned to revenue from the motor vehicle sales tax, which
has been viewed as user fee revenue, in order to fund both highway and transit systems including the current
dedication of 54% of motor vehicle sales tax for transportation purposes;
Whereas, the legislature passed a proposed constitutional amendment during the 2005 Legislative Session that
would appear on the ballot November 7, 2006 asking voters if the remaining 46% of motor vehicle sales tax
revenue currently used for other purposes should be used for highways and transit systems;
Whereas, passage of this amendment would mean an increase in stable revenue for highway and transit systems
throughout the state that would rise to approximately $300 million per year once the transfer of revenue is fully
phased -in by 2011;
NOW, THEREFORE, Be It Resolved That (city, county) strongly supports passage of
the proposed amendment to the Minnesota Constitution dedicating all of the motor vehicle sales tax revenue to
transportation with at least 40% of the revenue for public transit assistance and not more than 60% of the
revenue for highway purposes.
n- .7777
THE
IP,,kNSPO -ATION
ALLIANCE
Highways -Transit -Rail -Waterways -Air
Motor Vehicle Sales Tax
The sales tax on motor vehicles was enacted in Minnesota in 1960s, and ever since its inception arguments have
been made that it should be treated in a manner similar to other taxes and fees paid by drivers — namely that it is
a tax paid by users of the transportation system that should be dedicated to improving the transportation system.
This idea was enacted into law in 1981 by the Minnesota Legislature. The law called for a phased -in transfer of
the motor vehicle sales to highway and transit purposes starting in fiscal year 1984 with the transfer completed
by fiscal year 1990.
Unfortunately, budget problems encountered during the recession of the 1980s led to delays and finally a repeal
of the statutory dedication of MVST to transportation.
Dedication of Motor Vehicle Sales Tax
1981 Legislation Actual Dedication
Fiscal Year General Fund Transportation General Fund Transportation
1982 100% 0% 100% 0%
1983 100% 0% 100% 0%
1984 75% 25% 100% 0%
1985 75% 25% 75% 25%
1986 50% 50% 100% 0%
1987 50% 50% 100% 0%
1988 25% 75% 95% 5%
1989 25% 75% 70% 30%
1990 0% 100% 65% 35%
1991 0% 100% 100% 0%
Throughout the 1990s, various bills were introduced and passed in one body or the other to dedicate differing
percentages of MVST to transportation. In 2000, the Legislature and Governor acted once again on the issue of
dedicating motor vehicle sales tax revenue to transportation when Governor Ventura successfully pushed for a
reduction in the motor vehicle registration tax. The hole left in the Highway Trust Fund was replaced with 32%
of the revenue from the motor vehicle sales tax.
In 2001, the Legislature once again enacted legislation increasing the percentage of rf--venue from MVST going
to transportation. Transit systems were prohibited from using property taxes for transit operations with
replacement revenue from the motor vehicle sales tax starting in fiscal 2003. The percentage of MVST needed
to replace property tax rev enue was set at 20.5 % for metropolitan area transit and 1.25 % for Greater Minnesota
transit. The legislation also called for an increase to the metropolitan transit fund of 2% of MVST from the
general fund for transit operations in FY2004. That transfer did not happen.
011 - ivIUnvi vcint,ic: 0niC. IdX.uuu
In 2003, the state faced a serious general fund budget deficit. In order to mitigate proposed cuts in transit
budgets, the legislature moved the MVST revenue already dedicated to transportation by shifting about 2% of
the MVST revenue portion attributable to the Trunk Highway Fund to transit assistance.
The current distribution of MVST is:
If we compare the amount of MUST the legislature intended to be used for highway and transit purposes
with the passage of the 1981 law with the actual dollars spent on highway and transit systems since that
time, there has been a diversion of over $6 billion dollars from transportation.
We believe that with the magnitude of the transportation problems facing the state, it is time to permanently
dedicate all of the revenue from the motor vehicle sales tax to transportation once and for all. While dedicating
the remaining 46.25% of MVST to transportation will not solve the transportation problem we face and other
revenue sources will need to be increased, this is an important piece of the transportation revenue puzzle.
Unlike the motor fuels tax and the tab fees — the latter being capped -- the sales tax on motor vehicles grows
with the price of motor vehicles and so in a sense represents an "indexed" revenue source. In some years,
revenue from the MVST has grown at a rate greater than the rate of inflation.
We will continue to advocate for increases in our current constitutionally dedicated user fees — motor fuels tax
and license tab fees as well as authorization for local governments to have additional tools for raising revenue
locally. At the same time, we will be working to secure passage of the constitutional amendment that will
appear on the ballot in November of 2006 permanently dedicating 100% of the revenue from the motor vehicle
sales tax to transportation.
The proposed constitutional amendment passed by the Legislature in 2005 calls for a 5 -year phase-in of the 46%
of MVST currently deposited in the general fund to highways and transit on a schedule of 10% in year 1, 10% in
year 2, 10% in year 3, 10% in year 4, and 6% in year 5. The phased -in approach will mitigate the impact on the
general fund. According to estimates from the Department of Finance, the additional 30% of MVST in fiscal
years 2008 and 2009 will equal $184 million, while the total general fund revenue estimate for the FY2008-09
biennium is $32 billion. When fully phased in, the additional MVST revenue is estimated at approximately
300 million annually.
525 Park St., Ste. 1050 Saint Paul, MN 55103 0 651/659-0804 0 Fax 651/659-9009
FY2004-2007 FY2009 and bei
Highway User Tax Distribution Fund 30% 32%
County State Aid Highway Fund 0.65%
Municipal State Aid Highway Fund 0.17%
Metropolitan Area Transit Fund 21.5% 20.5%
Greater Minnesota Transit Fund 1.43% 1.25%
General Fund 46.25% 46.25%
If we compare the amount of MUST the legislature intended to be used for highway and transit purposes
with the passage of the 1981 law with the actual dollars spent on highway and transit systems since that
time, there has been a diversion of over $6 billion dollars from transportation.
We believe that with the magnitude of the transportation problems facing the state, it is time to permanently
dedicate all of the revenue from the motor vehicle sales tax to transportation once and for all. While dedicating
the remaining 46.25% of MVST to transportation will not solve the transportation problem we face and other
revenue sources will need to be increased, this is an important piece of the transportation revenue puzzle.
Unlike the motor fuels tax and the tab fees — the latter being capped -- the sales tax on motor vehicles grows
with the price of motor vehicles and so in a sense represents an "indexed" revenue source. In some years,
revenue from the MVST has grown at a rate greater than the rate of inflation.
We will continue to advocate for increases in our current constitutionally dedicated user fees — motor fuels tax
and license tab fees as well as authorization for local governments to have additional tools for raising revenue
locally. At the same time, we will be working to secure passage of the constitutional amendment that will
appear on the ballot in November of 2006 permanently dedicating 100% of the revenue from the motor vehicle
sales tax to transportation.
The proposed constitutional amendment passed by the Legislature in 2005 calls for a 5 -year phase-in of the 46%
of MVST currently deposited in the general fund to highways and transit on a schedule of 10% in year 1, 10% in
year 2, 10% in year 3, 10% in year 4, and 6% in year 5. The phased -in approach will mitigate the impact on the
general fund. According to estimates from the Department of Finance, the additional 30% of MVST in fiscal
years 2008 and 2009 will equal $184 million, while the total general fund revenue estimate for the FY2008-09
biennium is $32 billion. When fully phased in, the additional MVST revenue is estimated at approximately
300 million annually.
525 Park St., Ste. 1050 Saint Paul, MN 55103 0 651/659-0804 0 Fax 651/659-9009
Let's put the TRUST back in the
Highway Trust Fund
Did you know that almost half of
the funds collected from the
motor vehicle sales tax are being
diverted to non -transportation
uses?
With the serious congestion and
safety problems Minnesota is
currently facing, we need to
ensure that all of the existing
sales tax money is working to
help relieve congestion and
improve safety on our roads.
Vote "YES" on the
constitutional
amendment to
dedicate ALL of the
motor vehicle sales
tax to
transportation in
Minnesota
On November 7, 2006, Minnesotans will be given
the opportunity to vote for an amendment to the
state's Constitution to increase funding for
highways and transit, without raising taxes. The
amendment will ensure that all of the current motor
vehicle sales tax revenue goes to our highway and
transit systems. Here's why you should vote
YES":
Congestion: More than two-thirds of our
metropolitan area freeways are congested.
Commuters waste over $700 per year stuck in
congestion.
Safety: Over 600 Minnesotans have been killed in
traffic accidents each year over the last decade with
most fatalities occurring on rural two-lane highways.
Accessibility: Transit systems continue to face
ongoing budget crises and the limited service makes
it difficult for people to choose an alternative to
driving.
Dependability: Highway and transit projects that
take years to develop and build need dependable,
dedicated funding. Funding sources that come and
go lead to costly delays.
Accountability: The motor vehicle sales tax is a
user fee. Those who use the transportation system
pay the fee when they purchase vehicles. The
money should be used to improve the transportation
for all users rather than being diverted to unrelated
spending programs.
Efficiency: Highway and transit projects can be built
sooner without raising taxes.
For more information visit: www.transportationaHiance.com
Increase in Funding from 2007-2016
2.57 Billion
Currently, the legislature dedicates about
54% of the motor vehicles sales tax to
highways and transit. Highways receive
30% of the motor vehicle sales tax and
transit systems statewide receive almost
23% of the motor vehicle sales tax. The
rest goes into the general fund.
In 1981, the Legislature passed a law to
phase-in the dedication of motor vehicle
sales tax to transportation by 1990.
However, state budget deficits prevented
the implementation of this plan.
State and
Local Roads
Metropolitan
Transit
Greater MN
Transit
Since 1981, our transportation
infrastructure has lost over $6 billion due to
the diversion of revenue from the motor
vehicle sales tax to non -transportation
purposes.
The proposed constitutional amendment
that will appear on the ballot in November,
2006, will redirect existing transportation
user fees to highway and transit projects
over a five-year period. With this phased -in
approach, the impact to the general .fund
will be manageable.
With passage of the amendment, all of the
motor vehicle sales tax revenue will be
used for highways and transit by June 30,
2011.
Dedicating 100% of the motor vehicle sales tax to transportation ensures that:
The revenue can't be taken away in the future when the state is experiencing budget
deficits
The transportation system will receive a badly needed increase in revenue.
State gas taxes and auto license fees have been constitutionally
dedicated to roads for decades. It just makes sense that sales taxes
on motor vehicles should also be dedicated to transportation. After
years of talk, this plan finally puts those revenues where they belong —
and permanently."
MUST Constitutional Amendment Talking Points
Unmet transportation needs are estimated at over $1 Billion per year for the next 10 years.
Congestion costs Twin Cities commuters over $700 per year in wasted time and fuel.
On average, over 600 Minnesotans have been killed on our highways over the last decade, many of them
on rural, two-lane roads.
Transportation infrastructure is key to economic development. Businesses rely on the efficient
movement of people and goods and the quality of the transportation system impacts economic growth.
There hasn't been an increase in the gas tax since 1988. The only significant increases for transportation
have come from bonding. Without an increase in revenue, MnDOT's construction budget will fall to the
lowest level in a decade while local governments will continue to struggle to fund local roads and
bridges with property tax dollars.
There is a great deal of precedent for considering the motor vehicle sales tax a transportation user fee. It
fits the same philosophy that governs the motor vehicle registration tax. People who purchase motor
vehicles use the roads. In 1981 the legislature passed a law dedicating 100% of the motor vehicle sales
to highways and transit phased -in over 10 years. Budget constraints prevented that law from being fully
enacted. Currently, about 54% of the MVST has been dedicated by the legislature to highways and
transit.
Highway and transit budgets have lost over $6 billion dollars that would have gone to transportation if
the 1981 law had been implemented.
In 2005, the Legislature passed a proposed constitutional amendment to dedicate all of the motor vehicle
sales tax to transportation purposes by June 30, 2011. This means that the 46% of MVST currently
being diverted would be phased in to transportation budgets over the course of 5 years starting July 1,
2007.
According to estimates from the Department of Finance, the impact of the amendment in the FY2008-09
biennium would be approximately $185 million out of a $32 billion general fund budget. When fully
phased -in, transportation budgets would realize an increase of approximately $300 million each year.
Revenue from the motor vehicle sales tax increases as the price of motor vehicles increases, providing a
revenue stream that will grow in the future.
The current statutory dedication of MVST to highways and transit is at risk of being reduced or
eliminated by the legislature. With passage of the constitutional amendment, current and future MVST
dollars could not be diverted by future legislatures.
If the amendment fails, the perception among decision makers will be that the public does not care about
transportation funding. It will be more difficult to raise revenue for transportation through other
The legislature has always had the ability to dedicate all of the motor vehicle sales tax revenue to transit,
but that has not happened. On the contrary, transit systems have been faced with budget shortfalls in the
last 3 years necessitating service cuts and fare increases.
Trying to change the language of the constitutional question is risky. There is a risk in re -opening any
legislative issue. You may not get what you expected. The amendment could be repealed altogether or
others may jump on the bandwagon and demand other constitutional amendments. The more
amendments there are on the ballot, the more difficult it will be to pass this one.
Constitutional dedication is rare and difficult to come by. We've been waiting 24 years to get a question
on the ballot asking voters to ensure that all of the motor vehicle sales tax revenue is dedicated to
transportation. If we lose this question during the legislative session or voters fail to approve the
question, it will be many years before we will get another chance.
A strong vote, with a high percentage of "yes" votes will make it easier to engage lawmakers in taking
the next steps toward adequately funding our highways and transit systems.
Laurie Ahrens
From: Terrie Christian [terriec@citilink.com]
Sent: Thursday, December 01, 2005 11:40 AM
To: Sandy Hewitt; Laurie Ahrens; Kelli Slavik; Judy Johnson; Jim Willis; Ginny Black; Bob Stein;
Tim Bildsoe
Cc: Paula West; Terrie Christian; Nancy Mack; Karla Anderson; Jon Eklin; Joe Himmelberg; Gary
Holter; Gallagher, Thomas; Fred E. Kickertz; Bridget Jodell; Bill Wixon; Bruce Larson
Subject: Legislative Issues
Dear Mayor and City Council Members,
I watched part of this week's city council meeting where you decided to
invite our state legislators for dialog on issues affecting the city. I
have a request for you to present to them. I am now serving on the
Minnesota Lakes Association (MLA) Aquatic Invasive Species (AIS) Committee.
The citizens in the city of Plymouth and Bassett Creek Watershed have spent
over $100,000 per year the last two years and will do so again in 2006 just
to treat curly leaf pondweed. The Minnesota DNR has a grant program for
local treatment of AIS in the amount of $250,000 for the whole state.
Citizens of the state of Minnesota collectively are spending millions from
local funds to pay for infestations in their lakes with little or no help
from the state.
Recently, 2 lakes near Brainerd and Lake Mille Lacs were found to be
infested with zebra mussels. The state currently has no adequate funding
for rapid response to new non-native threats. Minnesota Lakes Association
asked for a quarantine of Lake Mille Lacs and an aggressive treatment of
zebra mussels. The response.from the DNR was that there was not adequate
state funding and it was unlikely to find rapid legislative action.
Last year I testified in the Senate Finance Committee for a bill proposed by
MLA to have a fee for all boaters in Minnesota that would raise funds to
address this costly and unfair burden on local residents. This would be a
much fairer way to pay for these costs. It would include boaters from
outstate, as well as Minnesota residents. It is the boats that are the
vectors of these invasive species. This bill did not pass. Currently, people
residing in Plymouth, for example who don't even own a boat are required to
pay for the costs of treatments through our Surface Water Management Fee and
the Ad Valorum tax for BCWMC. MLA will again be putting forth legislation
for fees on boaters to raise money for rapid response and treatment.
Please consider presenting this important issue to our local
representatives. It is not just the cost of treatment, but prevention of
the spread. Aquatic Invasives can have a devastating effect on the natural
environment in our lakes, and a long term consequence environmentally and
economically for all Minnesota lakes.
Thank you for your consideration.
Terrie Christian
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1
Agenda Number:
TO: Mayor and City Council
FROM: Laurie Ahrens, City Manager
SUBJECT: Amend 2006 Regular City Council Meeting Schedule
DATE: January 11, 2006, for City Council meeting of January 17, 2006
1. ACTION REQUESTED: Adopt the attached Resolution Amending Resolution No. 2005-
466 Establishing the 2006 Regular City Council Meetings and Board of Equalization
Meetings.
2. BACKGROUND: On December 13, 2005, the City Council adopted the 2006 Regular
Council Meeting Schedule, which included the Board of Equalization dates of April 4 and
April 18. Staff has been advised that a number of Councilmembers are unable to attend the
April 4 meeting due to School District 284's spring break. By law, the Board of Equalization
meetings must be conducted in April. Staff has identified two options. The first option
would be to conduct the meetings on Monday, April 10, and on Monday, April 24, beginning
at 7:00 p.m.
If these Mondays wouldn't work, the second option would be to conduct the meetings
beginning at 6:00 p.m. on Tuesday, April 11, and Tuesday, April 25, which are on the same
evenings as Regular Council meetings. The Regular Meetings would begin immediately
following the Board of Equalization meetings.
3. RECOMMENDATION: Adopt the attached Resolution amending the 2006 Regular
Council Meeting Schedule.
CITY OF PLYMOUTH
RESOLUTION 2006 -
AMENDING RESOLUTION NO. 2005-466
ESTABLISHING 2006 REGULAR COUNCIL MEETING
AND BOARD OF EQUALIZATION MEETING DATES
WHEREAS, on December 13, 2005, the City Council adopted a Resolution Establishing the
2006 City Council Regular Meeting Dates and the Board of Equalization Meeting dates, and;
WHEREAS, the Board of Equalization Meetings were scheduled for April 4 and April 18, and;
WHEREAS, a number of Councilmembers are unable to attend the Board of Equalization
Meeting on April 4,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PLYMOUTH, that Resolution No. 2005-466 is amended by changing the Board of Equalization
Meetings to and
Adopted by the City Council on January 17, 2006.