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Home My WebLink AboutCity Council Packet 02-05-2013 SpecialCITY OF PLYMOUTH AGENDA SPECIAL COUNCIL MEETING FEBRUARY 5, 2013) 5:30 p.m. MEDICINE LAKE CONFERENCE ROOM 1. CALL TO ORDER 2. TOPICS A. Discuss common issues with area Legislators, County Commissioners, and Metropolitan Council Representatives B. Fiscal Impact of Governor's Sales Tax Proposal 3. ADJOURN Special Council Meeting 1 of 1 February 5, 2013 rp)City of Agenda 2APlymouthNumber: Adding Quality to Life To: Laurie Ahrens, City Manager SPECIAL COUNCIL MEETING Prepared by: Dave Callister, Administrative Service Director February 5, 2013 Reviewed by: Item: 1. STATE LEGISLATURE: Laurie Ahrens, City Manager Legislative Update On January 28, 2013, Mayor Slavik, Councilmember Wosje and I visited the Capitol to meet with five of our seven member legislative delegation. The purpose ofthe meeting was to review the City's 2013 Legislative Priorities and obtain feedback from legislators on issues pertinent to Plymouth. Meetings were held with the following legislators: Senator Terri Bonoff — District 44 Representative Sarah Anderson — District 44A Senator Ann Rest — District 45 Representative John Benson — District 44B Representative Lyndon Carlson — District 45A We were unable to meet with Senator Ron Latz — District 46 and Representative Ryan Winkler — District 46A. All legislators were invited to attend the February 5 Special Study Session to meet the Council and provide legislative updates. At this time we are unsure which legislators may be attending. 2. HENNEPIN COUNTY: We have received confirmation that both of our County Commissioners, Linda Higgins, 2nd District and Jeff Johnson, 7th District, will be present for our Special Council Meeting on February 5. In addition, we expect County Engineer Jim Grube to be attending. 3. METROPOLITAN COUNCIL: We have also received confirmation that the City ofPlymouth's representative on the Metropolitan Council, Roxanne Smith (District 1) will also be in attendance. 4. ATTACHMENTS: Biographies Page 1 2013-2014 Biennium, Eighty -Eighth Legislature Senator Terri E. Bonoff (DFL) District 44 Capitol Office 75 Rev. Dr. Martin Luther King Jr. Blvd. Capitol, Room 325 St. Paul, MN 55155-1606 651) 296-4314 sen terri bonoff@senate mn Elected: special election 2005, re-elected 2006, 2010, 2012 Term: 4th Born: 08/01/1957 Family: Married, Spouse Matthew Knopf, 4 children. Occupation: Former Business Woman, Homemaker Education: BA, Clark University Committees: Finance - Higher Education and Workforce Development Division Chair Higher Education and Workforce Development Chair Finance Finance - E-12 Division Interests: Education policy and finance reform, state government redesign, business and commerce issue Horne: Minnetonka 3325 East Eldorado Trail 55305 52) 935-5168 Senator Ron Latz (DFL) District 46 Capitol Office 75 Rev. Dr. Martin Luther King Jr. Blvd. Capitol, Room 303 St. Paul, MN 55155-1606 651) 297-8065 sen.ron.latz@senate.mn Home: St. Louis Park 8333 W. Franklin Avenue 55426 952) 545-9065 Elected: to the House 2002, reelected 2004 Elected: to the Senate 2006, re-elected 2010, 2012 Term: 3rd Born: 08/09/1963 Family: Married, 3 children. Occupation: Attorney Education: BA, University of Wisconsin -Madison JD, Harvard Law School Committees: Commerce Finance Education. Business: St. Louis Park, Ronald S. Latz, P.A. 1660 S. Hwy. 100 508 E. Parkdale Plaza 55426 952)224-9052 Page 2 Senator Ann H. Rest (DFL) District 45 President Pro Tem -Designate Capitol Office 75 Rev. Dr. Martin Luther King Jr. Blvd. Capitol, Room 235 St. Paul, MN 55155-1606 651) 296-2889 sen. ann.rest@senate.mn Home: New Hope 3515 Hillsboro Avenue N. 55427 763) 545-8057 Elected: to the House 1984, re-elected 1986, 1988, 1990, 1992, 1994, 1996, 1998 Elected: to the Senate 2000, re-elected 2002, 2006, 2010, 2012 Term: 5th Born: 1942 Family: 1 child. Education: BA, Northwestern University MA, University of Chicago MAT, MPA, Harvard University MBT, University of Minnesota Committees: Finance - State Departments and Veterans Division Finance - Transportation and Public Safety Division Transportation and Public Safety Tax policy, education funding, transportation. Representative Sarah Anderson (R) District: 44A Elected: 2006 Term: 4th Education: B.A., political science and sociology, University of Minnesota Duluth Capitol Office Committees: 237 State Office Building Commerce and Consumer Protection Finance and Policy 100 Rev. Dr. Martin Luther King Jr. Rules and Legislative Administration Blvd. Taxes Saint Paul, Minnesota 55155 Ways and Means 651-296-5511 rep. sarah. anderson@house.mn Prefers interim mail at this address Home: Plymouth 5050 Holly Lane N. #5 55446 763-383-9504 Page 3 Representative John Benson (DFL) District: 44B Capitol Office 417 State Office Building 100 Rev. Dr. Martin Luther King Jr Blvd. Saint Paul, Minnesota 55155 651-296-9934 rep John.benson@house.mn Home: Minnetonka 3828 Huntingdon Drive, 55305 952-933-2396 Prefers interim mail at this Elected: 2006 Term: 4th Occupation: Retired teacher Education: B.S., language arts and social science, Minnesota State University, Mankato; M.A., political science, University of Minnesota, Twin Cities Committees: Vice -Chair: Rules and Legislative Administration Education Policy Environment and Natural Resources Policy Environment, Natural Resources and Agriculture Finance Health and Human Services Policy Taxes address. Business: Minnetonka P.O. Box 5508, 55343 Representative Lyndon Carlson Sr. (DFL) District: 45A** Elected: 1972 Term: 21St Occupation: Retired teacher, Minneapolis Public Schoolls Education: B.S., social studies, graduate work, Minnesota State University, Mankato and University of St. Thomas Family: Married, spouse Carole, 3 children, six grandchildren Capitol Office Committees: 479 State Office Building Chair: Ways and Means 100 Rev. Dr. Martin Luther King Jr. Capital Investment Blvd. Property and Local Tax Division Saint Paul, Minnesota 55155 Rules and Legislative Administration 651-296-4255 Taxes rep.lyndon. carlson@house. mn Prefers interim mail at this address. Home: Crystal 8216 35th Ave. N. 55427 763-533-9779 Page 4 Representative Ryan Winkler (DFL) District: 46A Elected: 2006 Term: 4th Occupation: Attorney Education: B.A., history, Harvard College; J.D., University of Minnesota, Twin Cities Capitol Office Committees: 553 State Office Building Civil Law 100 Rev. Dr. Martin Luther King Jr. Early Childhood and Youth Development Policy Blvd. Elections Saint Paul, Minnesota 55155 Government Operations 651-296-7026 Higher Education Finance and Policy rep.ryan.winkler@house. mn Home: Golden Valley 505 Ardmore Drive, 55422 763-377-9354 Prefers interim mail at this address. Hennepin County Commissioners Linda Higgins, 2nd District ** Elected: 2012 Term: 1St Elected to State Senate: 1997 — 2012 Education: Mankato State College, Bachelor of Science in English and a minor in Journalism; Iowa Lakes Community College, Associate in Arts A2400 Government Center Previous Senate Committees: Capital Investment, 300 S. 6th St. Environment and Natural Resources, Finance, and Minneapolis, MN 55487-0241 Health and Human Services Phone: 612-348-7882 linda.higgins@co.hennepin.mn.us Home: North Minneapolis Page 5 Jeff Johnson, 7th District** Elected: 2008, 2012 Term: 2°d Elected to State Legislature: 2000, 2002, 2004 Born:1966 Family: Wife and two children Occupation: Attorney; President and founder of Midwest Employment Resources Education: Bachelor of Arts, Concordia College, Moorhead J.D. Georgetown Law School in Washington, D.C. A2400 Government Center Committees: 300 S. 6th St. Chair: Public Safety and Judiciary Committee Minneapolis, MN 55487-0241 Co-chair: Intergovernmental Committee Phone: 612-348-7887 MN House of Representatives: Assistant Majority jeff.r.johnson@co.hennepin.mn.us Leader and chairman of the Civil Law Committee. Home: Plymouth Metropolitan Council Roxanne Smith, District I** Appointed: 2011 Term: l5t Family: Husband and two sons Occupation: Director of Social Justice Ministry, St. Joseph the Worker parish, Maple Grove 763-232-6774 Committees: roxanne.smith@metc.state.mn.us Community Development and Transportation committees. Home: Champlin Page 6 Additional Background Information Representative Lyndon Carlson Sr. (DFL) District: 45A Experience: Member of the Minnesota House of Representatives since 1973. Author and supporter of education funding, tax reform, protecting privacy, affordable health care, environmental protection, labor relations, and consumer protection. Recognition: Distinguished Alumni Achievement Award, Minnesota State University Mankato Public Service Award, Metropolitan State University. Distinguished Service Award, U of M Extension Service. Carroll Award, MN Vocational Association. Legislator of the Year Award, MN State University Student Association. COPE Legislative Leadership Award, MN Federation of Teachers. Legislator of the Year Award, MN Technical College Administrators Association. Legislative Achievement Award, MN Association of Financial Aid Administrators. Outstanding Performance Award, MN Community College Student Association. Representative of the Year Award, MN State University Student Association. Involvement: Northwest YMCA, Board of Directors Robbinsdale School District Volunteer EDUCATION Rep. Carlson, the DFL Lead and a member ofthe Ways and Means Committee, has been a strong supporter of education at all levels. He believes that quality education is not only a right in our society, but also the most important responsibility we have to the next generation. He will continue to work to ensure that every Minnesotan has access to high quality, comprehensive educational opportunities and that educators and parents have the tools they need to impact learning more effectively. HEALTH CARE AND PRESCRIPTION DRUGS Rep. Carlson has initiated and supported legislation that has improved health care services for the people of Minnesota. He has supported improvements including: the care of residents of nursing homes, school immunization programs, basic health care coverage for pregnant women and their infants, and programs aimed at reducing the cost of family health care. Carlson is a strong supporter of Minnesota's landmark legislation that makes quality, affordable health care accessible to all Minnesotans. He will continue to work to reduce the costs of health care and prescription drugs without sacrificing the quality of care. BUDGET AND TAX ISSUES Rep. Carlson believes that the Legislature must continually re-examine state spending priorities to make sure that we are getting the most for our tax dollars. The Legislature must remain committed to a sound and fair tax system that adequately funds essential services and does not over burden our citizens. He has been a strong supporter of the Homestead Credit and improved Page 7 property tax refund programs for homeowners and renters. JOBS AND ECONOMIC DEVELOPMENT Rep. Carlson is committed to job creation and economic growth. He believes the economic security of our people is essential to the well being of our state. He has supported legislation to strengthen our economy and to provide good jobs and better job security for our citizens. Rep. Carlson believes the key to economic security is to maintain our commitment to education, which provides a highly trained workforce, and to invest in research in those areas which foster an environment attractive to new industries and employment growth. To support the Minnesota economy, the legislature must put a top priority on the transportation needs of our growing region. ENVIRONMENT Rep. Carlson is keenly aware of the increasing need to preserve and wisely manage the state's natural resources. He was chief author ofthe Metropolitan Open Space Act, legislation that aids local communities in the drafting of ordinances for the protection of our open space and water resources. He believes the Legislature must continue its efforts to assure a healthy environment for the people of Minnesota. Since Minnesota does not have any appreciable energy supplies within its borders, Rep. Carlson supported legislation that requires better planning for future energy needs and makes a significant commitment to develop renewable energy sources. PUBLIC SAFETY Rep. Carlson supported Minnesota's landmark anti-crime legislation that set a new standard of tougher penalties and increased prevention in the state. While Minnesota has lower crime rates that two-thirds of the nation, he believes there is no acceptable rate for crime. He will continue to support efforts to assure the safety and security of the citizens of our community. Linda Higgins Hennepin County Commissioner Commissioner Higgins It's an honor to serve the people of the Second District. I'm ready to work with you, steering the kinds of smart public investments that make us all stronger. As your county commissioner, my priorities are: Responsible budgeting — I will prioritize, innovate and work across jurisdictional and political lines to ensure residents get the most for their tax dollars. Transportation and transit — I will support infrastructure projects providing multiple options from place to place, such as biking, walking and public transportation. Health and Human Services — I will advocate for those in need, and support the county's many programs and facilities, including Hennepin County Medical Center, Heading Home Hennepin and NorthPoint. Healthcare reform — I will help advance the innovative and integrated delivery models currently being spearheaded by the county. Safe and affordable housing — I will continue to advance stabilizing our neighborhoods and preserving our housing stock. Projects & Initiatives Projects and initiatives I'm involved with: Page 8 Bottineau Transitway — This proposed light-rail line will extend approximately 13 miles northwest from downtown Minneapolis through North Minneapolis, Golden Valley, Robbinsdale, Crystal and Brooklyn Park. Mortgage Foreclosure Prevention and Response Program — Funding for foreclosure prevention counseling and outreach efforts is one of the many resources provided by the county. Jeff Johnson Hennepin County Commissioner Thank you for visiting my website. It is an honor to represent northwest Hennepin County on the Board ofCommissioners. I hope you find this site helpful and encourage your input and opinions regarding the county. In particular, as we continue to seek ways to spend your money more wisely in a difficult economy, I welcome your ggestions on how you think Hennepin County can cut costs and operate more efficiently. Priorities & Initiatives As your county commissioner, I'm committed first and foremost to being a voice for the sometimes forgotten property tax payer in Hennepin County. We in government at times lose track of the fact that every dollar we spend comes from the constituents we serve. We need to be more careful and responsible with that money and be certain that we are spending it on those things that are most important. For me, those most important things are public safety, transportation and a safety net for the most vulnerable citizens in the county. Current Initiative - Water Governance in Hennepin County Water governance in Hennepin County includes at least six state agencies, eleven watershed organizations, 44 municipalities, the Metropolitan Council, a Soil and Water Conservation District, two park districts and county environmental services. Our laws and policies are piecemeal and siloed; our governance is fragmented and our programs are disjointed across agencies and political subdivisions that often have conflicting statutory mandates. While the system we have in Hennepin County has seen some success in the past decade, many of us believe we can do better. We have the opportunity to coordinate our approach to prioritize and focus on the improvement of the quality of our waters and better treat water as a system. We can design an improved system and we have started to evaluate the potential for change. Below are resources for your review. One is a report completed for Hennepin County by the Center for Science, Technology and Public Policy at the University of Minnesota that identifies potential opportunities. Based on this study, I have drafted a proposal, a starting point for discussion moving forward. I look forward to your thoughts and suggestions. Jeff Johnson Draft Proposal (PDF 317 KB) U of M Water Governance Study (PDF 2.62 MB) Public Safety — There is no more important role of government than public safety. The county funds and operates a very large corrections department (which includes the Adult Corrections Facility in Plymouth and the Juvenile Detention Center in Minneapolis) and funds the County Sheriff's Office, the County Attorney's Office, and part of the Public Defender's Office. Transportation — County roads and bridges are crucial to the citizens of northwest Hennepin County. We should make certain those roads and bridges are in good repair and able to meet the capacity needs of commuters before spending on expensive transit projects that will only be used by a tiny percentage of citizens. Page 9 Safety Net for the Most Vulnerable — Generally, counties are the governmental entities in Minnesota that deliver human service programs. We should focus those programs on the most vulnerable in our county (for example, physically or developmentally disabled citizens, elderly citizens or mentally ill citizens) and, where possible, focus programs on promoting self-reliance. Other Positions: Community Action for Suburban Hennepin Board County Extension Committee Crow River Joint Powers Board Joint Committee on Community Corrections Executive Committee, Metropolitan Emergency Services Board Metropolitan Mosquito Control District MN Association Community Corrections Act Counties Roxanne Smith, Metropolitan Council District 1 Roxanne Smith was appointed to the Metropolitan Council by Gov. Mark Dayton in March 2011. Smith represents District 1, which includes the Hennepin County cities of Champlin, Corcoran, Dayton, Greenfield, Independence, Loretto, Maple Grove, Maple Plain, Medicine Lake, Medina, Plymouth, and Rogers. Smith is the Director of Social Justice Ministry at St. Joseph the Worker parish in Maple Grove. She oversees the coordination of social justice ministries for the parish of 2,500 families, develops and mentors leaders both inside and outside the parish, and builds relationships with other congregational leaders to effect systemic change. Previously she served as an accountant for Cargill. As a Council member, Smith serves on the Community Development and Transportation committees. Smith said that one of the top issues facing the region is "closing the racial and economic gaps that have harmed our communities for too long." The Met Council can play a significant role in ensuring that our state creates opportunities for everyone," Smith said. "We need to find ways to ensure that the benefits of public works projects are equitably distributed so that everyone benefits from the increased wealth created by major housing, transportation and commercial projects." Smith serves or has served on the board of several nonprofit organizations. A founder and current chair of Housing for All, a community-based coalition advocating for stable housing for people of moderate and low incomes in the northwest suburbs of Hennepin County and former co-chair of the Clergy and Religious Leaders Planning Table for ISAIAH. Smith lives in with her husband, Gerry. They have two grown sons. Page 10 aty of Agenda 2BPlymouthNumber: Iridin, Qphty da Life To: Laurie Ahrens, City Manager REGULAR COUNCIL MEETING Prepared by: Dave Callister February 5, 2013 Item: Fiscal Impact of Governor's Sales Tax Proposal 1. BACKGROUND: Governor Dayton has recently proposed modifications to the state sales tax that would have a significant impact on the City of Plymouth. According to the League ofMinnesota Cities, the proposal would be to broaden the state sales tax base and lower the sales tax rate. The governor's plan would reduce the general state sales tax rate to 5.5 percent from the current 6.875 percent. This rate reduction would be offset by including in the definition of taxable items professional services such as legal, accounting, architecture, specialized design, computer, management consulting, advertising, employment, and business support services. In addition, the governor's sales tax plan would extend the sales tax to auto and other repair services, telecommunications equipment, court reporter documents, advertising materials, and publications. There would also be new sales taxes on any lessons or services provided by our Park & Recreation Department. Finance Manager Jodi Bursheim and I have been analyzing the proposal to determine the impact on both our operating and capital budgets. Since no bill has been introduced yet, we have reviewed the available data to determine potential impacts. Attached are the results of the sales tax analysis. In the left column are items that would be subject to the new expanded sales tax. The right column contains items that are currently subject to the 6.875 percent sales tax that would be taxed at a reduced rate of 5.5 percent under the proposal. The total net impact of the proposed sales tax changes is estimated to be $690,488 annually on Plymouth's operating budget. If implemented, these increased costs would force the city to increase property taxes, increase user fees or reduce services. The impact on capital projects is also unclear at this time. The analysis did include approximately 8 million in capital projects. As a further example, the city is considering two major street projects in 2014-2016. If a sales tax were expanded to cover contractors, consulting engineers as well as the existing sales tax on materials, the total sales tax for these $30 million projects could be well over $1 million. Page 1 Late Friday, we were informed that the Department of Revenue had indicated that the City's contracts with Met Council Environmental Services for wastewater services and First Transit for transit services are not subject to the proposed sales tax. As the proposal moves forward and more specific information becomes available, we will update the fiscal impacts. Once the Council reviews the data, direction can be given to Staff as to whom this data should be shared with. 2. BUDGET IMPACT: The total annual net impact of the proposed sales tax changes is estimated to be $864,194. 3. ATTACHMENTS: City of Plymouth Sales Tax Impact Spreadsheet Governor's Sales Tax Information Page 2 CITY OF PLYMOUTH SALES TAX IMPACT 2013 GOVERNOR'S SALES TAX AMENDMENT PROPOSAL Deduct non -tax New Tax - 5.5% items Reduction of Tax 1.37 Employee Development 2,515.82 61,601.86 Professional Services Employee Development Employee Training 127,357.43 Office Supplies 123,585.76 Employee Development City wide Training 7,515.21 Office Supplies Coffee and Cups 658.94 Employee Development Tuition Reimbursement 0.00 Computer Supplies 2,552.55 Employee Development Employee Recognition 7,587.51 Operating Supplies 199,081.59 Employee Development Conferences & Seminars 31,268.86 Operating Supplies Photography 1,000.00 Employee Development EE Training - Shooting Range 0.00 Operating Supplies Public Education & Outreach Prj 46,238.95 Employee Development Wellness 0.00 Operating Supplies Motor Fuels & Lubricants 573,241.17 Mileage & Parking Reimbursement 3,316.38 3,316.38 Operating Supplies Janitorial 55,619.06 Meetings 29,236.65 Operating Supplies Volunteer Program 5,351.49 Operating Supplies Shooting Range 5,518.91 Dues and Subscriptions 313,313.73 Operating Supplies Fire Fighting 14,545.25 Dues and Subscriptions MN League of Cities 29,216.00 Operating Supplies Ammunition 20,123.73 Dues and Subscriptions Metro Municipalities 13,595.00 Operating Supplies Animal Control 0.00 Dues and Subscriptions Municipal Legislative Comm 10,500.00 Operating Supplies Twin City Tree Trust 8,482.60 Dues and Subscriptions Suburban Rate Authority 6,000.00 Operating Supplies Community Education 10,886.96 Dues and Subscriptions Charter Commission 0.00 Operating Supplies DARE Program 13,639.71 Dues and Subscriptions Board and Commissions 0.00 Operating Supplies License Plates 3,464.25 Dues and Subscriptions TwinWest Chamber of Commerce 0.00 Operating Supplies Survey 1,243.38 Dues and Subscriptions Wright County Hwy 55 Coalition 1,000.00 Operating Supplies Community Planting 61,601.86 Professional Services 1,750,295.81 Operating Supplies Reforestation 213.89 Professional Services Citizen's Accademy 0.00 Operating Supplies Nursery 484.25 Professional Services Billed out pass-through services 0.00 Operating Supplies Tree Fertilizer 6,688.84 Consulting Engineer 119,067.86 Operating Supplies CFMH Program 2,701.22 Internal Engineer 0.00 Operating Supplies Tobacco Compliance 0.00 Legal 132,415.07 Operating Supplies Alcohol Compliance 0.00 Legal Retainer 0.00 Operating Supplies McGruffTruck Program 0.00 Legal Criminal Prosecution 282,586.14 Operating Supplies SWAT Team 19,097.32 Audit Fees 55,853.32 Operating Supplies Reserve Program 1,856.73 Accounting 2,952.00 Operating Supplies Explorer Program 6,352.05 Medical Fees 29,236.65 29,236.65 Operating Supplies Volunteer Program 0.00 Drug and Alcohol Testing 5,236.00 5,236.00 Operating Supplies Resale 56,097.93 Veterinary Fees 398.99 Operating Supplies K9 Unit 8,748.02 Public Utilities Contract 0.00 Operating Supplies Weather Radios 0.00 Contractual Plan Checking 2,670.00 Operating Supplies Property Room 530.80 Soil Boring and Testing 11,608.56 Repair & Maintenance Supplies 69,688.88 Comprehensive Plan Review 0.00 Repair & Maintenance Supplies Equipment Parts 462,476.02 Record Retention 0.00 Repair & Maintenance Supplies Horticulture 85,797.17 City Survey 0.00 Repair & Maintenance Supplies Traffic and Park Signs 36,175.41 Transit Services 3,158,295.26 -$3,158,295.26 Repair & Maintenance Supplies Sand and Gravel Animal Control 31,798.80 Repair & Maintenance Supplies Paint Compensation Classification Stdy 455.00 Repair & Maintenance Supplies Lumber Street Evaluation 0.00 Repair & Maintenance Supplies Concrete and Asphalt Boards and Commissions 0.00 Repair & Maintenance Supplies Concrete Disposal External Program Registrations 7,243.50 Repair & Maintenance Supplies Welding Repair and Maintenance Services 92,214.70 Repair & Maintenance Supplies Drainage Repair and Maintenance Services Weed Control 72,231.00 Repair & Maintenance Supplies Chemicals Deduct non -tax items 56,097.93 tax exempt 23,577.69 3,196.53 2,690.71 877,833.63 0.00 2,215.90 92,931.00 488,216.57 -$343,000.00 ** watertreatment Page 3 Repair and Maintenance Services Irrigation Repair and Maintenance Services Electrical Repair and Maintenance Services Plumbing Repair and Maintenance Services BulldozerWork Repair and Maintenance Services Tennis Court Repair and Maintenance Services Snow Plowing Repair and Maintenance Services Seal Coating Repair and Maintenance Services Street Striping Repair and Maintenance Services Street Cleaning Repair and Maintenance Services Drainway Maintenance Repair and Maintenance Services Curb Raising & Curb Work Repair and Maintenance Services Retaining Walls/Fence Repair and Maintenance Services Pull Wells Repair and Maintenance Services Water Samples Repair and Maintenance Services MN Health Samples Repair and Maintenance Services Main Repair Repair and Maintenance Services Water Withdrawal Permit Repair and Maintenance Services Zachary Plant Repair and Maintenance Services Central Plant Repair and Maintenance Services Gopher State One Call Repair and Maintenance Services Hauling Repair and Maintenance Services Guard Rail/Fencing Repair and Maintenance Services Metro Sewer Board Repair and Maintenance Services Painting Repair and Maintenance Services Static Testing Repair and Maintenance Services Building Maintenance Repair and Maintenance Services Body Work and Painting Repair and Maintenance Services Transit Facility Repair and Maintenance Services Millennium Garden Repair and Maintenance Services Crack Sealing Repair and Maintenance Services Building Security Repair and Maintenance Services Manhole Sealing Repair and Maintenance Services Chemical Control Repair and Maintenance Services Maple Grove Sewer Agreement Repair and Maintenance Services Facility Improvements Repair and Maintenance Services Traffic Signals Repair and Maintenance Services Well Refurbishing Repair and Maintenance Services SIU Repair and Maintenance Services Median Spraying & Maintenance Repair and Maintenance Services Equipment Maintenance 1,441.59 Repair & Maintenance Supplies Water Mains 28,034.19 29,958.08 Repair & Maintenance Supplies Sewer Mains 11,073.56 412.34 Repair & Maintenance Supplies Meter Parts 152,352.83 2,800.00 Repair & Maintenance Supplies Hydrant Markers 1,731.11 21,355.00 Repair & Maintenance Supplies Water Valves and Curb 76,651.51 Stops 136,573.40 Repair & Maintenance Supplies Hydrant Parts 14,626.33 0.00 Repair & Maintenance Supplies Playstructure Repair Parts 14,191.20 81,253.54 Repair & Maintenance Supplies Recharges 3,144.09 114,792.03 Repair & Maintenance Supplies Mailbox Repairs 193.39 69,742.32 Repair & Maintenance Supplies Sprinkler Head Repairs 417.03 263,769.02 Repair & Maintenance Supplies Cell phones & accessories 1,159.67 1,596.54 Miscellaneous Supplies 1,039.73 31,732.69 Miscellaneous Supplies Medical 8,330.07 22,596.83 Miscellaneous Supplies Uniforms 32,570.00 7,728.00 Miscellaneous Supplies Safety Equipment 79,952.24 Miscellaneous Supplies Ergonomic Equipment 0.00 650,294.05 Miscellaneous Supplies Chaplain/Sr Corp 0.00 0.00 Communications 0.00 15,035.32 Communications Postage 165,992.61 32,382.68 Communications Data Communications 84,875.88 33,427.75 Communications Telephone 31,623.49 300.00 Communications Mobile Telephone 61,096.78 5,032.15 Communications Community Identity 3,975.63 4,967,565.72 -$4,967,565.72 Printing and Publishing 51,929.08 0.00 Printing and Publishing Plymouth News 20,800.00 6,629.00 Printing and Publishing Recreation Handbook 47,512.39 353,062.15 Printing and Publishing Truth In Taxation Notices 4,872.68 2,892.80 Utilities 25,491.18 121,343.40 Utilities Street Lights 631,913.04 0.00 Utilities Traffic Lights 67,371.92 151,822.10 Utilities Natural Gas 166,123.60 355.00 Utilities Water and Sewer 152,451.91 208,901.44 Utilities Solid Waste 781,036.01 572.07 Utilities Yard Waste 429.38 96,427.98 Utilities Water Connection Fee 136,227.00 96,427.98 0.00 Utilities State Summer Water Surcharge 0.00 28,499.42 Utilities Electric 1,256,308.46 0.00 Rentals 215,226.28 1,476.95 Rentals Portable Toilets 30,170.99 0.00 Rentals SIU Vehicles 0.00 514,485.83 Non -Cap Equip (< 5K) 294,642.87 250,000.00 32,570.00 165,992.61 Page 4 Repair and Maintenance Services Oak Wilt Tree Testing Capital Outlay (> 5K) Capital Outlay (> 5K) Land Capital Outlay (> 5K) Capitalize -land Capital Outlay (> 5K) Infrastructure Capital Outlay (> 5K) Capitalize -Infrastructure Capital Outlay (> 5K) Buildings Capital Outlay (> 5K) Capitalize Buildings Capital Outlay (> 5K) Improv Other Than Buildings Capital Outlay (> 5K) Capitalize Improvements Capital Outlay (> 5K) Machinery and Equipment Capital Outlay (> 5K) Capitalize Machinery and Equip Capital Outlay (> 5K) Software Capital Outlay (> 5K) Capitalize Software Capital Outlay (> 5K) Construction Projects Capital Outlay (> 5K) Capitalize Projects Miscellaneous Care of Prisoners Booking of Prisoners Scholarships Historical Society Research & Development Licenses & Permits Licenses & Permits Yard Waste Youth Special Events Administration Fees Bank Fees Bank Fees Credit Card Recognition Events Net Add'I Tax 0.00 Non -Cap Equip (< 5K) CERT 524,334.74 Non -Cap Equip (< 5K) SIU 926,949.10 926,949.10 Repairand Maintenance Services Software 0.00 Repair and Maintenance Services Car Washes 2,531,945.86 Laundry Services 0.00 Repair and Maintenance Services Landscape 511,487.00 Repair and Maintenance Services Lawn Maintenance 0.00 Repair and Maintenance Services Janitorial Services 586,063.90 Repair and Maintenance Services Departmental Software Maint 0.00 Repairand Maintenance Services Turn Out Gear Repair 1,914,077.14 Repair and Maintenance Services Street Tree Maintenance 6,028.29 Repair and Maintenance Services Tree Contract Removal 82,466.68 Repairand Maintenance Services Forced Tree Removal 0.00 2,241,319.38 0.00 7,720.44 40,940.97 29,593.27 11,382.50 -$11,382.50 9,825.38 0.00 1,424.57 0.00 0.00 38,849.74 1,163.44 -$1,163.44 37,602.11 -$37,602.11 6,229.66 23,798,757.45 ($9,294,319.18) 14,504,438.27 Net: 797,744.10 Total Reduction of Tax 690,487.54 NET IMPACT OF SALES TAX CHANGES Removed from expenses: salaries, benefits, allocations, insurance, transfers 0.00 2,681.60 211,147.41 4,488.76 20,747.30 134,951.81 13,719.45 113,722.83 92,212.94 8,719.85 33,933.89 89,613.15 6,019.39 168,917.93 only taxed on 20% 73,770.35 only taxed on 20% 8,776,551.74 ($840,348.82) 7,936,202.92 7,828,946.35 107,256.57 Page 5 7 OFFICE OF GO VE RN OR MARK DAYTON Governor Dayton's proposal cuts the state sales tax rate by 20%, reducing the rate from 6.875% to 5.5%. Minnesota consumers will pay less in taxes for items previously subject to state sales tax, saving almost $500 million in the first year. The following are examples of items Minnesota consumers will pay less for. Personal Care Shampoo Soap Makeup Vitamins Nail polish Athletics Treadmill Yoga mat Weights Hula hoop Bicycle Skis Outdoor Hockey stick Baseball bat Soccer ball Fishing pole Canoe Kayak Pontoon Speedboat ATV Snowmobile Sunblock Hunting gear Deer stand Car parts Tires Tents Camping gear Tennis racquet Golf clubs Recreation Books CDs Magazines Candy bars DVDs Musical instruments Electronics Television Camera DVD player iPod Computer Ta blet Cell phone Camcorder Video games Computer Software Services Lodging Dry cleaning Car wash Cleaning services Security services Pet grooming Lawn care Tree trimming Massage Parking Household Dish soap Paper products Cleaning supplies Trash bags Laundry soap Vacuum Broom or mop Dishes Silverware Crockpot Pots and pans Bowls Tupperware Coffee pot Bed sheets Towels Furniture Curtains Appliances Lawn mower Shovel Snow blower Rake Lamp Rugs Artwork Water heater Furnace & AC Washer & dryer Tools Paint Lumber Tile Miscellaneous School supplies Notebook Paper Pens Pencils Crayons Glue Tape Greeting cards Petfood Cats Dogs Phone bill Cable bill Electricity bill Water bill Toys Jewelry Watches Page 6 Governor Dayton's proposal retains sales tax exemptions for some items. Exempting items such as food, clothing items under $100, and medical care ensures that Minnesota's sales tax remains fair and competitive. The following are examples of goods and services that remain exempt from sales tax under the Governor's proposal. Food Clothing items and apparel less than $100 Medical services, including: Prescription eyeglasses Prescription drugs Hospitals and outpatient surgical centers Chairlifts, ramps, and elevators in homesteads Parts and accessories to make motor vehicles handicapped accessible Nonprofit organizations, including: Fundraising sales Public safety items, including: Firefighters personal protective equipment Public safety radio systems Ambulances leased to private ambulance services Textbooks and personal computers required for school use Residential heating fuels and water services Agricultural items, including: Farm machinery and repair and replacement parts Farm conservation programs Agricultural processing facility Renewable energy systems Wind energy conservation systems Solar energy systems Biosolids processing equipment Veteran's organizations n Building materials for residences of disabled veterans u Construction materials for low-income housing Mining production materials Capital equipment 130 State Capitol - St. Paul, Minaesota 55155 e Twitter/GovMarkDayton m}34tteri~IN Page 7 Sales Tax Base Broadening All existing and newly taxed items will be subject to 20% sales tax rate reduction to 5.5%. Affiliate Nexus Digital Products Parallel Taxation of Direct Satellite Services..........,._,...,,....,__,.,.,.,..,,..,.......,,.,,.,.,.,.,.,...,.,,,,.,,,.................................... Parallel Taxation of Remote Acces°°_..,,,,,,,,,,,,,,,,,,,,,„.,...,...,.„.„.,..,.,..,,...,.._,, w,,..,..,„ Access Software Admission to stadium box seats and suites, -exhibitions, and selling events Repeal exemption for read_...to..eat meaty d seafood Clothing on items over $100 ..._..,......_..._._ . ... ..................................... ......... .... .... .,_,....................,,, , e Admissions/Memberships m...M.,.....,_.............................. ..,......... ,.,.,............ ........... ,...,._„............ ..,.... ............. Over-the-counter drugs Personal services - e.g. barber shops, beauty salons, tattoo and body piercing, nail salons Other personal services - e.g. wedding planning, dating services, shoe shining, personal shopping Veterinary Services....._,...,..,,,..,,.,.,,..,.,.,., Personal instruct._...._...._._.g._..._.........._..._..._._..---._........._............................... . , ion - e. dance, golf, tennis, etc. Brokerage & investment counseling - e.g. portfolio management, investment advice Bankcharges &-safe deposit box rental,.,,,..............,„.... ......... ....... ..................... ....,_,.,_„,...,...,,....,,_,.,.„.,.,.,..,,....,..,_,... .... ...... ......... ....... .......... ........ Legal services purchased by consum..,,.,,._,..................,,...,.,.,,., . , ers",,,.,....,..,..,.......,.„,.....,..._,...............__._...... _..............._.._........__........,_,.................„,... Purchased.consumersAccountingservices _ e rs Auto repair services Household goods repair & maintenance Warehousing & storage services (does not include storage of farm products or refrigerated storage) Taxicabs and Other Ground Transport Services (does not include public transportation or school transportation) Travelagent services._...____-..-._................,............................,....,.,.....,.......,...,....:,....,.,. by business .. es .....,..,,...... _ Legal services purchased Accounting andbookkeepingservices purchased by businesses _ ”""'"""""""""""""" "'_...... .... .... .... ......... Architectural and engineering servicesices Specialized design services - e.g. interior decorating, industrial design services, graphic design services Computer services - e.g. custom computer programming, computer systems design ^,. 111„......,,...._. ' _-.......,.... ign services, computer facilities management services, data processing, hosting and related services Management consulting services - e.g. administrative management consulting services, human resources consulting services, marketing consulting services, environmental consulting services, scientific and technical consulting services, scientific research and development services g.a....__ m_._.. e._..._.__..,...,.._..._.... ruses - e.g. environm,e ......................... ....... ..._.......................... _._........ Other consultin nd dev lopment se ntal, sanitation, site remediation, safety, economic, security, and other consulting services 1 of 2 Source: Minnesota Department of Revenue Page 8 Sales Tax Base Broadening All existing and newly taxed iters will be subject to 20% sales tax rate reduction to 5.5%. Advertising and related services - e.g. advertising agencies, public relations agencies, media buying agencies, media representatives, display advertising, advertising material distribution services ice administrative services . u,".,,._,,.,_.,..„_,,,,,,,,,,,,,,.,......_..._.e.e._,._.,_._m services e.g. snow plow' cleaning ..,_...__....., w....,.•..Y,. _..,....._ _......... Facilities support.•,._,.__..._..-_ w.__._.......... W............,,..., w.....,•..gr......_._...._...,_.-_. _ ..............•. Employment services - e.g temp help agencies, employment placement agencies, executive search agencies, professional employer organizations %-__.®_._.,._.,.,...._..._.,..,..__....,__,_....,•.__._.-.._._.....•,...,._._.._._,_.._.w.r Business support services - e.g. telephone answering services, collection agencies, telemarketing services on contract, secretarial and court reporting services, document preparation services, private mail centers, collection agencies, credit bureaus, repossession services Other support services - e.g. packaging and labeling services, convention and trade show organizing Other misc. professional and technical services - e.g. marketing research and public opinion polling, photographic services, commercial photography, translation and interpretation services Electronic and commercial equipment repair & maintenance e..•.,...___.. __ ..,.._.,.. ._........._..,.,...._.._.._...........m........e.w,...... _.._ W . .... ........ I.,.......__...__.._...._...•. ......,.__•...•, Personal services purchased_• by businesses_.....•........._....._.... .. ...... ..,...._.... .._...m. ....... ,,......._.... ........ .........•......__m_.•......_. Telecommunications equipment Court reporter documents ls Advertising mat.....-. _..._._ .... _......_.. _.__........ ..................... ........ ....... Publications - e.g. newspapers, magazines, commercial printing 2 of 2 Source: Minnesota Department of Revenue Page 9