HomeMy WebLinkAboutCity Council Resolution 1993-626CITY OF PLYMOUTH
Hennepin County, Minnesota
RESOLUTION NO: 93- 626
RESOLUTION REGARDING HENNEPIN COUNTY
FUNDING OF COOPERATIVE HIGHWAY PROJECTS
WHEREAS, in a policy dated June, 1978, Hennepin County
established parameters for determining an appropriate division of
cost participation to be used by the County in funding
cooperative roadway and street construction projects with
municipalities; and
WHEREAS, since 1978 municipalities within the County have
accepted said policy and cooperated with the County in the
construction and reconstruction of County roads and highways; and
WHEREAS, municipalities have established capital improvement
programs which contemplate the improvement of County roads and
highways based upon the receipt of County funds as outlined in
said policy; and
WHEREAS, in a draft policy dated June, 1993 the County
proposes a number of changes to the established parameters
contained in the June, 1978 policy; and
WHEREAS, most of the changes between the existing June, 1978
policy and draft June, 1993 policy provide for a reduction of the
County's cost participation in the funding of cooperative roadway
and street construction projects within municipalities; and
WHEREAS, the draft June, 1993 policy includes a provision
which, by the County's own admission, is intended to discourage
the use of tax increment financing for the municipal share of a
project, and when used, to require a higher municipal cost share;
and
WHEREAS, the cost division parameters contained in the June,
1978 policy have been accepted as an appropriate division of cost
participation to be used by the County and as a result has been
the basis for long range capital improvement planning by the City
Of Plymouth ; and
WHEREAS, the implementation of this policy will encourage
development in the rural or underdeveloped areas of the County
and cause disinvestment in the developed areas as well as
deterioration of existing facilities due to the County's
disparate funding formula. This disparity is due to the
reduction in the percentage of funding for the developed areas of
the County versus the rural areas; and
RESOLUTION NO: 93-626
Page 2
WHEREAS, the County's claim that a reduction in cost
participation by the County is justified because of the fact
that County property tax funds are becoming increasingly
limited is, in fact, unjustified because in reducing its
participation, the County would shift the tax burden to the
City, and
WHEREAS, the County's proposed policy relative to the use of
tax increment financing is a misguided attempt to punish
municipalities attempting to improve conditions in areas of need,
when in fact, the expenditure of tax increment financing will
ultimately result in higher property tax receipts for the County.
Further, if tax increment financing is utilized, the costs of the
project to the City will increase, thereby potentially increasing
the amount of tax increment financing used, which in turn may
delay the time period upon which properties can be returned to
the tax rolls.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Plymouth that:
For the aforementioned reasons, the Hennepin County
Commissioners are urged to reject the proposed June, 1993 policy
and retain the June 1978 policy as an equitable means of
establishing an appropriate division of cost participation to be
used by the County in funding cooperative roadway and street
construction projects with municipalities.
BE IT FURTHER RESOLVED that the City of Plymouth will
assist Hennepin County officials to obtain increased funding
through the County State Aid formula which is currently an unfair
allocation according to population.
Adopted this 4th day of October, 1993.