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HomeMy WebLinkAboutCouncil Information Memorandum 01-03-1986EL w CITY OF PLYMOUTFF CITY COUNCIL INFORMATIONAL MEMORANDUM January 3, 1986 UPCOMING MEETINGS AND EVENTS..... 1. COUNCIL VACANCY APPOINTMENT SELECTION MEETING -- Monday, January 6, 1986, 6:15 p.m. Mayor Schneider has called a meeting of the City Council to continue its discussion of the applicants for appointment to the seat he will vacate on the Council upon assuming the office of Mayor. This meeting will be held in the Council conference room and follows up the interviews which were held with all four candidates on December 30. 2. REGULAR CITY COUNCIL MEETING -- Monday, January 6, 7:30 p.m. Regular City Council meeting in City Council Chambers. 3. PLANNING COMMISSION -- Wednesday, January 8. Joint study meeting with HRA to rc,,ie rc cd C� ' ^� :� viuN r%i ici�Sivc f lAl, Housing Element at 6:00 p.m. in the Council conference room. The Planning Commission forum is scheduled for 7:15 p.m. The Planning Commission meeting follows at 7:30 p.m. in the City Council Chambers. Agenda attached. (M-3) 4. PARK AND RECREATION ADVISORY COMMISSION -- Thursday, January 9. The Park and Recreation Advisory Commission will meet at 7:30 p.m. in the City Council Chambers. Agenda attached. (M-4) 5. MEETING REMINDERS: A. ASSOCIATION OF METROPOLITAN MUNICIPALITIES MEMBERSHIP GENERAL MEETING -- Thursday, January 9, p.m. at the Brooklyn enter Community Center. B. MUNICIPAL LEGISLATIVE COMMISSION ANNUAL MEETING -- Wednesday, January 15, Decathlon Club, Bloomington. oard of Directors meeting - 5 to 6:00 p.m.; Social Hour - 6:15 p.m.; Dinner - 7:00 p.m. Our legislators have been invited to attend. C. DAVID DAVENPORT & PAT NEILS APPRECIATION DINNER -- Tuesday, January 21, Radisson Inn Plymouth. Social Hour - 6:00 p.m.; Dinner - 7:00 p.m. 3400 PLYMOUTH BOULEVARD, PLYMOUTH. MINNESOTA 55447, TELEPHONE (612) 559-2800 C11Y COUNCIL INFORMATIONAL MEMORANDUM January 3, 1986 Page 2 D. SEMINARS FOR ELECTED OFFICIALS -- Conference for Newly Elected Officials, Saturday, January 25 from 8:30 a.m. - 4:30 p.m. at the Sheraton Midway Hotel. Pre -conference workshops for all elected officials - Friday, January 24 - "Serving your Constitutents", 8:00 - 5:00 p.m.; "Economic Development", 7:00 P.M. - 9:00 P.M. 6. SKIING IN PLYMOUTH -- Saturday, January 18, 10:00 a.m. - 1:30 p.m., Plymouth creek Park. 7. REVISED JANUARY CALENDAR -- A revised January calendar is attached showing the change of meeting date for the HRA annual meeting from January 6 to Monday, January 27. (M-7) FOR YOUR INFORMATION..... 1. MOODY'S INVESTORS SERVICE TRIP -- In conjunction with the City's financial consultants, Ehlers and Associates, Lloyd Ricker and I have been attempting to schedule a meeting with representatives of Moody's Investors Service. We had sought to have this meeting scheduled prior to year end, however, due to change of personnel at Moody's, the meeting was not able to be scheduled until Tuesday, January 23. The purpose of the meeting will be to share with Moody's the latest operating figures for the City which will be our year end figures (unaudited) for 1985. It has been our hope for some time that we would be able to convince Moody's representatives that the City's bond rating merited an increase from the A-1 to AA. Our meeting is scheduled for 1:15 p.m. in New York and we will depart here that morning and return late evening. Those anticipated to attend the meeting are former Mayor Davenport, Mayor Schneider, Lloyd Ricker, Steve Apfelbacher, and Holly Doughty, both of Ehlers and Associates, as well as myself. 2. HENNEPIN COUNTY DEPARTMENT OF TRANSPORTATION 1986-1990 FIVE YEAR CAPITAL IMPROVEMENT PROGRAM -- The County highway and bridge construction program for the next five year period has recently been adopted. In Plymouth there are two projects scheduled. The first is the County Road 9 improvement from I-494 to County Road 18, which, as the Council is aware, is scheduled for construction beginning in 1986, with completion in 1987. The second project is the upgrading of County Road 10 from I-494 easterly to County Road 18 which is scheduled for 1987. 3. STATE BUDGET CUTBACKS -- Bob Renner of Larkin, Hoffman and Daly, the Municipal Legislative Commission's (MLC) lobbyist, has just informed us that the Governor has instructed the Department of Finance to develop a budget reduction plan to reduce the 1986 local government aids by 3.2 percent. This amounts to just over $12,400 for Plymouth. More significantly, however, the Governor has directed CITY COUNCIL INFORMATIONAL MEMORANDUM January 3, 1986 Page 3 that the homestead credit payments to cities and counties should be reduced by 3 percent. Significantly, the Governor's proposal would exempt school aids and the school portion of the homestead credit from his cuts. The MLC Board of Directors has previously taken a position which recognizes that local governments should share in any mandated state aid cutbacks, but that such cutbacks should be made across the board and not selectively as the Governor appears to be proposing. This topic will certainly be a point of serious discussion at the annual MLC legislative dinner scheduled for January 15. 4. 1986 PROPOSED LEAGUE OF MINNESOTA CITIES - CITY POLICIES AND IORITIES -- Five League of Minnesota Cities legislative study committees annually discuss and adopt policies which the membership desires to promote in the upcoming State legislative session. Each policy is given an A, B, or C priority based upon whether or not it is to be actively promoted (A ranking), or to receive attention only if the matter is brought before the legislature during the session (C ranking). The League Legislative Committee is recommending to the membership that the attached policies and priorities be adopted for 1986. City officials will consider adoption of these policies at the Legislative Conference to be held on Wednesday, February 5 at the St. Paul Radisson Hotel. Councilmembers are encouraged to attend the conference if at all possible. In any case, Council - members should familiarize themselves with the proposed policies to establish Plymouth's position with respect to each during voting at the League Conference. Please advise me if there are any policies or areas where you have question. (I-4) 5. MINUTES: -- Park and Recreation Advisory Commission minutes for December 12, 1985 are attached for your review. 6. EXTENDED OFFICE HOUR PROGRAM -- Attached is a weekly record from October 21 through December 30, 1985 showing the total number of persons served through the extended office hour program. The counter shows the total number of customers served each evening varies from a high of 13 to a low of 2 persons, for an average of 5 persons per Monday evening. During calendar year 1985, a total of 310 persons were served under this program, for an average of 6 customers per Monday evening. Departments with the highest customer counts throughout the year are Finance, Assessing, ,and Park and Recreation. (I-6) 7. DEPARTMENT REPORTS -- The following departmental activity reports for the month of December are attached: a. Planning Applications (I -7a) b. Building Inspection (I -7b) 8. HENNEPIN COUNTY SOLID WASTE DISPOSAL & RECOVERY NEWSLETTER -- The attached newsletter from the Hennepin County Department of Environment and Energy provides on update solid waste disposal and recovery program efforts in Hennepin County. (I-8) CITY COUNCIL INFORMATIONAL MEMORANDUM January 3, 1986 Page 4 9. CORRESPONDENCE: a. Letter from Hennepin County Commission Bud Robb responding to Mr. E. J. McConVille, 4310 Larch Place, regarding noise pollution adjacent to the proposed County Road 9 project. (I -9a) b. Letter from George Mellen to Virgil Schneider, stating his desire for reappointment to the Planning Commission. (I -9b) c. Letter of appreciation from Mr. Pete Ankeny, 1985 United Way General Campaign Chairman, on the city employee's 89 percent increase over 1984 contributions to the United Way. (I -9c) d. Letter to Mayor Davenport from Jorgen Roed, Scanticon Corporation. (I -9d) James G. Willis City Manager JGW:jm attach PLANNING COMMISSION MEETING AGENDA WEDNESDAY, JANUARY 8, 1986 WHERE: Plymouth City Center 3400 Plymouth Boulevard Plymouth, MN 55447 CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine by the Planning Commission and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner, citizen or petitioner so requests, in which event the item will be removed from the consent agenda and considered in normal sequence on the agenda. PUBLIC FORUM 7:15 P.M. 1. CALL TO ORDER 7:30 P.M. 2. ROLL CALL 3.* APPROVAL OF MINUTES Planning Commission Minutes, December 18, 1985 4. PUBLIC HEARINGS A. McCombs -Knutson Associates. Conditional Use Permit for Outside Vehicle Storage at 12800 Industrial Park Blvd. (85134) B. Stuart Nolan, Stuart Corporation. Residential Planned Unit Development Final Plan/Plat, Site Plan, and Conditional Use Permit for "Stuart Addition" wesL ui Plymouth Creek and north of 37th Avenue North. (85121) 5. NEW BUSINESS A. Opus Corporation. Lot Division and Site Plan for a 36,000 sq. ft. office/warehouse facility east of Niagara Lane and north of 28th Avenue North; and, an associated application for a Sign Program and Variance for this area of development. (85125) 6. OLD BUSINESS None 7. OTHER BUSINESS 8. ADJOURNMENT 10:00 P.M. Plymouth Park and Recreation Advisory Commission Regular Meeting of January 9, 1986, 7:30 p.m. Plymouth City Center Council Chambers AGENDA 1. Call to Order 2. Approval of Minutes 3. Visitor Presentations 4. Report on Past Council Action 5. Unfinished Business a. Review Draft of Annual Report b. Parkers Lake Update c. RP 6. New Business a. New Plats b. Review Yearly Meeting Dates c. Cm 7. Commission Presentation 8. Staff Communication 9. Adjourn Next Meeting - February 13, 1986 A --,A 9 CC3 V)^ a a O I P H p ' Cle � W m� O < /��� / � U V 1 V V B oaxl i O � w ��Qh r--4o0p" VoU 9 III c V V'✓ CQ cllj* cr V)^ a a O I P H p ' fv Cv � W I O < /��� / � U V 1 V V B oaxl i O � w ��Qh r--4o0p" VoU , H aoz'' i w � • O aoa�U oot 0.;oCY)U �cz � x x � U oa Fo w' � c H U U � 1 io I r w r� U, rzF >0 L) 4-4 i r. ccIL4 M m a OU U O� i W H F ~w aoe c- z w U O•• O W •• O a.o w�U: III c V V'✓ CQ cllj* cl cr V)^ a a 9- I P H p ' fv Cv � W I O < /��� / � U V 1 V V B oaxl i O � cq ��Qh r--4o0p" VoU , H aoz'' i w � • O aoa�U oot 0.;oCY)U �cz a r\ CO.'. U cl O V)^ a to ' VV 9- N N P H p ' fv Cv � W I ¢ <3 /��� / � U V 1 V V B oaxl i O � cr ��Qh r--4o0p" VoU , kwccn, aoz'' i i • O aoa�U cl LO O V)^ po�Np to ' VV 9- N N z o PC ' fv Cv WI U w I ¢ <3 _ tirn�c - N B oaxl i O � cr ��Qh r--4o0p" VoU , kwccn, ECwx o0 Lo a iv LO O LL (A, po�Np wiiH i. Enrn H z o U WI U i PQ ; w WI U w U N • c.w .y :7 ,� LO m O wiiH i. Enrn H z o U WI U i PQ ; w WI U w U N • c.w .y :7 ,� B oaxl o r--4o0p" VoU , kwccn, ECwx o0 ^UoU� a`c oot 0.;oCY)U H r-aFo wwFo; U oa Fo m Proposed City Policies and Priorities For distribution to all member cities. All mayors, managers, and clerks receive a copy of the proposed policies. Please share this document with your council members. If necessary, additional copies are available from the League office. LMC Legislative Study Committees have developed these policies and the LMC Legislative Committee is recommending them to the membership. Each policy has an A, B, or C priority. An explanation of each level is in the Foreword. Please rev' ese ro ive —Ce_Q .2nce. City officials wi a o t nference on Wednes , at t Hotel, 11 E. Kellogg v .free to ac eague staff with questions or concerns. ea ue or Minnesota Cities 9 183 University Avenue East St. Paul, Minnesota 55101 e m .., - .. •.tom - �`., _- .,,. _ ..... •--�•n+w- �1A FOREWORD One of the most important purposes of the League is to serve as a vehicle through which city officials throughout the state can define their mutual problems and develop positive policies and proposals for their solution. To accomplish this purpose a three-step consultative process has been established providing for the study of issues by committees of city officials, the review of the resulting recommendations by the Legislative Committee composed of the Board of Directors and the study committee chairpersons, and final adoption at an annual legislative conference attended by representatives of all member cities. The policy statements and legislative proposals contained herein are the result of this process and are intended to be adopted for the 1986 legislative session. They provide the League Board of Directors and the staff with a continuing source of guidance when testifying before legislative committees and taking other actions which have legislative or policy implications. Priority designation. The priority designation is indicated next to the title of each proposed policy. These priorities were developed by the study committees and reviewed and, in some cases, modified by the Legislative Committee. The priorities are intended to give additional guidance to the League Board and staff in implementing the League's legislative program. "A" priority indicates a major issue, one where the League would introduce legislation or would work actively with other groups to seek new laws and regulations. "B" priority indicates items that are important to cities but where the League would probably spend substantially less time unless the Legislature or other groups mounted a major effort to which LMC had to respond. While the League might initiate legislation on "B" priority items, these would be relatively non -controversial items, or those where most of the research has already been completed. "C" priority indicates items where the League would respond only when the issue is raised by other groups. 0 Table of Contents Committees Section Government Structure and General Legislation (GSGL) ............. Pink Personnel and Public Safety (PPS) ............................... Salmon Land Use, Energy, Environment, and Transportation (LUEET) ...... Blue Development Strategies (DS) ..................................... Green Revenue Sources (RS) ............................................ Yellow Federal Legislative (FL) ........................................ White Z � Priorities Government Structure and General Legislation Committee Policy Number Title Priority GSGL-1 Tort Liability and Insurance A GSGL-2 Open Meetings A GSGL-3 Purchasing Authority of Plan B Managers B GSGL-4 Towing of Abandoned Vehicles B GSGL-5 Mandates B GSGL-6 State Licensing of Contractors B GSGL-7 State Audits and City Financial Reporting Requirements B GSGL-8 Government Training Service B GSGL-9 Charitable Gambling Fees B GSGL-10 Contractors' Bonds B GSGL-11 Absentee Balloting B GSGL-12 Precinct Boundary Changes B GSGL-13 Uniform Local Government Election Day B GSGL-14 Campaign and Finance Disclosure B GSGL-15 Voting Equipment B GSGL-16 Land Sales by Competitive Bid C GSGL-17 Optional Poll Hours C GSGL-18 City Election Campaigns C GSGL-19 Election Day Registration and Adminsitrative Improvements C = -LA GSGL-1. Tort Liability and Insurance. (A) The League supports the continued existence of the Municipal Tort Liability Act and legislative action to provide affordable insurance coverage. The Municipal Tort Liability Act was enacted to protect the public treasury while giving the citizen relief from the arbitrary, confusing, and administratively expensive prior doctrine of sovereign immunity with its inconsistent and irrational distinctions between governmental and proprietary activities. The act has served that purpose well in the past, however, courts frequently forget or ignore the positive benefits secured to citizens damaged by public servants as a result of enactment of the comprehensive act which includes some limitations on liability and some qualifications of normal tort claims procedure. The special vulnerability of far-flung government operations to debilitating tort suits continues to require the existence of a tort claims act applicable to local governments or local governments and the state. The need for some type of limitations is evidenced by recent experiences with the insurance market. Cities in Minnesota, as well as throughout the country, are finding it increasingly difficult to obtain insurance at an affordable rate, if at all. Amendments in 1983 to increase the dollar amounts recoverable by plaintiffs were League supported and should be adequate to satisfy any reasonable claim. Further changes in the law to increase the liability exposure of governments should not be made until the Governor's Advisory Commission on State and Local Relations (ACSLR) completes its study of the insurance and liability crisis local and state governments face and makes recommendations for statutory changes to the Legislature. The advisory commission should explore equitable means of limiting taxpayer liability through a uniform tort claims act applicable equally to the state and local units of government as well as by limiting joint and several liability. Page 1 of 1 GSGL-2. Open Meetings (A) The League recommends that the Open Meeting Law be amended to conform to the Data Practices Act. City officials strongly support the basic premise of the Open Meeting Law --to assure the public's right to be informed about the conduct of public business. Experience with this law since 1974, however, indicates clearly that there are areas where the legislation should be amended in the public interest. The League believes that there are certain specific instances where the public interest would be better served by permitting a local governing body to meet in executive or closed session. These instances include certain discussions relating to employees such as "hiring" interviews, discussions regarding the purchase or sale of land for a public purpose, and discussions of information protected under the Data Practices Act. These latter situations are particularly troublesome since it is often necessary for the council to choose between violating either the Open Meeting Law or the Data Practices Act. Additionally, the League opposes any legislative attempt to alter the recent court ruling that the Open Meeting Law applies only to meetings where a quorum of the governing body or its established committees is present. The ruling clarified the law which was often viewed as applying to any meeting between two office holders. Limiting the application of the law to gatherings of a quorum or more is a common sense approach to implementing the statute and should not be altered. Page 1 of 1 GSGL-3. Purchasing Authority of Plan B Managers. (B) The League supports changing the purchasing authority of city managers in Plan B cities from $1,000 to conform to the figures in the Uniform Municipal Contracting Law. Currently the law allows Plan B city managers to make purchases under $1,000 without council approval. This provision has not been changed for many years and inflation has seriously eroded the utility of the provision. The law should be amended to increase the figure to the dollar amounts in the Uniform Municipal Contracting Law which allows purchases under $10,000 to be made relatively easily. Page 1 of 1 AA GSGL-4. Towing of Abandoned Vehicles (B) The League supports legislation clarifying the authority of cities to impound abandoned motor vehicles. Recently, the Legislature passed Minnesota Statutes 465.75 which prohibits a private vehicle tower from removing a motor vehicle from private property unless he has the permission of the owner of the vehicle or of the owner of the property. While the intent of this statute to prohibit hawkish towing companies from improper towing practices is laudable, the ramifications of the law go too far. Cities are authorized to impound abandoned motor vehicles and Minnesota Statutes 168B.04 provide a detailed process to accomplish the removal of health hazards and eye sores. Unfortunately, the recent legislative act could be construed to prohibit cities from utilizing private towers to remove and impound abandoned or junked automobiles. Cities could be forced to use its own employees and equipment because it is not "in the business of towing." The law should be amended by adding an exclusion for private towers who act at the direction of a city following the procedures prescribed in Minnesota law. Page 1 of 1 =-4 GSGL-5. Mandates (B) The League opposes any additional mandates unless the Legislature provides adequate revenue sources to implement the law. One of the most serious problems facing cities is the growth in the number and cost of federal and state -mandated programs which substitute the judgments of Congress and the State Legislature for local budget priorities. Recent examples of costly mandated programs include comparable worth, employee right to know, legal compliance audits, and newspaper publications. Special bills to address this problem on an ad hoc basis have not provided a permanent or statewide solution to these problems. The League therefore supports the 1985 legislation which requires the state to adopt a policy of deliberate restraint on its mandated programs, including providing a mandatory fiscal note identifying local government costs on any new mandated programs when they are introduced in the Legislature and a statement of compelling statewide interest to accompany all state mandates. The League further supports the recently adopted ACSLR recommended guidelines for mandating for the legislative and executive branches. Revenues or alternative revenue producing mechanisms, other than the general property tax subject to levy limits, must accompany new mandates. Also, the Legislature should repeal obsolete, unnecessary, and unduly restrictive mandatory laws and rules. Page 1 of 1 --L' GSGL-6. State Licensing of Contractors (B) The League opposes the state's takeover of trade contractor licensing. Licensing of general trade contractors and various other activities has long been a local prerogative, and the mechanism for license review, issuance, and enforcement is already in place. The primary reason that local licensing has been successful and therefore maintained at the local level is that inspection and enforcement personnel reside at the local level, know the area and activities, and are familiar with local ordinances and restrictions, thus providing better and faster enforcement. Suggestions have been made to form a statewide licensing authority and split the revenue among the licensing agency and various municipalities with the cities maintaining enforcement tasks. It is questionable under this arrangement if either the agency or municipalities would have enough funds to accomplish the respective tasks. The current proposals seem to overly complicate the existing system which is effectively regulating the contractors and may result in a reduction of small contractors who operate in only a limited number of communities. Page 1 of 1 GSGL-7. State Audits and City Financial Reporting Requirements (B) The League supports continuation of the existing auditing and financial reporting requirements for cities. Minnesota has one of the most modern and rigorous systems of oversight of municipal finances in the nation. The state auditor currently reviews annual financial reports of cities. Cities over 2,500 must have annual audits and the state auditor has the authority to audit a city upon receipt of a petition. There is no need to require cities under 2,500 to follow more rigorous accounting requirements than presently exist or to have annual audits. Additionally, the state auditor should not be given the power or responsibility to audit local governments on a regular basis. The private sector is fully competent to conduct governmental audits and may be more economical and practical than a state agency. Page 1 of 1 Z� GSGL-8. Government Training Service Funding (B) The League supports continued state financial funding for the Government Training Service. The Government Training Service (GTS) has been invaluable in maximizing training opportunities while minimizing training costs for local government officials and staff over the past nine years. Both the need and the demand for services are greater than ever during these times of tight budgets. GTS continues to respond on behalf of all local jurisdictions in Minnesota by developing innovative, low-cost alternatives and exploring cost-effective delivery systems. The Legislature should continue state financial support for GTS. Page 1 of 1 Z- �L-\ GSGL-9. Charitable Gambling Enforcement Fees (B) The League supports legislation modifying the charitable gambling statute to provide local units with a share of the annual state permit fees and a portion of the tax proceeds to reimburse local units for enforcement costs Since the establishment of the State Charitable Gambling Control Board and liberalization of the charitable gambling permitted within various establishments, there has been a significant increase in local enforcement needs and costs, while the main source of funding these costs, the local license fee, has been precluded by state action from being used. Page 1 of 1 GSGL-10. Contractors' Bonds (B) The League supports legislation modifying statutory requirements for contractors' bonds on public projects to allow a city to specifically waive this requirement on small contracts. Minnesota Statutes 574.26 currently requires a performance or surety bond on every contract which a public body would enter into, regardless of the dollar amount or duration of the contract. While performance or surety bonds serve a very valid and useful purpose, they become an expensive nuisance in many small contracts that a public body might enter into, and indeed, may be an unnecessary impediment for smaller businesses trying to do business with a public body. For these reasons, the League supports legislation which would allow a city to waive the requirement on specific small contracts. Page 1 of 1 AA1 r,' GSGL-11. Absentee Balloting (B) The League supports the use of punch card voting devices for absentee balloting in health care facilities and mailed absentee ballots. Currently, the law allows the use of punch card devices for absentee balloting when a voter applies in person to the city clerk for an absentee ballot. The League recommends that the law be expanded to include use of punch card devices for all absentee balloting, including mailed ballots and absentee balloting in health care facilities and when a voter applies in person to the county auditor. The League supports the use of absentee balloting procedure used in health care facilities to be expanded for use of the home bound voters (re: handicapped voters and infirmed). Page 1 of 1 -=- AA GSGL-12. Precinct Boundary Changes (B) The League supports legislation to provide a more orderly way in which to deal with redistricting after a legislative reapportionment plan is filed Current law requires counties to redistrict county commissioner districts within 180 days after receiving final census figures. Cities are not permitted to change precinct boundaries during a five-year period ending January 1 in a year ending in two. Therefore, counties following city ward and precinct lines use old boundaries, which in many cases will need to be changed before the 1992 elections. Page 1 of 1 GSGL-13. Uniform Local Government Election Day (B) The League opposes the designation of a uniform local government election day. Home rule charter cities currently have the authority through their charters to designate when they want to hold their local elections. Statutory cities may establish either an odd or even year November election date. Decisions affecting only local units of government should be made at the local level unless an overriding state interest can be demonstrated. The League believes that there is no statewide necessity to provi" for a uniform local government election day. However, if the Legislature enacts a uniform local government election day, the following features must be included: 1. Home rule charter cities should retain the option of setting their own election date. 2. Municipal primary elections should continue to be optional. 3. All direct costs of state -mandated changes and additions to present city election duties should be paid by the state. Page 1 of ] 4 GSGL-14. Campaign and Finance Disclosure (B) The League supports legislation which would simplify the election process so that it would encourage rather than discourage candidates for local office 1. Distinctions between types of campaign committees and reporting requirements should be eliminated. 2. The League opposes any state -mandated requirement of candidates for city office to file statements of economic interest. 3. The Legislature should not oppose campaign contribution limits or reporting requirements in cities less than 20,000 population. 4. To the extent permitted by the state and federal Constitutions, individuals who actively seek to influence the nomination, election, or defeat of a candidate or ballot question through the expenditure of their personal funds, or funds they solicit, should be required to make reports to the same extent as corporations, associations, or persons working together. Page 1 of 1 =—jA GSGL-15. Voting Equipment (B) The League supports present law which allows a city the option of selecting which state -approved equipment it determines will best suit its needs and opposes any state -mandated system of voting equipment. At the present time, two kinds of equipment are approved for use in Minnesota, lever machines and punch card devices. The League encourages the certification of optical scanning equipment. We ask the Legislature to make any necessary changes in the statute to permit their efficient use. Page 1 of 1 z -A GSGL-16. Land Sales by Competitive Bid (C) The League opposes legislation imposing a mandated competitive bidding process for sale of land by cities Legislation introduced in the 1985 session would require that any land sold by a city would have to have three weeks published notice and be sold at the most favorable bid to the city. Though the bill allowed all bids to be rejected, it did not consider activities such as Tax Increment Financing or other development activities where a formal bidding process could be used to prevent development or situations where no bid is received. The bill also did not consider cases where small or unbuildable parcels exist that should be handled through negotiated sales or trades with neighboring property owners. Page 1 of 1 GSGL-17. Optional Poll Hours (C) The League opposes current law that mandates all cities, regardless of their size, to have their polls open 7:00 a.m. to 8:00 p.m. for state elections. Prior to 1983, cities under 1,000 population located outside the metropolitan area could by resolution fix the poll hours to begin no later than 9:00 am for a state general election and no later than 5:00 pm for a state primary. This flexibility would reduce costs to very small cities. The League also supports legislation for municipalities to set their polling hours by referendum. Page 1 of 1 = —JA GSGL-18. City Election Campaigns (C) The League supports extending income tax credits or deductions for contributions to city election campaigns. Candidates should be encouraged to seek broader backing from among constituents. Extending income tax credits or permitting deductions by using criteria for state and federal deductions should be permitted for city election campaigns. Page 1 of 1 GSGL-19. Election Day Registration and Administrative Improvements (C) The League supports voter registration prior to election day and encourages legislation to improve the current system of voter registration. The following steps would improve the current system: 1. Election day registration and voting should be permitted, but not mandated, to take place in adjacent rooms. 2. Require public entities to make available facilities for polling places. 3. Certain penalties for election day infractions are so severe that they constitute a barrier to effective enforcement of the law. The League recommends that the laws be reviewed and modified where necessary so that the laws can be effectively enforced. 4. Any state -mandated registration programs should be accompanied by sufficient state funds to pay local costs on a continuing basis. 5. The use of certified dorm lists should be considered as an option for verification of residency of students. 6. The League encourages the promotion of pre-election day registration through the media and all other available means. 7. The League supports legislation allowing the removal of a registration card after the city twice receives official postal notification that the notice of registration is undeliverable at the individual's last known address. 8. Permitting election judges to sign ballots prior to sending out absentee ballots. 9. Write in candidates with less than 5 percent of the total vote cast would need not be listed on election returns. Page 1 of 1 Policy Number PPS -1 PPS -2 PPS -3 PPS -4 PPS -5 PPS -6 PPS -7 PPS -8 PPS -9 PPS -10 PPS -11 PPS -12 PPS -13 PPS -14 PPS -15 PPS -16 PPS -17 Priorities Personnel and Public Safety Committee Title Priority PERA Benefits, Financing, and Administration A Comparable Worth A Time and Distance Residency Requirements B Social Investing B Retiree Health Benefits by Cities B Veterans Preference and Military Leaves B Minnesota Public Employment Labor Relations Act B Law Enforcement Personnel B Fire Personnel Standards B Modifications to the State Building Code B Emergency Medical Services B Workers' Compensation B Local Police and Fire Relief Association B Disability Retirement "B FLSA and Volunteer Firefighters C Unemployment Compensation.7�+'" C One Class of Beer ^: C`' 3 PPS -1. PERA Benefits, Financing, and Administration (A) The following principles should govern any changes the Legislature makes in PERA and the other statewide pension plans. ' 1. The League of Minnesota Cities opposes modification of the "high five" formula. The adoption in 1973 of the "high five year" benefit formula for PERA has provided very adequate pension benefits for career municipal employees. Further shortening of the averaging period would create windfalls for some PERA members and multiply opportunities for manipulation of service and salaries to maximize pension benefits without proportional contributions to the fund. 2. Any increases in PERA benefits should be granted only to the extent that proposed contributions and current reserves are sufficient to fully fund the increases in the opinion of one or more recognized pension actuaries who are independent of the PERA organization. Any benefit increase or contribution reductions permitted by excess reserves or excessive current contributions or combinations of the two should be of such amounts as to benefit the employer and employee equally as a percentage of overall employee salary. 11 3. In order to avoid recurring problems similar to those experienced by the federal government in its pension programs, the LMC opposes payment of health care costs for retirees from the PERA fund. Among all the proposals fox benefit increases, the one that most threatens the financial soundness of PERA and other Minnesota public pension funds, is the proposal to provide health insurance to retirees paid from the pension fund. Full payment would commit the taxpayers to an open-ended promise to pay a cost that is escalating at the rate of 15% to 20% per year even in low inflation years. Partial payment would provide a foot -in -the -door for full payment. Either would hamper efforts to control health care costs by making the recipient responsible for a significant portion of charges to encourage thrifty use. '`' 4. If any increase in benefits is enacted for PERA retirees, the resulting ;..costs should not be paid from the PERA fund, but rather should be financed by a 6irect..appropriation from the state general fund. °The LMC supports the continuation of the Minnesota post-retirement investment fund as a means of providing post-retirement increases in the pension benefits of retirees under the state-wide pension funds. 6. No money or funding should be transferred directly or 'indirectly from PERA to less well funded plans. Since integration of pension fund administration mechanisms may lead to combining the funds, the LMC opposes any move to combine administration of the three statewide pension programs. -,, aegislature should amend the present provision on disbursement of theo percent tax provision on automobile casualty insurance to allow x itures by the recipient political subdivision of any excess over the emp oyer's share of police retirement costs for any police department purpose Instead of requiring payment to the PERA police and fire fund. .Page 1 of 2 PPS -1. PERA Benefits, Financing, and Administration (A) Since the PERA police and fire fund has now essentially achieved full funding, employers' and employees' contributions should be reduced to an amount sufficient to pay normal costs. Furthermore, the employer (taxpayers) through payment of more than 50 percent of contributions to this fund is creating a surplus not needed for pension purposes. 8. Individual local police and fire relief associations, with city consent, should be allowed to merge into the PERA police and fire funds only if all active members are brought under the PERA benefit structure and if: a) savings will accrue to the city in the opinion of the state actuary as well as in the opinion of the affected municipality; and b) all actual funding liabilities as calculated by a state actuary which are transferred to or assumed by the post-retirement fund are immediately reimbursed to the fund by the transferring city; and c) all actual funding liabilities as calculated by a state actuary which are transferred to the PERA active fund shall be reimbursed to PERA at either the percentage that the PERA police and fire active member fund is funded in the year of consolidation or the percentage that fund was funded on the date of the Moorhead local fund consolidation, whichever is greater; and d) transferring employees shall draw benefits at the PERA level based upon the salary level upon which pension contributions were made. 9. A new defined contribution plan similar to the state unclassified plan, but with no option to transfer to any defined benefit plan, should be created within PERA. Elected officials, and volunteer ambulance and fire personnel, regardless of compensation levels, should have an option to join this program rather than the regular PERA program or any local relief association. In addition, newly hired employees of the League of Minnesota Cities,.who are eligible for PERA, should become a part of this program. Non -vested League employees should be given an option to remain in the regular..PERA program or join the newly created defined contribution program. �, 10. The League opposes any change in the PERK Rule vif'90 or the current early-retirement reduction factor. PERA is the only statewide pension fund with members eligible for the Rule of 90 and with a one-fourth percent pension ,.reduction per month under age 65 early-retirement reduction ,factor. Members have provided substantial service in reliance on these beneficial and purportedly permanent fund features. 11. If the federal government should require all newly hired police and fire personnel to participate in Social Security, :current PERA contributions rates and benefits should be halved for affected new hires. Page 2 of 2 PPS -2. Comparable Worth (A) The League supports legislation providing state financial assistance tov' reimburse cities and other local units of government for the costs of conducting and implementing the state -mandated comparable worth studies. 1984 legislation mandated all local units of government to conduct and implement comparable worth or pay equity studies. Cities already have incurred substantial costs in conducting these studies and are likely to incur substantial costs in implementing these studies. In some cases, the costs of implementation has necessitated exploring the option of compensation reductions, freezes, and/or layoffs. There is.also concern about the future ripple effects OIL these studies will have on the compensation practices of local units of AP government. To the extent that these were mandated studies, the state must assume at least some of the responsibility for funding the result of these studies. The p League therefore requests the Legislature to provide funding to reimburse cities and other local units of government for the costs of conducting and implementing the state -mandated comparable worth studies. Further, the state should explore additional legislation to protect local governments from lawsuits arising out of this state mandate, including a continued prohibition on state court lawsuits and state defense and ndemnification for federal suits brought against local units of government. Finally, the League opposes any modification to the existing statutes to 'exempt particular classes of employees from the coverage of the pay equity concept or to limit the ability of arbitrators to consider the results of any PPS -3. Time and Distance Residency Requirements. (B) The League supports legislation allowing cities in the metropolitan area to enact reasonable area and response time restrictions if there is a demonstrated Job necessity for certain employees to reside close to the city. In recent years the Legislature has limited the authority of cities and other local units of government to impose residency requirements for their employees. The Legislature has recognized, however, the need for insuring the ability of certain employees to be available to respond to emergency situations. In 1984, in the same bill which prohibited non -metropolitan cities from enacting blanket residency requirements, the Legislature specifically allowed non -metropolitan cities to enact reasonable area and response time restrictions if there were demonstrated job necessities for employees to reside close to the city. Unfortunately, a drafting error prohibited metropolitan cities from enacting these restrictions. In 1985, the Legislature acted to allow metropolitan communities to impose reasonable time and distance requirements for volunteer firefighters. The result of the 1984 and 1985 legislative actions is a situation where metropolitan communities still cannot impose reasonable time and distance requirements for their police officers, paid firefighters, or any employee with_. the exception of volunteer firefighters. The League recommends that the Legislature grant metropolitan cities the same authority granted non -metropolitan cities to impose reasonable time and distance requirements where the city can show a demonstrated job-related:. necessity. Because these requirements must pass this difficult test and directly affect the public safety of the community, these requirements should under no circumstances be considered as mandatory subjects of collective bargaining. • sxi+evt v,'taLi�"4f ".ti �,tms+i..u.-w.ri.,. .1 . PPS -4. Social Investing. (B) Without each employee's consent to other priorities, -public employee Pension funds should be invested solely for the purpose of maximizing investment return. Investment management responsibility for public employee pension reserves should be removed from the state Board of Investment and lodged in a politically independent board the membership of which is limited to persons qualified to manage investment portfolios for large pension programs. PPS -5. Retiree Health Benefits by Cities (B) Before anv eovernmental unit makes anv new commitment to nav all or an part of such premiums or charges, it shall ascertain the entire costs. Any governmental entity paying for retirees' benefits shall budget for the year in which the commitment is to be incurred sufficient funds to cover all projected current and future costs which will accrue during that year, as determined by a licensed certified public accountant or recognized actuary. Any governmental unit paying any part of the cost of retiree benefits authorized by this subdivision, other than including retired employees in a single group with -active employees, shall establish a separate dedicated fund from which the cost of these benefits shall be payable and shall be authorized �- to levy and collect a tax, if necessary, in the next annual tax levy for the purpose of providing the necessary funds for the payment of such projected costs., In order to prevent the creation of large unfunded deficits for promised health care for retired public employees, in the same way that unfunded, actuarial deficits were created by promised pension benefits prior to statutory requirements for funding, the League of Minnesota Cities urges the Legislature to impose the foregoing restrictions. ;v k , V^ M PPS -6. Veterans' Preference and Military Leaves (B) 1. The League recommends that the Legislature amend the Veterans' Y Preference Act to provide that a veteran must select.one and only one hearing procedure rather than be able to request both a veterans preference hearing and a grievance procedure under a collective bargaining agreement. Current statutes entitle a veteran to at least two different hearing procedures to challenge any disciplinary action. This is not only grossly inefficient but may also be unworkable since the standards for court review of the decisions of veterans' preference boards and grievance arbitrators vary significantly. 'The -Minnesota Supreme Court in a recent decision also has indicated to the egislature that these statutes need to be amended. The law should provide for _a selection of a single hearing procedure and eliminate any requirement for salary payment pending the hearing when the veteran does not request a hearing within ten days or when an impartial hearing body determines that the dismissal was for just cause. 2. The League recommends that the statutes be amended to provide that when mployee is temporarily absent because of short-term military service that the employer pay only the difference between military pay and the public pay, rather than the full combined salaries. This pay differential should apply for a period of 15 calendar days. When an employee is ordered to report for duty for a period longer than 15 calendar days per year, no additional seniority status, efficiency rating; vacation, sick leave, or other benefits shall accrue during the period of active duty. Unless there exists, at the time of an order to report for duty, a war or declared emergency, the employee shall not be entitled to a leave of absence �9 without pay and the employee's public employment shall be considered terminated. PPS -7. Minnesota Public Employment Labor Relations Act (B) 1. The League recommends that legislation be enacted that gives public employers the option of either requesting arbitration within a specific time or allowing essential employees to legally strike Cities in Minnesota are very diverse in their public employment practices. Their ability to deal with employee strikes also varies greatly. The history of bargaining in the public sector has indicated that if properly prepared for, even strikes by "essential employees" do not unduly threaten public health and safety. In contrast, the prohibition of the right to strike has forced undue reliance on arbitration, which usually has resulted in large compensation awards to essential employees. For these reasons, the League recommends that legislation be enacted that gives public employers the option of either requesting arbitration within a specific time or allowing essential employees to legally strike. 2. The League recommends that the Legislature reinstate the previous definition of employees covered by PELRA to persons employed for more than 100 days. The 1983 Legislature reduced the period of time part-time employees must be employed before they are considered employees covered by PELRA. This has resulted in higher wages for some part-time employees but, more significantly, has resulted in cities hiring fewer part-time employees. Additionally, many employees who view their work as temporary or transitory in nature, have been asked to pay their fair share of union dues, even though they receive no benefit from union membership. Experience with the law over the last two years has indicated general dissatisfaction with the law by every affected party except unions representing primarily full-time employees. 3. The League opposes an yees to refuse to cross changes in PELRA which would the picket lines of other ci r change the definition of supervisory or confidential employees public es, or would Supervisors of public employees should have their management role acknowledged and have their status limited to meet and confer. In no event should supervisory or confidential employees be represented by an employee organization which represents the employees they supervise. Further limitation of the definition of supervisory personnel would mean that in all but city - manager cities, no employees could be considered torbe,supervisory employees for purposes of PELRA.ri: ` 4. The League recommends that legislation be passe requiring employees Aaw covered under a collective bargaining agreement to choose a single method by which to review disciplinary action - —1 PPS -7. Minnesota Public Employment Labor Relations Act Employees presently have a variety of grievance procedures available to them, including civil service systems, veterans' preference, and procedures agreed to under collective bargaining. It makes little sense for an employee to have two bites of the apple in challenging disciplinary action, particularly when the standards for review of the different grievance hearings are as varied as they are. The result under the current statutory system literally precludes effective discipline of public employees. Requests for reform have been made from many sources, most recently by the Minnesota Supreme Court. Page 2 of 2 z _IA PPS -8. Law Enforcement Personnel (B) The League opposes any increase in state standards for the recruitment, training, and conduct of law enforcement personnel. The current uniform state licensing system establishes adequate minimum standards for law enforcement personnel. The League supports the continued flexibility provided in the system to employ a class of peace officers who meet specified requirements which are less than those for full-time officers and allows upgrading of part-time officers to fully licensed status, as well as allowing the POST Board to grant variances for political subdivisions having particular difficulties in complying with licensing standards to permit phased compliance. Cities should retain responsibility for personnel matters and the state should not unnecessarily complicate local personnel practices which have worked well in the past. W4 I PPS -9. Fire Personnel Standards (B) The League opposes any additional state established -mandatory or suggested physical, physiological, educational, or compensation standards for retirement -� or employment of firefighters. Fire suppression has traditionally been a uniquely local function in Minnesota. Not only are firefighting problems vastly different from one µV_ communit to another but well over ninety percent of Minnesota communities rely y , primarily on volunteer firefighters for fire suppression services. The League believes that local governing bodies ay%- best equipped to ' determine the nature of local fire risks, the level of local fire prevention efforts, and the practical availability of firefighting personnel. Efforts by„n;:, the state to improve firefighting capabilities should be undertaken through increased financial assistance to provide improved programs or by direct employment of specialized personnel at the state level with such personnel made . available to assist local units of government. MMx m '.. `" "- r R PPS-10. Modifications to the State Building Code (B) The League supports the current ability of non-metropolitan cities, counties, and towns to opt-out of the inspection and enforcement responsibilities mandated by the State Building Code y� y 1 r i 2 r t I ,. � ♦ $ .++ ASS �" �� � �'., � " mer - w n az .. PPS-11. Emergency Medical Services (B) The League supports the current statutory minimum requirements for ambulance vehicles, equipment, and attendants' training but opposes any additional requirements unless the state provides adequate funding or funding sources. Cities as a group are the single largest provider of ambulance services in the state and form a vital part of the network of emergency services. To maintain and improve the emergency services network for all residents of the state the Legislature must provide funding for training and equipping emergency medical personnel. State grants and aids should be available to enable all ' cities to have access to adequate emergency medical service. Additionally, witht.ri: the increasing interest'in paramedic services, the Legislature should assist in providing easily accessible training on a statewide basis at minimum cost in order to meet appropriate qualifications." The Legislature should modify the current statutory requirement that all ambulance personnel have training of Advanced First Aid at a minimum to allow a K. city to employ an ambulance driver with less than full training as long as the uirement for two fully-trained ambulance personnel is met. PPS -12. Workers' Compensation (B) The League requests the Legislature to eliminate the presumption that heart and lung ailments of police and fire personnel arise from their employment. Existing workers' compensation statutes create a presumption that heart and lung ailments of police and fire personnel arise from employment. Improved equipment and methods of fire fighting and law enforcement and increased statistical data as to personal risk factors affirm that presumption no longer reflects reality or serves a public purpose. `A PPS -13. Local Police and Paid Fire relief Associations (B) The League of Minnesota Cities supports enactment of legislation which would provide for a clear majority of voting members on local police and paid fire relief associations to be appointed by the city council. Relief association records should be clearly classified as public records under the law. In the event that the Legislature chooses not to enact such legislation, the city council should have control over the assets in the special fund of the association, including power to disburse funds, choose the auditor, designate the persons to be covered with a surety bond and establish the amount of surety bonds. City administrative and auditing expenses in respect to the association should continue to be charged to the relief association special fund. In addition, the law should permit relief association paid lobbying by only one regularly assigned member to be released for the purpose of lobbying. Those lobbying costs including salary should be financed entirely from the general fund of each association. If the Legislature does not grant cities control of the assets of the local associations' special funds, the state should assume all future increases in financial requirements of those local funds. ..:A — M. f t ,y t .0 n vo Ak Page 1 of 1 , low$§+]far .i a rte. 4 3' R PPS -14. Disability Retirement (B) 1. Pre-existing conditions. Public retirement funds shbuld not be charged the costs resulting from disabling conditions that a pre-employment history or physical demonstrates existed on or prior to the date of public employment. 2. Transfers. Needs to balance employment roles for minorities and women in unfilled positions should not override programs to transfer present employe from jobs and departments for which they are presently disabled to jobs and departments for which they still qualify. 3. Uniformity. Statutes governing local public safety pension plans should be amended to provide to the cities with such plans a substantial voice on the governing board of the plans. Further, a uniform statutory procedure and method of determining percentages of disability payments should be provided to local public safety fund members with physical or mental conditions which` permanently disqualify them from public safety employment but which do not., disable them from all other gainful employment. 4. 10.0% Disability Retirement. Public pension plans in which city employees participate should be required to use a uniform definition ofY disability which limits full or 100 percent to those whose medical conditions disable them from engaging in any substantial gainful activity over a substantial period. Unreasonable service limits tests should not be imposed, and no employee` should be required to have more than five years of service under the applicable plan in order to qualify for disability retirement Workers' compensation entitlements should be deducted from any disability pensions Disability benefits from all other sources othep than privately financed disability insurance, as well as a portion of employment earnings, should be an offset against city disability pension payments to the extent that these combined payments approach after-tax salary for the former position. Rising costs of disability retirements pose a threat to the financial soundness of most Minnesota public pension plans. The foregoing changes are needed to minimize the financial impact of legitimate disabilities. Furthermore, abuses of disability retirement provisions in public pension plans have, in the past, caused serious waste of human resources and scarce public funds. In view of the current laws forbidding discrimination against handicapped persons who are not disabled from gainful employment, the League recommends legislation to implement the above listed policy. � 1 Page 1 of 1 PPS -15. FLSA and Volunteer Firefighters. (B) Paid firefighters who have not vested in a local volunteer firefighters' relief association and who are forced out of volunteer status by a rule or decision of their employer should be allowed a deferred pension proportionate to their period of membership as a volunteer as that period relates to the minimum vesting period, multiplied by the benefit they would have received upon vesting. Recent changes to the federal Fair Labor Standards Act require employers to pay time -and -one-half compensation for overtime hours worked by paid :,. firefighters when they serve as volunteers for the same employer. To avoid this r liability, many employers have prohibited paid employees from serving as volunteers in the same capacity as their regular work. This has resulted in disputes as to volunteer pension rights. xr -40 Page 1 of 1 =--A PPS -16. Unemployment Compensation (C) The League recommends that the Legislature amend the unemployment compensation law to lengthen the requalification period, to limit eligibility for temporary employment under one year in duration, and to relieve part-time employers who continue employment of an individual from any responsibility to contribute to compensation due to termination from other employment The requalification q period for employees who voluntarily quit or are dismissed for cause is too low and should be substantially increased. In addition, the League believes that individuals who knowingly accept temporary employment of specific limited durations not exceeding one year and whose employment is thus ended, should be deemed to have voluntarily ended their employment and thus should be disqualified for certain benefits. The employers' involved should not be saddled with unemployment compensation costs for individuals who accept and perhaps even plan for the termination of such employment. Also, students temporarily employed as interns should be ineligible for unemployment compensation since the position is primarily an educational experience which by its very nature is not expected to be of indefinite duration. Finally, the current law unfairly treats cities employing part-time police, fire, or park personnel which are required to contribute to unemployment compensation due to termination from other employment even though the part-time employment is continued. Wr PPS-17. One Class of Beer (B) The League opposes the establishment of one class of beer and the off-sale of wine in other than liquor stores. The establishment of one class of beer in Minnesota would cause substantial problems in controlling the sale of beer in filling stations, grocery stores, drug stores, and elsewhere where 3.2 beer is presently sold. Also, 3.2 on-sale g establishments would be selling strong beer in competition with on-sale liquor ~ kw, establishments and municipal liquor stores. ;p t DVL rM. lip i N I .s F =-4 Priorities Land Use, Energy, Environment, and Transportation Committee Policy Number Title Priority LUEET-1 Wastewater Treatment A LUEET-2 Land Use, Planning, and Annexation A LUEET-3 Solid and Hazardous Waste B LUEET-4 Transportation B LUEET-5 Ground and Surface Water Management B LUEET-5 Eminent Domain Law B LUEET-7 Adverse Possession C LUEET-8 Energy Conservation and Production C LUEET-1. Wastewater Treatment. (A The League supports increased state and federal assistance, and alternative programs which provide financing for wastewater treatment construction projects Clean water is vitally important to the citizens of this country and particularly to residents and visitors of Minnesota. Minnesota's cities remain committed to improving water quality. Unfortunately, the costs involved in providing cleaner water are staggering. Because of the incredible cost, it must be recognized that it is economically impractical to immediately eliminate pollution. Therefore, all levels of government must take a reasonably balanced approach to solving the pollution problem. The ability of cities to comply with any clean water program must be recognized as contingent upon the availability of adequate funds for building treatment facilities. Since 1978, federal funding for the wastewater treatment construction grant program has been cut in half. Additionally, the federal share of construction grants dropped from 75 to 55 percent in fiscal year 1985. The budget constraints facing the federal government are undeniable, but those same constraints exist at the state and local level as well. It is unfair to those city residents who in the past have contributed their federal tax dollars to projects in other locations to be faced with a tripling of the local share for a project in their city. For this reason, if the federal government does not return the federal share for rehabilitation, repair, upgrading, and new construction of treatment facilities to 75 percent, the state should be the level of government to bear the increased burden. The League commends the Legislature for the enactment in 1984 of a separate state grants program and 1985 legislation which increased overall state financing assistance in certain circumstances. Increased revenues are needed for this program and the League opposes any reduction in the amount of the cigarette tax dedicated to wastewater treatment funding. The League recommends that the Legislature establish an expanded reimbursable grant program using up to one-half of the funds currently appropriated to wastewater treatment. This program, to be offered to communities on a totally voluntary basis, should seek to encourage immediate construction with minimal prior review by the Minnesota Pollution Control Agency and provide reimbursement to communities on the basis of proven performance in reducing pollutants in wastewater effluent. The program should be structured to the extent practical to avoid discouraging privatization and innovative treatment methods. The League supports a full review by the Legislature of proposed water quality permit fees and opposes the imposition of these fees on local units of government to the extent that they only serve as an alternative means for the state to raise revenue. If fees are determined to be properly imposed on governmental units, the fees should be based solely on the cost of actually providing governmental services to the political subdivision and private sector alternatives should be made available to ensure minimal costs to local taxpayers. Page 1 of 2 S— LUEET-1. Wastewater Treatment (A) Further, it is inequitable and the League opposes efforts by either the state or federal governments to institute enforcement actions or impose increased fees or charges against communities for failure to meet effluent standards while at the same time assigning these communities a low priority on the needs list for state and federal funding. Page 2 of 2 LUEET-2. Land Use, Planning, and Annexation. (A) The League supports current efforts to study the state planning statutes and recommends that the Legislature refrain from enacting any annexation or planning legislation in the 1986 session, pending a recommendation from the Governor's Advisory Commission on State -Local Relations. In conducting a review of any proposal affecting land use, planning, development, or annexation, the League urges the Advisory Commission or the Legislature to consider that public policies which encourage substantial development in non -urban areas and which extend public services beyond existing jurisdictions and service areas are wasteful and courtier -productive. Additionally, it should be accepted by all that prime agricultural land is a major natural and economic resource and any state land use strategy must include as a major objective the preservation of prime agricultural land. State law should continue to encourage the preservation of prime agricultural land and discourage the development of such land outside designated growth areas to be served by a city. The state should also encourage local governments to adopt agricultural preservation policies and ordinances. It must also be considered that, even if these steps are taken, a great deal of development will still occur in the fringe areas surrounding cities. The League recommends as a long-term goal that state statutes regulating annexation be changed to make it easier for cities to annex this developed or developing land, in order to insure the integrity of our governmental systems. It is unfair to city residents to have individuals avoid paying their fair share for municipal services provided by the city government by living in the fringe area around a city. The League supports the current efforts of the Governor's Advisory Commission on State -Local Relations to conduct a comprehensive review of the state planning statutes over the next year. The commission's main goal should be to evaluate and recommend possible changes to the planning statutes to address the problems of consistency and process in existing law. Particular attention should given to the problem of development and the delivery of governmental services.to urbanizing fringe areas. Recommendations and proposals for statutory change should be presented to the 1987 legislature. Pending these recommendations, the League urges the Legislature to refrain from amending the state's planning and annexation statutes in any way in the 1986 sessi. At r, ,a -w -4 LUEET-3. Solid and Hazardous Waste Management (B) The League supports state programs designed to minimize or eliminate the need to landfill solid and hazardous waste. The problem of regulating, controlling, and disposing of solid and hazardous waste will be one of the major environmental issues of the next decade, both nationally and locally. Major state legislation addressing this issue has been enacted annually since 1980. These acts responded to the concerns and issues raised by the League and local government and we commend the Legislature for its actions. The existing waste management and control system for the handling and disposal of hazardous materials centralizes responsibility at the state level but requires the cooperation and support of all levels of government. The system established for solid waste is more diffuse, relying on cities to control and regulate collection, counties to regulate or operate existing landfills, and the state to coordinate responsibilities and pian for future disposal needs. Both systems have been designed to foster and encourage abatement, recycling, and resource recovery for as much of the waste stream as possible and then to assure environmentally sound disposal for the remaining waste. The system has not been entirely implemented as yet, but it appears to be working and therefore the League does not perceive a need for major changes to existing legislation at the present time, but any future legislation that may be considered should enhance and not diminish the emphasis on these concerns: 1. Effective Planning. To the greatest extent possible, all levels and units of government and the private sector should be involved in all phases of planning and managing the solid and hazardous waste streams to assure a cost efficient and environmentally sound solid waste and hazardous waste disposal system. 2. Alternatives to Landfills. The League strongly endorses abatement, - recycling, and resource recovery activities and programs to reduce the need for ,. the land disposal of waste. The goal should be to reduce to the maximum extent practical the need for land disposal of unprocessed solid waste, and to totally avoid the land disposal of hazardous waste. The League would support the eventual prohibition of disposal of " unprocessed solid waste in landfills provided that cost-efficient alternatives are developed and funding is provided to cities to implement their responsibilities in a revised solid waste management system. A tax on solid waste deposited in landfills would be supported by the League if the funds derived from the tax would be used to establish a fund to pay for post closure costs of landfills and to finance recycling and abatement programs in the particular county where the tax is derived. In order to make local waste programs viable, a process for regulating the -.>_... flow of solid waste must be available to provide a sufficient source of waste for any recovery program or facility. The League also supports the concept that producers of solid waste should pay the true and full costs of solid waste disposal and commends the Legislature for its forward looking initiatives during x Page 1 of 2 44:1V7.1 Al LUEET-3. Solid and Hazardous Waste Management (B) the 1984 session in which a three -tiered system of fees on land -disposed solid waste was established with the intent of establishing a fee structure based on the type of waste disposed of in landfills. 3. Compensation and Incentives for Communities. Waste disposal facilities have many undesirable impacts on "host" communities and compensation for all direct and indirect costs incurred by the community should be provided. Direct costs include such things as fire protection, water and sewer services, buffer zone design and amenities, litter clean-up, while indirect costs include such items as road maintenance, monitoring costs, end-use planning and city administrative costs associated with the facility. The current authority for landfill host communities to impose a fee on waste deposited in the landfill should not be reduced. 4. Funding for Environmental, Personal, and Property Damages. Recent studies have indicated that most, if not all, landfills eventually cause groundwater contamination problems. It is largely undetermined at this point what the eventual impacts will be, and in contemplation of this, the League supports a surtax on solid waste going into landfills which will go into a fund dedicated to compensate persons or communities injured or damaged by adverse environmental incidents caused by landfill contamination, including real or personal property damage, personal injuries, clean-up activities, and alternative water supplies. 5. Clean-up of Hazardous Substance Locations. The clean-up and decontamination of existing hazardous waste sites should continue before there is further damage to public health and environment. If a responsible party can be identified, that party should be liable for clean-up costs and personal injury damages as defined in law. If a responsible party cannot be identified, then the clean-up should be financed by the state superfund. 6. Condemnation Awards. The League supports legislation ensuring that condemnation awards to compensate for a taking of polluted land are adjusted to accurately reflect the fair market value of the land in its polluted condition rather than its fair market value after pollutants are removed by the acquiring authority. Page 2 of 2 LUEET-4. Transportation (B) The League supports jurisdictional reassignment of roads based on functional classification but opposes any program for turnbacks that does not provide a corresponding source or mechanism of funding these roads. An efficient transportation system is a vital element in planning for the fiscal, economic, and social development at state, regional, and local levels. Since the agricultural and recreational economy of the state and its cities are dependent upon highway transportation, it is necessary to determine the long-range highway needs to assure the vitality of the state's economy. Furthermore, environmental concerns and the need to conserve energy require that alternate modes of transportation be utilized in meeting the diverse needs which exist in various communities and regions of the state. In order to provide a more adequate state governmental structure and funding mechanism for transportation system planning and development, the League recommends that the following changes be made: 1. Turnbacks. The State Highway Study Commission has been studying the possibility of reclassifying many roadways in the state as to appropriate use classifications and jurisdiction. The increased cost for cities to assume responsibility for general maintenance and life cycle treatment far exceeds the current financial capacities of cities. For this reason, no wholesale program of highway turnbacks should be instituted at this time. Instead, existing mechanisms for the orderly turnback of roads should be fine tuned, including increasing the level of funding in the municipal turnback account, and prohibiting unilateral revocations or turnbacks by road authorities unless a hearing is held and the road is brought up to its normal maintenance standards before the revocation is effective. Other changes needed to facilitate turnbacks include: a) State aid rules should be changed to allow counties to upgrade county state aid highways using c.s.a.h. funds prior to turnback with cityconcurrence and without penalty as currently imposed by the rules; r b) The League supports use of a portion of the highway motor vehicle excise 2 tax to provide an adequate source for turnback funds, and; c) The League supports allowing cities to determine if a turnback road will be designated as a state -aid road or local street and if the city chooses to designate the road as a state -aid road this designation should not affect the standard designation process so that developing cities will be able to continue to designate a percentage of new road growth as part of the state -aid system. 2. An adequate level of highway user funds should be maintained so that highway maintenance and reconstruction may be continued, and adequate funds be available for the state -aid street program �� Y Page 1 of 2= �. LUEET-4. Transportation (B) The Legislature has recently taken appropriate steps in this direction by increasing license fees and the gasoline tax to maintain this fund. Efforts should be made to eliminate any inequities in the motor vehicle license fee schedules and other vehicle taxes. The League supports legislative efforts to establish a system of direct appropriations to cities under 5,000 out of the 297 county share of the highway user funds at least to the extent that townships receive direct appropriations, as well as mandatory state guidelines concerning county use of these funds to ensure that all communities within a county receive an equitable share of these funds. Further, the state should establish minimum county funding participation requirements for projects. 3. The special state bonding program should be continued to provide funds for counties, towns, and cities for the replacement or repair of bridges. 4. Funding for at least the existing level of operation for mass transit should be maintained by the state. Available funds should be used at the city's option for capital or operating expenses. 5. The Legislature should continue the Minnesota Department of Transportation as the ride -share program coordinating agency and to provide adequate funding for its continuation. 6. The League supports the continued dedication of the sales tax on motor vehicle sales for transportation purposes, and advocates the prompt transfer of the motor vehicle excise tax into the highway user and transit assistance fund. 7. The possibility and feasibility of utilizing existing railroad trackage as part of a fixed guideway and/or light rail mass transit system should be addressed. If existing railroad trackage/right-of-ways are petitioned for abandonment, these or portions thereof should be preserved by appropriate government agencies through alternate public use until rail systems once again become economically feasible or needed because of energy considerations. 8. The Legislature should restore the bikeway grants program in order to promote safety in a growing recreational activity. 9. The League opposes legislation allowing truck tractor and trailer combinations of up to 110 feet on Minnesota highways due to the public entity and infrastructure cost problems caused by these trucks, such as off tracking of rear wheels, acceleration distance needs, and time and distance required for passing. Page 2 of 2 —T— LUEET-5. Ground and Surface Water Management (B) The League supports 1985 legislation establishing a framework and providing incentives for local governments to adopt programs or plans aimed at conserving Minnesota's ground and surface waters and recommends that the Legislature not substantively amend these statutes in the 1986 session. In order to safeguard the public health and the environment it is necessary to plan and manage our water resources as a valuable state resource. Many watershed districts, counties, cities, and towns have done a good job of dealing with surface and groundwater management issues and have the authority and ability to continue to do so in a cost-effective manner. These existing mechanisms should continue to be used to the greatest extent possible to address surface and groundwater management problems instead of establishing a new system or creating new organizations. Local units of government should retain the basic responsibility for surface water management as they are the level of government closest to the problem. 1982 legislation required local governments in the metropolitan area to adopt surface water run-off controls and regulations. 1985 legislation encourages similar steps to be taken in the non -metropolitan area of the state. These statutes should be given sufficient time to work before additional programs or extensive changes to existing programs are enacted by the Legislature. The Legislature should provide funds to further encourage counties to undertake water planning activities, and these state funds should be made available to cities that are required to make substantial amendments to local plans and controls, or that are employed to assist the county in preparation of the comprehensive water plan. Special levies should also be made available to fund water management projects. Page 1 of 1 n;. =- `A LUEET-6. Eminent Domain Law (B) The League recommends that the Legislature undertake -a thorough study of the eminent domain statutes. The League believes the entire eminent domain process should be critically reviewed and streamlined. This examination should include a re-evaluation of the advisability of an alternative system of review of condemnation awards, for example a professional referee, a hearing examiner, etc. rather than a court; using a professional referee in lieu of three commissioners to establish the value of the land; the public purposes for which the law may be used, including its use to encourage economic development; the difficulty posed by the existence of pollution on the condemned property; and the legality and feasibility of collecting property taxes on property for several years in instances where the award is substantially in excess of the market value of the property for tax purposes. Page 1 of 1 LUEET-7. Adverse Possession (C) The League supports legislation making it clear that no adverse possession can be had against the state and its political subdivisions. Page 1 of 1 Lk LUEET-8. Energy Conservation and Production (C) The League supports legislation providing incentives for energy conservation and production in both the public and private sectors. Overall energy conservation strategies involving the public, private, commercial, and industrial sectors are being developed by cities based on the rationale that conservation efforts achieve the greatest energy savings at the lowest cost. The League believes that a city's individual energy conservation strategy can be accomplished if the Legislature permits or establishes some of the following measures: 1. Retrofit of Local Government Buildings. Local governments and school districts operate nearly 8,000 buildings in Minnesota. Possible energy savings in this sector range from 16-67 percent of current energy consumption by implementing operation maintenance changes and capital improvements programs. The League recommends support of the use of special levies to local governments for implementation of energy conservation measures, including building energy audits. This special levy could be designed to complement 1983 legislation authorizing 10 -year installment payment contracts for capital equipment or services intended to improve the energy efficiency of municipally owned buildings. It would also supplement the existing special-purpose capital expenditure levy law available now only to school districts. 2. District Heating. To promote statewide applications of district heating technology and to allow communities to make most efficient use of the State District Heating Bond Program, the League recommends the following: a) The Legislature should provide additional funds or the ability to special levy for conducting district heating feasibility studies at the community level; b) The Legislature should strongly encourage consideration of district heating potential in the power plant siting process. c) The Legislature should continue to allow use of State District Heating Bond Program for renovation of existing district heating systems. d) Repayment of state bond issues would follow repayment of local obligations. 3. Low and Moderate Income Energy Assistance. Rising energy costs will continue to place a burden on the economic vitality of communities in Minnesota. The League recommends: a) continuation of the fuel assistance program for low-income households, with expanded services to train recipients in energy conservation practices and with a requirement of recipient participation in weatherization programs if the recipient is the owner; Page 1 of 2 LUEET-8. Energy Conservation and Production b) support for weatherization programs operated through cities, counties, and CAP agencies, and; c) continued support for the MHFA loan and grant program for home weatherization. 4. Conservation and Renewable Energy Financing. Declining federal support for implementing conservation and renewable resource projects will place a significant burden on local government attempts to maintain vital services to their residents and promote community development. The League recommends that cities be allowed to bond and to make a special levy for energy conservation and renewable resource projects. The Legislature should also continue to encourage private sector conservation through tax credits and other incentives and should explore the possibility of expanding incentives for earth -sheltered and underground development. S. Local Regulatory Authority. Local governments are in the best position to assess local needs and regulate energy consumption within their communities. The League recommends giving any municipality the option to adopt and enforce an energy code that may be more stringent than the state building code for purposes of energy conservation. Page 2 of 2 Policy Number DS -1 DS -2 DS -3 DS -4 DS -5 DS -6 DS -7 DS -8 Priorities 1A Development Strategies Committee Title Priority Tax Increment Financing A Development Financing A Housing B Municipal Service Districts B Port Authorities B Community Development Principles C Tax -Exempt Status of Land Held by Cities for Development C Small Cities Community Block Grant Program C � t t Fw r.: pay vT >• +'w !y :` LA DEVELOPMENT STRATEGIES POLICIES DS -1. Tax Increment Financing (A) The League recommends that the tax increment financing remain available for cities. Cities are willing to work with the Legislature to improve the program, as well as correct any problems with tax increment financing. Tax increment finance has permitted many cities in various parts of the state to define and carry out rehabilitation, redevelopment, housing, and economic development projects on their own initiative. It represents the most feasible and effective legal strategy which is currently available to cities to preserve and improve their physical and economic environment. In view of the dramatic reductions in federal assistance for development and housing, tax increment finance remains one of the few options available for cities to promote growth and development in their cities. Page 1 of 1 =- DS -2. Development Financing (A) The League supports the continued use of industrial -development bonds and other tax-exempt instruments as development tools. The following principles should apply to the allocation of tax-exempt development authority: 1. A maximum of Minnesota tax -ex retained by municipalities. t development allocation authority bei 2 The maintenance of local discretion and flexib4lity in development decisions. 3 The minimization of state control of local development decisions. Tax-exempt financing allows cities to undertake a diverse range of activities to prevent economic deterioration, to attract new businesses and jobs, to retain existing businesses and jobs, and to maintain and strengthen the local tax base. Pending federal tax legislation would substantially change the applicability of tax-exempt development financing. Should the state become involved in designing a new system appropriating tax-exempt bond authority to cities, the League recommends that the above three principles apply, in general, and that the League be centrally involved with the governor and the Legislature in fashioning an equitable system. Page 1 of 1 DS -3. Housing (B) The League of Minnesota Cities continues to encourage the use of tax-exempt financing for housing and supports the Minnesota Municipal Housing Revenue Bond Act, M.S. 462C, passed in 1979, and as amended In addition, the League recommends that legislation be considered to deal with the effects of proposed federal legislation that not only restricts single-family housing bonds but also multi -family housing bonds. The legislation should insure that all cities have the tools necessary to provide for their housing needs The League also supports legislation, which should include specialized opportunities for small communities, that would provide new housing bond alternatives, such as the taxable bond option and the continuation of the interest rate write-downs program. Cities recognize that incentives for the construction and rehabilitation of housing form a vital part of city redevelopment efforts and serve the housing needs of its citizens, especially those of low and moderate incomes. Since 1981, the Legislature has enacted several allocation plans which divide single-family bonding authority among cities. Because of increased needs and abilities of cities to conduct local housing bond programs, the current allocation to cities is often inadequate. Because of the Federal Mortgage Subsidy Bond Tax Act of 1980, the ability of cities to conduct housing programs has been severely limited. Federal law placed an annual cap on the dollar volume of the single-family mortgage revenue bonds that may be used in Minnesota, and the proposed legislation may extend the cap to the multi -family bond program. Because the proposed legislation would also be devastating to city housing efforts, the Legislature should review the single-family and multi -family housing laws together to develop new measures to insure that cities have the tools to provide for housing needs. Changes should include a fair allocation system and anything necessary to allow a taxable bond option to cities. The League, in general, supports amendments to Chapter 462C necessary to further assist cities in using housing revenue bond programs both as a redevelopment tool and as a way to provide housing for low- and moderate -income households. As for the MHFA, program funds should be targeted to cities in a manner consistent with local plans and programs. The MHFA should continue to improve its procedure whereby representatives of a diverse group of cities, chosen in consultation with the League, can participate in decision making as to MHFA priorities in targeting funds to cities. MHFA should be required to submit its multi -family bonds issue for review and approval to the city in which the development is located. The MHFA project should be consistent with the city's multi -family bond policy, and the project should be reviewed by the Metropolitan Council or by the city's regional development commission. The League supports the continuation of state income tax exemption of interest on housing bonds and continuation of the interest rate write-down program for cities. Page 1 of 1 DS -4. Municipal Service Districts (B) The League supports legislation which would allow cities to create municipal service districts. Cities should be allowed to finance the types of improvements listed in M.S. 429.021 (relating to the construction, replacement, and maintenance of such things as streets, sidewalks, gutters, storm and sanitary sewers, waterworks systems, street lights, and public malls, parking, or courtyards). Both service charges and ad valorem property taxes should be available to finance services or capital improvements in the district. Recent court decisions concerning special assessments have made it more difficult for cities to use special assessments to finance public services and improvements. The Minnesota Supreme Court has interpreted the state Constitution to require not only that a special assessment project "specially benefit" affected parcels of property, but also that the city be able to prove that the market value of a property will increase in direct relation to the amount of the special assessment applied to that property. This interpretation has created particular problems for several important city functions. First, it is more difficult to assess all (or even part) of a capital improvement project to repair or replace, as opposed to newly built improvements. This result hinders cities from meeting the widely recognized need for maintenance of the existing public infrastructure. Second, cities' ability to finance annual operating and maintenance costs of some services to property through the use of special service charges is either unclear or non-existent under current law. The only current financing alternative to special assessments or service charges is the general property tax. But it may not be desirable to use the general property tax to finance some capital or operating expenses. For example, if a road is used almost exclusively by people living in one corner of a city, it may be bad public policy to require the cost of replacing that road to be borne by all the property in the city. This is especially true if the property in the rest of the city has already been assessed for similar improvements. Or, if the central business district or mall of a city benefits from more frequent snowplowing or street cleaning, better lighting, etc. it may not be good policy to have all the city taxpayers share in those expenses. DS -5. Port Authorities (B) The Legislature should adopt enabling legislation allowing any city to create a port authority. A number of cities have benefitted from special acts of the Legislature allowing them individually to create port authorities. These cities have benefitted from additional flexibility in the economic development field. These opportunities should be available to all cities rather than requiring individual acts of the Legislature. Page 1 of 1 DS -6. Community Development Principles (C) The League supports legislation which continues state assistance to cities for community and economic development. The League encourages the Legislature to appropriate funds for direct assistance to business for economic development As a matter of principle, the state should not encourage the use of such direct assistance for the sole purpose of moving businesses from one Minnesota city to another. Technical assistance should be furnished by the appropriate state agencies to aid cities in promoting local development activities Minnesota cities have traditionally been responsible for their own economic growth. During the '60s and '70s, cities promoted development through the use of industrial revenue bonds, tax increment financing, and housing (or mortgage revenue) bonds. Substantial. federal grant programs supplemented local resources. The economic realities of the 1980s require even greater efforts by cities in community and economic development. As federal assistance disappears, cities are forced to become more creative in the use and leveraging of available resources. In recent years, the state has assisted cities' development efforts through legislation and agency -administered programs, including Minnesota Main Street, Star Cities, Minnesota Housing Finance Agency loan programs, and small business rehabilitation loan programs. State legislation must continue to provide maximum flexibility for cities to carry out community development activities. Additionally, the state must actively promote economic development through direct assistance to businesses and more extensive technical assistance to maximize cities' ability to leverage local, state, and federal resources. Any proposed community and economic development legislation should respond to the following concerns: 1. Protection of cities' ability to finance capital improvements; 2. Management of economic growth to maximize cities' existing capital investment; 3. Revitalization of cities reversing the trend of dispersion of population and economic activity; 4. Recognition and allowance for the great differences between cities regarding their stages of growth and development, demographics, and types of economic activity within and adjacent to their borders; and 5. The legislature should enable the Small Business Finance Agency to package projects which are approved by local city councils into larger 'industrial revenue bonds. Page 1 of 1 .... {' g n DS -7. Tax -Exempt Status of Land Held by Cities for Development (C) The League supports granting unlimited tax-exempt status to property held by cities and their political subdivisions for later resale to promote economic development. Up until recently, almost all property owned by political subdivisions was granted tax-exempt status. In 1979, the Legislature changed the law to provide that property held by a political subdivision of the state for later resale for economic development purposes would be considered a public purpose and therefore tax-exempt for a maximum period of three years. In 1984, the Legislature revised the statute, providing tax-exempt status for a period of eight years in most situations and granting an exemption for an unlimited period of years if the property is held for housing programs or is classified as "blighted land" under state law. The 1984 law provides, however, that the property will be taxable if the property is acquired for economic development purposes, and building or other improvements are constructed after acquisition of the property, and if more than one-half of the floor space of the buildings or improvements available for lease to or use by a private individual, corporation, or other entity is leased to or otherwise used by a private individual, corporation, or other entity. The overall intent of the statute is designed to create an incentive for political subdivisions to engage in economic development activities as well as to promote moving the property back onto the tax rolls. Unfortunately, it does not fully recognize that the process of developing industrial and economic growth, rehabilitating, or building housing may extend over a long period of time. The uncertainty caused by the vague provision on improvements and leasing of one-half of the property discourages cities from being active in establishing and maintaining local development corporations, from retaining as much control as possible over their economic development and planning process, and from being selective as to the type of development which may occur in the city. Cities have every incentive to get property back on the tax rolls as soon as possible. Therefore, the League recommends that the provision concerning one-half installation of improvements be deleted or at the very least clarified, and that the eight-year limit on tax-exempt status be removed. Pag 44 e ',g: .l , O ` L _ N 1 of 1 R, ..��- Ak DS -8 Small Cities Community Block Grant Program (C) The League supports the state's continued administration of the Small Cities portion of the Community Development Block Grant (CDBG) program. The League also supports the continuation of the set-aside of federal funds for economic development grants and augmented state appropriations to supplement the federal funds set aside The League discourages any legislative attempt to deal statutorily with complex, specific program criteria that are best handled administratively. The Small Cities CDBG program should continue as a source of funding which encourages cities to "develop viable communities by providing decent housing and suitable living environment and expanding economic df�ortunities, principally for purposes of low- and moderate -income," in compliance with congressional intent. The state should maintain the CDBG program balance between cities' economic development needs and the needs of low- and moderate -income people. Cities should retain maximum flexibility in determining how to carry out CDBG program objectives. Page 1 of 1 Priorities Revenue Sources Committee z A Policy Number Title Priority RS -1 State Funding to Cities A RS -2 Local Government Aid A RS -3 State Administrative Costs A RS -4 Municipal. Bonds A RS -5 Sales Ratio Study B RS -6 Elimination of Levy Limits B RS -7 Property Tax Reform C RS -8 License Fees C RS -9 Special Assessment Financing C RS -10 Equipment Financing C RS -11 Railroad Taxation C RS -12 Tax -Exempt Property C 0 RS -1. State Funding to Cities (A) The state is facing a potential revenue shortfall. The League of Minnesota Cities commends the Legislature for establishment of a large budget reserve and hopes that that is large enough to absorb any shortfall in revenues. The League of Minnesota Cities recommends that legislative leaders and the administration work with the League's Board of Directors in developing and analyzing alternative state responses should the shortfall exceed the budget reserve. At the time this policy is being drafted, it has not yet been determined that the scope of the state revenue shortfall will require actions beyond use of the budget reserve. Therefore, it is premature for us to propose specific responses. Property tax relief should continue to be a high priority. Cities will continue to do their best in that regard but the state has appropriately assumed a large role as a partner in that effort. The state should be a reliable partner and look to other areas of the state budget first in responding to any state budget crisis. Cities are currently experiencing many financial challenges that make it very difficult for them to continue to provide adequate services while keeping taxes as low as possible. These challenges include dramatic increases in insurance costs, federal cutbacks (including the elimination of federal revenue sharing), and declining tax bases in most non -metropolitan cities. Cities are not in a position that they can easily absorb another financial blow. The League Board of Directors is broadly representative of the 855 cities in Minnesota. That team will work to represent city interests in developing suggestions for how the state should respond if it is determined that a very serious budget problem must be dealt with. Page 1 of 1 RS -2. Local Government Aid (A The League strongly supports continuation of the local government aid program as an essential component of the state's property tax relief system. It is recommended that a six percent increase in the total appropriation be authorized for 1987 (state fiscal year 1988). The League makes the following recommendations regarding the distribution formula: 1. The formula used to distribute 1986 local government aid (LGA) should be continued for 1987. There should be a comprehensive study and review of this distribution formula and alternatives prior to the 1987 legislative session. The League is prepared to assist in that study. Major changes in the distribution formula should wait until the 1987 legislative session. 2. The League has a continuing goal of working toward a simple, easy -to -understand formula. Special provisions which benefit or hurt a particular city or group of cities work against that goal and can skew benefits to all other cities. Therefore, the League is generally opposed to these special provisions but is prepared to analyze and respond to proposed provisions on an individual basis. 3. The maximum increase for an individual city should be greater than the precentage increase in the overall LGA appropriation in order to allow cities farther from the formula to "catch up." As currently provided, the maximum should be 150 percent of the overall increase in state appropriation. With the recommended appropriation increase of six percent for 1987, the maximum increase should be nine percent. 4. As provided in the 1986 distribution, cities with large amounts of aid on a per capita basis should be somewhat constrained in their growth. It is recommended that cities receiving more than $150 per capita be limited to a maximum increase equal to half the general maximum increase. For 1987 that would be equal to 4.5 percent (half of nine percent). Local government aid is an important component of the state's property tax relief system. It complements cities' other major revenue source, the property tax. A complementary revenue source for cities is necessary because a city's ability to raise revenue from the property tax does not necessarily coincide with the cost of the services which that city must provide to its residents. Because of the payment schedule shifts enacted in response to a past state budget crisis, aid for calendar year 1987 is paid out of state fiscal year 1988. Because cities must set their levies in the fall of 1986, the 1986 Legislature must establish the funding level and formula for 1987 during this legislative session. A six percent increase in LGA is recommended for calendar year 1987. Property tax relief has always been a high priority for the state. Cities will continue to try to keep levies down as far as possible but will find that a tough challenge in 1987. Federal revenue sharing has been used by many cities to fund essential services and will be completely eliminated for 1987. Further budget pressure will likely result from continuing increases in insurance, Page 1 of 2 RS -2. Local Government Aid (A) implementation of comparable worth studies, increased debt service costs, and cutbacks in other intergovernmental revenues. A six percent increase in LGA will assist cities in avoiding sudden large increases in property taxes. It is recommended that the distribution formula adopted for 1986 be continued for 1987. Studies of distribution formulas should continue prior to the 1987 legislative session and major changes should wait until that session. The League is willing to again bring various city interests together to assist in analyzing and responding to proposals. In general, the League is opposed to special formula provisions which benefit or hurt a particular city or group of cities. Provisions that benefit a particular city or groups of cities do so at the expense of all other cities. No matter who wins or loses, these special provisions work against having a simple, easily explainable formula. It has been a continuing League goal to have a simple, easy -to -understand formula that all cities can quickly get on. In the long term these special provisions make it much more difficult to achieve that goal. However, the League realizes that it is likely that specific amendments will be proposed and is prepared to analyze and respond to those proposals on an individual basis. The maximum increase for any individual city should continue to be 150 percent of the percent increase in overall state appropriation. Therefore, with a six percent increase in overall state appropriation, it is recommended that the maximum for any city be set at nine percent. A larger spread between the maximum increase and the increase in the overall appropriation would result in very large increases for those cities at the maximum at the expense of all cities on the formula. Cities receiving more than $150 per capita in LGA should be limited to a maximum increase equal to half of the general maximum. Page 2 of 2 RS -3. State Administrative Costs (A) The League is opposed to deducting state administrative costs from the funds appropriated to provide property tax relief. All state government costs should go through the standard appropriation process review and be funded directly by specific state appropriation, not handled as a broad deduction from the property tax relief programs. For the first time, certain costs of state government are being paid for through the local government aid appropriation. In 1986 this includes $178,000 for the state auditor's office and $16,000 for the state demographer. The decisions on the necessary staffing and funding levels for state agencies are made in the appropriation committees, tax policy is generally handled by the tax committees. Coordination between committees is often difficult in the final weeks of the legislative session. The decision to impose these administrative costs last year resulted in nullifying the absolute grandfather provision and determining that the state would not pay the full amount it had promised cities the previous August. This also resulted in less funds being available for property tax relief. In order to promote a cohesive and comprehensive state tax policy and provide for adequate review of proposed state agency costs, it is recommended that no state agency administrative costs be deducted from property tax relief funds. This will allow the tax committees to fully determine the level of property tax relief to be provided and retain primary input on such provisions as the grandfather clause. Page 1 of 1 RS -4. Municipal Bonds (A) The League of Minnesota Cities recommends that the Legislature repeal interest rate limitations on bonds so that cities can continue to effectively participate in a changing bond market. The traditional way of financing most local public improvements and facilities has been and will likely continue to be through the issuance of bonds. But the public bond market is undergoing change. Congress is seriously considering proposals that would remove the tax-exempt status of many bonds sold by public entities in the future. Because the public sector has not had to compete with private investments, it is difficult to predict the full result of this but clearly interest rates will be higher. The current interest rate limitation (Minnesota Statutes Section 475.55) is a floating rate that has not prevented any bond sales since its adoption. But it may do so when cities and other public bodies are forced to enter the taxable bond market. It is the League's position that artificial statutory bond interest ceilings do not have the effect of holding down interest rates and may, in fact, add somewhat to the costs of bond issuance by the creation -of additional legal and procedural requirements. Interest rates in the bond market fluctuate in response to a combination of many economic forces. Local officials must operate within the realities of the market, and whether there is a statutory ceiling or not, local officials have every incentive to keep issuance costs as low as possible. Therefore, it is recommended that the interest limit be repealed so that city officials can respond effectively to whatever bond market changes occur as the result of market forces or federal action. Page 1 of 1 =-4 RS -5. Sales Ratio Study (B) The Legislature should direct the department of revenue to study alternative ways of determining the sales ratio for small communities with very few actual sales. Various state formulas consider property tax base valuation in distributing aid. Sales ratios are calculated for each jurisdiction by comparing actual selling prices of properties to the estimated market value that had been assigned by the assessor. These sales ratios are used to equalize assessed values so that all local governments are treated fairly and not rewarded or punished based on their assessment practices. Sales ratios are, therefore, very important in determining how much state aid a particular community will receive. Yet there are significant problems in determining the sales ratio, particularly in small communities. Often there may not be enough sales in a given class of property in an area to accurately determine a sales ratio. Current practice is to then apply a countywide average. The county average may be overly influenced by a large regional center and not accurately reflect the situation in the smaller cities of the county. It is recommended that the Minnesota Department of Revenue be directed to study alternative ways of calculating the sales ratio for areas with few sales and report its findings and suggestions to the 1987 Legislature. Page 1 of 1 =' RS -6. Elimination of Levy Limits (B) The League of Minnesota Cities recommends that the Minnesota Legislature repeal the levy limit laws in order to improve cities' abilities to plan for and respond to change and enhance local accountability. Cities in Minnesota must comply with multiple limits on their ability to levy taxes. These limits make it difficult for many cities to adequately plan for and respond to changing conditions. Federal cutbacks, skyrocketing insurance costs, costs of comparable worth salary adjustments, and other forces often require cities to re-examine their budget. Constraints on their ability to levy prevent some local officials from using property taxes as a source of revenue to provide for adequate reserves or absorb increased costs. Local elected officials are accountable to the public and should be entrusted to responsibly use their taxing authority. Cities exist in a very dynamic, changing environment. They are expected to be able to quickly respond to changing federal policies, state mandates, court rulings, and market forces such as those currently shaking the insurance industry. Statewide limits artificially constrain the options available to elected officials and are too inflexible. All cities are subject to a per capita limit outlined in M.S. 275.11. Certain levies are allowed outside this levy limit, but these special levies differ from those contained in the other limits. Statutory cities are further constrained by a millage limit on their general purposes levy found in M.S. 412.251. Special purpose levies are allowed outside of this levy limit. Home rule cities may have levy limits in their charter. Their charter limit may be affected by M.S. 426.04 if it is less than 13 1/3 mills. Iron Range home rule cities in which more than 25 percent of the assessed value consists of iron ore have special provisions in statute. The percentage limit in M.S. 275.51 is the one with which most policy makers are familiar. The 1983 Legislature exempted all cities with less than 5,000 residents from this limitation. This was a positive step, but cities of all sizes should be trusted to use their taxing authority. Given uncertainties in state and federal financial aids and the diverse problems and circumstances faced by cities throughout the state, uniform limits are impractical. These limits are inconsistent with the principles of local self-government and accountability and should therefore be repealed. Cities should be encouraged to plan for future capital improvements (major street projects, bridge rebuilding, etc.) and their financing. Current law allows cities to establish a public works reserve fund to help fund future capital improvements. Levy limit restrictions currently hamper many cities from making use of this tool. If levy limits are retained, the levy for public works reserve funds should be given special levy status. Currently the system encourages debt as a funding mechanism for capital improvements because of the special levy status of debt retirement. All capital funding options should have equal status as special levies. Page 1 of 1 =—a-\ RS -7. Property Tax Reform (C) In enacting any major reforms of the Minnesota property tax system, the Legislature should ensure that the following conditions are met: 1. The impact of the proposal has been thoroughly analyzed, not only from a statewide perspective, but also in terms of its impact on individual communities. 2. There should not be major shifts in the relative relationship of tax burdens between taxing jurisdictions. 3. All significant changes should be phased in so that cities can adequately plan for any needed adjustments. 4. Property tax reform should not jeopardize existing development districts whose establishment and financing was based on continued maintenance of the current tax structure. Any tax reform needs to recognize existing tax increment finance districts and their cash flow and obligations as outlined in their tax increment financing plan. Impact on enterprise zones must also be addressed. 5. Local government aid should be maintained as an essential component of the property tax system. (See RS -2. Local Government Aid for the League's position on LGA.) 6. If the net individual homestead tax burden is increased, the state dollars freed up should be used for property tax relief such as the circuit breaker. Changes in the circuit breaker application procedure should then be implemented so that qualifying property owners are able to meet their tax obligations without increasing delinquency rates or jeopardizing their cash flow to the point that their ability to get or maintain mortgage financing with tax escrow accounts is jeopardized. 7. Simplification and accountability are desirable goals that should be addressed within the above tenets. Many significant changes to the overall property tax system are currently being considered. Because no specific proposals had been put forward during the development of these policies, the League has developed some general criteria to consider in evaluating any tax reform proposal. It is very important that any proposal be evaluated on the basis of its impact on individual communities. A proposal that appears balanced on a statewide basis can have a very diverse impact on individual cities. The disparity or difference in property tax burdens among taxpayers in neighboring tax jurisdictions should be kept within acceptable limits. Any imposed disparities could have a significant impact on the ability of cities to compete with each other on a fair basis for residents or economic development. Page 1 of 2 RS -7. Property Tax Reform (C) (cont'd) Tax increment districts are dependent on the mill rate and assessment ratios of the current property tax system. The financial viability of those projects should not be jeopardized by state -imposed changes in the tax structure. Likewise, enterprise zone businesses have been recruited based on a commitment that they would receive a preferential classification ratio in the calculation -of their property tax obligations. These development districts should be protected from any negative consequences of tax reform. The tax increment financing plan in effect at the time that legislation is passed should be the basis for determining remedies. Any reduction or elimination of the state homestead credit program should not be implemented unless the freed state dollars are dedicated to property tax relief. Consideration is being given to reducing or removing the homestead credit in favor of greater reliance on the circuit breaker. Implementation of such a system might jeopardize the ability of some homeowners to make their May property tax obligations or be able to afford higher escrow account payments on their mortgages. It is recommended that if such a system is implemented that homeowners apply for it early in the year and have it credited against their tax bill in both the May and October payments. Perhaps the application for circuit breaker could be sent out with the property tax statements. Page 2 of 2 RS -8. License Fees (C) The Legislature should repeal all maximum fee provisions relating to off -sale liquor, on -sale wine, bottle club, and Sunday liquor licenses and allow cities to decide locally the appropriate fee to charge for such licenses. With few exceptions, the statutes granting authority to issue licenses or permits do not specify maximum fees. Cities have the discretion to set fees based on their own costs, needs, and standards. Case law provides ample limitations on cities' power to set license fees by requiring that revenues produced must be related to the cost of issuing the license and regulating the licensed business. It is inappropriate for the Legislature to set maximum fees for off -sale liquor, on -sale wine, bottle club, and Sunday liquor licenses. Cities have acted responsibly in using their discretion to set on -sale liquor license fees. It makes no sense to grant that power and then to deny them the power to set off -sale liquor and on -sale wine license fees as well as Sunday liquor and bottle club fees. There is no evidence to show that lifting the statutory cap would lead to unjustified fee increases. Some sort of reasonable increases in off -sale license fees could be expected in light of the fact that the statutory maximum fee has not been increased for over 30 years. Page 1 of 1 Z -A RS -9. Special Assessment Financing (C) The law on interest charges on special assessments should be changed so that a city may charge an interest rate that more fully reflects the cost of the financing. Special assessments financed by bonds. In 1982 the Legislature changed the law governing the statutory interest ceiling for municipal bonds. The new law, which provides for a floating monthly maximum interest rate, creates a problem in regard to the interest rate which a municipality may charge on special assessments. The interest rate which may be charged is determined according to the maximum rate allowed to be paid on municipal bonds for the month in which the resolution authorizing the special assessment is adopted. If a city sells the assessment bonds in a later month, the interest rate payable on the bonds may be greater than that allowed to be charged for the special assessment. The city is left having to absorb extra costs. The League recommends that the law be changed to ensure that a aty may charge an interest rate on special assessments at least one percentage point higher than the rate payable on the bonds which finance the assessment. Special assessments financed internally by a city. M.S. 429.061, subd. 2, restricts to eight percent the interest rate a city may charge on internally financed special assessments. The League recommends that the allowable interest rate be increased to more accurately reflect the cost to the city of internally financing assessments. Page 1 of 1 RS -10. Equipment Financing (C) M.S. 412.32 should be amended so that all Minnesota cities are able to issue "five-year equipment certificates" in an amount not to exceed one percent of the city's assessed valuation in any given year. No reverse referendum provision should apply unless the city wishes to exceed the one percent limit. Statutory cities in Minnesota have the power to issue certificates of indebtedness, payable in not more than five years, to purchase fire, police, ambulance, street construction, or maintenance equipment. (M.S. 412.301.) If the amount of the certificates exceeds one percent of the city's assessed valuation, a reverse referendum provision applies. In 1983, the Legislature granted similar financing powers to Minnesota's home rule charter cities (M.S. 412.32), without any reverse referendum provision. However, the total principal amount of the certificates (or "capital notes") issued in a fiscal year is limited to no more than one-tenth of one percent of the city's assessed value that year. In many cities, this limit is prohibitively low, and effectively prevents the city from making use of the authority granted in this statute. Page 1 of 1 RS -11. Railroad Taxation (C) — A new formula should be adopted for the valuation of railroad operating property for property tax purposes. The existing system for taxation of railroad operating property is not consistent with the taxation of other commercial and industrial properties. The present formula values railroad operating property at about 20 percent of the value which would be determined by a local assessor using generally accepted assessing principles. The League recommends that a new system of property taxation be established which would enable railroads operating in Minnesota to be taxed consistent with the taxation of other commercial and industrial properties. This system should contain the following features: A new formula should be developed for the valuation of railroad operating property for property tax purposes. The new formula should contain two equal factors. One of these factors should be 50 percent of an amount based upon: the average value of all of the taxable land in the city or county times the area of the railroad operating land plus the value of railroad operating structures as determined by the local assessor. The other factor would be an amount based on either the stock and debt of the railroad or the capitalization of earnings approach. "Operating land" is defined to mean any land which underlies the operating structures defined below and rights-of-way adjacent thereto and which is necessary to the integral performance of railroad transportation services. "Operating structures" is defined to mean all structures owned or used by a railroad company in the performance of railroad transportation services including without limitation, franchises, bridges, trestles, tracks, shops, docks, wharves, buildings, and other related structures. All operating structures except railroad bridges, trestles, tracks, docks, and wharves should be taxable. The present system for valuing and taxing non-operating property should not be changed. Page 1 of 1 S-A RS -12. Tax -Exempt Property (C) State, county, school district, city, regional government, and other owners of tax-exempt property (except houses of worship) should be required to reimburse cities for the cost of police, fire, and street services One of the glaring inequities in the Minnesota tax system involves local services that are provided free to tax-exempt property owned or used by the state, counties, school districts, regional governmental bodies, and by certain non-governmental organizations. It is widely acknowledged that such property benefits directly from governmental services such as police and fire protection and street services provided by cities. Since there is no legal basis, however, for claiming reimbursement for the costs of such service, they are borne by the local taxpayers. Furthermore, such property is concentrated in certain cities, resulting in a heavy cost burden upon those cities. Page 1 of 1 Policies Federal Legislative Committee Policy Number Title FL -1 General Revenue Sharing FL -2 Federal Tax Reform FL -3 State -Local Tax Deductibility FL -4 Municipal Bond Restrictions FL -5 Mortgage Revenue Bonds FL -6 Housing FL -7 Superfund FL -8 Wastewater Treatment FL -9 Non -Point Pollution and Stormwater Regulations =--4 FL -1. General Revenue Sharing The League of Minnesota Cities supports federal legislation to reauthorize General Revenue Sharing (GRS) with adequate funding to assist local governments. The League supports a revision of the current distribution formula to recognize the differences in local fiscal capacity and to more directly assist cities in meeting the costs of federal mandates. Recognition of fiscal capacity in the distribution of GRS will provide assistance to those cities whose capacity to raise local revenues is inadequate to meet the needs of residents. The League concurs with the National League of Cities that GRS remains the top priority federal aid program. GRS provides vital financial assistance to all cities. Therefore, re-enactment of GRS must be a priority for the 99th Congress. Continuation of GRS as an entitlement program for general purpose local government should address the need to compensate cities for the cost of federally mandated programs and to aid in the funding of local services in areas of national interest as well as to provide revenues to assist cities in overcoming the adverse effects of federal fiscal policies and national economic conditions. Reauthorization of GRS on an entitlement basis for five years is needed to re-emphasize the need of cities for dependability of GRS funding as well as to provide continuity in the assistance offered to local government. Page 1 of 1 FL -2. Federal Tax Reform LMC opposes current federal tax reform proposals that reduce the ability of cities to raise revenues and capital to meet local needs. The League agrees that the current federal tax system is in need of major reform to overcome disparities in the treatment of individual and corporate income and to address the need to simplify the manner in which individuals and businesses are taxed. Unfortunately, tax reform proposals favored by both the Reagan Administration and the House Ways and Means Committee -would make modifications in marginal income tax rates at the expense of local government revenue and bonding authority. Page 1 of 1 =-4 FL -3. State -Local Tax Deductibility The League of Minnesota Cities supports full deductibility of state and local taxes for federal income taxes and opposes federal tax reform proposals that call for its elimination or reduction. The continuation of deductibility recognizes the direct and indirect relationships between federal and local tax systems and supports the historic right of states and localities to raise revenues and of individual taxpayers not to be double taxed. Continuation of the deductibility of state and local taxes is fundamental to the maintenance of federal fiscal policy that recognizes the importance of the authority of cities to determine the level of local taxes and services. Full deductibility ensures a flexible and progressive tax system, based on the ability to pay. Minnesota city officials support the current National policy that advocates restoring to the federal tax system a fairness, efficiency, and simplicity without imposing a new employed widely by state and local government. Page 1 of 1 League of Cities' higher degree of tax on taxes FL -4. Municipal Bond Restrictions LMC opposes imposition of use tests and the severe restrictions on local authority to issue tax-exempt bonds. The League also opposes House Ways and Means Committee action to limit the eligibility of the many activities for tax-exempt financing, including: industrial parks, hydroelectric plants, electric and gas furnishing facilities, district heating and cooling systems, public transit and parking facilities, hazardous waste facilities, etc. Efforts to set a use test at ten percent (or $10 million) of bond proceeds create an arbitrary and unrealistic view of the manner in which cities must provide for maintenance of infrastructure and management of growth. It would be more reasonable to assume that if more than 50 percent of the benefits of such municipal bond issues rendered to a non-governmental entity, such bond authority would be circumscribed to reflect the involvement of private interests. It is simply unworkable for cities to responsibly carry out local improvement and development activities with these severe restraints on tax-exempt financing authority. Tax reform proposals that seek to redefine governmental and non-governmental. uses of municipal bonds strike directly at the authority of cites to finance needed public improvements as well as redevelopment and economic development activities in the public interest. Proposed restrictions that would require all tax-exempt, non-governmental bond issues to be limited by a state by state per capita volume limit threaten to force cities and other units of government to compete for allocation of severly restricted bond authority. Such policy pits public and private uses against one another and denies cities the flexibility to implement local improvement planning and economic or redevelopment strategies in a timely and responsible manner. Restrictions on arbitrage and refunding proposed by the House Ways and Means Committee go far beyond the regulation of profits and result in greater costs to cities and directly intrude on local financial management decisions. Page 1 of 1 FL -5. MortRaQe Revenue Bonds The League of Minnesota Cities supports the use of tax-exempt financing for housing and urges Congress to resist efforts to further restrict single- and multi -family housing bonds. Current federal tax reform proposals, along with severe reductions in federal spending for assisted housing imposed since 1981, have made the problem of the lack of affordable housing in many cities a critical one for local government. LMC opposes the expiration of the Mortgage Revenue Bonds in 1987 unless Congress acts before that time to establish a new, more efficient and extensive housing program to aid cities' housing programs aimed at both rehabilitation and development of single- and multi -family housing. LMC therefore opposes proposed federal tax reform provisions adding housing bond authority to those bond issues regulated by a new per capita volume limit. The current allocation of bonding authority to cities for single family housing is inadequate. Now that limited resources may be even more scarce, further cuts in assisted -housing programs cannot be justified. Nor can federal tax reform efforts jeopardize the affordability of current and future housing for low- to moderate -income residents. Page 1 of 1 FL -6. Housin The League of Minnesota Cities supports substantially higher levels of federal funding for housing production aimed at those with low and moderate incomes. A multi-year commitment is needed to assure stability and planning of housing programs at the local level. Current assisted -housing programs that provide less than 100,000 units per year are clearly inadequate. Changes that have already occurred with the withdrawal of federal housing funds make more urgent the need for establishing a fair allocation system among cities and may make the provision of authority for cities to issue taxable bonds to meet local housing needs a concept worth examining for the future. Rather than the current record of retreat from responsibility for housing, the federal government must support programs encouraging rehabilitation of single- and multi -family dwellings, including preservation of tax incentives to encourage investment in preservation of current housing stock as well as construction of new housing to meet the need for affordable housing. In all areas of federal housing legislation, attention should be paid to the implementation of housing policy whether through direct spending or that which occurs through tax code provisions. Page 1 of 1 FL -7. Suverfund The League of Minnesota Cities supports the enactment of a broad-based corporate tax to support increased funding of a five-year program needed to deal with hazardous waste site cleanup efforts. Current Superfund program funding is inadequate to meet the costs of cleaning up hazardous waste sites and assisting local government to recoup costs associated with efforts to rehabilitate polluted areas and to provide access to safe drinking water for city residents. A combination of excise taxes and corporate surcharges in addition to the current feedstock tax is needed to accomplish that purpose as well as the extension of tax levies to hazardous materials riot currently taxed. The League recommends that Congress review Minnesota's system of generator taxes in establishing federal taxes and surcharges. Hazardous Material Efforts to require disclosure of hazardous material production, use, and storage must continue, although cities must be given reasonable opportunity to aid in the design of requirements affecting local government and ample time and means to implement them. Federal community right -to -know legislation should address conflicting provisions of state and local right -to -know and emergency response mandates and establish a national policy governing both concerns. Waivers should be provided for instances in which local government demonstrates that health safety needs require special treatment. Page 1 of 1 FL -8. Wastewater Treatment The League of Minnesota Cities supports a return to a federal share of 75 percent of the costs of rehabilitation, repair, upgrading, and new construction and continued eligibility for construction of treatment plants, interceptors, and major appurtenances, infiltration/inflow collection, major sewer rehabilitation, collector sewers, and combined sewer overflow projects. The League also favors retention of tax incentives that encourage privatization of construction and operation of treatment facilities and opposes federal tax reform proposals to end or restrict such options. Clean water is important to the economic and social well-being of not only the state of Minnesota, but the nation as a whole. The League supports the federal government's recognition of water quality as a national problem and feels the establishment of national water quality standards is appropriate, providing that the federal government assists in funding necessary programs. Current Congressional efforts to phase out construction grant programs in the House and Senate Clean Water bills must be opposed. At a minimum, current levels of funding must be maintained to assure that cities will be able to continue pollution abatement efforts on an uninterrupted basis. The League opposes any reduction in federal funding of these programs. Creation of a federal loan program to assist in the financing of wastewater treatment projects is appropriate but only as a supplement to the existing grant program and not as a replacement program. Federal grants should be made to the states through water quality block grants, with the focus on achieving significant improvement of water quality. Oversight by EPA should be restricted to general supervision of grant administration by the responsible state agencies such as the Minnesota Pollution Control Agency. Much of the costs of construction are directly attributable to delays in processing grants and reviewing projects. Administrative costs could be significantly reduced by employing block grant delivery to the states. Assistance from the federal government is necessary if there is to be any hope of meeting the 1988 target for effluent standards. If federal funds are not available to support the requirements and objectives of the act, timetables for meeting these requirements should be postponed or the requirements reduced for at least secondary treatment standards. The League suggests that the EPA's compliance policy should be modified so that municipal wastewater treatment compliance plans can be constructed to achieve the level of compliance that is consistent with federal financial assistance. Additionally, the League recommends that wastewater treatment programs be modified to provide financing to upgrade alternative environmentally sound systems of on-site or community disposal of domestic and commercial waste in cities. Page 1 of 2 FL -8. Wastewater Treatment (cont'd) The existing system has tended to rely too heavily on single solution approaches which may not be appropriate or economically feasible in small. cities. As a result, small cities have been required to install very costly central collection and treatment systems without regard to cost/benefit considerations or their ability to finance the continuing operation of such systems. Similarly, larger cities have been discouraged from using alternative strategies where they might have been appropriate. Page 2 of 2 FL -9. Nor. -Point Pollution and Stormwater Regulations The League of Minnesota Cities supports action by Congress to establish a separate funding program for abatement of non -point pollution. Congress should resist e=fforts to designate a portion of wastewater treatment construction grant funds for that purpose. The League of Minnesota Cities also opposes proposed EPA stormwater regulations requiring the identification, testing, and regulation of discharges from countless numbers of locations. Page 1 of 1 Minutes of the Regular Meeting of the Park and Recreation Advisory Commission December 12, 1985 Page 37 Present: Chair Edwards, Commissioners Anderson, Beach, LaTour, Mullan and Reed; staff Blank and Pederson 1. CALL TO ORDER Chair Edwards called the meeting to order at 7:38 p.m. in the Council Chambers. 2. APPROVAL OF MINUTES A motion was made by Commissioner Reed and seconded by Commissioner LaTour to approve the minutes of the November meeting. The motion carried with all ayes. 3. VISITOR PRESENTATIONS There were not visitors present at this meeting. 4. REPORT ON PAST COUNCIL ACTION a. Our grant has been approved for the purchase of a fitness court to be installed in Zachary Park. The Plymouth Rotary Club will donate $1,000 for two years to the Recreation Department for the fitness court; they will help install it, also. b. The Parkers Lake Phase I construction plan was also approved. 5. UNFINISHED BUSINESS a. The appointment to PRAC will not be completed until sometime in January, zfter the Council fills their vacancy. The PRAC educational seminar will be held March 13 during the regularly scheduled meeting. The r-eeting will begin at approximately 6:00 p.m. and include dinner. Regular agenda items will be discussed first. b. PRAC reviewed their 1985 goals taken from the 1984 annual report in preparation for making their 1986 goals and objectives. It was decided that goals 2 and 13 should be combined since they are somewhat similar. A possible new goal dealt with meeting with surrounding city's commis- sions occasionally to share ideas, etc. Director Blank said he would draft the language for this goal to be reviewed at the January meeting. Carol Beach suggested that a specific goal be written regarding a community center. After some discussion, it was decided to include a separate statement within goal 2 about the development of a community center. 6. NEW BUSINESS a. Director Blank reviewed the 1986-90 Parks CIP list. He pointed out that the first item in 1986 is trails rather than the County Road 15 trail as listed. He stated that the most important item under consid- eration is the Zachary concession building which is necessary to fully utilize this athletic complex. A MOTION WAS MADE BY COMMISSIONER BEACH AND SECONDED BY COMMISSIONER ANDERSON RECOMMENDING THAT THE CITY COIJNCIL AUTHORIZE THE DIRECTOR OF PARKS AND RECREATION TO PROCEED WITH THE NECESSARY STEPS TO IMPLEMENT THE CONSTRUCTION OF THIS FACILITY. The motion carried with all ayes. Trail work finished in 1985 was discussed, as well as trail work not completed and trail work proposed for 1986. Director Blank then explained PRAC Minutes of December 12, 1985 Page 38 z 5 how park dedication funds have been spent this past year and how the remaining undesignated balance will be spent. Some of the undesignated balance in the park dedication account may be spent to remove buildings west of Niagara Lane that are on Minneapolis property, to buy the house on Fernbrook Lane next to the Historical Society building, and to buy a small house near East Medicine Lake Boulevard which will be used for the future regional trail. b. A list of possible new programs was discussed that could be implemented to produce more revenue. Some of the ideas mentioned included: pay concerts in the amphitheatre (where Music in Plymouth is held), planning trips and parties for companies in Plymouth, ads in Plymouth on Parade, charging swimmers at our beaches, selling beer at tournaments, etc. It was decided that a committee should be formed to do further research into revenue producing programs. Carol Beach and John Mullan volunteered to serve on the committee. c. Director Blank stated that we would be making our final payment in 1986 on the 19 -acre Bass Lake Playfield contract -for -deed. He also mentioned that a developer may be dedicating 2.8 acres for neighborhood park proposed in this area. In order to meet neighborhood park requirements, we will be buying an additional 3.2 acres for a total of six acres of neighborhood park land. 7. COMMISSION PRESENTATION Chair Edwards encouraged PRAC members to attend the 1986 Minnesota Recreation and Parks Association Annual Conference which will be in Duluth. 8. STAFF COMMUNICATION None. 9. ADJOURNMENT The meeting adjourned at 9:08 p.m. 1985 McPlymouth Pleased Patron Counter "Over 300 Served" Division: All Divisions* T — k -,c DATE # Finance # Assess # Admn Plan. # Bldg. Inspec. # Eng. It Park & Rec. TOTAL PER EVENING 10/21 1 5 2% 1 11% 1 21% 8 10/28 2 1 1 4 11/4 1 4 1 1 1 8 11/18 1 1 2 4 11/25 1 1 1 3 12/2 1 2 2 5 12/9 1 2 3 12/16 1 1 2 12/23 2 2 12/30 8 3 1 1 13 TOTAL BY DIVISION 5 27 3 6 5 2 4 52 % of Total Traffic: 10% 52% 6% 12% 10% 4% 8% 100% Average customers per Monday night equals 5 TOTAL 1985: 71 96 6 22 35 15 65 310 % of Total Traffic: 23% 31% 2% 7% 11% 5% 21% 100% Average customers per Monday night equals 6 * Police Dept. did not keep weekly records as they would have been available to serve the public until 7:30 pm. without the extended office hours program. OF PLANNING APPLICATION VOLUME BY TYPE The following figures represent the number of applications received and in process by the Planning Department for the month of: December 1985 TYPE OF APPLICATION THIS YEAR THIS MONTH LAST YEAR MONTH TO DATE LAST YEAR TO DATE Site Plan 3 58 1 50 Preliminary Plats*/RLS - 28 1 36 Final Plats*/RLS 1 47 2 47 PUD Concept Plans - 7 - 10 PUD Preliminary Plats - 10 2 14 PUD Final Plats 1 18 1 26 Conditional Use Permits 6 64 3 58 Rezonings** - 13 1 18 Lot Division/Consolidation 1 32 2 27 Variances 2 52 1 43 Sign Plans _ - _ 1 Site Plan Amendments _ 1 Rev General Development Plans - 1 Land Use Guide Plan Amendments** - 7 _ 6 Landscape Plans _ Other - 3 - 2 TOTAL 14 341 14 338 * Other than Planned Unit Developments **Includes Planned Unit Developments ._L_.. -7 G`, COMPARISON OF PLANNING APPLICATION VOLUME BY TYPE The following figures represent the number of applications received and in process by the Planning Department for the second half of 1985: TYPE OF APPLICATION duly Aug Sept Oct Nov Dec Site Plan 10 6 4 3 6 3 Preliminary Plats*/RLS 4 3 2 2 1 - Final Plats*/RLS 9 2 2 3 4 1 PUD Concept Plans 1 - - 1 1 - PUD Preliminary Plats 2 1 - 2 - - PUD Final Plats 2 2 - - 2 1 Conditional Use Permits 8 5 8 6 5 6 Rezonings** 2 1 2 1 - - Lot Division/Consolidation 4 3 2 - 4 1 Variances 9 2 6 5 5 2 Sign Plans - - - - - - Site Plan Amendments - 1 - - - - Rev General Development Plans - - - - - - Land Use Guide Plan Amendments** 1 - - 1 1 - Landscape Plans - - - - - - Other - - 1 1 1 - TOTALS 52 26 27 25 30 14 * Other than Planned Unit Developments **Includes Planned Unit Developments MONTHLY PERMIT ISSUANCE BUILDING DIV DECEMBER '85 BUILDING PERMITS CURRENT Y.T.D. 1984 L.Y.T.D Public 0 5 0 1 Comm/Ind/New 3 22 1 19 Alteration 7 115 8 102 Residential 31 633 30 589 Multi -Family 0 16�y�`^� 0 C'"pa) 19 Remodeling 22 486 15 499 Foundations 0 10 2 6 Garage 0 17 0 53 TOTALS 63 1304 56 1288 VALUATION/PERMITS Public Comm/Ind/New Alteration Residential Multi -Family Remodeling Foundations Garage TOTALS OTHER PERMITS Plumbing Mechanical Signs Grading Wells Moving Septic/Removal Demolish TOTALS BUILDING PERMIT FEES PLAN CHECK FEES SAC FEES CERTIFICATE OF OCCUPANCY t0 4,098,000 268,265 2,600,636 0 192,789 249,000 8,200 $7,416,890 $1,712,016 $0 21,720,268 148,620 6,018,582 248,500 57,385,976 2,473,806 12,120,000 0 2,721,191 73,144 1,185,000 330,000 109,741 0 $102,972,774 $3.274,070 $361.000 19,676,072 5.675.398 49.272,568 23.233,829 3.062,359 806,480 322,779 $102.410,485 73 1313 63 1070 43 1040 75 1020 5 94 21 159 1 19 3 25 0 20 0 6 0 5 0 0 12 ill 0 0 0 4 0 3 134 2,606 162 2,283 $26,559 $402.712 $14,657 $375,749 $15,971 $218.244 $8,786 $202.769 $13,175 $479,350 $15.300 $448.800 49 451 55 386 SEWER a WATER ACTIVITY CURRENT Y.T_D. SEWER A WATER CONNECTIONS Sewer 33 735 Water 36 764 TOTALS 69 1499 METERS ISSUED 5/8 X 3/4 -"ch 31 686 3/4 inch - 7 70 1 inch 1 6 1 1/2 inch 1 39 2 inch 0 6 3 inch 0 2 4 inch 1 7 TOTALS 41 816 ecl'*al a sreportp Hennepin County Solid Waste Disposal & Recovery Public meetings in January Draft environmental impact statement completed on resource -recovery project Two public meetings will be held in mid- January by the Metropolitan Council on the draft environmental impact statement (EIS) which evaluates aspects of Hennepin County's proposed waste -to - energy project. The meetings will be at 7 p.m. Wednes- day, Jan. 15, in the A -Level Auditorium, Hennepin County Government Center, and at 7 p.m. Thursday. Jan. 16, at the Edina Community Center, 5701 Norman - dale Road, in Edina. Persons who wish to make comments about the EIS are invited to attend one of the meetings. Written comments on the draft environ- mental impact statement, which was prepared by the Metropolitan Council, should be sent to the council, 300 Metro Square Building, 7th and Robert Streets, St. Paul, MN 55101, by Friday, Jan. 30. i � 2 &I The draft EIS describes and evaluates the environmental aspects of a 1,000 - ton -a -day resource -recovery facility at the Greyhound site near downtown Minneapolis and four transfer stations, proposed for sites in Bloomington, Brooklyn Park, Hopkins and south Minneapolis. The EIS also evaluates locational and technological alternatives, a no -build alternative, and sociological implications of the project. The Greyhound plant will be a mass - burn facility, in which unprocessed solid waste is burned to cogenerate electricity and steam. The plant is to be con- structed and operated by Hennepin Energy Resource Co., Limited Partner- ship, of which Blount Energy Resource Corp., of Montgomery, Ala., is the general partner. The plant will be � 01 ,. 4cj_,Jam_ 4 y } i v i operational in 1989 and cost about $70 million to construct. One area that is given considerable attention in the draft EIS is air quality. The Greyhound facility will generate gaseous emissions, such as carbon dioxide and sulfur dioxide, and odors from the handling of solid waste. However, the impact analysis did not indicate significant potential emission or odor problems due to the operation of the plant. (Hennepin County is commit- ted to using the best available technol- ogy, called "dry scrubbers and bag - houses," in the Greyhound facility.) The executive summary of the draft EIS states that development of the resource - recovery facility and transfer stations "is not expected to result in significant long- term impacts to geologic or hydrologic resources" The transportation analysis indicates "no significant degradation" in traffic operations at the Greyhound site and transfer -station sites. Concerning noise, the primary impact of the Grey- hound facility and transfer stations would be during construction, with elevated noise levels being "only temporary in nature." The draft EIS said that there are not expected to be any adverse impacts from the project on ecological resources. As for aesthetics and cultural resources, project impacts are expected to be minimal since the facilities will be located in industrially zoned and developed areas. And, construction and operation of the proposed facilities will generate additional jobs in the county. The final EIS is to be completed by late February or early March 1986, with the Metropolitan Council board scheduled to act on the adequacy of the final EIS in late April 1986 after review by council committees. Hennepin's 1,000 -ton -per -day resource -recovery facility is to be built on a 14.6 -acre site Blount then must obtain permits for the just northwest of downtown Minneapolis. The site is bounded by streets on three sides: project, such as for air quality and solid - 7th Street North (foreground, right); 6th Avenue North (foreground, left); and 5th Street waste disposal, from the state Pollution North (center). Railroad tracks are on the site's eastern edge. Control Agency. L77SS MR H.LnORxid aAza H.LfIOWXga 0070 U30dxVw Hinolixia s I'I'I I M 9 f 7Z91 awd 301V14Z_ c S n 31'ct � �n9 a special report County board to review solid waste master plan Eighty percent of Hennepin County's solid waste is to be used by resource - recovery facilities, 16 percent is to be recycled and 4 percent handled by waste -reduction methods, according to the county's proposed solid waste master plan. The master plan — Hennepin's guide for solid waste management through the year 2000 — was prepared by the county Department of Environment and Energy, with the assistance of the county's so!id waste ma^agement advisory committee, which consists of city, industry and citizen representatives. A public meeting on a draft of the master plan was held Dec. 4 at Ridge - dale Library in Minnetonka. Written comments were accepted through Dec. 16. The plan will be submitted to the Metropolitan Council, as required by state law, after it is approved by the County Board in early 1986. Approximately 960,000 tons of solid waste currently are generated each year in Hennepin County, and the amount will increase to about 1 million tons by the year 2000. A total of 365,000 tons will be burned annually at an energy -recovery plant at the site of the former Greyhound bus - repair building near downtown Minneap- olis. The county has signed a construc- tion and operating contract with a limited partnership, of which Blount Energy Resource Corp., of Montgomery, Ala., is the general partner. Construction is scheduled to start in summer 1986, with full operation scheduled for 1989. Electric power generated at the Grey- hound facility will be sold to a utility, and steam will be used for heating downtown buildings. Three private resource -recovery plants — proposed by the Reuter Co., of Hopkins; Richards Asphalt Co., of Savage; and Waste Energy Systems, of New Brighton together will handle another 700 tons a day of the county's waste. If any or all of these projects are not built, the county plans to sponsor additional waste -to -energy facilities. The major element of Hennepin's plan to recycle 16 percent of the waste pro- duced in the county, or about 400 tons a day, is the curbside collection of recycla- bles and yard waste. Collection service initially would be directed at single-family homes through four-plexes in all cities in the county, with apartment buildings possibly added later. In addition to the residential collection of glass, cans, newspapers and other materials, recycling strategies include buy-back centers, drop-off yard -waste composting sites, demonstration projects for the recycling of office paper and cardboard containers, and recycling promotion and technical assistance. uaspnug uu0P'do1TPH 1uaui1dedaQ sdre;j-V orlgnd aqj ,Cq padedadd R2.I9UH pue 1uauluodinu'3 ;o 1uatL'ldedaQ S1unoo uidauuaH @741 JO 1J'^dad reloads y 9861 iagwaoao �,g{,gg uuty� `stiod'eauut� saqu90 luauruaanoD 2091: -V adauH a zuauruo.rinuR;o quaur�aedaQ f4uno0 utdauuaH Designation ordinance is approved The Hennepin County Board has adopted an ordinance requiring that solid waste be delivered to the county's proposed energy -recovery and transfer - station system, which is to be in opera- tion in 1989. The ordinance, approved Dec. 10, will not take effect until a 1,000 -ton -per -day waste -to -energy facility at the Greyhound site near downtown Minneapolis is ready for start-up, which is scheduled for late 1988. In effect, the ordinance assures that the county will have an adequate waste supply for its designated waste -to -energy plant and four proposed transfer stations, which will be located in Bloomington, Brooklyn Park, Hopkins and south Minneapolis. The ordinance regulates the flow of solid waste in Hennepin County; defines the geographic area, and the types and quantities of waste subject to designa- tion; specifies where solid waste is to be delivered; and requires that the desig- nated solid waste be delivered to the specified point or points of delivery. The ordinance also establishes procedures and principles to be followed by the county in establishing and amending rates and charges at the designated facility; exempts from the ordinance certain materials; and states additional regulations governing waste collectors and related collection matters. E. F. ROBB. JR. PHONE COMMISSIONER 'Ee,A �\ 348-3084 s BOARD OF HENNEPIN COUNTY COMMISSIONERS 2400 GOVERNMENT CENTER MINNEAPOLIS. MINNESOTA 55487 December 30, 1985 Mr. E. J. McConVille 4310 Larch Place Plymouth, ME 55442 Dear Mr. McConVille: I have received your letter and appreciate your concern for noise pollution adjacent to the proposed County Road 9 project. The Department of Transportation also recognizes the potential for noise pollution and will certainly take steps to minimize it. As you have stated in your letter, the Department of Transportation has published some general statements in the EAW regarding their intent to minimize noise pollution. While these statements are admittedly quite general, the purpose of the EAW is to investigate potential problems and cite the most probable solutions. It is the opinion of the Department of Transportation that earth berms in conjunction with landscaping is the most feasible solution. The EAW is prepared very early in the development of a project. Therefore, specific locations for earth berms cannot be determined for inclusion in that report. Since that report, however, elevations have been taken and the following potential locations for earth berms have been identified: -- south side east of Zachary Lane -- north side west of Zachary Lane (adjacent to sports field) -- south side west of Larch Lane (requires removal of some existing shrubs and trees) Since the proposed earth berms cannot be constructed within the existing right of way, slope easements are required. Also except where indicated above, the existing berms and landscaping will be preserved. :- C ca�— Please be assured that your concerns as well as the concerns of others whose neighborhoods abut the project are respectfully reviewed. The Department of Transportation is aware of these concerns and will do whatever is feasible to mitigate further noise pollution. If you have additional questions, comments or concerns, you may contact Ted Hoffman, Chief Design Engineer, at 935-3381. Also please feel free to contact me if I can be of further assistance. Sincerely, E. F. Robb, Jr. Commissioner cc: James Willis, Manager, City of Plymouth Fred Moore, Public Works Director, City of Plymouth Vern T. Genzlinger, County Engineer A 4310 Larch place Plymouth, MN 55442 December 2, 1985 Commissioner E. F. Robb Hennepin County Government Center 300 South 6th Street Minneapolis, Minnesota 55415 Dear Commissioner Rabb: This memo is to confirm our telephone conversation of a few weeks ago regarding the reconstruction of County State Aid Highway 9 from Interstate 494 tc. Nathan Lane. The purpose of that conversation was to s-_-1 icit your help in resolving a concern of area residents related to the noise pollution caused by the new roadway. As stated in the Environmental Assessment Worksheet, the noise level all along the new roadway will exceed MPCA standards. Since all of this roadway will pass through residential areas either currently completed or planned in the future, several thousand people will be exposed to this pollution. Our concern is that as of this date, the Hennepin County Department of Transportation has only published some very general and vague statements about the County's intent t,-, use any kind of screening to minimize the effect of the noise pollution. We feel that the County needs to prepare detailed plans for screening before starting the reconstruction to ensure that the screening can be effectively implemented. We ask your assistance in identifying the County's plan to minimize the above mentioned noise pollution. EJM/sm / copy:+/Jim Willis City Manager City of Plymouth 3400 Plymouth Boulevard Sincerely, E. J. McConville .-L q vJ December 27, 1985 Mayor -Elect Virgil A.Schneider 3400 Plymouth Boulevard Plymouth,Minnesota 55447 Dear Mayor Schneider Planning Commissioner Chairman Steigerwald has advised me that the term I am serving on the Planning Commission is about to expire.I have enjoyed my short tenure and believe I have demonstrated a benefical contribution to the city.Based on this belief I do seek reapointment to the Planning Commission. I look forward to continued service to the city. 2 Geo ge Mellen 17315 24th Ave.N Plymouth,Minnesota 55447 First Bank 911F System First Bank System, Inc. 1200 First Bank Place East Minneapolis, Minnesota 55480 612 370-4343 December 26, 1985 Mr. Jim Willis City Manager City of Plymouth 3400 Plymouth Boulevard Plymouth MN 55447 Dear Jim: D. H, Ankeny, Jr. Chairman and Chief Executive Officer On November 14, I had the great pleasure of reporting that the Minneapolis United Way had raised $31,815,988 for this year's campaign -- a 10.2 percent increase over 1984. Raising this amount of money is a tremendous accomplishment and the entire Minneapolis community can be justifiably proud of the results. It couldn't have happened, however, without your strong support and leadership. I want you to know how much I appreciate everything you and your associates at City of Plymouth did to make this campaign so successful. The 89 percent increase in your Employee Campaign was certainly instrumental in helping us reach our goal. You are to be congratulated for this outstanding achievement. As proud as we are of our success, the real satisfaction comes with the knowledge that the dollars we raised will return to the community in the form of services and programs to assist those in need. I have enclosed a brief report about how your United Way dollars will work for the community in 1986. Thank you again for helping to prove that "Love does make the difference" -- the United Way. Sincerely, Pete Ankeny 1985 General Campaign. Chairman Enclosure Investing in Our Communities -the United Way A Report to the Contributor The United Way provides you — the contributor — with an objective, consistent and fair vehicle for investing your charitable dollar. During the past year nearly 250 volunteers spent more than 16,000 hours assessing community problems and evaluating health and human service programs to ensure that your contributions provide maximum benefits to people in need. During 1986, your United Way dollars will support nearly 390 programs at 107 health and human service agencies. The highly successful campaign, combined with lower inflation rates, means that your 1986 United Way allocations offer real growth in new and expanded program- ming to meet high priority needs in our communities: Eighteen new programs and 68 expanded programs are included in the 1986 alloca- tions portfolio. Five of the new programs are offered by agencies receiving United Way dollars for the first time: Centro -Legal, Greater Minneapolis Food Bank, North Suburban Family Services Center, Scott -Carver Economic Council, and T.C.O.I.C. (Twin Cities Opportunities Industralization Center). New and expanded program allocations total S1.8 million. Northside Minneapolis residents face complex and serious problems that continue to grow. 1986 allocations to programs serving Northside Minneapolis residents in- creased by 24 percent and include funding for new programs offered by T.C.O.I.C. and the Minneapolis Urban League as well as expanded funding for 17 programs which focus on problems as diverse as crime victimization, chronic malnutrition, emergency needs, and abuse and neglect of children and adults. Allocations to pro- grams serving Northside Minneapolis total more than S2 million. The outer county communities (Anoka, Carver, Dakota and Scott county communi- ties) are experiencing rapid population growth and an increased need for health and human care services. 1986 allocations to programs serving these communities in- creased by 41 percent and include funding for five new programs offered by North Suburban Services, Scott -Carver Economic Council, Scott -Carver Red Cross, and Lutheran Social Services as well as expanded funding for eight programs which fo- cus on problems as diverse as chemical abuse, emergency needs, and abuse and ne- glect of children and adults. Allocations to programs serving outer county communi- ties total more than S 1 million. A continuing commitment to young people and their development is reflected in the 1986 allocations portfolio. Over half of all United Way funded agencies offer pro- grams for young people. Thirty agencies will receive funding for 44 programs that address the special needs of teenagers. These include two new programs offered by Minneapolis American Indian Center and Storefront/ Youth Action as well as ex- panded funding for programs that offer new experiences for city and suburban youth in the areas of employment, education and counseling. Allocations to pro- grams serving teenagers total nearly $3 million. Competition for United Way funding has never been greater. In total, funding re- quests exceeded available dollars by 22.7 percent. United Way volunteers reviewed 451 program proposals from 153 agencies to develop an allocations portfolio which strikes a delicate balance between need and available resources, encouraging new programming in high priority areas and maintaining support for high quality exist- ing services. C�c, HOW YOUR MONEY IS WORKING FOR YOU IN 1956 The United Way 1985 Campaign Pledges............................................................................................................................................................................531.815.988 (less) Pledge loss due to employment changes. etc...........................................................................................................................................(1.670.339) (less) Designations to other United Ways.................................................................................................`...........................................................(225.000) InterestIncome, Special Grants and others ................................................................................................................................................ 555.000 NETINCOME............................................................................................................................................................................................... $30.475.649 Administration. Government Relations. Pledge Collections Expenses..........................................................................................................$ 951.000 CampaignExpense............................................................................................................................................................................................. 1.398.000 1 Initpci Wav, of AmPHnn o, c n. n PROGRAMALLOCATIONS...................................................................................................................................................................... $27.810,739 Programs Provided by United Way: First Call For Help", Voluntary 855.756 Action Center, Travelers Aid, 151.632 Labor Community Services ...................................... $792.000 Community Planning. Allocations 5,210 and Evaluation............................................................ 744.000 Agency Management Development ...................................65,000 5.200 VentureFund......................................................................50,000 5.940 Alexandra House. Inc.........................................................74.200 Amer. Cancer Society ...................................................... 855.756 Amer. Diabetes Assn.. MN Affiliate. Inc ......................... 151.632 Amer. Heart Assn.. MN Affiliate. Inc .............................. 456,396 Amer. Red Cross, Carver Co . ............................................ 5,210 Amer. Red Cross, Mpls. Chapter .................................. 1,919.100 Amer. Red Cross. St. Paul (Dakota Co.) ............................ 5.200 Amer. Social Health Assn ................................................. 5.940 Anoka Co. Assn. for Retarded Citizens .............................74,257 665.068 Anoka Co. Health & Social Services Dept . ......................... 64,797 Arthritis Foundation, MN Chapter ....................................92,328 Assn. for Retarded Citizens, Dakota Co.............................60.145 344.562 Assn. for Retarded Citizens, Hennepin Co ..................... 285.481 Big Brothers/Big Sisters of Gtr.Mpls .............................. 415,536 Bloomington Public Health Service ....................................33,180 193.202 Boy Scouts of America - Viking Council ........................ 484,881 Bridge for Runaway Youth (The) ..................................... 199.798 Camp Fire. Mpls. Council ................................................ 208.000 Carver Co. Community Social Services .............................36.000 159.012 Catholic Charities, St. Paul/Mpls................................. 1.501.996 Central Center for Family Resources ................................46.800 646.865 Centro Cultural Chicano ................................................. 164.040 *Centro-Legal.......................................................................28.484 Cerebral Palsy Center. Inc ............................................... 227.139 Charities Review Council of My .........................................29.765 130.238 Children's Dental Services Assn.......................................11.628 101.607 Children's Home Societv of MN ....................................... 346.967 Chrysalis Center for Women ........................................... 194,924 City. Inc. (The).................................................................. 328,890 Community Action Council. Inc ...................................... 144,568 Community Clinic Consortium 100.000 The Annex. Beltrami Health Center. Community University Health Care Clinic, Health Etc. Clinic. Southside *North Suburban Family Services Center ..........................32,735 Community Clinic, West Suburban Teen Clinic ......... 149.430 Community Emergency Assistance Program ................ 108.749 Courage Center................................................................ 460.756 Domestic Abuse Project. Inc ............................................ 258.000 East Side Neighborhood Service. Inc .............................. 649.886 Ebenezer Society.................................................................85.605 Plymouth Christian Youth Center .................................. EdenHouse.........................................................................51.416 Relate. Inc........................................................................ Emergency Food Shelves in Hennepin Co., Inc- ..............47.700 Residen(Council Services. Inc...........................................67.475 Epilepsy Foundation of MN ............................................. 118.902 Family & Children's Service ......................................... 1,630.995 Genesis Q for Women, Inc . .................................................. 66,000 Girl Scout Council, Gtr. Mpls.......................................... 299,540 Glenwood-Lyndale Community Center. Inc ................... 241,434 Greater Mpts. Council of Churches ....................................52.000 Sojourner Shelter................................................................21.200 Division of Indian Work ............................................... 174,290 *Greater Mpls. Food Bank ...................................................36,000 Storefront/Youth Action .................................................. Harriet 1bbman Women's Shelter .....................................97,020 Illusion Theater & School. Inc . ........................................... 66,498 Indian Familv Services .......................................................77.430 151.672 Indian Health Board of Mpls.. Inc ................................... 143,661 International Institute of MN ..............................................49.690 Jewish Community Center of Gtr. Mpls......................... 236.351 Jewish Familv & Children's Service ............................... 435.265 Johnson Institute (The).......................................................14.175 Judicare of Anoka Co.. Inc.................................................32.760 Katandin.Inc...................................................................... 36.280 Learning Disabilities Assn., Inc. (eLDA) ............................63.000 Legal Advice Clinics. Ltd....................................................14.562 Legal Aid Society of Mpls................................................. 665.068 Legal Rights Center, Inc.....................................................85.550 Loaves and Fishes. 'Ibo .......................................................13.250 Loring Nicollet-Bethlehem Community Centers ............ 344.562 Lutheran Social Service of MN ........................................ 797.185 MELD..................................................................................25.200 MSB.................................................................................. 193.202 Management Assistance Project ........................................36.500 Mental Health Assn. of MN ............................................. 164.475 Metropolitan Visiting Nurse Assn ................................... 506.840 Mpis. American Indian Center ........................................ 159.012 Mpls. Crisis Nursery...........................................................79.000 Mpls. Urban League........................................................ 646.865 Mpls. Youth Diversion ........................................................99.796 MN Assn. for Children & Adults with Learning Disabilities.................................................... 114.243 MN Citizens Council on Crime & Justice ........................ 130.238 MN Foundation for Better Hearing and Speech ............. 101.607 MN Institute on Black Chemical Abuse .............................91.814 Multi Resource Centers. Inc ............................................ 344.402 Nat'l. Council on Aging, Inc ............... ................................... 2.865 Nat'l. Council on Crime & Delinquency ............................ 2.200 Na-way-ee........................................................................ 100.000 Neighborhood Involvement Program .............................. 175.641 *North Suburban Family Services Center ..........................32,735 Opportunity Workshop. Inc ............................................ 113.608 PPL Industries. Inc..............................................................40.000 Phyllis Wheatley Community Center ............................. 550.030 Pillsbury United Neighborhood Services. Inc .............. 1.627.091 Pilot City Health Center ..................................................... 40.560 Plymouth Christian Youth Center .................................. 135.140 Relate. Inc........................................................................ 215.624 Residen(Council Services. Inc...........................................67.475 Rise.Inc............................................................................ 126.528 Sabathani Community Center ........................................ 301.679 Salvation Army (The) ....................................................... 561.474 'Scott -Carver Economic Council .........................................87.400 Senior Citizen Centers of Gtr. Mpts., Inc ......................... 390.505 Sojourner Shelter................................................................21.200 Southside Family Nurturing Center ..................................84.000 Storefront/Youth Action .................................................. 148.300 Suburban Community Services ..................................... 182.220 Survival Skills Institute ................................................... 151.672 "I'COIC..................................................................................60.000 United Service Organization SO ..... 4.050 VailPlace .............................................................................60.833 Wellspring Therapeutic Communities ...............................34.320 YES.....................................................................................76.000 Young Men's Christian Assn. (YMCA) ......................... 1,111.700 Young Women's Christian Assn. (YWCA) ...................... 815.076 Reserve for emergencies and contingencies ......................90,739 *Newly funded in 1986 11,26/85 Scanticon Corporation Development and Management of Executive Conference Centers and Hotels `+ z Jorgon Rood President and Chief Executive Officer December 27, 1985 Mr. David J. Davenport Mayor City of Plymouth 3400 Plymouth Boulevard Plymouth, Minnesota 55447 Dear David, it is with a special warmth and an enthusiastic feeling 1 look back to your visit to Scanticon-Princeton in October. To have been given an opportunity to introduce our plans and concept to you and the city officials of our new community has inspired all of us very much and has created a feeling of being a fully accepted member of the City of Plymouth, our hometown for Scanticon number two in the USA. David, thank you for taking the time, together with your City Council members and others, to meet with me and my executive team to study first hand the Scanticon concept and culture, and our plans for the new Scanticon project in Plymouth. And, thank you for your kind words in the letters you have sent to us . I know it must be a very special situation for you these days to say "good bye" after 11 years with the government and the political leader of the impressive growth of City of Plymouth. 1 feel fortunate that we were able to land the Scanticon project before your leaving the Office. With the main approval process behind us, you are transfer- ring a "clean" Scanticon file to your successor. Please give my best regards to the members of the Plymouth delegation and a special greeting to the new Mayor of Plymouth. Best wishes for a happy and healthy New Year to you and Belle from the Scanticon team, Kirsten and myself. Since ly, 0.)4— J 3 •-- Jo gen Roed Scanticon Corporation, Princeton Forrestal Center, 105 College Road East, Princeton, NJ. 08540 (609)452-8808 TWX: 510.685-2324 (Scancorp prin) AP PuMkslon BUSINESS MATTERS ■ Development and construction Of an ex- ecutive conference anter and hotel. was announced by Mr. Jorgen Rood, president and chief executive officer of Seaetkon Corp. of Princeton. Scheduled to open in September 1987, the conference center will be located on a 21 -acre site in Plymouth, IS minutes from down- town Minneapolis and 25 minutes from the airport. The anter will be pmt of the new 165 -acre Northwest Business Campus developed by Prudential Development Co. of America. A joint venture between Scanticon Corp. and the Prudential Insurance Co., the conference center will con- tain 33,000 square feet of dedicated. specialved meeting space, as well as 240 luxury guest rooms, two restaurants and recreation anter. Scanticon- Minneapolis will be completed a a cost of $40 million. The construction of Scant- icon-Mineapolis marks the second Scanticon project in the U.S. An internationally recognized leader in the development and opera- tion of purpose -designed conference centers, Scanticon operates its flagship property, Scant- imo-Prinaron. Stantirnn's fust ex- ecuuw confereoa anter was open- ed in Denmark in 1969. ■ PA Computers and Tele- cmankatkm will move its head offices from 707 Alexander Road, West Windsor, to the Princeton Cor- ponte Center off Route 1 in South Brunswick, PA President Stephen Payne said. The stove will probably take place at the beginning of January, a com- pany spokeswoman said, adding that the firm, with about 35 employees at the headquarters, has outgrown the Alexander Rod offices. PA Computers and Tele- communications is involved in con- sulting and analysis in the areas of information systems. communication networks and system integration. The company has branches in Oakland, Ca. and Arlington, Va. as well as eight oversea offices. ■ A package of bills establishing a New Jersey Development Authori- ty for Suras Businesses, Minorities and Women's Este. In in to provide financing and other assistance to small, minority and women owned businesses received final legislative approval tau week by the General Assembly. The authonry would have rhe power to issue bonds, extend credit, make twin and loan guarantees, provide letters of credit, purchase EARMNGS Dataram Dat&arn Corp. has reported net mixime for the second quarter ended Oct. 31 was $827.000. or 41 cents a share, up from the 5392,000. or 20 mats a share, in the prior year's second quarter. Revenues to die current quarter were $4,383,000, a 16 percent in- crease from the 53.787,000 revenues of the ccx,,— ie period a year ago. For the past six monde of this year, there wit a net profit of 51,917,000, or 96 ceras a share. - 4 nd to Int year's sat mouth net los of $1,1114,00, or 90 ata a dune. Ravin were 58.827,000 this six -moods period. sex mpsed to $8.104,000 Gar the same period last year. Net income included gains from the sale of marketable securities &mounting to :102.0110 or 5 cent : dare, for the current quarter and a total of $451.000. or 23 men a Jorgen Road (left), president and CEO of Scanticon Corp. and David Davenport, mayor of Plymouth. Minn. hold artist's rendition of Scanticon-Minneapolis. lose or assistattce packages. become involved in loan participations with banks and other investors., nuke arrangements with banks to establish compensating balances in return for banks making loans to eligible busi- nesses. The authority would be funded from the proceeds of the sale of Casino Reinvestment Development Authonty bonds in the amount of SL2 million annually for 25 scan. Fifty percent of money would be made available to minonties and 50 percent to women: the money would be invested in accordance with the distribution formuiar in the Casino Reinvestment Authority bill (A-688). The authority may also receive gifts, grants, loans and other financial aid from the federal. State. and local governments and from individuals, authorities. partnerships and other entities: application and commitment fess: investment income derived when monies are not im- mediately required for use. The bill would appropriate 590.000 to he rapid in five annual installments. The second measure 4A -I8241 would permit a bank. bank holding company, savings bank or savings and loan association to establish subsidiaries to originate loan and of 51,873.000 incurred during the same period of 1984. Assets exceeded 5100 million for the first time in the company's his- tory growing 31 percent during the last year to 5106.8 million at Sept. 30. For the first nine months of 1985 direct premiums wnnen totalled $56.2 million. a 51 percent increase over the 537.1 million wntten during the comparable period of 1984. American Reliance is a mutual property and casualty insurer opens- ing in nine states and is head- quartered in Lawrenceville. The 106 -year-old insurer was recently named Insurance Company of the Year by the National Association of Professional Insurance Agents. ORS Automation ORS Automation Inc., of Prince - Pon has aired third -Quarter revenues assistance packages for purchase by the New Jersey Development Authority for Small Business. Min- orities and Women Enterprises. This authority would be estab- lished by .A-1828. The loans and assistance packages would have to meet the underwriting standards established by .A-1828. The businesses to which the loans are made and the assistance provided must be eligible businesses. that is. minority or womeen's enterprise. ■ The Senate last week passed legislation. sponsored by Sen. Opening Officials attend last week's ribbon arthng of the newly designed Princeton Shopping Center. They are Barbara Weinstein (left in photo at right), designer of the renovation project from The Hillier Group: Bob Hillier, president of The Hillier Group: Carl Peterson, project coordinator for Gilbane Co.; Glenn Paul, president of Clancy -Paul; Bill Mathesius, Mercer County Executive; Andrew Saunders, vice president of George Comfort & Sons; and Dana Comfort, of George Comfort & Sons. Wvnona Lipman, that requites a certain percentage of state contracts to be set aside for minority and women -owned businesses. The bill 51776. amends the Small Business Set -Aside Law to include the minority and women -owned busi- nesses categories. The bill, which passed 33-1 and includes the gov- ernor's recommendations contained in his conditional veto message. was sent to the Assembly. Under the legislation, state con- tracting agencies would continue to be required to work toward the goal of setting aside 15 percent of their contracts for small businesses. Another 7 percent of the contracts must be set aside for minority-owned businesses and 3 percent for women -owned businesses. The Department of Commerce & Economic Development would set the regulations on the designation of prospective small businesses, min- ority businesses and female bum- resses seeking to bid on state con- tracts. ■ The Pennington Business and Professional Association has an- nounced final plans for its annual Holiday Walk Thursday. Dec. 5. The evening will feature Santa Claus while r open I augurs season The well I parucil Book Porch. The N Pennm Libra Precis, Galle Chas, Aroun Types Non non w inclu socias Bvm Main Nation Assoc Asses Prince Send Char. Bush Rine