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HomeMy WebLinkAboutCouncil Information Memorandum 12-18-1997.LMC 145 University Avenue West, St. Paul, MN 55103-2044 ague of Minnesota Cities Phone: (612) 281-1200 - (800) 925-1122 hies promoting exwAmce Fax: (612) 281-1299 • TDD (612) 281-1290 December 18, 1997 TO: City Administrator/Manager/Clerk O FROM: Gary Carlson Director, Intergovernmental Relations RE: 1998 City Policies Enclosed is a copy of the final League of Minnesota Cities legislative policies as amended and approved by the membership at the November Policy Adoption Conference. I would like to personally thank each city official who dedicated a significant amount of their summer and fall schedules to the League's policy development process. Your input was instrumental in shaping and directing the League's legislative agenda. The League's IGR staff will begin the process of converting these policies into legislation for the upcoming session. However, simply drafting and introducing legislation will not guarantee that our concerns will be addressed. During the session, we may call upon you to testify or contact your legislators on issues of concern to cities. Although your League Intergovern- mental Relations staff will work hard to represent city interests during the session, our greatest strength is you and your continued involvement. If you have any questions, comments or need assistance on these issues, please feel free to contact any member of the League's Intergovernmental Relations Department. GNC:mjd Enc. 1:98polenc.mem AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER .LMC 145 University Avenue West, St. Paul, MN 55103-2044 ague of Minnesota Cities Phone: (612) 281-1200 - (800) 925-1122 hies promoting exwAmce Fax: (612) 281-1299 • TDD (612) 281-1290 December 18, 1997 TO: City Administrator/Manager/Clerk O FROM: Gary Carlson Director, Intergovernmental Relations RE: 1998 City Policies Enclosed is a copy of the final League of Minnesota Cities legislative policies as amended and approved by the membership at the November Policy Adoption Conference. I would like to personally thank each city official who dedicated a significant amount of their summer and fall schedules to the League's policy development process. Your input was instrumental in shaping and directing the League's legislative agenda. The League's IGR staff will begin the process of converting these policies into legislation for the upcoming session. However, simply drafting and introducing legislation will not guarantee that our concerns will be addressed. During the session, we may call upon you to testify or contact your legislators on issues of concern to cities. Although your League Intergovern- mental Relations staff will work hard to represent city interests during the session, our greatest strength is you and your continued involvement. If you have any questions, comments or need assistance on these issues, please feel free to contact any member of the League's Intergovernmental Relations Department. 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C'r�xxS /r''..s r.fT YC��T t �iP'.rW ywS�45+ a i� r r r Y Y(tks �k't l���i�,�ti k��i'r ��t �:��a 3f �•s � �„�a.e � _ ,d t 1 fi'?� au uo p1!! i i i f yrr .. ati; v`' ,r � !} � � �� id%` :� Jl � �� � � •'?has ` .Is 51�y�� f +` ,!% It V �`. `tnf erg'_' cT�T7:7- '71� r 17 1 1 Y..i 1 WY i "�c.��Fa S � a–s-'i r �. k�», '� t�''" 1 '?T"7k�'.'•A"` i'T _."""'y ��� gP�t�"E>'.x.'.r�rZ .�+.�`..•—r^n„ _ dt� ti"�' �'"+"'"." ft .}Qr r yC t r t ,-i �. r•+'w3 j`d irtr tLT s'"' .S lr�b, rx� • { z �� 3 �� � � � ' � E ! � pnr t` Ise e � � rN �.a:Y�@ L�'�� � ipszd. -. �,. -. � ,. .� i ter` -'c- -e•>"y^G/i. r \/l + � 4 ` N f''n i � f�J .• ✓L J �.' fi �, tit �r�% 1Q 1 • S i ` � : { � � bl �: �.1,a � •.a.�.-. � �' �'1 to " _(�i-"s.,,.r^ yr rN '., � 1`�'� � ti , 1 ry ' o � � 33 t} wd,Z,b,..�' it > c > 5..', a 's�: s...a S�a� _ y' ,..j'a'i �.. .cz "�N i aL.•g�:......: c� ��s��41a.:is is fit„ n Ir", R A R. 1.,. e ,.,s�s3.1`. +. _ No t a ID [r-•'•.",y�' r) ct + - -• -vr s.. `t t—v .1 t 4 '�'re �� :OE�rI � � �`�a .� t P i` � �„�7"'C ^'F {j7 ya��1 '� ! t tr' s1�.�k��° � •�, �� '• � - � � ys t3 !' )E " 1�s� G� i�� i� ,a s�4 -' C.y e 9 e ,- � ....7 � � � � / � •� C� � � 5�Mu0 �1'.'1 'i � ��A 3. � zY ul I���� � 1 � � �ia��. .1 � .h1� �!'...A'!-� - � { :1a i t i ��!! 1■s t[ a :� � ,_ 'C'. -"3� �> ...c. +.... , - i •_Y .+ �A, E V- r>t.:,i~�..u.r..�►, �{+ L9' i 5f"a'ry +'A"'4'kl sj (r�3 }1'' f`�^'S ^--^^-r-. C'r�xxS /r''..s r.fT YC��T t �iP'.rW ywS�45+ a i� r r r Y Y(tks �k't l���i�,�ti k��i'r ��t �:��a 3f �•s � �„�a.e � _ ,d t 1 fi'?� au uo p1!! CONTENTS LeagueStaff............................................................ iii Legislative Policy Committee Members ...................................... iv Policy Development Process ............................................... vi Statement of Intent ....................................................... vii PART I -- 1998 POLICY GUIDELINE Improving Community Life CL -1. Livable Communities ............................................. 1 PART II --1998 CITY POLICIES General Policy Statement .................................................. 3 Improving Fiscal Futures FF -1. State -Local Fiscal Relations ........................................ 4 FF -2. State Shared Revenues ............................................ 5 FF -3. Taxation of Municipal Bond Interest ................................. 5 FF -4. City Fiscal Year ................................................. 5 FF -5. Sales Tax on Local Government Purchases ............................ 5 FF -6. Delinquent Property Tax Penalties and Interest ......................... 6 FF -7. Payments for Services to Tax -Exempt Property ........................ 6 FF -8. Truth -in -Taxation ................................................ 6 FF -9. State Deductions from LGA ....................................... 6 FF -10. Reporting Requirements ........................................... 6 FF -11. Federal Budget Cutbacks .......................................... 7 FF -12. Local Performance Aid ........................................... 7 FF -13. Price of Government .............................................. 7 FF -14. Development Fees ................................................ 8 FF -15. Residential Nonhomestead Property Tax Relief ......................... 8 FF -16. Electric Utility Taxation ........................................... 8 Improving Local Economies LE -1. Tax Incement Financing .......................................... 9 LE -2. Property Tax Reform, Levy Limits, and TIF .......................... 11 LE -3. Economic Development Programs ................................... 1 I LE -4. Redevelopment of Developed Communities ........................... 12 1998 City Policies i CONTENTS LeagueStaff............................................................ iii Legislative Policy Committee Members ...................................... iv Policy Development Process ............................................... vi Statement of Intent ....................................................... vii PART I -- 1998 POLICY GUIDELINE Improving Community Life CL -1. Livable Communities ............................................. 1 PART II --1998 CITY POLICIES General Policy Statement .................................................. 3 Improving Fiscal Futures FF -1. State -Local Fiscal Relations ........................................ 4 FF -2. State Shared Revenues ............................................ 5 FF -3. Taxation of Municipal Bond Interest ................................. 5 FF -4. City Fiscal Year ................................................. 5 FF -5. Sales Tax on Local Government Purchases ............................ 5 FF -6. Delinquent Property Tax Penalties and Interest ......................... 6 FF -7. Payments for Services to Tax -Exempt Property ........................ 6 FF -8. Truth -in -Taxation ................................................ 6 FF -9. State Deductions from LGA ....................................... 6 FF -10. Reporting Requirements ........................................... 6 FF -11. Federal Budget Cutbacks .......................................... 7 FF -12. Local Performance Aid ........................................... 7 FF -13. Price of Government .............................................. 7 FF -14. Development Fees ................................................ 8 FF -15. Residential Nonhomestead Property Tax Relief ......................... 8 FF -16. Electric Utility Taxation ........................................... 8 Improving Local Economies LE -1. Tax Incement Financing .......................................... 9 LE -2. Property Tax Reform, Levy Limits, and TIF .......................... 11 LE -3. Economic Development Programs ................................... 1 I LE -4. Redevelopment of Developed Communities ........................... 12 1998 City Policies i LE -5. Property Tax Abatement Authority .................................. 12 LE -6. Brownfields.................................................... 13 LE -7. Growth Management and Annexation ................................ 14 LE -8. State and/or County Licensed Residential Facilities (group homes) ......... 14 LE -9. Affordable Housing .............................................. 15 LE -10. City Role in Telecommunications ................................... 16 LE -11. Redesign of Electric Utility Regulation .............................. 18 LE -12. Adequate Funding for Transportation ................................. 19 LE -13. State Aid for Urban Road Systems ................................... 19 LE -14. State Aid Roads for Contiguous Cities Under 5,000 ..................... 19 LE -15. Turnbacks of County and State Roads ................................ 20 LE -16. Cooperation Between Counties and Cities Over County Roads 31 SD -14. Within Cities .................................................... 20 LE -17. Management of Rights -of -Way ..................................... 21 LE -18. Communications Infrastructure ..................................... 21 LE -19. Effective Telecommunications Competition ........................... 22 LE -20. Local Zoning Regulation of Telecommunications Service Providers ........ 22 LE -21. ISTEA Reauthorization ............................................ 22 LE -22. Workforce Readiness ............................................. 23 Improving Service Delivery SD -1. Redesigning and Reinventing Government ............................ 24 SD -2. Unfunded Mandates .............................................. 25 SD -3. Civil Liability of Local Governments ................................ 25 SD -4. Environmental Protection ......................................... 26 SD -5. Personnel, Pensions, and Labor Relations ............................. 26 SD -6. Election Issues 28 SD -7. .................................................. Local Election Authority ........................................... 28 SD -8. City Costs for Enforcing State and Local Laws ......................... 29 SD -9. Access to Information Technology and Services ........................ 29 SD -10. Lawful Gambling Fund Expenditures ................................. 30 SD -11. Design -Build .................................................... 30 SD -12. Mobile Home Park Oversight ....................................... 30 SD -13. Proposed Plat Approval Authority ................................... 31 SD -14. Providing Information to Citizens ................................... 31 SD -15. Creating a Minnesota GIS Program .................................. 31 SD -16. State Licensing of Massage Therapists ................................ 32 ii League of Minnesota Cities LE -5. Property Tax Abatement Authority .................................. 12 LE -6. Brownfields.................................................... 13 LE -7. Growth Management and Annexation ................................ 14 LE -8. State and/or County Licensed Residential Facilities (group homes) ......... 14 LE -9. Affordable Housing .............................................. 15 LE -10. City Role in Telecommunications ................................... 16 LE -11. Redesign of Electric Utility Regulation .............................. 18 LE -12. Adequate Funding for Transportation ................................. 19 LE -13. State Aid for Urban Road Systems ................................... 19 LE -14. State Aid Roads for Contiguous Cities Under 5,000 ..................... 19 LE -15. Turnbacks of County and State Roads ................................ 20 LE -16. Cooperation Between Counties and Cities Over County Roads 31 SD -14. Within Cities .................................................... 20 LE -17. Management of Rights -of -Way ..................................... 21 LE -18. Communications Infrastructure ..................................... 21 LE -19. Effective Telecommunications Competition ........................... 22 LE -20. Local Zoning Regulation of Telecommunications Service Providers ........ 22 LE -21. ISTEA Reauthorization ............................................ 22 LE -22. Workforce Readiness ............................................. 23 Improving Service Delivery SD -1. Redesigning and Reinventing Government ............................ 24 SD -2. Unfunded Mandates .............................................. 25 SD -3. Civil Liability of Local Governments ................................ 25 SD -4. Environmental Protection ......................................... 26 SD -5. Personnel, Pensions, and Labor Relations ............................. 26 SD -6. Election Issues 28 SD -7. .................................................. Local Election Authority ........................................... 28 SD -8. City Costs for Enforcing State and Local Laws ......................... 29 SD -9. Access to Information Technology and Services ........................ 29 SD -10. Lawful Gambling Fund Expenditures ................................. 30 SD -11. Design -Build .................................................... 30 SD -12. Mobile Home Park Oversight ....................................... 30 SD -13. Proposed Plat Approval Authority ................................... 31 SD -14. Providing Information to Citizens ................................... 31 SD -15. Creating a Minnesota GIS Program .................................. 31 SD -16. State Licensing of Massage Therapists ................................ 32 ii League of Minnesota Cities LEAGUE STAFF WORKING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications Gary Carlson, Director of Intergovernmental Relations General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, economic development and redevelopment, personnel, transportation Kevin Frazell, Director of Member Services Government innovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, telecommunications Ann Higgins, Intergovernmental Relations Representative Telecommunications, housing, elections and ethics, utility service districts, transportation Andrea Stearns, Intergovernmental Relations Representative Tax increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing, public safety, general municipal governance Remi Stone, Intergovernmental Relations Representative Growth management and land use, environmental protection, personnel Eric Willette, Legislative Policy Analyst General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, pensions 1998 City Policies iii LEAGUE STAFF WORKING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications Gary Carlson, Director of Intergovernmental Relations General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, economic development and redevelopment, personnel, transportation Kevin Frazell, Director of Member Services Government innovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, telecommunications Ann Higgins, Intergovernmental Relations Representative Telecommunications, housing, elections and ethics, utility service districts, transportation Andrea Stearns, Intergovernmental Relations Representative Tax increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing, public safety, general municipal governance Remi Stone, Intergovernmental Relations Representative Growth management and land use, environmental protection, personnel Eric Willette, Legislative Policy Analyst General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, pensions 1998 City Policies iii Legislative Policy Committee Members Improving Community Life Sue Gehrz, Chair, Mayor, Falcon Heights Jean Andre, Assistant to Manager/HRA Coordinator, Golden Valley Jack Barlow, Councilmember, Lauderdale Bill Barnhart, Intergovernmental Relations, Minneapolis Robert Benke, Mayor New Brighton John Blahna, Mayor, Landfall Cathy Busho, Mayor, Rosemount Kathleen Carmody, Councilmember, Brooklyn Center Peter Connor, Mayor, Owatonna Lorenzo Davis, Administrative Intern, Eagan John Doyle, Councilmember, Marshall Michael Ericson, City Administrator, Watertown Pat Farrell, Chief of Police, Rochester Sharon Feess, Councilmember, Brooklyn Park Evelyn Fox, Councilmember, Breckenridge Wendy Gorham, Councilmember, Mora Harlan Gorath, Councilmember, Fairmont Arly Gunderman, Councilmember, New Brighton Vivian Hart, GTS, St. Paul Sue Henry, Administrative Aide, St. Cloud Fran Hesch, Councilmember, Hopkins James Hurm, City Administrator, Shorewood John Jenkins, City Administrator, Ortonville Julianne Manship, Neighborhood Development Director, West St. Paul Sandra Masin, Councilmember, Eagan Roberta Megard, Councilmember, St. Paul James Mladek, Mayor, Montgomery Ed Mylnar, Mayor, Lester Prairie Deb Moran, Councilmember, Burnsville Larry Nicholson, Councilmember, Moorhead John Olinger, City Administrator, Mahtomedi Isobel Rapaich, Councilmember, Duluth Char Samuelson, Councilmember, New Brighton Barbara Sanderson, Councilmember, Grand Rapids Jolie Sasseville, Public Information Officer, Fergus Falls Betty Sindt, Councilmember, Lakeville Grant Thorstad, Police Officer/DARE Instructor, Rosemount Blair Tremere, Assistant City Manager, Prior Lake Dawn Weitzel, Interim Deputy Clerk, Mounds View Duane Zaun, Mayor, Lakeville Improving Fiscal Futures Joy Tierney, Chair, Mayor, Plymouth iv Steve Okins, Vice Chair, Finance Director, Willmar Dick Abraham, City Administrator, Lake City Karen Anderson, Mayor, Minnetonka David Beaudet, Councilmember, Oak Park Heights Steve Bjork, City Planner/Coordinator, St. Francis Thomas Burt, City Administrator, Rosemount Gino Businaro, Finance Director, Mound Dave Callister; City Administrator, Osseo Henry A. Duitsman, Mayor, Elk River Terry Dussault, Assistant to Manager, Blaine (alternate) Gary Eitel, City Administrator, Rogers Charlotte Erickson, Administrator/Clerk, Minnetrista Jerry Faust, Councilmember, St. Anthony Roger W. Fraser, City Manager, Blaine Rick Getschow, City Administrator, Hector John Gretz, City Administrator, Apple Valley Rod Hale, Councilmember, Cottage Grove Jeff Haubrich, Assistant Council Administrator, Red Wing Steve Helget, City Clerk/Administrator, Tyler Patrick Hentges, City Manager, Mankato Susan Hoyt, City Administrator, Falcon Heights Bill Huepenbecker, Intergovernmental Director, St. Paul Greg Isaackson, Clerk -Administrator, Cottonwood Joel Jamnik, Campbell Knutson, Eagan Barbara Jeanetta, Assistant to Manager, New Brighton Elizabeth Kautz, Mayor, Burnsville James Keinath, City Administrator, Circle Pines Dennis Kraft, City Manager, Robbinsdale Lynn Lander, City Administrator, Hermantown Bob Larson, City Administrator, Deephaven Ann Lenczewski, Councilmember, Bloomington Kathy Lueckert, Assistant City Manager, Plymouth Wes Mader, Councilmember, Prior Lake Michael McGuire, City Manager, Maplewood Steve Mielke, City Manager, Hopkins El Mlynar, Mayor, Lester Prairie John Moir, Finance Department, Minneapolis Ruth Nelsen, City Clerk, Hilltop Gary Neumann, Assistant Administrator, Rochester John Perino, Mayor, Alexandria David Pokorney, City Administrator, Chaska Bryan Read, City Administrator, Montgomery Douglas Reeder, City Administrator, South St. Paul John W. Remkus, Finance Director, West St. Paul Robert Rys, City Administrator, Minnesota Lake Ryan Schroeder, City Administrator, Ramsey Alfred Schumann, Mayor, Eyota James Smith, Councilmember, Independence League of Minnesota Cities Legislative Policy Committee Members Improving Community Life Sue Gehrz, Chair, Mayor, Falcon Heights Jean Andre, Assistant to Manager/HRA Coordinator, Golden Valley Jack Barlow, Councilmember, Lauderdale Bill Barnhart, Intergovernmental Relations, Minneapolis Robert Benke, Mayor New Brighton John Blahna, Mayor, Landfall Cathy Busho, Mayor, Rosemount Kathleen Carmody, Councilmember, Brooklyn Center Peter Connor, Mayor, Owatonna Lorenzo Davis, Administrative Intern, Eagan John Doyle, Councilmember, Marshall Michael Ericson, City Administrator, Watertown Pat Farrell, Chief of Police, Rochester Sharon Feess, Councilmember, Brooklyn Park Evelyn Fox, Councilmember, Breckenridge Wendy Gorham, Councilmember, Mora Harlan Gorath, Councilmember, Fairmont Arly Gunderman, Councilmember, New Brighton Vivian Hart, GTS, St. Paul Sue Henry, Administrative Aide, St. Cloud Fran Hesch, Councilmember, Hopkins James Hurm, City Administrator, Shorewood John Jenkins, City Administrator, Ortonville Julianne Manship, Neighborhood Development Director, West St. Paul Sandra Masin, Councilmember, Eagan Roberta Megard, Councilmember, St. Paul James Mladek, Mayor, Montgomery Ed Mylnar, Mayor, Lester Prairie Deb Moran, Councilmember, Burnsville Larry Nicholson, Councilmember, Moorhead John Olinger, City Administrator, Mahtomedi Isobel Rapaich, Councilmember, Duluth Char Samuelson, Councilmember, New Brighton Barbara Sanderson, Councilmember, Grand Rapids Jolie Sasseville, Public Information Officer, Fergus Falls Betty Sindt, Councilmember, Lakeville Grant Thorstad, Police Officer/DARE Instructor, Rosemount Blair Tremere, Assistant City Manager, Prior Lake Dawn Weitzel, Interim Deputy Clerk, Mounds View Duane Zaun, Mayor, Lakeville Improving Fiscal Futures Joy Tierney, Chair, Mayor, Plymouth iv Steve Okins, Vice Chair, Finance Director, Willmar Dick Abraham, City Administrator, Lake City Karen Anderson, Mayor, Minnetonka David Beaudet, Councilmember, Oak Park Heights Steve Bjork, City Planner/Coordinator, St. Francis Thomas Burt, City Administrator, Rosemount Gino Businaro, Finance Director, Mound Dave Callister; City Administrator, Osseo Henry A. Duitsman, Mayor, Elk River Terry Dussault, Assistant to Manager, Blaine (alternate) Gary Eitel, City Administrator, Rogers Charlotte Erickson, Administrator/Clerk, Minnetrista Jerry Faust, Councilmember, St. Anthony Roger W. Fraser, City Manager, Blaine Rick Getschow, City Administrator, Hector John Gretz, City Administrator, Apple Valley Rod Hale, Councilmember, Cottage Grove Jeff Haubrich, Assistant Council Administrator, Red Wing Steve Helget, City Clerk/Administrator, Tyler Patrick Hentges, City Manager, Mankato Susan Hoyt, City Administrator, Falcon Heights Bill Huepenbecker, Intergovernmental Director, St. Paul Greg Isaackson, Clerk -Administrator, Cottonwood Joel Jamnik, Campbell Knutson, Eagan Barbara Jeanetta, Assistant to Manager, New Brighton Elizabeth Kautz, Mayor, Burnsville James Keinath, City Administrator, Circle Pines Dennis Kraft, City Manager, Robbinsdale Lynn Lander, City Administrator, Hermantown Bob Larson, City Administrator, Deephaven Ann Lenczewski, Councilmember, Bloomington Kathy Lueckert, Assistant City Manager, Plymouth Wes Mader, Councilmember, Prior Lake Michael McGuire, City Manager, Maplewood Steve Mielke, City Manager, Hopkins El Mlynar, Mayor, Lester Prairie John Moir, Finance Department, Minneapolis Ruth Nelsen, City Clerk, Hilltop Gary Neumann, Assistant Administrator, Rochester John Perino, Mayor, Alexandria David Pokorney, City Administrator, Chaska Bryan Read, City Administrator, Montgomery Douglas Reeder, City Administrator, South St. Paul John W. Remkus, Finance Director, West St. Paul Robert Rys, City Administrator, Minnesota Lake Ryan Schroeder, City Administrator, Ramsey Alfred Schumann, Mayor, Eyota James Smith, Councilmember, Independence League of Minnesota Cities Gerald Sorenson, Administrative Services Director, Moorhead Pete Stolley, Public Works, Northfield Malcolm Tilberg, City Manager, St. James David Urbia, City Administrator, Blue Earth Gene VanOverbeke, Finance Director, Eagan Jeff VanWychen, Intergovernmental Relations, Minneapolis (alternate) Daniel Vogt, City Administrator, Brainerd Bill Waller, City Administrator, LaCrescent Chuck Whiting, Clerk Administrator, Mounds View James Willis, City Administrator, Inver Grove Heights Donn Wiski, Councilmember, Roseville Improving Local Economies Bonnie Cumberland, Chair, Mayor, Brainerd Duane Zahn, Vice Chair, Mayor, Lakeville Kirsten Barsness, Economic Development Director, Cottage Grove David Beaudet, Councilmember, Oak Park Heights Jerry Bohnsack, City Administrator, New Prague Gerald Brever, City Administrator, Staples Kevin Carroll, Councilmember, Rosemount Victoria Cox, Councilmember, White Bear Lake James Daniels, Administrator, Lake Minnetonka Communications Commission, Excelsior Leo W. Eldred, Councilmember, Moorhead Michael Ericson, City Administrator, Watertown Keith Ford, Community Development Agency, Minneapolis Matt Fulton, City Manager, New Brighton Allen Greenfield, Councilmember, Prior Lake Tom Hansen, Deputy Manager Administrative Enterprises, Burnsville Duane Hebert, City Administrator, Renville Pat Heldt, Councilmember, Alexandria Jon Hohenstein, Assistant to Administrator, Eagan Bill Huepenbecker, Intergovernmental Relations Director, St. Paul Marvin Johnson, Mayor, Independence Ronald Johnson, City Administrator, Zumbrota Steven C. Jones, City Administrator, Mora Andrea Hart Kajer, Intergovernmental Relations Director, Minneapolis (alternate) Randy A. Kolb, Councilmember, Blaine Edward R. Larson, City Manager, Morris Larry Lee, Community Development Director, Bloomington Greg Lerud, City Manager, Milaca Don Levens, City Administrator, Cokato James L. Mladek, Mayor, Montgomery Ron Moorse, City Administrator, Orono E. Craig Morris, Mayor, Lakeland Mark Nagel, City Manager, Anoka Rhoda Newlin, Councilmember, Red Wing James Norman, City Manager, Montevideo Bruce Peterson, Community Development Director, Willmar Dan Rogness, Community Development Director, Rosemount Joe Rudberg, City Administrator, Becker Terry Schneider, Councilmember, Minnetonka Chad Shryock, City Administrator, Eagle Lake Robert Therres, City Administrator, Sartell Brian Wagner, City Coordinator, Lakefield Craig Waldron, City Administrator, Oakdale Daniel Wall, Mayor, Roseville Denny Wilde, City Administrator, Paynesville Betty Zachmann, City Clerk -Treasurer, Winsted Improving Service Delivery David M. Senjem, Chair, Councilmember, Rochester Jerry Dulgar, Vice Chair, City Manager, Crystal Patricia Crawford, Clerk -Treasurer, Motley Laurie Elliott, Personnel Coordinator, Shoreview Brian Fritsinger, City Administrator, Arden Hills Theresa Goble, Finance Director, Brainerd Ken Hartung, City Administrator, Bayport Mimi Hasselbalch, Councilmember, Vadnais Heights Andrea Hart Kajer, Intergovernmental Relations Director, Minneapolis (alternate) Mark Karnowski, City Administrator, Lindstrom Kay Kuhlmann, Council Administrator, Red Wing Myrna Maikkula, City Clerk, Brooklyn Park Kay McAloney, Personnel Director, Anoka Mary Helen Mische, Intergovernmental Relations Assistant, St. Paul Judd Mowry, Councilmember, Tonka Bay Susan Olesen, Clerk, Burnsville Desyl Peterson, City Attorney, Minnetonka Isabel Rapaich, Councilmember, Duluth Dan Scott, City Manager, North St. Paul Ceil Smith, Assistant to City Manager, Edina Glenda Spiotta, City Administrator, Carver Joyce Swadner, Elections Office, Minneapolis Blair Tremere, Assistant City Manager, Prior Lake Joyce Twistol, Personnel Director/City Clerk, Blaine Kurt Ulrich, City Administrator, Champlin Susan Walsh, Administrative Assistant, Rosemount Rena Weber, Clerk/Coordinator, Cold Spring Liz Witt, Administrative Assistant, Eagan Krista Witty, MVCOG Director, Mankato Wally Wysopal, Assistant to Manager/Personnel Officer, St. Louis Park 1998 City Policies V Gerald Sorenson, Administrative Services Director, Moorhead Pete Stolley, Public Works, Northfield Malcolm Tilberg, City Manager, St. James David Urbia, City Administrator, Blue Earth Gene VanOverbeke, Finance Director, Eagan Jeff VanWychen, Intergovernmental Relations, Minneapolis (alternate) Daniel Vogt, City Administrator, Brainerd Bill Waller, City Administrator, LaCrescent Chuck Whiting, Clerk Administrator, Mounds View James Willis, City Administrator, Inver Grove Heights Donn Wiski, Councilmember, Roseville Improving Local Economies Bonnie Cumberland, Chair, Mayor, Brainerd Duane Zahn, Vice Chair, Mayor, Lakeville Kirsten Barsness, Economic Development Director, Cottage Grove David Beaudet, Councilmember, Oak Park Heights Jerry Bohnsack, City Administrator, New Prague Gerald Brever, City Administrator, Staples Kevin Carroll, Councilmember, Rosemount Victoria Cox, Councilmember, White Bear Lake James Daniels, Administrator, Lake Minnetonka Communications Commission, Excelsior Leo W. Eldred, Councilmember, Moorhead Michael Ericson, City Administrator, Watertown Keith Ford, Community Development Agency, Minneapolis Matt Fulton, City Manager, New Brighton Allen Greenfield, Councilmember, Prior Lake Tom Hansen, Deputy Manager Administrative Enterprises, Burnsville Duane Hebert, City Administrator, Renville Pat Heldt, Councilmember, Alexandria Jon Hohenstein, Assistant to Administrator, Eagan Bill Huepenbecker, Intergovernmental Relations Director, St. Paul Marvin Johnson, Mayor, Independence Ronald Johnson, City Administrator, Zumbrota Steven C. Jones, City Administrator, Mora Andrea Hart Kajer, Intergovernmental Relations Director, Minneapolis (alternate) Randy A. Kolb, Councilmember, Blaine Edward R. Larson, City Manager, Morris Larry Lee, Community Development Director, Bloomington Greg Lerud, City Manager, Milaca Don Levens, City Administrator, Cokato James L. Mladek, Mayor, Montgomery Ron Moorse, City Administrator, Orono E. Craig Morris, Mayor, Lakeland Mark Nagel, City Manager, Anoka Rhoda Newlin, Councilmember, Red Wing James Norman, City Manager, Montevideo Bruce Peterson, Community Development Director, Willmar Dan Rogness, Community Development Director, Rosemount Joe Rudberg, City Administrator, Becker Terry Schneider, Councilmember, Minnetonka Chad Shryock, City Administrator, Eagle Lake Robert Therres, City Administrator, Sartell Brian Wagner, City Coordinator, Lakefield Craig Waldron, City Administrator, Oakdale Daniel Wall, Mayor, Roseville Denny Wilde, City Administrator, Paynesville Betty Zachmann, City Clerk -Treasurer, Winsted Improving Service Delivery David M. Senjem, Chair, Councilmember, Rochester Jerry Dulgar, Vice Chair, City Manager, Crystal Patricia Crawford, Clerk -Treasurer, Motley Laurie Elliott, Personnel Coordinator, Shoreview Brian Fritsinger, City Administrator, Arden Hills Theresa Goble, Finance Director, Brainerd Ken Hartung, City Administrator, Bayport Mimi Hasselbalch, Councilmember, Vadnais Heights Andrea Hart Kajer, Intergovernmental Relations Director, Minneapolis (alternate) Mark Karnowski, City Administrator, Lindstrom Kay Kuhlmann, Council Administrator, Red Wing Myrna Maikkula, City Clerk, Brooklyn Park Kay McAloney, Personnel Director, Anoka Mary Helen Mische, Intergovernmental Relations Assistant, St. Paul Judd Mowry, Councilmember, Tonka Bay Susan Olesen, Clerk, Burnsville Desyl Peterson, City Attorney, Minnetonka Isabel Rapaich, Councilmember, Duluth Dan Scott, City Manager, North St. Paul Ceil Smith, Assistant to City Manager, Edina Glenda Spiotta, City Administrator, Carver Joyce Swadner, Elections Office, Minneapolis Blair Tremere, Assistant City Manager, Prior Lake Joyce Twistol, Personnel Director/City Clerk, Blaine Kurt Ulrich, City Administrator, Champlin Susan Walsh, Administrative Assistant, Rosemount Rena Weber, Clerk/Coordinator, Cold Spring Liz Witt, Administrative Assistant, Eagan Krista Witty, MVCOG Director, Mankato Wally Wysopal, Assistant to Manager/Personnel Officer, St. Louis Park 1998 City Policies V League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past five months. The process began with a member survey of priority issues facing city officials. The process will not end with the policy adoption conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop alternative solutions and to discuss strategies to implement the League's policies. Listed below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. April/May The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. June The League President accepts applications for committees and appoints policy committee members. The policy committees are: Improving Fiscal Futures Committee Improving Local Economies Improving Service Delivery In addition, the Improving Community Life Committee meets on a regular basis to discuss issues affecting "livable communities" and to develop the Improving Community Life policy guideline. July Committees meet to discuss issues raised in member survey. Commitees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August Committees and task forces meet to discuss issues and problems, accept through testimony and develop policy statements. September October Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the four above-mentioned committees. November Policy Adoption Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for membership consideration. December The Board adopts the Legislative Action Plan, based on input from the Policy Adoption Conference. January Legislative Session. During the session, the policy committees and task forces through will continue to meet on issues and strategies. Members can assist the League's May legislative efforts by volunteering to contact legislators on a variety of issues of interest to our cities. V1 League of Minnesota Cities League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past five months. The process began with a member survey of priority issues facing city officials. The process will not end with the policy adoption conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop alternative solutions and to discuss strategies to implement the League's policies. Listed below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. April/May The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. June The League President accepts applications for committees and appoints policy committee members. The policy committees are: Improving Fiscal Futures Committee Improving Local Economies Improving Service Delivery In addition, the Improving Community Life Committee meets on a regular basis to discuss issues affecting "livable communities" and to develop the Improving Community Life policy guideline. July Committees meet to discuss issues raised in member survey. Commitees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August Committees and task forces meet to discuss issues and problems, accept through testimony and develop policy statements. September October Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the four above-mentioned committees. November Policy Adoption Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for membership consideration. December The Board adopts the Legislative Action Plan, based on input from the Policy Adoption Conference. January Legislative Session. During the session, the policy committees and task forces through will continue to meet on issues and strategies. Members can assist the League's May legislative efforts by volunteering to contact legislators on a variety of issues of interest to our cities. V1 League of Minnesota Cities Statement of Intent There are many problems which limit the effectiveness of city government to improve community life, improve the fiscal future and service delivery of city government, and to improve the local economy. What follows are statements of the problems facing cities and the solutions proposed to help resolve these problems. These statements of problems and proposed solutions form the policy of the League of Minnesota Cities. Additional and alternative solutions to these problems may be proposed after the Policy Adoption Conference and the members of the League authorize its Board of Directors to consider and support additional or alternative solutions, if necessary, to resolve the problems identified in this policy statement. 1998 City Policies vii Statement of Intent There are many problems which limit the effectiveness of city government to improve community life, improve the fiscal future and service delivery of city government, and to improve the local economy. What follows are statements of the problems facing cities and the solutions proposed to help resolve these problems. These statements of problems and proposed solutions form the policy of the League of Minnesota Cities. Additional and alternative solutions to these problems may be proposed after the Policy Adoption Conference and the members of the League authorize its Board of Directors to consider and support additional or alternative solutions, if necessary, to resolve the problems identified in this policy statement. 1998 City Policies vii Part I 1998 Policy Guidelines Part I 1998 Policy Guidelines IMPROVING COMMUNITY LIFE CL -1. Livable Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local governments to work together in partnership to make every community "livable." PROBLEM: Cities in Minnesota are at various stages in meeting the goal of being "livable communities." SOLUTION: The definition of a 'livable community" below will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota cities to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable communities. A LIVABLE COMMUNITY IS: WIiERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: * safe * a sense of belonging * welcome • engage in life-long learning activities that: * prepare them for responsible citizenship * enhance the enjoyment of life * prepare them for changing job markets • participate in the decision-making process of community leaders • celebrate community • want to make their home 1998 City Policies 1 IMPROVING COMMUNITY LIFE CL -1. Livable Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local governments to work together in partnership to make every community "livable." PROBLEM: Cities in Minnesota are at various stages in meeting the goal of being "livable communities." SOLUTION: The definition of a 'livable community" below will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota cities to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable communities. A LIVABLE COMMUNITY IS: WIiERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: * safe * a sense of belonging * welcome • engage in life-long learning activities that: * prepare them for responsible citizenship * enhance the enjoyment of life * prepare them for changing job markets • participate in the decision-making process of community leaders • celebrate community • want to make their home 1998 City Policies 1 • have access to: * good paying jobs * adequate and affordable housing * choice of efficient transportation systems including transit, pedestrians, and bicycles * gathering places * desired information * choice of cultural and recreational activities * affordable goods and services, including health care • are involved in the nurturing of youth • care about their homes, community, and the environment • get to know each other • have the benefit of strong family support and nurturing adults • WHERE LOCAL GOVERNMENT • is responsive to the needs of its citizens • is actively supported by enthusiastic volunteers • is open and user friendly • encourages and implements cooperation and collaboration • provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs • educates citizens of all ages on local, regional, and state issues and government processes • informs and communicates with citizens to foster participation in public policy decision-making • participates in youth development 2 League of Minnesotai��a • have access to: * good paying jobs * adequate and affordable housing * choice of efficient transportation systems including transit, pedestrians, and bicycles * gathering places * desired information * choice of cultural and recreational activities * affordable goods and services, including health care • are involved in the nurturing of youth • care about their homes, community, and the environment • get to know each other • have the benefit of strong family support and nurturing adults • WHERE LOCAL GOVERNMENT • is responsive to the needs of its citizens • is actively supported by enthusiastic volunteers • is open and user friendly • encourages and implements cooperation and collaboration • provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs • educates citizens of all ages on local, regional, and state issues and government processes • informs and communicates with citizens to foster participation in public policy decision-making • participates in youth development 2 League of Minnesotai��a Part II 1998 City Policies Part II 1998 City Policies General Policy Statement One of the most important purposes of the authority for cities to meet challenges League of Minnesota Cities is to serve as a of governing and providing citizens vehicle for cities to define common with services while at the same time problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 815 of Minnesota's 853 cities as well as 12 urban towns and 24 special districts. All sizes of communities are represented among the League's members (the largest nonmember city has a population of 163) and each region of the state is represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies. 1. There is a need for a governmental system which allows flexibility and protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and 2. The financial and technical requirements for governing and providing services necessitate a continuing and strengthened partnership with federal, state, and local governments. This partnership particularly in the areas of finance, development, housing, environment, and transportation is critical for the successful operation of Minnesota's cities and the well-being of city residents. 1998 City Policies 3 General Policy Statement One of the most important purposes of the authority for cities to meet challenges League of Minnesota Cities is to serve as a of governing and providing citizens vehicle for cities to define common with services while at the same time problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 815 of Minnesota's 853 cities as well as 12 urban towns and 24 special districts. All sizes of communities are represented among the League's members (the largest nonmember city has a population of 163) and each region of the state is represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies. 1. There is a need for a governmental system which allows flexibility and protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and 2. The financial and technical requirements for governing and providing services necessitate a continuing and strengthened partnership with federal, state, and local governments. This partnership particularly in the areas of finance, development, housing, environment, and transportation is critical for the successful operation of Minnesota's cities and the well-being of city residents. 1998 City Policies 3 IMPROVING FISCAL FUTURES FF -1. State -Local Fiscal Relations circumstances; Issue: Minnesota's state and local • diversify available city revenue government finance system is complex and sources by generally authorizing intertwined. Cities rely on their local taxes that reduce reliance on partnership with the state to provide local the property tax; and services. On the other hand, the needs and programs, or local option taxing desires of Minnesota's communities are • reduce the property tax burden for many and wide-ranging. While the state's all classes of property by increasing revenue-sharing system has been regarded the state share of school funding. as innovative and helpful, there exists a Any increase in the state share of growing need for local elected officials, school funding must guarantee a those closest to the electorate, to be permanent reduction in the local responsive to the service needs of the local property tax burden. The League citizenry. To that end, cities need supports paying for the increased discretion and flexibility in determining state costs through income and sales local revenues. taxes. The 1997 legislature made changes to The legislature should not: Minnesota's property tax system that will impact the ability of local governments to • replace all or part of LGA or HACA fund necessary services. The reimposition with state -mandated categorical aid of levy limits, significant class rate programs, or local option taxing compression, and changes in state funding authority; of schools all may have unintended consequences. • switch from the classification system to a market value based system, Response: As the legislature which would cause tremendous shifts considers additional property tax changes of tax burden between classes of in 1998, it should: property. The League also opposes applying all future levy increases to • carefully analyze the combined market value because this would impacts of the 1997 tax bill and further complicate the property tax changing economic circumstances on system; the taxpayer and on local governments so that policymakers • interfere in local decision making can better understand where the regarding service delivery; system may need further changes; • impose a state -levied property tax; • repeal levy limits, which are and inefficient, ineffective, interfere with local accountability and ignore local • cut LGA or HACA to finance an 4 League of Minnesota Cities IMPROVING FISCAL FUTURES FF -1. State -Local Fiscal Relations circumstances; Issue: Minnesota's state and local • diversify available city revenue government finance system is complex and sources by generally authorizing intertwined. Cities rely on their local taxes that reduce reliance on partnership with the state to provide local the property tax; and services. On the other hand, the needs and programs, or local option taxing desires of Minnesota's communities are • reduce the property tax burden for many and wide-ranging. While the state's all classes of property by increasing revenue-sharing system has been regarded the state share of school funding. as innovative and helpful, there exists a Any increase in the state share of growing need for local elected officials, school funding must guarantee a those closest to the electorate, to be permanent reduction in the local responsive to the service needs of the local property tax burden. The League citizenry. To that end, cities need supports paying for the increased discretion and flexibility in determining state costs through income and sales local revenues. taxes. The 1997 legislature made changes to The legislature should not: Minnesota's property tax system that will impact the ability of local governments to • replace all or part of LGA or HACA fund necessary services. The reimposition with state -mandated categorical aid of levy limits, significant class rate programs, or local option taxing compression, and changes in state funding authority; of schools all may have unintended consequences. • switch from the classification system to a market value based system, Response: As the legislature which would cause tremendous shifts considers additional property tax changes of tax burden between classes of in 1998, it should: property. The League also opposes applying all future levy increases to • carefully analyze the combined market value because this would impacts of the 1997 tax bill and further complicate the property tax changing economic circumstances on system; the taxpayer and on local governments so that policymakers • interfere in local decision making can better understand where the regarding service delivery; system may need further changes; • impose a state -levied property tax; • repeal levy limits, which are and inefficient, ineffective, interfere with local accountability and ignore local • cut LGA or HACA to finance an 4 League of Minnesota Cities increased state role in school finance. FF -2. State Shared Revenues Issue: State revenue sharing programs address at least three problems with a stand-alone local government finance system. First, the property tax base available to communities can vary dramatically. These programs use state resources to equalize the ability of communities to provide essential services without undue property tax burdens for local residents. Second, nonresidents can take advantage of local services or create additional demands for services without contributing to the taxes that support these services. LGA and HACA help address the free rider problem where nonpaying individuals consume services without contributing to the local tax base. Third, allowing local units of government in Minnesota to only levy the property tax has created an over -reliance on the property tax. LGA and HACA can reduce the overall reliance of local governments on the property tax. Response: LGA and HACA, or similar replacement revenues, must be continued and additional state resources greater than the rate of inflation must be allocated to prevent rapid future property tax increases. In addition, the HACA household growth factor for cities should be reinstated. FF -3. Taxation of Municipal Bond Interest Issue: The state law that grants a tax exemption for municipal bond interest is being reviewed and could be repealed. A repeal of this exemption will raise borrowing costs for cities. Response: The state should maintain the tax exemption for municipal bond interest income. FF -4. City Fiscal Year Issue: The fiscal years for the state and cities are offset by six months. The state fiscal year begins on July 1 while the city fiscal year begins on January 1. Lawmakers have proposed changing the city fiscal year to coincide with the state. Such a change, while providing questionable benefits for cities, would not correspond with the current property tax cycle, impair historical comparisons of data, force cities to retool accounting systems, will adversely impact city credit ratings, and could result in state funding gaps. Response: The state should maintain current law and not change the city fiscal year to coincide with the state fiscal year. FF -5. Sales Tax on Local Government Purchases Issue: In 1992 when the state was experiencing a budget shortfall, the legislature repealed the sales tax exemption for local government purchases. This action currently costs local governments an estimated $77.5 million annually. Because no additional state aids were added to offset the additional cost, this repeal has effectively increased local property taxes to finance state operations. Response: The state should reinstate 1998 City Policies 5 increased state role in school finance. FF -2. State Shared Revenues Issue: State revenue sharing programs address at least three problems with a stand-alone local government finance system. First, the property tax base available to communities can vary dramatically. These programs use state resources to equalize the ability of communities to provide essential services without undue property tax burdens for local residents. Second, nonresidents can take advantage of local services or create additional demands for services without contributing to the taxes that support these services. LGA and HACA help address the free rider problem where nonpaying individuals consume services without contributing to the local tax base. Third, allowing local units of government in Minnesota to only levy the property tax has created an over -reliance on the property tax. LGA and HACA can reduce the overall reliance of local governments on the property tax. Response: LGA and HACA, or similar replacement revenues, must be continued and additional state resources greater than the rate of inflation must be allocated to prevent rapid future property tax increases. In addition, the HACA household growth factor for cities should be reinstated. FF -3. Taxation of Municipal Bond Interest Issue: The state law that grants a tax exemption for municipal bond interest is being reviewed and could be repealed. A repeal of this exemption will raise borrowing costs for cities. Response: The state should maintain the tax exemption for municipal bond interest income. FF -4. City Fiscal Year Issue: The fiscal years for the state and cities are offset by six months. The state fiscal year begins on July 1 while the city fiscal year begins on January 1. Lawmakers have proposed changing the city fiscal year to coincide with the state. Such a change, while providing questionable benefits for cities, would not correspond with the current property tax cycle, impair historical comparisons of data, force cities to retool accounting systems, will adversely impact city credit ratings, and could result in state funding gaps. Response: The state should maintain current law and not change the city fiscal year to coincide with the state fiscal year. FF -5. Sales Tax on Local Government Purchases Issue: In 1992 when the state was experiencing a budget shortfall, the legislature repealed the sales tax exemption for local government purchases. This action currently costs local governments an estimated $77.5 million annually. Because no additional state aids were added to offset the additional cost, this repeal has effectively increased local property taxes to finance state operations. Response: The state should reinstate 1998 City Policies 5 the sales tax exemption for all local government purchases. The exemption must not be coupled with cuts in LGA or HACA. FF -6. Delinquent Property Tax Penalties and Interest Issue: Although city finances are affected by property tax delinquencies, cities do not receive any associated penalties and interest on these delinquencies. Penalties and interest are split evenly between counties and schools. Response: Cities and counties should receive a pro -rata distribution of 50 percent of the penalties and interest collected on delinquent property taxes with the remaining 50 percent to be distributed to schools. FF -7. Payments for Services to Tax -Exempt Property Issue: Taxable property in many cities is being acquired by nonprofit and government entities. Converting the property to tax-exempt status can lead to a serious tax base erosion without any corresponding reduction in the service needs created by the property. Response: Cities should be allowed to collect payments to cover costs of service in -lieu of property taxes or special assessments from statutorily exempt property owners. FF -8. Truth -in -Taxation Issue: The legislature created the truth in taxation process in 1993 as a replacement for state -mandated levy limits. The 1997 legislature re-enacted levy limits for many cities, yet the truth in taxation requirements remain. The 1997 legislature also changed the parcel -specific notice of proposed property taxes to separate the effects of local spending decisions on proposed taxes from the effects of factors beyond local control such as changes in valuation or legislative changes to theclass rates or state aids. Response: Changes made in 1997 to the truth in taxation notice will hopefully clarify the roles and responsibilities of the state and local governments. But modifications may be necessary if the new form proves to be too confusing to taxpayers. In addition, cities need more flexibility in the truth in taxation process. Cities should be able to schedule their initial hearings that may conflict with others' hearings, if no other dates are available. Cities should have the authority to increase the final levy from the preliminary levy. FF -9. State Deductions from LGA Issue: State administrative costs are deducted from the LGA appropriation. This reduces the property tax relief provided by LGA and creates hidden appropriations for state agencies. Response: All appropriations from LGA resources that fund state operations should be repealed. FF -10. Reporting Requirements Issue: Budget and financial reporting requirements imposed on cities by the state often result in duplication and additional costs. 6 League of Minnesota Cities the sales tax exemption for all local government purchases. The exemption must not be coupled with cuts in LGA or HACA. FF -6. Delinquent Property Tax Penalties and Interest Issue: Although city finances are affected by property tax delinquencies, cities do not receive any associated penalties and interest on these delinquencies. Penalties and interest are split evenly between counties and schools. Response: Cities and counties should receive a pro -rata distribution of 50 percent of the penalties and interest collected on delinquent property taxes with the remaining 50 percent to be distributed to schools. FF -7. Payments for Services to Tax -Exempt Property Issue: Taxable property in many cities is being acquired by nonprofit and government entities. Converting the property to tax-exempt status can lead to a serious tax base erosion without any corresponding reduction in the service needs created by the property. Response: Cities should be allowed to collect payments to cover costs of service in -lieu of property taxes or special assessments from statutorily exempt property owners. FF -8. Truth -in -Taxation Issue: The legislature created the truth in taxation process in 1993 as a replacement for state -mandated levy limits. The 1997 legislature re-enacted levy limits for many cities, yet the truth in taxation requirements remain. The 1997 legislature also changed the parcel -specific notice of proposed property taxes to separate the effects of local spending decisions on proposed taxes from the effects of factors beyond local control such as changes in valuation or legislative changes to theclass rates or state aids. Response: Changes made in 1997 to the truth in taxation notice will hopefully clarify the roles and responsibilities of the state and local governments. But modifications may be necessary if the new form proves to be too confusing to taxpayers. In addition, cities need more flexibility in the truth in taxation process. Cities should be able to schedule their initial hearings that may conflict with others' hearings, if no other dates are available. Cities should have the authority to increase the final levy from the preliminary levy. FF -9. State Deductions from LGA Issue: State administrative costs are deducted from the LGA appropriation. This reduces the property tax relief provided by LGA and creates hidden appropriations for state agencies. Response: All appropriations from LGA resources that fund state operations should be repealed. FF -10. Reporting Requirements Issue: Budget and financial reporting requirements imposed on cities by the state often result in duplication and additional costs. 6 League of Minnesota Cities Response: Requirements for reporting and advertising financial and budget information should be carefully weighed to balance the validity of the state's need for additional information with the costs and burdens of compiling and submitting this information. In addition, all state agencies should be aware of the information already required by others to avoid duplication of reporting requirements. FF -11. Federal Budget Cutbacks Issue: Congressional actions to balance the federal budget will reduce federal assistance to the state and to local governments. Response: The state should not reduce aids or increase fees to local governments as a means for dealing with cutbacks in federal revenues. The state should take responsibility for reductions in federal revenues rather than placing the burden on cities and their property taxpayers. FF -12. Local Performance Aid Issue: When the 1996 legislature created the local performance aid program, the legislation was vague and the program was partially funded by cuts in HACA. In the future, the requirements for applying for the aid could become an onerous mandate on cities and undermine local decision-making. Response: The League strongly supports efforts by cities to improve the efficiency and effectiveness of their operations, including exercises such as performance measurement systems. However, these efforts should be local initiatives rather than state mandated actions. Therefore, the League opposes LPA. If local performance aid is to be continued: • The law must be clarified and the qualification requirements must be attainable by all cities regardless of city size or staffing levels. • All additional funding must come from new revenue sources rather than shifts of aid from other programs such as LGA and HACA. • The program must not become an onerous mandate requiring additional city resources. • Any information on individual cities that is collected from the program must not be used to simplistically compare cities. FF -13. Price of Government Issue: The price of government legislation enacted in 1994 was intended to measure the overall effect of state and local taxation over a long period of time. The targets measure government revenues as a percent of personal income. Unfortunately, the targets have been misinterpreted and used unfairly to criticize city tax and budget decisions. Response: The price of government statutes as they apply to local governments should be repealed. If the price of government law is to continue to be applied to local governments, price of government calculations should be: • based on the sum of levy and state aid, not just levy; and 1998 City Policies 7 Response: Requirements for reporting and advertising financial and budget information should be carefully weighed to balance the validity of the state's need for additional information with the costs and burdens of compiling and submitting this information. In addition, all state agencies should be aware of the information already required by others to avoid duplication of reporting requirements. FF -11. Federal Budget Cutbacks Issue: Congressional actions to balance the federal budget will reduce federal assistance to the state and to local governments. Response: The state should not reduce aids or increase fees to local governments as a means for dealing with cutbacks in federal revenues. The state should take responsibility for reductions in federal revenues rather than placing the burden on cities and their property taxpayers. FF -12. Local Performance Aid Issue: When the 1996 legislature created the local performance aid program, the legislation was vague and the program was partially funded by cuts in HACA. In the future, the requirements for applying for the aid could become an onerous mandate on cities and undermine local decision-making. Response: The League strongly supports efforts by cities to improve the efficiency and effectiveness of their operations, including exercises such as performance measurement systems. However, these efforts should be local initiatives rather than state mandated actions. Therefore, the League opposes LPA. If local performance aid is to be continued: • The law must be clarified and the qualification requirements must be attainable by all cities regardless of city size or staffing levels. • All additional funding must come from new revenue sources rather than shifts of aid from other programs such as LGA and HACA. • The program must not become an onerous mandate requiring additional city resources. • Any information on individual cities that is collected from the program must not be used to simplistically compare cities. FF -13. Price of Government Issue: The price of government legislation enacted in 1994 was intended to measure the overall effect of state and local taxation over a long period of time. The targets measure government revenues as a percent of personal income. Unfortunately, the targets have been misinterpreted and used unfairly to criticize city tax and budget decisions. Response: The price of government statutes as they apply to local governments should be repealed. If the price of government law is to continue to be applied to local governments, price of government calculations should be: • based on the sum of levy and state aid, not just levy; and 1998 City Policies 7 • based on long-term trends, not single year events. FF -14. Development Fees Issue: New development and the resulting growth creates an increased demand for public infrastructure and other public facilities. Severe constraints on local fiscal resources and dramatic forecasts for population growth have prompted cities to critically reconsider ways in which we pay for the inevitable costs associated with new development. Traditional financing methods tend to subsidize new development at the expense of the existing community, discourage sound land use planning, place inefficient pressures on public facilities, and allow underutilization of existing infrastructure. Consequently, local communities are exploring methods to assure that new development pays its fair share of the true costs of growth. Given the existing authorization to impose fees on new development for water, sanitary and storm sewer, and park purposes, it seems reasonable to extend the concept to additional public infrastructure and facilities improvement also necessitated by new development. Response: The legislature should authorize cities to impose development fees so that new development pays its fair share of the off-site, as well as the on-site, costs of public infrastructure and other public facilities needed to adequately serve new development. FF -15. Residential Nonhomestead Property Tax Relief Issue: Residential nonhomestead properties (one to three units) are in need of property tax relief. This is particularly true of duplexes and triplexes, which did not enjoy the same amount of property tax relief in the 1997 tax bill as did single unit rental property; therefore, these types of property should be taxed alike. Eliminating the distinction between single unit rental. duplexes, and triplexes will simplify the property tax system by eliminating a class of property. However, granting rental property all the tax advantages of homesteaded property may decrease homeownership and could have a destabilizing impact on Minnesota cities. Homestead property should continue to enjoy preferential tax treatment relative to other classes of property. Under no circumstances should the class rate applied to residential nonhomestead property be less than the class rate that is applied to second- tier homestead property. Response: The League of Minnesota Cities supports maintaining the property tax distinction between homestead and rental property. The League also supports combining all one to three unit nonhomestead residential property into a single class of property with a single class rate. This single class rate should be reduced to, but not below, the class rate currently applied to second-tier homestead and rental property. FF -16. Electric Utility Taxation Issue: Part of the discussion regarding possible deregulation of the electric power industry has centered on electric utility taxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed to "level the playing field" or ensure competitive parity. The 8 League of Minnesota Cities • based on long-term trends, not single year events. FF -14. Development Fees Issue: New development and the resulting growth creates an increased demand for public infrastructure and other public facilities. Severe constraints on local fiscal resources and dramatic forecasts for population growth have prompted cities to critically reconsider ways in which we pay for the inevitable costs associated with new development. Traditional financing methods tend to subsidize new development at the expense of the existing community, discourage sound land use planning, place inefficient pressures on public facilities, and allow underutilization of existing infrastructure. Consequently, local communities are exploring methods to assure that new development pays its fair share of the true costs of growth. Given the existing authorization to impose fees on new development for water, sanitary and storm sewer, and park purposes, it seems reasonable to extend the concept to additional public infrastructure and facilities improvement also necessitated by new development. Response: The legislature should authorize cities to impose development fees so that new development pays its fair share of the off-site, as well as the on-site, costs of public infrastructure and other public facilities needed to adequately serve new development. FF -15. Residential Nonhomestead Property Tax Relief Issue: Residential nonhomestead properties (one to three units) are in need of property tax relief. This is particularly true of duplexes and triplexes, which did not enjoy the same amount of property tax relief in the 1997 tax bill as did single unit rental property; therefore, these types of property should be taxed alike. Eliminating the distinction between single unit rental. duplexes, and triplexes will simplify the property tax system by eliminating a class of property. However, granting rental property all the tax advantages of homesteaded property may decrease homeownership and could have a destabilizing impact on Minnesota cities. Homestead property should continue to enjoy preferential tax treatment relative to other classes of property. Under no circumstances should the class rate applied to residential nonhomestead property be less than the class rate that is applied to second- tier homestead property. Response: The League of Minnesota Cities supports maintaining the property tax distinction between homestead and rental property. The League also supports combining all one to three unit nonhomestead residential property into a single class of property with a single class rate. This single class rate should be reduced to, but not below, the class rate currently applied to second-tier homestead and rental property. FF -16. Electric Utility Taxation Issue: Part of the discussion regarding possible deregulation of the electric power industry has centered on electric utility taxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed to "level the playing field" or ensure competitive parity. The 8 League of Minnesota Cities main focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or personal property tax. Utilities subject to the tax argue that it places them at a competitive disadvantage to non -Minnesota companies, Rural Electric Cooperatives (Co-ops), and Municipals. However, accurate comparisons of tax burden are difficult, as other states use completely different taxing systems. Additionally, Co-ops do pay the tax on some of their property and Municipals make substantial payments in lieu of taxes. Utility personal property can be a significant portion of the local tax base in all cities. Most obviously affected are cities that have power plants; however, transmission and distribution equipment account for over half of the personal property taxes paid by the IOUs and exist in nearly every city. Replacing the revenue that would be lost to cities, counties, school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources of such a replacement revenue would be difficult to develop and administer, and could be subject to reductions or elimination over time. Furthermore, replacement revenues or aids may not fully address the problems created by a large tax base reduction. Response: Cities oppose proposals for exempting the IOUs from the personal property tax. Under no circumstances should local units of government and their taxpayers be required to shoulder the burdens of tax relief for IOUs. Any effort to remove the personal property tax must make cities and other local taxing jurisdictions whole in all respects. IMPROVING LOCAL ECONOMIES LE -1. Tax Increment Financing Issue: The State of Minnesota has effectively delegated the responsibility for economic development and redevelopment to cities. Unfortunately, neighboring states have given their cities more development tools and, therefore, cities in these states have a competitive advantage over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to all cities in their economic development and redevelopment efforts. The state, whether based on a lack of information or misinformation, has been critical of cities' use of the tool and has implemented a series of restrictions over the past several years rather than partnering with cities and encouraging their endeavors to improve and enhance the economic well- being of Minnesota and the growth and redevelopment of its cities. Cities, required to assume the financial risks associated with development decisions, have used tax increment financing responsibly and examples of these positive uses abound. A legislative task force was created by the 1997 legislature and directed to recodify the tax increment statutes for the purpose of simplification only, with no policy implications. Response: To effectively compete with other states, Minnesota must provide its cities greater flexibility in the use of tax increment financing and other economic development programs. In 1998 City Policies 9 main focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or personal property tax. Utilities subject to the tax argue that it places them at a competitive disadvantage to non -Minnesota companies, Rural Electric Cooperatives (Co-ops), and Municipals. However, accurate comparisons of tax burden are difficult, as other states use completely different taxing systems. Additionally, Co-ops do pay the tax on some of their property and Municipals make substantial payments in lieu of taxes. Utility personal property can be a significant portion of the local tax base in all cities. Most obviously affected are cities that have power plants; however, transmission and distribution equipment account for over half of the personal property taxes paid by the IOUs and exist in nearly every city. Replacing the revenue that would be lost to cities, counties, school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources of such a replacement revenue would be difficult to develop and administer, and could be subject to reductions or elimination over time. Furthermore, replacement revenues or aids may not fully address the problems created by a large tax base reduction. Response: Cities oppose proposals for exempting the IOUs from the personal property tax. Under no circumstances should local units of government and their taxpayers be required to shoulder the burdens of tax relief for IOUs. Any effort to remove the personal property tax must make cities and other local taxing jurisdictions whole in all respects. IMPROVING LOCAL ECONOMIES LE -1. Tax Increment Financing Issue: The State of Minnesota has effectively delegated the responsibility for economic development and redevelopment to cities. Unfortunately, neighboring states have given their cities more development tools and, therefore, cities in these states have a competitive advantage over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to all cities in their economic development and redevelopment efforts. The state, whether based on a lack of information or misinformation, has been critical of cities' use of the tool and has implemented a series of restrictions over the past several years rather than partnering with cities and encouraging their endeavors to improve and enhance the economic well- being of Minnesota and the growth and redevelopment of its cities. Cities, required to assume the financial risks associated with development decisions, have used tax increment financing responsibly and examples of these positive uses abound. A legislative task force was created by the 1997 legislature and directed to recodify the tax increment statutes for the purpose of simplification only, with no policy implications. Response: To effectively compete with other states, Minnesota must provide its cities greater flexibility in the use of tax increment financing and other economic development programs. In 1998 City Policies 9 light of substantial changes to the tax increment statutes over the past several years, the legislature should not make major policy changes in 1998. The state should partner with cities in economic development and redevelopment activities and encourage cities' use of tax increment in achieving the laudable goals of long-term tax base stabilization and growth, job creation, development of low -to -moderate income housing, remediation of pollution, elimination of blight, recycling and redevelopment of the infrastructure, and redevelopment of its communities. Counties and school districts are appropriately involved in cities' development decisions through current "review and comment" requirements. The legislature should reject any recommendations from the TIF recodification task force which have policy implications. If 1998 becomes a year for major changes in TIF policy, the legislature should: • remove existing restrictions to property included in a deferred assessment program within the last five years (e.g., green acres); • authorize any tax increment districts approved after April 1, 1990 to pool increments in the same manner as districts certified prior to April 1, 1990; • in light of levy limits, eliminate the LGA/HACA penalty currently imposed on districts or allow an exception from levy limits. If the penalty is not eliminated, the restrictions on the source of payment should be removed; • expand the use of tax increment financing to assist in the development of technological infrastructure, job training, the restoration of historic structures and for non -retail commercial projects (e.g., software companies, banks, and insurance companies); • exempt redevelopment districts from the "five year rule;" and • modify the housing district income qualification level requirements to allow the levels to vary according to those specific to individual communities. In any event, consistent with the legislative TIF task force's recodification, the 1998 legislature should make technical changes, including, but not limited to: • requiring the Department of Revenue's definition of tax increment to be consistent with the new statutory definition of tax increment; • authorizing the use of federal grants and other funds for local contributions; • removing the LGA/HACA penalty imposed on housing districts established between the penalty years of 1990 and 1993; • requiring the Office of the State Auditor to simplify their TIF reporting forms in consultation with those required to complete the forms; • authorizing TIF financial information to be published in a more simplified format so that it 10 League of Minnesota Cities light of substantial changes to the tax increment statutes over the past several years, the legislature should not make major policy changes in 1998. The state should partner with cities in economic development and redevelopment activities and encourage cities' use of tax increment in achieving the laudable goals of long-term tax base stabilization and growth, job creation, development of low -to -moderate income housing, remediation of pollution, elimination of blight, recycling and redevelopment of the infrastructure, and redevelopment of its communities. Counties and school districts are appropriately involved in cities' development decisions through current "review and comment" requirements. The legislature should reject any recommendations from the TIF recodification task force which have policy implications. If 1998 becomes a year for major changes in TIF policy, the legislature should: • remove existing restrictions to property included in a deferred assessment program within the last five years (e.g., green acres); • authorize any tax increment districts approved after April 1, 1990 to pool increments in the same manner as districts certified prior to April 1, 1990; • in light of levy limits, eliminate the LGA/HACA penalty currently imposed on districts or allow an exception from levy limits. If the penalty is not eliminated, the restrictions on the source of payment should be removed; • expand the use of tax increment financing to assist in the development of technological infrastructure, job training, the restoration of historic structures and for non -retail commercial projects (e.g., software companies, banks, and insurance companies); • exempt redevelopment districts from the "five year rule;" and • modify the housing district income qualification level requirements to allow the levels to vary according to those specific to individual communities. In any event, consistent with the legislative TIF task force's recodification, the 1998 legislature should make technical changes, including, but not limited to: • requiring the Department of Revenue's definition of tax increment to be consistent with the new statutory definition of tax increment; • authorizing the use of federal grants and other funds for local contributions; • removing the LGA/HACA penalty imposed on housing districts established between the penalty years of 1990 and 1993; • requiring the Office of the State Auditor to simplify their TIF reporting forms in consultation with those required to complete the forms; • authorizing TIF financial information to be published in a more simplified format so that it 10 League of Minnesota Cities provides the average taxpayer with useful information; and • providing cities with adequate administration financing. LE -2. Property Tax Reform, Levy Limits, and TIF Issue: Future proposals to reform the property tax system from the investor- owned utilities, commercial and industrial groups, or others could have significant implications for tax increment financing districts. For example, if property class rates are further compressed, existing tax increment financing districts could experience additional revenue shortfalls which, in turn, could jeopardize the repayment of outstanding debt or other obligations. Given the long-term nature of property tax reform, cities could not have anticipated the impact of the 1997 class rate changes nor can cities project the impact of future changes. The $2 million provided by the 1997 legislature for grants where the class rate changes cause TIF district deficits, while critically needed, is likely to be insufficient to cover every deficit, does not provide timely reimbursements, and is administratively confusing. Additionally, several cities have pledged only the city property tax portion to a project. Under levy limits imposed by the 1997 legislature, these cities will be unable to meet these obligations. Response: Any future proposals to reform the property tax system must provide for state resources in an amount sufficient to cover any and all TIF district deficits. Additionally, if the $2 million is insufficient to cover the deficits caused by the 1997 class rate changes, the legislature should provide additional state resources so that TIF obligations can be met and third party bondholders are protected. The legislature should also bring clarification to the administration of the grant process and should require timely reimbursement. The legislature should repeal levy limits. The legislature should provide resources so projects for which only the city property tax portion has been pledged are held harmless from the ramifications of property tax reform. LE -3. Economic Development Programs Issue: The Minnesota Investment Fund is not adequately funded. The state does not authorize an adequate slate of tools for local governments to assist job creation, redevelop blight and decay, and provide adequate housing choices. Consequently, cities are not well equipped to compete nationally and internationally for business development. Response: • More state resources should continue to be contributed to the Minnesota Investment Fund. • In the event that the LGA/HACA penalty is not eliminated, a portion of the revenues should be contributed to the Minnesota Investment Fund. These funds would then be available for cities to retain businesses in the state and to attract business looking to relocate from other states. • The state should establish a new grant program that would provide funds to cities to establish a 1998 City Policies 11 provides the average taxpayer with useful information; and • providing cities with adequate administration financing. LE -2. Property Tax Reform, Levy Limits, and TIF Issue: Future proposals to reform the property tax system from the investor- owned utilities, commercial and industrial groups, or others could have significant implications for tax increment financing districts. For example, if property class rates are further compressed, existing tax increment financing districts could experience additional revenue shortfalls which, in turn, could jeopardize the repayment of outstanding debt or other obligations. Given the long-term nature of property tax reform, cities could not have anticipated the impact of the 1997 class rate changes nor can cities project the impact of future changes. The $2 million provided by the 1997 legislature for grants where the class rate changes cause TIF district deficits, while critically needed, is likely to be insufficient to cover every deficit, does not provide timely reimbursements, and is administratively confusing. Additionally, several cities have pledged only the city property tax portion to a project. Under levy limits imposed by the 1997 legislature, these cities will be unable to meet these obligations. Response: Any future proposals to reform the property tax system must provide for state resources in an amount sufficient to cover any and all TIF district deficits. Additionally, if the $2 million is insufficient to cover the deficits caused by the 1997 class rate changes, the legislature should provide additional state resources so that TIF obligations can be met and third party bondholders are protected. The legislature should also bring clarification to the administration of the grant process and should require timely reimbursement. The legislature should repeal levy limits. The legislature should provide resources so projects for which only the city property tax portion has been pledged are held harmless from the ramifications of property tax reform. LE -3. Economic Development Programs Issue: The Minnesota Investment Fund is not adequately funded. The state does not authorize an adequate slate of tools for local governments to assist job creation, redevelop blight and decay, and provide adequate housing choices. Consequently, cities are not well equipped to compete nationally and internationally for business development. Response: • More state resources should continue to be contributed to the Minnesota Investment Fund. • In the event that the LGA/HACA penalty is not eliminated, a portion of the revenues should be contributed to the Minnesota Investment Fund. These funds would then be available for cities to retain businesses in the state and to attract business looking to relocate from other states. • The state should establish a new grant program that would provide funds to cities to establish a 1998 City Policies 11 • Revolving Loan Fund targeted to gap financing for projects creating jobs. The funds would be awarded to cities through a competitive grant program in which the award is based on community need and local development capacity. The approved applications would be funded strictly on the aforementioned criteria as well as the city's development program and development priorities. The state would not be in the business of reviewing projects with respect to specific companies and specific loans. These grants would be in an amount up to $250,000 and would facilitate four to five initial local loan projects. Local governments should be given the flexibility to utilize these funds throughout the city without any geographical restrictions. The funds to the communities would be used to develop subordinated mortgages that are integrated with the primary financing of a particular project. The loan could be utilized for retention as well as new jobs. The respective community would be required to "recapture" the funds and also to develop the appropriate collateral to protect the integrity of the Revolving Loan Fund. In the event that the LGA/HACA penalty is not eliminated, a portion of the revenues should also be contributed to the Revolving Loan Fund. Congress should remove the caps that have been placed on Industrial Development Bonds and acknowledge that the extensive eligibility requirements now adequately limit their use. LE- 4. Redevelopment of Developed Communities Issue: Developed communities across the State of Minnesota are faced with the unique circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and downtowns and a lack of land for development. Redevelopment activities usually require large, up -front funds to address multi -phase projects of extensive duration where site assemblage, demolition, relocation, or pollution clean-up must occur before private -sector interest can be generated. The lack of a coherent statewide policy and the state's unwillingness thus far to provide financial support has and will continue to contribute to the increasing problem of urban sprawl. Response: In recognition of the unique needs of redevelopment projects, the state should make a commitment to reinvest in its developed communities and should undertake a comprehensive approach which provides financial assistance to address their redevelopment needs. LE -5. Property Tax Abatement Authority Issue: In an effort to increase the number of development tools available, the 1997 legislature authorized local units of government to grant property tax abatements. While generally supportive of additional development tools, cities did not promote this legislation. Abatement authority was never intended to replace existing tax increment financing authority. Abatement is not an adequate replacement for TIF, particularly in redevelopment projects which typically have higher costs. 12 League of Minnesota Cities • Revolving Loan Fund targeted to gap financing for projects creating jobs. The funds would be awarded to cities through a competitive grant program in which the award is based on community need and local development capacity. The approved applications would be funded strictly on the aforementioned criteria as well as the city's development program and development priorities. The state would not be in the business of reviewing projects with respect to specific companies and specific loans. These grants would be in an amount up to $250,000 and would facilitate four to five initial local loan projects. Local governments should be given the flexibility to utilize these funds throughout the city without any geographical restrictions. The funds to the communities would be used to develop subordinated mortgages that are integrated with the primary financing of a particular project. The loan could be utilized for retention as well as new jobs. The respective community would be required to "recapture" the funds and also to develop the appropriate collateral to protect the integrity of the Revolving Loan Fund. In the event that the LGA/HACA penalty is not eliminated, a portion of the revenues should also be contributed to the Revolving Loan Fund. Congress should remove the caps that have been placed on Industrial Development Bonds and acknowledge that the extensive eligibility requirements now adequately limit their use. LE- 4. Redevelopment of Developed Communities Issue: Developed communities across the State of Minnesota are faced with the unique circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and downtowns and a lack of land for development. Redevelopment activities usually require large, up -front funds to address multi -phase projects of extensive duration where site assemblage, demolition, relocation, or pollution clean-up must occur before private -sector interest can be generated. The lack of a coherent statewide policy and the state's unwillingness thus far to provide financial support has and will continue to contribute to the increasing problem of urban sprawl. Response: In recognition of the unique needs of redevelopment projects, the state should make a commitment to reinvest in its developed communities and should undertake a comprehensive approach which provides financial assistance to address their redevelopment needs. LE -5. Property Tax Abatement Authority Issue: In an effort to increase the number of development tools available, the 1997 legislature authorized local units of government to grant property tax abatements. While generally supportive of additional development tools, cities did not promote this legislation. Abatement authority was never intended to replace existing tax increment financing authority. Abatement is not an adequate replacement for TIF, particularly in redevelopment projects which typically have higher costs. 12 League of Minnesota Cities In addition, abatements were placed within the parameters of levy limits, thus, for the next two years, the "increase" in taxes cannot be accessed to facilitate projects: Response: TIF is still the primary viable development tool available. Abatement authority should be available but not be offered as a rationale to eliminate TIF. If abatement authority is to be at all effective, tax abatement projects need to be considered "outside" of levy limits. LE -6. Brownfields Issue: Brownfields are lands that are not suitable for development due to the presence of chemical or other contaminants. Brownfields are a major cause of blight within communities across the state through loss of local tax base, jobs, housing quality, public safety and community confidence. Revitalizing this land is costly and requires the cooperation of city, county, school, regional, state and federal governments and the assistance of local economic development organizations and citizens. As we move into an era where the mass creation of jobs is a necessity and where increased tax base is a requirement for local governments to adequately face growing financial pressures, efforts to revitalize brownfields must not only continue but be accelerated in the upcoming years. The 1997 legislature re -authorized $7 million for the Department of Trade and Economic Development's (DTED) contaminated site clean-up fund and this amount was added to the Department's base. Additionally, $6.2 million will now be appropriated annually from the Petrofund to DTED to be used to clean petroleum -related contamination without the requirement of an identifiable tank source. Response: A comprehensive set of economic development programs must be maintained for cities and other development agencies. The legislature should: • increase funding for the Department of Trade and Economic Development's contaminated site clean-up fund; • act to strengthen enforcement and collection of revenues for the state contamination tax; • continue support for and funding of local and regional programs to assist in the efforts to remediate brownfields; • establish a fully -funded program to allow cities and other development authorities to gain control of and reclaim and revitalize brownfields; • protect existing tax increment financing provisions that provide for the remediation of brownfields and modify restrictions to allow the pooling of district revenues to assist in the financing of remediation of brownfields; • establish an indemnification fund to provide financial security for institutions and individuals as they invest in efforts to recycle brownfields in order to leverage private investment in cities' efforts to increase their tax base and create jobs; and • continue the petrofund as a financing 1998 City Policies 13 In addition, abatements were placed within the parameters of levy limits, thus, for the next two years, the "increase" in taxes cannot be accessed to facilitate projects: Response: TIF is still the primary viable development tool available. Abatement authority should be available but not be offered as a rationale to eliminate TIF. If abatement authority is to be at all effective, tax abatement projects need to be considered "outside" of levy limits. LE -6. Brownfields Issue: Brownfields are lands that are not suitable for development due to the presence of chemical or other contaminants. Brownfields are a major cause of blight within communities across the state through loss of local tax base, jobs, housing quality, public safety and community confidence. Revitalizing this land is costly and requires the cooperation of city, county, school, regional, state and federal governments and the assistance of local economic development organizations and citizens. As we move into an era where the mass creation of jobs is a necessity and where increased tax base is a requirement for local governments to adequately face growing financial pressures, efforts to revitalize brownfields must not only continue but be accelerated in the upcoming years. The 1997 legislature re -authorized $7 million for the Department of Trade and Economic Development's (DTED) contaminated site clean-up fund and this amount was added to the Department's base. Additionally, $6.2 million will now be appropriated annually from the Petrofund to DTED to be used to clean petroleum -related contamination without the requirement of an identifiable tank source. Response: A comprehensive set of economic development programs must be maintained for cities and other development agencies. The legislature should: • increase funding for the Department of Trade and Economic Development's contaminated site clean-up fund; • act to strengthen enforcement and collection of revenues for the state contamination tax; • continue support for and funding of local and regional programs to assist in the efforts to remediate brownfields; • establish a fully -funded program to allow cities and other development authorities to gain control of and reclaim and revitalize brownfields; • protect existing tax increment financing provisions that provide for the remediation of brownfields and modify restrictions to allow the pooling of district revenues to assist in the financing of remediation of brownfields; • establish an indemnification fund to provide financial security for institutions and individuals as they invest in efforts to recycle brownfields in order to leverage private investment in cities' efforts to increase their tax base and create jobs; and • continue the petrofund as a financing 1998 City Policies 13 mechanism for cleaning • contaminated sites. LE -7. Growth Management and Annexation Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, and governmental impact for cities, counties, and state governments because it • increases the costs of providing government services and results in the loss of natural resource areas and prime agricultural land. Response: The League believes that the existing framework for guiding growth and development primarily through local plans and controls adopted by local governments should form the basis of a statewide planning policy and that the state should not adopt a mandatory comprehensive statewide planning process. Rather, the state should: • provide additional financial and technical assistance to local governments for cooperative planning and growth management issues, particularly where new comprehensive plans have been mandated by the legislature; • clearly establish the public purposes served by existing statewide controls such as shoreland zoning and wetlands conservation; clarify, simplify, and streamline these controls; eliminate duplication in their administration; and fully defend and hold harmless any local government sued for a "taking" as a result of executing state land use policies; give cities broader authority to extend their zoning, subdivision, and other land use controls up to two miles outside the city's boundaries regardless of the existence of county or township controls, in order to ensure conformance with city facilities and services; clearly define and differentiate between urban and rural development and restrict urban growth outside city boundaries; • require the Metropolitan Council to seek cooperation from the State of Wisconsin and counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure responsible and controlled development, study expansion of Metropolitan Council authority in surrounding counties, and examine the positive and negative impacts of mandatory regional or local land use controls and state -imposed development standards; and • facilitate the annexation of urban land to cities by amending state statutes regulating annexation to make it easier for cities to annex developed or developing land within unincorporated areas. LE -8. State and/or County Licensed Residential Facilities (group homes) Issue: The need for more residential - based care facilities resulting from state policies makes it clear that the state must also ensure there is sufficient funding to assure that residents living in group homes and licensed facilities have appropriate care 14 League of Minnesota Cities mechanism for cleaning • contaminated sites. LE -7. Growth Management and Annexation Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, and governmental impact for cities, counties, and state governments because it • increases the costs of providing government services and results in the loss of natural resource areas and prime agricultural land. Response: The League believes that the existing framework for guiding growth and development primarily through local plans and controls adopted by local governments should form the basis of a statewide planning policy and that the state should not adopt a mandatory comprehensive statewide planning process. Rather, the state should: • provide additional financial and technical assistance to local governments for cooperative planning and growth management issues, particularly where new comprehensive plans have been mandated by the legislature; • clearly establish the public purposes served by existing statewide controls such as shoreland zoning and wetlands conservation; clarify, simplify, and streamline these controls; eliminate duplication in their administration; and fully defend and hold harmless any local government sued for a "taking" as a result of executing state land use policies; give cities broader authority to extend their zoning, subdivision, and other land use controls up to two miles outside the city's boundaries regardless of the existence of county or township controls, in order to ensure conformance with city facilities and services; clearly define and differentiate between urban and rural development and restrict urban growth outside city boundaries; • require the Metropolitan Council to seek cooperation from the State of Wisconsin and counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure responsible and controlled development, study expansion of Metropolitan Council authority in surrounding counties, and examine the positive and negative impacts of mandatory regional or local land use controls and state -imposed development standards; and • facilitate the annexation of urban land to cities by amending state statutes regulating annexation to make it easier for cities to annex developed or developing land within unincorporated areas. LE -8. State and/or County Licensed Residential Facilities (group homes) Issue: The need for more residential - based care facilities resulting from state policies makes it clear that the state must also ensure there is sufficient funding to assure that residents living in group homes and licensed facilities have appropriate care 14 League of Minnesota Cities and supervision. In view of the responsibilities cities have to accommodate group homes and residential -based facilities, it is important that state and county units of government make every effort to work with local officials to make sure that adequate care and public safety concerns are addressed. Cities must also be aware of special care needed by group home residents in case of public safety emergencies. Since operators of certain residential facilities and services are not required to notify cities when they intend to purchase housing for this purpose, cities have insufficient opportunity to address special care and public safety needs that these residences may require. Response: The legislature should require state and county agencies which operate or license companies that operate residential -based facilities notify cities in a timely manner and allow opportunity for cities to respond regarding the status of facility license requests and renewals and the special care needed by residents in case of public safety emergencies. Legislation should also include provisions requiring establishment of non - concentration standards and direction to avoid clustering residential facilities. Licensing authorities must also be responsible for removing any residents found incapable of living in such an environment, particularly so they do not become a danger to themselves or others. LE -9. Affordable Housing Issue: Many families are unable to afford housing, and cities often lack resources at the local level to provide housing for families or to develop housing alternatives for aging populations that are within their means, particularly in smaller cities. The resulting circumstances limit economic development and weaken the city's tax base. In areas outside the five MSA regions, housing stock is aging and generally older than in more urban locations. U.S. Census figures for 1990 indicate that more than 30 percent of housing units in those areas were built prior to 1940, as compared with the high rate of new housing construction within MSA locations, particularly in the twin cities metro area where 59 percent of housing units built in the `80's are located. Almost half the households in the state paying median rental housing costs exceeded the level of affordability, according to the latest census. The ratio of housing affordability for low-income renters is also increasing, raising more concern at the local level about the prospect that this portion of the city population will be less likely to become homeowners. Older homeowners often reside in housing that is affordable to first-time homebuyers, but often want to remain in their homes as long as possible. By the time they do move, the property may have become run- down. As a result, the home often becomes rental property with minimal improvements undertaken by the new owners. Response: Federal, state, and local government must pursue policies which encourage public-private partnerships to make it possible for cities, lending institutions, and developers to initiate projects that meet local housing needs. The state should continue to provide grants and loans from state revenue sources and streamline multiple MHFA- administered programs to create a larger 1998 City Policies 15 and supervision. In view of the responsibilities cities have to accommodate group homes and residential -based facilities, it is important that state and county units of government make every effort to work with local officials to make sure that adequate care and public safety concerns are addressed. Cities must also be aware of special care needed by group home residents in case of public safety emergencies. Since operators of certain residential facilities and services are not required to notify cities when they intend to purchase housing for this purpose, cities have insufficient opportunity to address special care and public safety needs that these residences may require. Response: The legislature should require state and county agencies which operate or license companies that operate residential -based facilities notify cities in a timely manner and allow opportunity for cities to respond regarding the status of facility license requests and renewals and the special care needed by residents in case of public safety emergencies. Legislation should also include provisions requiring establishment of non - concentration standards and direction to avoid clustering residential facilities. Licensing authorities must also be responsible for removing any residents found incapable of living in such an environment, particularly so they do not become a danger to themselves or others. LE -9. Affordable Housing Issue: Many families are unable to afford housing, and cities often lack resources at the local level to provide housing for families or to develop housing alternatives for aging populations that are within their means, particularly in smaller cities. The resulting circumstances limit economic development and weaken the city's tax base. In areas outside the five MSA regions, housing stock is aging and generally older than in more urban locations. U.S. Census figures for 1990 indicate that more than 30 percent of housing units in those areas were built prior to 1940, as compared with the high rate of new housing construction within MSA locations, particularly in the twin cities metro area where 59 percent of housing units built in the `80's are located. Almost half the households in the state paying median rental housing costs exceeded the level of affordability, according to the latest census. The ratio of housing affordability for low-income renters is also increasing, raising more concern at the local level about the prospect that this portion of the city population will be less likely to become homeowners. Older homeowners often reside in housing that is affordable to first-time homebuyers, but often want to remain in their homes as long as possible. By the time they do move, the property may have become run- down. As a result, the home often becomes rental property with minimal improvements undertaken by the new owners. Response: Federal, state, and local government must pursue policies which encourage public-private partnerships to make it possible for cities, lending institutions, and developers to initiate projects that meet local housing needs. The state should continue to provide grants and loans from state revenue sources and streamline multiple MHFA- administered programs to create a larger 1998 City Policies 15 pool of state funding with more flexible criteria and guidelines to make it easier for cities to apply for and make use of state housing assistance programs. The state can also assist cities by establishing priorities for the use of those funds on the basis of state housing policy for which cities and developers can apply based on their specific project activities and locally determined objectives. State housing policy should focus more resources on preservation of existing housing stock as an effective way to promote and retain affordable housing. More also needs to be done to reduce the cost to older homeowners of moving into assisted living or other housing designed for the elderly, such as patio homes and to match up first-time homebuyers with affordable properties and to make more "fix -up" programs available at the local level. Among the state-sponsored initiatives and policies the League supports to encourage production of affordable housing are: • exempting construction of low- income housing from the state sales tax; • a state low-income housing tax credit program; • making it easier for cities with affordable housing programs to use tax increment financing or tax- exempt revenue bonds (IRBs); and • exempting public agencies, including HRAs, from the state deed and mortgage transfer tax. Cities must also have sufficient local authority and the flexibility to undertake housing projects to meet their unique housing needs and must be able to leverage federal and state resources to do so. Bringing together crime prevention specialists and those working to develop new affordable housing units should also be encouraged to improve access to affordable housing while supporting neighborhood safety and community livability. LE -10. City Role in Telecommunications Issue: Cities are facing increasingly complex challenges in responding to and planning their own telecommunications futures. Cities need support at the state and federal level to assure that community residents, businesses and non-profit organizations benefit from the convergence of electronic information technology, telecommunications, communications, video, and cable television service delivery. Response: Congress and the legislature should support and encourage local government planning and authority to provide public services and assure the benefits of broadband telecommunica- tions and wireless communications for their communities and residents by: • making it easier for cities to own and operate telecommunications utilities, in part by amending Minn. Stat. § 237.19 to authorize cities to construct and operate a telephone exchange by a simple majority vote of its electorate, rather than the current supermajority vote of 65%; • recognizing the changing nature of 16 League of Minnesota Cities pool of state funding with more flexible criteria and guidelines to make it easier for cities to apply for and make use of state housing assistance programs. The state can also assist cities by establishing priorities for the use of those funds on the basis of state housing policy for which cities and developers can apply based on their specific project activities and locally determined objectives. State housing policy should focus more resources on preservation of existing housing stock as an effective way to promote and retain affordable housing. More also needs to be done to reduce the cost to older homeowners of moving into assisted living or other housing designed for the elderly, such as patio homes and to match up first-time homebuyers with affordable properties and to make more "fix -up" programs available at the local level. Among the state-sponsored initiatives and policies the League supports to encourage production of affordable housing are: • exempting construction of low- income housing from the state sales tax; • a state low-income housing tax credit program; • making it easier for cities with affordable housing programs to use tax increment financing or tax- exempt revenue bonds (IRBs); and • exempting public agencies, including HRAs, from the state deed and mortgage transfer tax. Cities must also have sufficient local authority and the flexibility to undertake housing projects to meet their unique housing needs and must be able to leverage federal and state resources to do so. Bringing together crime prevention specialists and those working to develop new affordable housing units should also be encouraged to improve access to affordable housing while supporting neighborhood safety and community livability. LE -10. City Role in Telecommunications Issue: Cities are facing increasingly complex challenges in responding to and planning their own telecommunications futures. Cities need support at the state and federal level to assure that community residents, businesses and non-profit organizations benefit from the convergence of electronic information technology, telecommunications, communications, video, and cable television service delivery. Response: Congress and the legislature should support and encourage local government planning and authority to provide public services and assure the benefits of broadband telecommunica- tions and wireless communications for their communities and residents by: • making it easier for cities to own and operate telecommunications utilities, in part by amending Minn. Stat. § 237.19 to authorize cities to construct and operate a telephone exchange by a simple majority vote of its electorate, rather than the current supermajority vote of 65%; • recognizing the changing nature of 16 League of Minnesota Cities the public-private partnership in which multiple providers may compete to deliver telecom- munications services; • upholding local authority to establish telecommunications policies and plans that respond to community needs; • preserving city authority over matters directly affecting communities, including: construction standards, permitting, installation methods, construction scheduling and coordination, degradation of rights - of -ways, cost recovery, city use of telecommunications resources for local public, education, government access and I -Nets; • aiding cities to develop community- based information services so that residents with limited income benefit from access to local and wide -area broadband networks and information services; • supporting local authority to require providers of open video systems to provide public, educational and government access; • making sure cities are allocated adequate spectrum on the 800 MHZ radio frequency for public safety and emergency response. Cities are encouraged to: • develop a telecommunications plan identifying community priorities and values and setting forth how the city intends to encourage competition in the local market while ensuring taxpayer investment in public infrastructure is protected; • determine how to implement new federal and state telecommunications laws and regulations to create conditions to attract telecommunications to make them widely available to city residents and businesses; • examine current ordinances to take into account how to respond to multiple requests to install wireline communications or to erect cellular, personal communications service (PCS) and other wireless communications towers and antennas; • treat all providers on a neutral and nondiscriminatory basis; • seek broad access to advanced telecommunications services including bandwidth and spectrum for public safety and emergency response; • provide for institutional networks (I - Nets) through cable franchise agreements with local operators to acquire a portion of a broadband network and other advance telecommunications resources; • consider installing city -owned and operated broadband networks or forming partnerships to do so where the marketplace fails to provide the infrastructure and/or services; • investigate and develop applications for those networks to deliver public services using advanced telecommunications; • take an inventory of unused, 1998 City Policies 17 the public-private partnership in which multiple providers may compete to deliver telecom- munications services; • upholding local authority to establish telecommunications policies and plans that respond to community needs; • preserving city authority over matters directly affecting communities, including: construction standards, permitting, installation methods, construction scheduling and coordination, degradation of rights - of -ways, cost recovery, city use of telecommunications resources for local public, education, government access and I -Nets; • aiding cities to develop community- based information services so that residents with limited income benefit from access to local and wide -area broadband networks and information services; • supporting local authority to require providers of open video systems to provide public, educational and government access; • making sure cities are allocated adequate spectrum on the 800 MHZ radio frequency for public safety and emergency response. Cities are encouraged to: • develop a telecommunications plan identifying community priorities and values and setting forth how the city intends to encourage competition in the local market while ensuring taxpayer investment in public infrastructure is protected; • determine how to implement new federal and state telecommunications laws and regulations to create conditions to attract telecommunications to make them widely available to city residents and businesses; • examine current ordinances to take into account how to respond to multiple requests to install wireline communications or to erect cellular, personal communications service (PCS) and other wireless communications towers and antennas; • treat all providers on a neutral and nondiscriminatory basis; • seek broad access to advanced telecommunications services including bandwidth and spectrum for public safety and emergency response; • provide for institutional networks (I - Nets) through cable franchise agreements with local operators to acquire a portion of a broadband network and other advance telecommunications resources; • consider installing city -owned and operated broadband networks or forming partnerships to do so where the marketplace fails to provide the infrastructure and/or services; • investigate and develop applications for those networks to deliver public services using advanced telecommunications; • take an inventory of unused, 1998 City Policies 17 underused and/or abandoned conduit in the right-of-way, in easements, or on city -owned property to make use of those resources in developing needed local information infrastructure. LE -11. Redesign of Electric Utility Regulation Issue: Policymakers at the state and federal levels are considering ways in which to bring competition into the electric utility industry. Without a cautious approach which incorporates careful consideration of the implications of any deregulation scheme for all consumers of electric energy, it is possible that only the largest consumers of electric energy would experience true cost savings and other benefits often associated with competition while the small customers, individuals and small businesses, may actually see rate increases. Additionally, city interests in tax base stability and managing and obtaining compensation for the use of public rights of way by utility companies are often overlooked in electric utility restructuring discussions. Currently, the discussion regarding possible deregulation of the electric power industry in Minnesota has centered on electric utility taxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed to ensure competitive parity among both intrastate and interstate producers. The main focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or personal property tax. Utilities subject to the tax argue that it places them at a competitive disadvantage to non -Minnesota companies as well as Minnesota Rural Electric Cooperatives (Co-ops) and Municipals. However, accurate comparisons of tax burden are difficult, as other states use completely different taxing systems. Additionally, Co-ops do pay the tax on some of their property and Municipals make substantial payments in lieu of taxes. Utility personal property can be a significant portion of the local tax base in all cities. Most obviously affected are cities that have power plants. However, generation and transmission equipment accounts for over half of the personal property taxes paid by the IOUs, and exists in nearly every city. Replacing the revenue that would be lost by cities, counties, school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding source of such a replacement revenue would be difficult to develop and administer, and would be subject to reduction or elimination over time. Response: A cautious, deliberative approach to restructuring the electric utility industry is necessary to preserve the level of service to which Minnesota consumers of electric energy have become accustomed. Additionally, it is crucial that cities have a place at the table in deregulation discussions and that they retain their local authority to manage, and obtain compensation for, the use of public rights of way, and that neither cities nor their taxpayers are asked to shoulder the burdens of any tax relief provided IOUs. Finally, every effort should be made to ensure that additional responsibilities and financial burdens are not shifted to the local level. 18 _ _- League of Minnesota Cities underused and/or abandoned conduit in the right-of-way, in easements, or on city -owned property to make use of those resources in developing needed local information infrastructure. LE -11. Redesign of Electric Utility Regulation Issue: Policymakers at the state and federal levels are considering ways in which to bring competition into the electric utility industry. Without a cautious approach which incorporates careful consideration of the implications of any deregulation scheme for all consumers of electric energy, it is possible that only the largest consumers of electric energy would experience true cost savings and other benefits often associated with competition while the small customers, individuals and small businesses, may actually see rate increases. Additionally, city interests in tax base stability and managing and obtaining compensation for the use of public rights of way by utility companies are often overlooked in electric utility restructuring discussions. Currently, the discussion regarding possible deregulation of the electric power industry in Minnesota has centered on electric utility taxation. Proponents of deregulation assert that if effective free market competition is to replace governmental regulation, state tax policy must be changed to ensure competitive parity among both intrastate and interstate producers. The main focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or personal property tax. Utilities subject to the tax argue that it places them at a competitive disadvantage to non -Minnesota companies as well as Minnesota Rural Electric Cooperatives (Co-ops) and Municipals. However, accurate comparisons of tax burden are difficult, as other states use completely different taxing systems. Additionally, Co-ops do pay the tax on some of their property and Municipals make substantial payments in lieu of taxes. Utility personal property can be a significant portion of the local tax base in all cities. Most obviously affected are cities that have power plants. However, generation and transmission equipment accounts for over half of the personal property taxes paid by the IOUs, and exists in nearly every city. Replacing the revenue that would be lost by cities, counties, school districts, and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding source of such a replacement revenue would be difficult to develop and administer, and would be subject to reduction or elimination over time. Response: A cautious, deliberative approach to restructuring the electric utility industry is necessary to preserve the level of service to which Minnesota consumers of electric energy have become accustomed. Additionally, it is crucial that cities have a place at the table in deregulation discussions and that they retain their local authority to manage, and obtain compensation for, the use of public rights of way, and that neither cities nor their taxpayers are asked to shoulder the burdens of any tax relief provided IOUs. Finally, every effort should be made to ensure that additional responsibilities and financial burdens are not shifted to the local level. 18 _ _- League of Minnesota Cities LE -12. Adequate Funding for Transportation Issue: Current funding for roads and for transit systems across all government levels in the state is not adequate. Response: Minnesota should value, and adequately fund, all transportation systems in the state. The state needs to provide an objective basis to determine the complete needs of the road and transit systems, their present condition, and their impact on the economic health of the state. This should include acknowledgment that delaying current expenditures will increase costs in the future. The League of Minnesota Cities supports an increase in the gas tax and urges removing the existing restrictions on its use so that gas tax revenues can be used for all transportation projects and programs, not just road construction and maintenance. The legislature should institute additional revenue sources that can be dedicated to all transportation programs. Cities should receive revenues necessary to meet present and future transportation needs. If funding does not come from the state, cities should have funding options available to them to raise the dollars necessary to adequately fund roads and transit. With the exception of funding for the state patrol, all nontransportation programs should be funded from a source other than the highway user distribution fund. The revenues of the highway user distribution fund are collected from transportation users and should be dedicated to transportation - related services. LE -13. State Aid for Urban Road Systems Issue: Current rules governing municipal state aid expenditures are restricting the efficient use of these funds and do not adequately acknowledge the constraints of road systems in urban city environments. Response: Rules affecting the municipal state aid system need to be changed to acknowledge the technical and practical restrictions on construction and reconstruction of urban road systems. New municipal state aid design standards should not apply to reconstruction of existing state aid streets that were originally constructed under different standards. Future changes to state aid rules should ensure the involvement of elected officials and engineering professionals in the decision-making process. LE -14. State. Aid Roads in Contiguous Cities Under 5,000 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their collector and arterial streets. Response: State statute should be modified to encourage cooperation and improved transportation systems by allowing contiguous cities that jointly represent a combined population of 5,000 or more to be eligible for Municipal State Aid (M.S.A.). Participating cities would enter into a formal joint powers agreement and establish a joint budget that would be governed by a board of elected officials. Cities that participated in this joint entity would not be required 1998 City Policies 19 LE -12. Adequate Funding for Transportation Issue: Current funding for roads and for transit systems across all government levels in the state is not adequate. Response: Minnesota should value, and adequately fund, all transportation systems in the state. The state needs to provide an objective basis to determine the complete needs of the road and transit systems, their present condition, and their impact on the economic health of the state. This should include acknowledgment that delaying current expenditures will increase costs in the future. The League of Minnesota Cities supports an increase in the gas tax and urges removing the existing restrictions on its use so that gas tax revenues can be used for all transportation projects and programs, not just road construction and maintenance. The legislature should institute additional revenue sources that can be dedicated to all transportation programs. Cities should receive revenues necessary to meet present and future transportation needs. If funding does not come from the state, cities should have funding options available to them to raise the dollars necessary to adequately fund roads and transit. With the exception of funding for the state patrol, all nontransportation programs should be funded from a source other than the highway user distribution fund. The revenues of the highway user distribution fund are collected from transportation users and should be dedicated to transportation - related services. LE -13. State Aid for Urban Road Systems Issue: Current rules governing municipal state aid expenditures are restricting the efficient use of these funds and do not adequately acknowledge the constraints of road systems in urban city environments. Response: Rules affecting the municipal state aid system need to be changed to acknowledge the technical and practical restrictions on construction and reconstruction of urban road systems. New municipal state aid design standards should not apply to reconstruction of existing state aid streets that were originally constructed under different standards. Future changes to state aid rules should ensure the involvement of elected officials and engineering professionals in the decision-making process. LE -14. State. Aid Roads in Contiguous Cities Under 5,000 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their collector and arterial streets. Response: State statute should be modified to encourage cooperation and improved transportation systems by allowing contiguous cities that jointly represent a combined population of 5,000 or more to be eligible for Municipal State Aid (M.S.A.). Participating cities would enter into a formal joint powers agreement and establish a joint budget that would be governed by a board of elected officials. Cities that participated in this joint entity would not be required 1998 City Policies 19 to undertake any formal consolidation activities. Cities under 5,000 population that were not eligible for M.S.A. through this cooperative agreement practice should be able to use county municipal accounts and the five percent account of the highway user distribution fund. Uses of county municipal accounts should be statutorily modified so that counties can dedicate these funds for local arterials and collector streets within cities under 5,000 population. In addition, the five percent set-aside account in the highway user distribution fund should be used to meet this funding gap. LE -15. Turnbacks of County and State Roads Issue: As road funding becomes increasingly inadequate, more roads are being "turned back" to cities from counties and the state. Response: Turnbacks should not occur without direct funding or transfer of a funding source. A process of negotiation and mediation should govern the timing, funding, and condition of turned -back roads. City taxpayers should receive the same treatment as township taxpayers. The requirement for a public hearing, standards about the conditions of turnbacks, and temporary maintenance funding should also apply to county turnbacks to cities. At a minimum, proposed roads to be turned back to a lower government level should be brought up to the standards of the receiving government or should be compensated with a direct payment. Direct funding should be provided for smaller cities that are not provided with turnback financing through the municipal state aid system. LE -16. Cooperation Between Counties and Cities Over County Roads Within Cities Issue: Some counties want increased control over county roads that lie within city boundaries. The statutory mechanism for resolving disputes between counties and cities over the construction, reconstruction, or expansions of state -aid highways that extend within city corporate limits is inadequate. Under current law, only the county may request that a dispute resolution board ("board") be established and the board's role is not to assist the parties in attempting to resolve their dispute. Instead, the board has the authority only "to review the proposed change, and make a recommendation to the Commissioner." It is the Commissioner of Transportation who ultimately makes the final decision on whether to "approve the establishment, construction, reconstruction, or improvement of a county state -aid highway recommended by the board." The statute does not outline any formal due process that must be followed to ensure fairness to all parties. Additionally, there is no mediation or non-binding arbitration prerequisite as exists in other areas of law dealing with dispute resolutions. Response: The legislature should provide a mediation or non-binding arbitration alternative to assist parties in reaching a resolution on their own without involving the Commissioner. Additionally, to ensure that sound recommendations are made by dispute resolution boards, formal due process and specific criteria should be established. lv League of Minnesota Cities to undertake any formal consolidation activities. Cities under 5,000 population that were not eligible for M.S.A. through this cooperative agreement practice should be able to use county municipal accounts and the five percent account of the highway user distribution fund. Uses of county municipal accounts should be statutorily modified so that counties can dedicate these funds for local arterials and collector streets within cities under 5,000 population. In addition, the five percent set-aside account in the highway user distribution fund should be used to meet this funding gap. LE -15. Turnbacks of County and State Roads Issue: As road funding becomes increasingly inadequate, more roads are being "turned back" to cities from counties and the state. Response: Turnbacks should not occur without direct funding or transfer of a funding source. A process of negotiation and mediation should govern the timing, funding, and condition of turned -back roads. City taxpayers should receive the same treatment as township taxpayers. The requirement for a public hearing, standards about the conditions of turnbacks, and temporary maintenance funding should also apply to county turnbacks to cities. At a minimum, proposed roads to be turned back to a lower government level should be brought up to the standards of the receiving government or should be compensated with a direct payment. Direct funding should be provided for smaller cities that are not provided with turnback financing through the municipal state aid system. LE -16. Cooperation Between Counties and Cities Over County Roads Within Cities Issue: Some counties want increased control over county roads that lie within city boundaries. The statutory mechanism for resolving disputes between counties and cities over the construction, reconstruction, or expansions of state -aid highways that extend within city corporate limits is inadequate. Under current law, only the county may request that a dispute resolution board ("board") be established and the board's role is not to assist the parties in attempting to resolve their dispute. Instead, the board has the authority only "to review the proposed change, and make a recommendation to the Commissioner." It is the Commissioner of Transportation who ultimately makes the final decision on whether to "approve the establishment, construction, reconstruction, or improvement of a county state -aid highway recommended by the board." The statute does not outline any formal due process that must be followed to ensure fairness to all parties. Additionally, there is no mediation or non-binding arbitration prerequisite as exists in other areas of law dealing with dispute resolutions. Response: The legislature should provide a mediation or non-binding arbitration alternative to assist parties in reaching a resolution on their own without involving the Commissioner. Additionally, to ensure that sound recommendations are made by dispute resolution boards, formal due process and specific criteria should be established. lv League of Minnesota Cities For situations where negotiations do not produce an agreeable resolution, cities should be authorized to request that a board be established. LE -17. Management of Rights -of - Way Issue: Demand for all types of uses of rights-of-way, both surface and subsurface, is increasing exponentially, forcing consideration by cities of how best to allocate this very limited resource. Because public rights-of-way have been acquired at public expense through local property tax sources or other local action, cities have traditionally had the fundamental responsibility and attendant liability for facilitating the safety and convenience of all right-of-way users. Rights-of-way management responsibilities are complex, numerous, and site specific, as are the particular interests of cities in establishing a value for private use of public space in the local rights-of-way. These factors underscore the fact that rational and expeditious decisions can only be made at the local level. Cities support existing federal nondiscrimination requirements that local administration not impose unreasonable delays or burdens on access, entry, or other reasonable use of rights-of-way. Cities should be authorized, as provided in federal law, to require telecommunications providers to meet local requirements for public, educational, and government access to their networks as well as financial and technical support for such actions. Local rights-of-way are a limited and valuable asset held in trust by municipalities for the public. Unlike other businesses which pay for the use of public rights-of- way, telephone companies currently pay property taxes only on a fraction of their facilities located in public rights-of-way and nothing for the value of the right to use them. Response: • The responsibility for managing and protecting public rights-of-way must remain with cities and other units of government entrusted with protecting the health, safety, and convenience of the community. • Construction and safety standards are of paramount importance to cities, and consistent with respective industries' desire for uniformity, should be developed by the municipal engineering community for adoption by cities to ensure effective rights-of- way management. • Cities and other governmental units responsible for the protection and management of public rights-of-way should be authorized to require reasonable compensation which reflects the policy and fiscal objectives of their community. • The courts should remain the primary forum for resolution of allegations that communities have exercised their authority in an unreasonable, arbitrary, or capricious manner. LE -18. Communications Infrastructure Issue: Cities must retain authority to provide for development of effective local information infrastructure including public, educational, and government (PEG) access 1998 City Policies 21 For situations where negotiations do not produce an agreeable resolution, cities should be authorized to request that a board be established. LE -17. Management of Rights -of - Way Issue: Demand for all types of uses of rights-of-way, both surface and subsurface, is increasing exponentially, forcing consideration by cities of how best to allocate this very limited resource. Because public rights-of-way have been acquired at public expense through local property tax sources or other local action, cities have traditionally had the fundamental responsibility and attendant liability for facilitating the safety and convenience of all right-of-way users. Rights-of-way management responsibilities are complex, numerous, and site specific, as are the particular interests of cities in establishing a value for private use of public space in the local rights-of-way. These factors underscore the fact that rational and expeditious decisions can only be made at the local level. Cities support existing federal nondiscrimination requirements that local administration not impose unreasonable delays or burdens on access, entry, or other reasonable use of rights-of-way. Cities should be authorized, as provided in federal law, to require telecommunications providers to meet local requirements for public, educational, and government access to their networks as well as financial and technical support for such actions. Local rights-of-way are a limited and valuable asset held in trust by municipalities for the public. Unlike other businesses which pay for the use of public rights-of- way, telephone companies currently pay property taxes only on a fraction of their facilities located in public rights-of-way and nothing for the value of the right to use them. Response: • The responsibility for managing and protecting public rights-of-way must remain with cities and other units of government entrusted with protecting the health, safety, and convenience of the community. • Construction and safety standards are of paramount importance to cities, and consistent with respective industries' desire for uniformity, should be developed by the municipal engineering community for adoption by cities to ensure effective rights-of- way management. • Cities and other governmental units responsible for the protection and management of public rights-of-way should be authorized to require reasonable compensation which reflects the policy and fiscal objectives of their community. • The courts should remain the primary forum for resolution of allegations that communities have exercised their authority in an unreasonable, arbitrary, or capricious manner. LE -18. Communications Infrastructure Issue: Cities must retain authority to provide for development of effective local information infrastructure including public, educational, and government (PEG) access 1998 City Policies 21 channels and institutional networks. Sufficient technical and financial support from telecommunications service providers is necessary to assure that both traditional and advanced services and applications, including both wired and wireless telephony, video, data and Internet services as well as PEG access are locally available. Response: The legislature should support local authority to develop, own, and operate information infrastructure and services to require that voice, video, and data communications networks provide channel spectrum and resources sufficient to meet local information and communications needs, assure public safety and convenience, and provide local information and community programming and services. LE -19. Effective Telecommunications Competition Issue: Effective telecommunications competition will not arrive simultaneously in all cities or markets. In the transition to an effectively competitive marketplace, which will yield better services, affordability and deployment of technology to meet community needs, consumers need protection from possible market abuses. Response: Federal, state, and local governments must coordinate efforts to protect consumers and encourage emergence of effective competition to make it possible for communities to - participate in the global economy through a local information infrastructure that provides benefits to residents, business, and industry. LE -20. Local Zoning Regulation of Telecommunications Service Providers Issue: Cities must have authority to govern the use of property by telecommunications service providers through zoning regulations without unnecessary state and federal intervezl?ion. Response: The Federal Communications Commission and the state legislature should continue to uphold local government authority to adopt and enforce local zoning regulations of telecommunications service providers as reaffirmed in the federal Telecommunications Act of 1996. LE -21. ISTEA Reauthorization Issue: Cities have an important stake in the reauthorization of the federal Intermodal Surface Transportation Efficiency Act (ISTEA). Since its enactment in 1991, ISTEA has assured cities of a key role in planning as well as benefits of funding for project enhancements and pollution mitigation. ISTEA expires on September 30, at the end of this fiscal year. ISTEA has been successfully implemented in Minnesota, with a strong focus on partnerships, local decision-making, funding flexibility and emphasis on inter -modal transportation. Response: Congress should reauthorize ISTEA this session to continue support for the new era of transportation investments in which cities can work cooperatively with the Minnesota Department of Transportation (MnDOT) to address local and regional transportation interests. Putting in place 22 League of Minnesota Cities channels and institutional networks. Sufficient technical and financial support from telecommunications service providers is necessary to assure that both traditional and advanced services and applications, including both wired and wireless telephony, video, data and Internet services as well as PEG access are locally available. Response: The legislature should support local authority to develop, own, and operate information infrastructure and services to require that voice, video, and data communications networks provide channel spectrum and resources sufficient to meet local information and communications needs, assure public safety and convenience, and provide local information and community programming and services. LE -19. Effective Telecommunications Competition Issue: Effective telecommunications competition will not arrive simultaneously in all cities or markets. In the transition to an effectively competitive marketplace, which will yield better services, affordability and deployment of technology to meet community needs, consumers need protection from possible market abuses. Response: Federal, state, and local governments must coordinate efforts to protect consumers and encourage emergence of effective competition to make it possible for communities to - participate in the global economy through a local information infrastructure that provides benefits to residents, business, and industry. LE -20. Local Zoning Regulation of Telecommunications Service Providers Issue: Cities must have authority to govern the use of property by telecommunications service providers through zoning regulations without unnecessary state and federal intervezl?ion. Response: The Federal Communications Commission and the state legislature should continue to uphold local government authority to adopt and enforce local zoning regulations of telecommunications service providers as reaffirmed in the federal Telecommunications Act of 1996. LE -21. ISTEA Reauthorization Issue: Cities have an important stake in the reauthorization of the federal Intermodal Surface Transportation Efficiency Act (ISTEA). Since its enactment in 1991, ISTEA has assured cities of a key role in planning as well as benefits of funding for project enhancements and pollution mitigation. ISTEA expires on September 30, at the end of this fiscal year. ISTEA has been successfully implemented in Minnesota, with a strong focus on partnerships, local decision-making, funding flexibility and emphasis on inter -modal transportation. Response: Congress should reauthorize ISTEA this session to continue support for the new era of transportation investments in which cities can work cooperatively with the Minnesota Department of Transportation (MnDOT) to address local and regional transportation interests. Putting in place 22 League of Minnesota Cities locally developed criteria to evaluate programming of limited funds has opened MnDOT programming to recognize regional priorities. Enhanced ISTEA reauthorization will allow cities to continue to work within the current planning process to address transportation needs. The amount of ISTEA funding in the existing congressional and administration budget allocations does not meet growing needs. Trust fund revenues should be used solely for transportation purposes, and the federal gas tax revenues should be transferred to the Transportation Trust Fund (instead of being used for deficit reduction). Regional planning is a strong component of the current ISTEA program. Congress should support and* encourage broadening the federal -state - local partnership and community participation in transportation decision- making. All program categories in the existing ISTEA program should be maintained, in particular the Surface Transportation Program (STP), Transportation Improvement Program (TIP), Enhancement and Safety, transit, Congestion/Mitigation Air Quality (CMAQ), and the National Highway System (NHS) and Bridge Replacement programs. Congress can aid local project implementation by reducing unnecessarily burdensome regulations and procedures, particularly for small projects for elements that have little if any negative effects on the environment. There is also a need to examine the relationship between the metropolitan MPO boundary and U.S. Census boundaries of the Twin Cities Metropolitan Statistical Area (MSA). The MPO in the metro area needs to recognize the broad regional implications of transportation in the 7 counties within Minnesota and the two counties in Wisconsin that are within the MSA. LE -22. Workforce Readiness Issue: State and federal welfare reform efforts have focused on the importance of the welfare to work transition and have recognized the challenge of ensuring that individuals are qualified to work. Cities have an interest in the availability of qualified workers as part of their economic development efforts and can serve as a catalyst with other public entities and the private sector to address workforce readiness issues. Response: The legislature should fully fund the Job Skills Partnership and Pathways programs administered by the Department of Trade and Economic Development. 1998 City Policies 23 locally developed criteria to evaluate programming of limited funds has opened MnDOT programming to recognize regional priorities. Enhanced ISTEA reauthorization will allow cities to continue to work within the current planning process to address transportation needs. The amount of ISTEA funding in the existing congressional and administration budget allocations does not meet growing needs. Trust fund revenues should be used solely for transportation purposes, and the federal gas tax revenues should be transferred to the Transportation Trust Fund (instead of being used for deficit reduction). Regional planning is a strong component of the current ISTEA program. Congress should support and* encourage broadening the federal -state - local partnership and community participation in transportation decision- making. All program categories in the existing ISTEA program should be maintained, in particular the Surface Transportation Program (STP), Transportation Improvement Program (TIP), Enhancement and Safety, transit, Congestion/Mitigation Air Quality (CMAQ), and the National Highway System (NHS) and Bridge Replacement programs. Congress can aid local project implementation by reducing unnecessarily burdensome regulations and procedures, particularly for small projects for elements that have little if any negative effects on the environment. There is also a need to examine the relationship between the metropolitan MPO boundary and U.S. Census boundaries of the Twin Cities Metropolitan Statistical Area (MSA). The MPO in the metro area needs to recognize the broad regional implications of transportation in the 7 counties within Minnesota and the two counties in Wisconsin that are within the MSA. LE -22. Workforce Readiness Issue: State and federal welfare reform efforts have focused on the importance of the welfare to work transition and have recognized the challenge of ensuring that individuals are qualified to work. Cities have an interest in the availability of qualified workers as part of their economic development efforts and can serve as a catalyst with other public entities and the private sector to address workforce readiness issues. Response: The legislature should fully fund the Job Skills Partnership and Pathways programs administered by the Department of Trade and Economic Development. 1998 City Policies 23 IMPROVING SERVICE DELIVERY SD -1. Redesigning and Reinventing dedicated to such programs or Government provide appropriate and adequate alternatives; Issue: Every level of government is reevaluating, reprioritizing, redesigning, and renewing its organizational structure and programs in response to financial realities and citizens' needs and problems. Reforms, however, must be more than simply change for the sake of change or a reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and reassignments of governmental entities and services should save money where feasible, deliver improved services, serve essential needs and be equitably structured. Cities have and will continue to pursue the use of cooperative agreements, the reevaluation of city programs and services, and changes to organizational structures. Response: The federal, state, and county governments should: • ensure that in redesigning, reinventing or reassigning government services and programs that the appropriate level of service to citizens is evaluated and citizen demands and expectations are adequately addressed; • promote local efforts through incentives rather than mandates; • communicate and establish a process of negotiation before shifting responsibility for delivering services from one level of government to another or seeking to reduce service duplication; • transfer authority for use of revenues • identify and repeal programs or discontinue services which are no longer necessary or which can readily and fairly be provided by the private sector; and • employ existing government entities in redesign efforts rather than create new agencies or units. The League supports cooperative studies of the following issues: • whether the enforcement of human rights laws can best be accomplished by a single state system which would allow local governments to discontinue local enforcement programs; • whether there should be greater use of statewide or consolidated business licensing, including licensing of sign contractors, to eliminate the need for some businesses to obtain a permit in each city or county; • whether the existing use and structure of Regional Development Commissions can be improved; • whether greater use can be made of block grants to distribute funds related to transportation, sewage treatment, and public water facilities; • whether human services and health programs can be improved by further consolidating their administration at 24 League of Minnesota Cities IMPROVING SERVICE DELIVERY SD -1. Redesigning and Reinventing dedicated to such programs or Government provide appropriate and adequate alternatives; Issue: Every level of government is reevaluating, reprioritizing, redesigning, and renewing its organizational structure and programs in response to financial realities and citizens' needs and problems. Reforms, however, must be more than simply change for the sake of change or a reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and reassignments of governmental entities and services should save money where feasible, deliver improved services, serve essential needs and be equitably structured. Cities have and will continue to pursue the use of cooperative agreements, the reevaluation of city programs and services, and changes to organizational structures. Response: The federal, state, and county governments should: • ensure that in redesigning, reinventing or reassigning government services and programs that the appropriate level of service to citizens is evaluated and citizen demands and expectations are adequately addressed; • promote local efforts through incentives rather than mandates; • communicate and establish a process of negotiation before shifting responsibility for delivering services from one level of government to another or seeking to reduce service duplication; • transfer authority for use of revenues • identify and repeal programs or discontinue services which are no longer necessary or which can readily and fairly be provided by the private sector; and • employ existing government entities in redesign efforts rather than create new agencies or units. The League supports cooperative studies of the following issues: • whether the enforcement of human rights laws can best be accomplished by a single state system which would allow local governments to discontinue local enforcement programs; • whether there should be greater use of statewide or consolidated business licensing, including licensing of sign contractors, to eliminate the need for some businesses to obtain a permit in each city or county; • whether the existing use and structure of Regional Development Commissions can be improved; • whether greater use can be made of block grants to distribute funds related to transportation, sewage treatment, and public water facilities; • whether human services and health programs can be improved by further consolidating their administration at 24 League of Minnesota Cities the state and county levels of government; and • whether state and federal environmental and water agencies can be combined or eliminated to avoid inconsistent standards and duplication of responsibilities. SD -2. Unfunded Mandates Issue: The cost of federal and state mandated programs substitute the judgment of Congress and the President and the legislature and the Governor for local budget priorities. These mandates force cities to reduce funding for other basic services or to increase taxes and service charges. The passage by the legislature of reporting requirements for new state mandates and the passage by Congress of legislation restraining new federal mandates should help address the problem, but other steps are still necessary. Response: • Existing unfunded mandates should be reviewed and modified or repealed where possible. • No additional statewide mandates should be enacted unless full funding for the mandate is provided by the level of government imposing it or a permanent stable revenue source is established. • Cities should not be forced to comply with unfunded mandates. • Cities should be given the greatest flexibility possible in implementing mandates to ensure that their cost is minimized. SD -3. Civil Liability of Local Governments Issue: One of the barriers to the delivery of governmental services and programs is the exposure of local governments and their officials to civil damage claims. The state has acted to protect itself and its local governments by enacting exceptions and limitations to liability suits and authorizing self-insurance and other mechanisms to deal with claims allowed by law. Additionally, the current law which requires district court approval of settlements of claims against municipalities which exceed $10,000 has become burdensome for cities. Response: The League supports: • eliminating joint and several liability, or severely restricting its application to situations where private or public tortfeasors are substantially at fault for the damages incurred; • extending the protection of the state and municipal tort claims act to quasi - governmental entities when performing public services such as firefighting; • existing constitutional safeguards for protecting public and private property interests without any statutory expansion of property rights; and • eliminating the district court approval of settlements requirement or, in the alternative, increasing the threshold amount for district court approval of settlements to $100,000. 1998 City Policies 25 the state and county levels of government; and • whether state and federal environmental and water agencies can be combined or eliminated to avoid inconsistent standards and duplication of responsibilities. SD -2. Unfunded Mandates Issue: The cost of federal and state mandated programs substitute the judgment of Congress and the President and the legislature and the Governor for local budget priorities. These mandates force cities to reduce funding for other basic services or to increase taxes and service charges. The passage by the legislature of reporting requirements for new state mandates and the passage by Congress of legislation restraining new federal mandates should help address the problem, but other steps are still necessary. Response: • Existing unfunded mandates should be reviewed and modified or repealed where possible. • No additional statewide mandates should be enacted unless full funding for the mandate is provided by the level of government imposing it or a permanent stable revenue source is established. • Cities should not be forced to comply with unfunded mandates. • Cities should be given the greatest flexibility possible in implementing mandates to ensure that their cost is minimized. SD -3. Civil Liability of Local Governments Issue: One of the barriers to the delivery of governmental services and programs is the exposure of local governments and their officials to civil damage claims. The state has acted to protect itself and its local governments by enacting exceptions and limitations to liability suits and authorizing self-insurance and other mechanisms to deal with claims allowed by law. Additionally, the current law which requires district court approval of settlements of claims against municipalities which exceed $10,000 has become burdensome for cities. Response: The League supports: • eliminating joint and several liability, or severely restricting its application to situations where private or public tortfeasors are substantially at fault for the damages incurred; • extending the protection of the state and municipal tort claims act to quasi - governmental entities when performing public services such as firefighting; • existing constitutional safeguards for protecting public and private property interests without any statutory expansion of property rights; and • eliminating the district court approval of settlements requirement or, in the alternative, increasing the threshold amount for district court approval of settlements to $100,000. 1998 City Policies 25 SD -4. Environmental Protection Issue: State and federal environmental programs are improperly designed to meet their stated goals, and impose an undue burden on local governments because of a lack of federal or state financial assistance. The refusal to finance these programs by the governments which pass them has eliminated an essential restraining feature in program design and implementation. Specific problems include: • New programs or standards are continually adopted without regard to the existence, attainability, or cost of existing programs and standards. • Fragmented program adoption and implementation does not ensure prioritization of environmental matters or the establishment of comprehensive environmental protection strategies. • "One size fits all" implementation programs force remedial efforts by local governments for nonexistent environmental problems. • Permit fees and other cost transfer elements of federal and state programs do not provide an incentive for environmental agency efficiency, policy prioritization, or risk assessment. Response: • A comprehensive effort to consolidate, reorganize, and manage state and federal environmental agencies and programs should be undertaken and a partial or full moratorium on new programs or requirements should be considered. • Permit fees should be limited to fifty percent of the agency's direct operating costs in order to promote efficient agency operation and sufficient legislative oversight. • Sufficient state and federal financial assistance should be provided to comply with state and federal infrastructure requirements, particularly with regard to sewer and water facilities. SD -5. Personnel, Pensions, and Labor Relations Issue: Many state laws increase the cost of providing city service to residents by requiring city governments to provide certain levels of compensation or benefits to public employees, specify certain working conditions, or limit city governments' ability to effectively manage their personnel resources. For instance, existing state laws limit governments' ability to effectively address incompetence or misconduct of city employees specifying certain procedures to be followed or standards of conduct. Response: The state government should refrain from passing laws which regulate the public sector workplace and should repeal or modify problematic existing laws and regulations to encourage full local accountability. The League of Minnesota Cities proposes the following reforms: Discipline and Discharge 26 League of Minnesota Cities SD -4. Environmental Protection Issue: State and federal environmental programs are improperly designed to meet their stated goals, and impose an undue burden on local governments because of a lack of federal or state financial assistance. The refusal to finance these programs by the governments which pass them has eliminated an essential restraining feature in program design and implementation. Specific problems include: • New programs or standards are continually adopted without regard to the existence, attainability, or cost of existing programs and standards. • Fragmented program adoption and implementation does not ensure prioritization of environmental matters or the establishment of comprehensive environmental protection strategies. • "One size fits all" implementation programs force remedial efforts by local governments for nonexistent environmental problems. • Permit fees and other cost transfer elements of federal and state programs do not provide an incentive for environmental agency efficiency, policy prioritization, or risk assessment. Response: • A comprehensive effort to consolidate, reorganize, and manage state and federal environmental agencies and programs should be undertaken and a partial or full moratorium on new programs or requirements should be considered. • Permit fees should be limited to fifty percent of the agency's direct operating costs in order to promote efficient agency operation and sufficient legislative oversight. • Sufficient state and federal financial assistance should be provided to comply with state and federal infrastructure requirements, particularly with regard to sewer and water facilities. SD -5. Personnel, Pensions, and Labor Relations Issue: Many state laws increase the cost of providing city service to residents by requiring city governments to provide certain levels of compensation or benefits to public employees, specify certain working conditions, or limit city governments' ability to effectively manage their personnel resources. For instance, existing state laws limit governments' ability to effectively address incompetence or misconduct of city employees specifying certain procedures to be followed or standards of conduct. Response: The state government should refrain from passing laws which regulate the public sector workplace and should repeal or modify problematic existing laws and regulations to encourage full local accountability. The League of Minnesota Cities proposes the following reforms: Discipline and Discharge 26 League of Minnesota Cities • The state should modify veterans preference and civil service laws which restrict the ability of local governments to effectively discipline public employees. The legislature should amend the law to: • remove the right to multiple, duplicative disciplinary proceedings; • limit any back -pay claims to a maximum of $100,000; • limit the period in which to request a hearing to 14 days (from the current 60 days); and • exclude probationary period employees from veterans preference termination law protections. • The state should discontinue state and local civil service systems which are no longer needed to ensure fair and accountable hiring and firing practices. Data Practices • In light of security concerns, the state should amend the data practices act to reclassify all employee address and telephone data as private data. • The Information Policy Task Force created by the 1997 legislature should consider the impact of potential changes to the data practices act, particularly the commercial use and sale of government information, on local units of government and take these into account in any recommendation for legislative action. Compensation limits • The state should repeal laws limiting local government employee compensation levels to the governor's salary. If repeal is not possible, the limit should be amended to be based upon the governor's total compensation level. PELRA • The state should modify the definition of public employee to limit the application of PELRA to employees working more than an annual average of 20 hours per week other than on a temporary or seasonal basis. • The state should change public sector bargaining laws to restrain arbitration awards which exceed other internal class comparisons or outside cost of living limitations. • The state should modify the definition of public employee to exclude police and fire cadets. Pensions • The state should revise public employee pension laws to facilitate consolidation of local pension plans and the transition to more attractive and fiscally -sound pension programs such as defined contribution plans. • The state should study initiatives to reform and make uniform pension plans for local government 1998 City Policies 27 • The state should modify veterans preference and civil service laws which restrict the ability of local governments to effectively discipline public employees. The legislature should amend the law to: • remove the right to multiple, duplicative disciplinary proceedings; • limit any back -pay claims to a maximum of $100,000; • limit the period in which to request a hearing to 14 days (from the current 60 days); and • exclude probationary period employees from veterans preference termination law protections. • The state should discontinue state and local civil service systems which are no longer needed to ensure fair and accountable hiring and firing practices. Data Practices • In light of security concerns, the state should amend the data practices act to reclassify all employee address and telephone data as private data. • The Information Policy Task Force created by the 1997 legislature should consider the impact of potential changes to the data practices act, particularly the commercial use and sale of government information, on local units of government and take these into account in any recommendation for legislative action. Compensation limits • The state should repeal laws limiting local government employee compensation levels to the governor's salary. If repeal is not possible, the limit should be amended to be based upon the governor's total compensation level. PELRA • The state should modify the definition of public employee to limit the application of PELRA to employees working more than an annual average of 20 hours per week other than on a temporary or seasonal basis. • The state should change public sector bargaining laws to restrain arbitration awards which exceed other internal class comparisons or outside cost of living limitations. • The state should modify the definition of public employee to exclude police and fire cadets. Pensions • The state should revise public employee pension laws to facilitate consolidation of local pension plans and the transition to more attractive and fiscally -sound pension programs such as defined contribution plans. • The state should study initiatives to reform and make uniform pension plans for local government 1998 City Policies 27 employees. However, the League opposes increasing public employer contribution levels or any proposal to have the public employer contribution level exceed the contribution level required from employees. • The state should adjust the eligibility thresholds for public pensions to reflect inflation, adopt a process for automatic future adjustments, and limit eligibility for defined benefit plans to employees working an average of at least 20 hours per week. • The League opposes special legislation related to pension benefit increases that are not initiated by a previously adopted resolution of the city council of the affected city, even if the legislation provides an option that requires subsequent local approval. In addition to these state reforms, the League of Minnesota Cities supports the following policies regarding federal employment law: Overtime compensation • Congress should amend the Fair Labor Standards Act to eliminate its applicability to the public sector or at least recognize unique circumstances in the public sector such as accounting for all hours worked by salaried employees and allowing regular employees to serve as volunteers, paid on-call firefighters, referees, coaches, and other community service-oriented positions. Peace officer bill of rights • Congress should oppose a federal peace officer bill of rights, which would make internal investigation and enforcement more difficult and diminish local accountability. SD -6. Election Issues Issue: Improvements in absentee voting, voter registration, and the election process are needed. Response: The 1998 legislature should develop a bipartisan election reform proposal that simplifies absentee voting, provides more cities direct access to the statewide voter registration system, clarifies restrictions on locating campaign signs within 100 feet of polling places, modifies the voter fraud statute related to voter residency, and allows cities more flexibility in appointing and compensating election judges. SD -7. Local Election Authority Issue: Local authority to schedule city elections and establish terms of office for local elected officials has been increasingly restricted by the legislature, thereby diminishing regard for the role of local self- government, particularly when state policy pre-empts home rule authority governing city elections. Response: The legislature should oppose further limits on either the number or the length of terms city elected 28 League of Minnesota Cities employees. However, the League opposes increasing public employer contribution levels or any proposal to have the public employer contribution level exceed the contribution level required from employees. • The state should adjust the eligibility thresholds for public pensions to reflect inflation, adopt a process for automatic future adjustments, and limit eligibility for defined benefit plans to employees working an average of at least 20 hours per week. • The League opposes special legislation related to pension benefit increases that are not initiated by a previously adopted resolution of the city council of the affected city, even if the legislation provides an option that requires subsequent local approval. In addition to these state reforms, the League of Minnesota Cities supports the following policies regarding federal employment law: Overtime compensation • Congress should amend the Fair Labor Standards Act to eliminate its applicability to the public sector or at least recognize unique circumstances in the public sector such as accounting for all hours worked by salaried employees and allowing regular employees to serve as volunteers, paid on-call firefighters, referees, coaches, and other community service-oriented positions. Peace officer bill of rights • Congress should oppose a federal peace officer bill of rights, which would make internal investigation and enforcement more difficult and diminish local accountability. SD -6. Election Issues Issue: Improvements in absentee voting, voter registration, and the election process are needed. Response: The 1998 legislature should develop a bipartisan election reform proposal that simplifies absentee voting, provides more cities direct access to the statewide voter registration system, clarifies restrictions on locating campaign signs within 100 feet of polling places, modifies the voter fraud statute related to voter residency, and allows cities more flexibility in appointing and compensating election judges. SD -7. Local Election Authority Issue: Local authority to schedule city elections and establish terms of office for local elected officials has been increasingly restricted by the legislature, thereby diminishing regard for the role of local self- government, particularly when state policy pre-empts home rule authority governing city elections. Response: The legislature should oppose further limits on either the number or the length of terms city elected 28 League of Minnesota Cities officials may serve, particularly when those terms have been established by the electorate in home rule charter cities. State policy on uniform elections should continue to recognize and uphold local authority to schedule city elections in November of either even- or odd - numbered years. SD -8. City Costs for Enforcing State and Local Laws Issue: Cities experience substantial costs enforcing state and local laws, particularly those related to traffic, controlled substances, and incarceration of prisoners. The current method in our criminal justice system of recovering costs for law enforcement and prosecution through fines is insufficient to meet the costs incurred by local governments. Response: The legislature should review this issue and adopt measures that provide for complete reimbursement of the costs incurred by local governments in enforcing state and local laws. Solutions which should be considered include the following: • increasing fine amounts; • removing or modifying state surcharges which conflict with cost recovery principles; and • requiring the defendant to pay the full costs of enforcement and prosecution as part of any sentence. SD -9. Access to Information Technology and Services Issue: Congress and the state legislature should continue to provide a meaningful role for cities in developing and supporting access to information technology and services. Response: The legislature should: • enhance opportunities for cities to collaborate with community organizations, schools, libraries, and nonprofit organizations and telecommunications service providers to make training and advanced services available to community residents; • take steps to ensure that businesses have access to advanced broadband networks; • provide grants and technical assistance to encourage cities to expand use of information technology to provide citizen access to government information and deliver services; • monitor telecommunications service providers' compliance with requirements to make public access to information available at a discount; • encourage providers to make capacity for interactive forums available at the local level to increase citizen participation in government; • encourage expanded use of interactive teleconferencing, public access channels, and public broadcast facilities to provide public access to government meetings; and • support federal, state, and local authority to charge providers of cable 1998 City Policies 29 officials may serve, particularly when those terms have been established by the electorate in home rule charter cities. State policy on uniform elections should continue to recognize and uphold local authority to schedule city elections in November of either even- or odd - numbered years. SD -8. City Costs for Enforcing State and Local Laws Issue: Cities experience substantial costs enforcing state and local laws, particularly those related to traffic, controlled substances, and incarceration of prisoners. The current method in our criminal justice system of recovering costs for law enforcement and prosecution through fines is insufficient to meet the costs incurred by local governments. Response: The legislature should review this issue and adopt measures that provide for complete reimbursement of the costs incurred by local governments in enforcing state and local laws. Solutions which should be considered include the following: • increasing fine amounts; • removing or modifying state surcharges which conflict with cost recovery principles; and • requiring the defendant to pay the full costs of enforcement and prosecution as part of any sentence. SD -9. Access to Information Technology and Services Issue: Congress and the state legislature should continue to provide a meaningful role for cities in developing and supporting access to information technology and services. Response: The legislature should: • enhance opportunities for cities to collaborate with community organizations, schools, libraries, and nonprofit organizations and telecommunications service providers to make training and advanced services available to community residents; • take steps to ensure that businesses have access to advanced broadband networks; • provide grants and technical assistance to encourage cities to expand use of information technology to provide citizen access to government information and deliver services; • monitor telecommunications service providers' compliance with requirements to make public access to information available at a discount; • encourage providers to make capacity for interactive forums available at the local level to increase citizen participation in government; • encourage expanded use of interactive teleconferencing, public access channels, and public broadcast facilities to provide public access to government meetings; and • support federal, state, and local authority to charge providers of cable 1998 City Policies 29 and cable -like services reasonable fees to support that capacity. SD -10. Lawful Gambling Fund Expenditures Issue: State law authorizes cities to collect up to 10 percent of the net profits from lawful gambling operations conducted within their jurisdictions. These funds must be maintained in a separate account and can be spent only for "lawful purposes." These purposes are defined in statute more narrowly than the permissible public purpose expenditures for charitable contributions to cities. The Gambling Control Board has the authority to demand that cities make repayment to the fund for expenditures it deems out of compliance with the statutorily permitted lawful purpose expenditures. Response: Cities are in the best position to determine the use of funds that will bring the most benefit to their citizens. The legislature should expand the permissible lawful gambling fund expenditures to include any public purpose deemed appropriate by the city. SD -11. Design -build Issue: The standard bid procedure cities are required to use in selecting contractors for municipal buildings can be quite costly. Private sector development uses a process known as "design -build" in which various firms submit project proposals that include both a design and the construction costs for that design. The selection is then based on the total package. By granting specific statutory authority to use the design -build alternative to the Metropolitan Sports Facilities Commission and state agencies including the Department of Revenue, the legislature has recognized the financial savings it can provide. In documented instances, cities have saved taxpayers up to 10 percent of the total project cost by using the design -build alternative. The design -build process also permits improved project management and oversight. However, absent statutory authorization to use this alternative, cities are vulnerable to lawsuits from unsuccessful bidders. In addition, the design -build process for playground equipment can encourage greater creativity while still maintaining cost controls. Special legislation was enacted for the City of Chanhassen in 1995 to experiment with using this process for purchasing playground equipment. Response: The legislature should authorize an extension of the "design - build" procedure to cities as a less expensive alternative to the standard bid procedure. SD -12. Mobile Home Park Oversight Issue: The state has preempted cities in the licensing of mobile home parks and has limited the authority of cities to place new regulations on established mobile home parks. However, cities are responsible for dealing with the various housing and public safety challenges mobile home parks may create. Response: Since the state has already taken the lead, the legislature should provide sufficient resources and direct the Department of Health to conduct a study on the condition of mobile home parks throughout the State of Minnesota. Cities and mobile home park owners and residents should be involved in the study. 30 League of Minnesota Cities and cable -like services reasonable fees to support that capacity. SD -10. Lawful Gambling Fund Expenditures Issue: State law authorizes cities to collect up to 10 percent of the net profits from lawful gambling operations conducted within their jurisdictions. These funds must be maintained in a separate account and can be spent only for "lawful purposes." These purposes are defined in statute more narrowly than the permissible public purpose expenditures for charitable contributions to cities. The Gambling Control Board has the authority to demand that cities make repayment to the fund for expenditures it deems out of compliance with the statutorily permitted lawful purpose expenditures. Response: Cities are in the best position to determine the use of funds that will bring the most benefit to their citizens. The legislature should expand the permissible lawful gambling fund expenditures to include any public purpose deemed appropriate by the city. SD -11. Design -build Issue: The standard bid procedure cities are required to use in selecting contractors for municipal buildings can be quite costly. Private sector development uses a process known as "design -build" in which various firms submit project proposals that include both a design and the construction costs for that design. The selection is then based on the total package. By granting specific statutory authority to use the design -build alternative to the Metropolitan Sports Facilities Commission and state agencies including the Department of Revenue, the legislature has recognized the financial savings it can provide. In documented instances, cities have saved taxpayers up to 10 percent of the total project cost by using the design -build alternative. The design -build process also permits improved project management and oversight. However, absent statutory authorization to use this alternative, cities are vulnerable to lawsuits from unsuccessful bidders. In addition, the design -build process for playground equipment can encourage greater creativity while still maintaining cost controls. Special legislation was enacted for the City of Chanhassen in 1995 to experiment with using this process for purchasing playground equipment. Response: The legislature should authorize an extension of the "design - build" procedure to cities as a less expensive alternative to the standard bid procedure. SD -12. Mobile Home Park Oversight Issue: The state has preempted cities in the licensing of mobile home parks and has limited the authority of cities to place new regulations on established mobile home parks. However, cities are responsible for dealing with the various housing and public safety challenges mobile home parks may create. Response: Since the state has already taken the lead, the legislature should provide sufficient resources and direct the Department of Health to conduct a study on the condition of mobile home parks throughout the State of Minnesota. Cities and mobile home park owners and residents should be involved in the study. 30 League of Minnesota Cities The results of the study should be used as a basis for policy discussions regarding ways in which the state can provide for increased and improved oversight of mobile home parks and establish a statewide support system for cities to rely on in dealing with the array of issues that arise in mobile home parks. Outcomes of the study should include: • "best practices" for the operation of mobile home parks; • recommended state regulatory changes for the operation of mobile home parks; • suggested ways cities can better address the issues presented by mobile home parks; and • identification of mechanisms to provide assistance in financing mobile home park upgrades. SD -13. Proposed Plat Approval Authority Issue: Current law generally grants cities the authority to approve proposed plats as part of their police power responsibilities for regulating development Certain counties want legislative authorization to approve proposed plats which are contiguous with existing or proposed county roads. Response: Cities oppose extending county authority over plat approval. While counties have a valid interest in proposed plat decisions, this does not warrant a duplication of approval authority. An informal process of county review with the opportunity to offer comments and suggestions for improvement is an appropriate cooperative mechanism which is already in place and working well in many areas of the state. SD -14. Providing Information to Citizens Issue: To keep the public updated and informed, state law requires local units of government to publish various notification documents in newspapers and often dictates which newspapers receive cities' publication business. The number and variety of documents required to be published and the costs of publication are burdensome. Technological advancements have expanded the ways in which government can provide information to citizens. In many cases, these new technologies are more efficient and cost effective. Response: Cities should be authorized to take advantage of new technologies to increase the dissemination of information to citizens and potentially lower the associated costs. Specifically, the legislature should authorize local units of government to designate an appropriate daily/weekly publication, elect alternative means of communication such as city newsletters, cable television, and the internet, and expand the use of summaries where information is technical or lengthy. Additionally, the legislature should eliminate outdated or unnecessary publication requirements. SD -15. Creating a Minnesota GIS Program Issue: Cities need Geographic Information Systems (GIS). Although only 1998 City Policies 31 The results of the study should be used as a basis for policy discussions regarding ways in which the state can provide for increased and improved oversight of mobile home parks and establish a statewide support system for cities to rely on in dealing with the array of issues that arise in mobile home parks. Outcomes of the study should include: • "best practices" for the operation of mobile home parks; • recommended state regulatory changes for the operation of mobile home parks; • suggested ways cities can better address the issues presented by mobile home parks; and • identification of mechanisms to provide assistance in financing mobile home park upgrades. SD -13. Proposed Plat Approval Authority Issue: Current law generally grants cities the authority to approve proposed plats as part of their police power responsibilities for regulating development Certain counties want legislative authorization to approve proposed plats which are contiguous with existing or proposed county roads. Response: Cities oppose extending county authority over plat approval. While counties have a valid interest in proposed plat decisions, this does not warrant a duplication of approval authority. An informal process of county review with the opportunity to offer comments and suggestions for improvement is an appropriate cooperative mechanism which is already in place and working well in many areas of the state. SD -14. Providing Information to Citizens Issue: To keep the public updated and informed, state law requires local units of government to publish various notification documents in newspapers and often dictates which newspapers receive cities' publication business. The number and variety of documents required to be published and the costs of publication are burdensome. Technological advancements have expanded the ways in which government can provide information to citizens. In many cases, these new technologies are more efficient and cost effective. Response: Cities should be authorized to take advantage of new technologies to increase the dissemination of information to citizens and potentially lower the associated costs. Specifically, the legislature should authorize local units of government to designate an appropriate daily/weekly publication, elect alternative means of communication such as city newsletters, cable television, and the internet, and expand the use of summaries where information is technical or lengthy. Additionally, the legislature should eliminate outdated or unnecessary publication requirements. SD -15. Creating a Minnesota GIS Program Issue: Cities need Geographic Information Systems (GIS). Although only 1998 City Policies 31 forty-five cities have parcel -based GIS, this improved method of local land record management is already paying tremendous dividends to those with access to the technology, but it is costly and difficult to create, maintain, and upgrade. Cities face serious obstacles to modernizing land records when maps, survey controls, and electronic records management do not exist at the county level. Without state investment to help local government modernize land management records, development of GIS will continue to fall behind, with costly results for residents and taxpayers in those locations where land parcel data is not organized. A seamless land records database would encourage sustainable land -use planning at both the state and local level. Response: The League endorses the recommendations put forth by the Governor's Council on Geographic Information to establish and fund a Minnesota GIS Program to provide technical support and funding for local government development of GIS. SD -16. State Licensing of Massage Therapists Issue: The state does not currently regulate massage therapy, an emerging but rapidly growing profession. In order to control prostitution and to provide for health and sanitation standards, several cities have entered the traditional state domain of health-care licensure by enacting ordinances that require all massage therapists to obtain a local professional license. These ordinances allow local law enforcement officers to differentiate between legitimate massage therapists, who have a city license, and prostitution businesses fronting as massage therapy establishments. The lack of statewide licensing of massage therapists has hampered law enforcement techniques and has caused problems for cities attempting to regulate an entire health-care profession without any statewide standards. Currently, twenty-five states license massage therapists on a statewide level. Statewide licensing of massage therapists would provide a clear set of educational standards that massage therapists must meet and would provide local law enforcement agencies with an easy tool to distinguish between prostitution and legitimate massage therapy. Statewide professional licensing would not disturb traditional powers over land use and business licensure. Response: The League supports the statewide professional licensing of massage therapists in order to aid local law enforcement efforts at controlling prostitution and other criminal activity. 32 League of Minnesota Cities forty-five cities have parcel -based GIS, this improved method of local land record management is already paying tremendous dividends to those with access to the technology, but it is costly and difficult to create, maintain, and upgrade. Cities face serious obstacles to modernizing land records when maps, survey controls, and electronic records management do not exist at the county level. Without state investment to help local government modernize land management records, development of GIS will continue to fall behind, with costly results for residents and taxpayers in those locations where land parcel data is not organized. A seamless land records database would encourage sustainable land -use planning at both the state and local level. Response: The League endorses the recommendations put forth by the Governor's Council on Geographic Information to establish and fund a Minnesota GIS Program to provide technical support and funding for local government development of GIS. SD -16. State Licensing of Massage Therapists Issue: The state does not currently regulate massage therapy, an emerging but rapidly growing profession. In order to control prostitution and to provide for health and sanitation standards, several cities have entered the traditional state domain of health-care licensure by enacting ordinances that require all massage therapists to obtain a local professional license. These ordinances allow local law enforcement officers to differentiate between legitimate massage therapists, who have a city license, and prostitution businesses fronting as massage therapy establishments. The lack of statewide licensing of massage therapists has hampered law enforcement techniques and has caused problems for cities attempting to regulate an entire health-care profession without any statewide standards. Currently, twenty-five states license massage therapists on a statewide level. Statewide licensing of massage therapists would provide a clear set of educational standards that massage therapists must meet and would provide local law enforcement agencies with an easy tool to distinguish between prostitution and legitimate massage therapy. Statewide professional licensing would not disturb traditional powers over land use and business licensure. Response: The League supports the statewide professional licensing of massage therapists in order to aid local law enforcement efforts at controlling prostitution and other criminal activity. 32 League of Minnesota Cities DATE: December 18, 1997 TO: Mayor and City Council FROM: Dwight D. Johnson, City Manager SUBJECT: Summary of Events Note: I plan to be out of the office on vacation over the next two weeks, except for a few important meetings and functions. Except for the next few days, I will be in the area. I will be monitoring important subjects such as the status of our contract with the maintenance workers. Eric Blank met with Bahram Akradi of Lifetime Fitness this week. This meeting served as one of the quarterly meetings envisioned by the contract with them to review operations, complaints, etc. We agree with Lifetime that more parking is needed for the complex. Mr. Akradi would agree to the same cost sharing agreement to provide parking as we had for the current parking lot where the City paid the cost of preparation and grading while Lifetime paid for the asphalt, curb and gutter, and lighting. More parking could be added in front of the outdoor pool with a retaining wall, provided that we have made a final decision to not put an Activity Center there. There is also room to develop more parking east of the ice arena, and Lifetime would participate in the cost sharing there also. A total of about 110 cars could be added. Mr. Akradi also indicated that a recent letter to all Lifetime members announcing a cost increase in the monthly dues will not apply to Plymouth residents, since the club just opened six months ago. Also, waivers signed by parents will now be good for one year. This is important to parents bringing other children besides their own to the center. Previously, the waivers signed by parents were good for only a few weeks. Lifetime is also going to proceed with the main sign at the Plymouth Boulevard entrance. Special senior rates, discussed in general terms in the contract, were discussed. Eric suggested a special rate for seniors if they agree to use the club only from 8:30 a.m. to 4:00 p.m., thus avoiding the peak use times. Mr. Akradi will consider this and respond later. DATE: December 18, 1997 TO: Mayor and City Council FROM: Dwight D. Johnson, City Manager SUBJECT: Summary of Events Note: I plan to be out of the office on vacation over the next two weeks, except for a few important meetings and functions. Except for the next few days, I will be in the area. I will be monitoring important subjects such as the status of our contract with the maintenance workers. Eric Blank met with Bahram Akradi of Lifetime Fitness this week. This meeting served as one of the quarterly meetings envisioned by the contract with them to review operations, complaints, etc. We agree with Lifetime that more parking is needed for the complex. Mr. Akradi would agree to the same cost sharing agreement to provide parking as we had for the current parking lot where the City paid the cost of preparation and grading while Lifetime paid for the asphalt, curb and gutter, and lighting. More parking could be added in front of the outdoor pool with a retaining wall, provided that we have made a final decision to not put an Activity Center there. There is also room to develop more parking east of the ice arena, and Lifetime would participate in the cost sharing there also. A total of about 110 cars could be added. Mr. Akradi also indicated that a recent letter to all Lifetime members announcing a cost increase in the monthly dues will not apply to Plymouth residents, since the club just opened six months ago. Also, waivers signed by parents will now be good for one year. This is important to parents bringing other children besides their own to the center. Previously, the waivers signed by parents were good for only a few weeks. Lifetime is also going to proceed with the main sign at the Plymouth Boulevard entrance. Special senior rates, discussed in general terms in the contract, were discussed. Eric suggested a special rate for seniors if they agree to use the club only from 8:30 a.m. to 4:00 p.m., thus avoiding the peak use times. Mr. Akradi will consider this and respond later. Now that the indoor skate park has been approved, you may wish to think about whether or not to proceed with a possible City operated outdoor skate park, perhaps located behind the ice arena. Eric has identified funds in his proposed Capital Improvements Plan to do this, and has recently discovered some good existing ramp equipment that could be purchased at a big discount, perhaps saving $30,000-40,000. However, we cannot be sure it will not be sold to someone else if we wait several months to decide. So, over the next few weeks, think about whether you would like to proceed with this idea, or whether the approved indoor skate park will suffice. I understand that our outdoor park could have some equipment that won't fit in the indoor one, like a large half -pipe structure. Our current thinking for the January schedule is that we not have a study session on January 14', since we doubt that any of our pending issues could really be ready to discuss by then, including the Activity Center, the Assessment "seminar", or other items. However, we do usually have a session with our legislators late in January. We are considering January 28' if we can confirm the date with enough of them. This meeting would effectively take the place of our usual study session on the second Wednesday. The regular meetings are scheduled for January 7 and 21". Best wishes to all of you for a happy holiday season! Now that the indoor skate park has been approved, you may wish to think about whether or not to proceed with a possible City operated outdoor skate park, perhaps located behind the ice arena. Eric has identified funds in his proposed Capital Improvements Plan to do this, and has recently discovered some good existing ramp equipment that could be purchased at a big discount, perhaps saving $30,000-40,000. However, we cannot be sure it will not be sold to someone else if we wait several months to decide. So, over the next few weeks, think about whether you would like to proceed with this idea, or whether the approved indoor skate park will suffice. I understand that our outdoor park could have some equipment that won't fit in the indoor one, like a large half -pipe structure. Our current thinking for the January schedule is that we not have a study session on January 14', since we doubt that any of our pending issues could really be ready to discuss by then, including the Activity Center, the Assessment "seminar", or other items. However, we do usually have a session with our legislators late in January. We are considering January 28' if we can confirm the date with enough of them. This meeting would effectively take the place of our usual study session on the second Wednesday. The regular meetings are scheduled for January 7 and 21". Best wishes to all of you for a happy holiday season!