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.
GNC:mjd
Enc.
1:98polenc.mem
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
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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!