HomeMy WebLinkAbout10.06.99 Special Council Minutes
SPECIAL CITY COUNCIL MEETING
LEGISLATIVE DELEGATION WORKSHOP
City Council Chambers
Wednesday, October 6, 1999
Meeting was called to order at 7:05 p.m. by Mayor Ristow.
In attendance: Mayor Ristow, Council members Cordes, Soderberg, Strachan and Verch. State
Representatives Holberg and Ozment: City Adminstrator Erar, City Attorney Jamnik,
Community Development Director Olson, Chief Siebenaler.
Absent: State Senator Pariseau (Senator Pariseau was represented by a Staff Aide)
A tentative meeting agenda was presented and approved for discussion. City legislative positions
were previously identified in materials and distributed to meeting participants prior to this
special meeting. Mayor Ristow indicated that each legislative representative would have an
opportunity to state hislher position on the legislative issues presented.
3a) TAX LEVY LIMITS
City Position: The City strongly opposes levy limits and urges the legislature to not re-enact
them for 2000 or beyond. Cities, in general, must have the ability to address and respond to local
tax and spend issues at the local level. The City also opposes the imposition of artificial
mechanisms such as valuation freezes, payroll freezes, super majority requirements for levy, or
other limitations to the local government budget and taxing process. Local elected officials are
directly accountable to their constituents, and need flexibility to respond to changing community
dynamics and needs without state imposed restrictions.
Legislation Delegation Position:
Representative Holberg: Opposes Levy Limits
Representative Ozment: Opposes Levy Limits
Senator Pariseau's staff representative: Opposes Levy Limits
3b) STATE AIDS
City Position: Local Government Aid (LGA) is a necessary, state-raised resource to supplement
local property taxes. Therefore, the City supports its continuation with an annual inflation index,
along with additional state resources to further reduce the reliance on the property tax. In
addition, any LGA formula changes considered by the legislature must have a positive impact on
the metropolitan area. The Homestead and Agricultural Credit Aid (HACA) equals about 40
percent of the total local aid and. should be continued as part of the local fiscal relationship, with
an inflation or increased household growth factor restored for cities. The City strongly opposes
the conversion of city HACA to school aid. It should also be pointed out that the Citizens Jury on
MN Property Tax Reform concluded and strongly supported that state aids should continue to
flow to cities, counties and school districts.
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Legislative Delegation Position:
Representative Holberg: Opposes reduction/elimination of state aids
Representative Ozment: Opposes reduction/elimination of state aids
Senator Pariseau's staff representative: Opposes reduction/elimination of state aids
3c) SALES TAX REPEAL
City Position: The legislature should reinstate the sales tax exemption for all local government
purchases without requiring a reduction in other aids. Cities, counties and townships will pay
more than $80 million this year to the state on purchases for items like road maintenance
equipment and wastewater facilities. With what? Taxes they collect from the state's property tax
payers. This sales tax on local government purchases was imposed in 1992 when the state faced
a severe budget shortfall. With the state clearly in the black, this tax is simply unnecessary,
causes higher property taxes and user fees, and only adds more to the surplus.
The City would lik~ to thank legislators for their past support of repeal efforts, and appreciate
their continuing support to enact a final repeal of this legislation.
Legislative Delegation Position:
Representative Holberg: Supports City position on repeal of sales tax.
Representative Ozment: Supports City position on repeal of sales tax; indicated that he had
authored legislation in support of sales tax repeal.
Senator Pariseau's staff representative: Supports City position on repeal of sales tax.
3d) REVERSE REFERENDUM
City Position: The City strongly opposes any attempt to institute a reverse referendum provision.
Local government officials are elected to make decisions in the best interests of their
constituencies. This includes decisions that sometimes result in tax increases that fund needed
local government services. Allowing each taxing decision to be effectively "second guessed"
would create a profound obstacle in the policy-making process, and jeopardize the ability of
locally elected officials to make needed, but unpopular decisions. The ballot box already
provides for the removal of elected officials.
Legislative Delegation Position:
Representative Holberg: Supports City position and strongly opposes reverse referendum
Representative Ozment: Supports City position and indicated opposition to reverse referendum
Senator Pariseau's staff representative: Indicated that Senator Pariseau had supported this
legislation in the past, but is unsure of current position.
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3e) LIMITED MARKET VALUE
City Position: The City strongly opposes further extension of artificial limits in valuing property
at market for property taxation purposes. Limiting market value increase on existing property to
a non-market index or set rate will cause various property tax system problems. Similar
properties will be taxed differently if new or sold and improvements will be discouraged. Tax
shifts will occur mainly on lower valued homes and the ability to issue bonds may be adversely
affected. Finally, it will be politically difficult as well as costly to persons owning long-term
capped properties when it becomes necessary to sunset due to vast differences in tax liabilities
for like properties. The City believes that enhanced targeting for special circumstances such as
low-income persons better serves the tax system. The free market, not a legislatively mandated
one, should be the primary determinant in the assignment of housing values for property taxation
purposes.
Legislative Delegation Position:
Representative Holberg: Supports City Position and opposes Limited Market Value
Representative Ozment: Supports City Position and opposes Limited Market Value.
Senator Pariseau's staff representative: Supports Limited Market Value legislation
3f) TAX RATE INCREASE AUTHORIZATION LAW
City Position: A recent change by the 1999 legislature compels cities to adopt a resolution citing
increases in their total tax levy. This requirement is in addition to Truth-in-Taxation hearings,
publication and disclosure statements, as well as a myriad of other taxpayer notification
provisions already in the law. Furthermore, this legislative mandate ignores differing
circumstances in a community's growth rate where population increases require cities to spend
more to provide the same level of service. In Farmington's case, while the total levy will increase
by approximately $90,000 in the year 2000, the City's tax capacity rate (TCR) will actually
decrease. The City suggests that the TCR is a much better indicator of the relative tax burden that
City spending confers on taxable property. The City would urge repeal of this new legislative
requirement.
Legislative Delegation Position:
Representative Holberg: Supports City Position; believes this legislation is confusing and
unnecessary given other statutory requirements. Request additional information on the City's
Budget and indicated cities need to do a better job publicizing their financial accomplishments.
Representative Ozment: Supports the legislation requiring additional disclosure, but will look
into clarifying language
Senator Pariseau's staff representative: Supports the legislation requiring additional disclosure.
4a) STATE MANDATES
City Position: The City opposes any legislative mandates that do not include supporting state
funding. While the City acknowledges the need for the legislature to take a leadership role on
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state and regional issues affecting the health and welfare of communities in general, the costs of
implementing these legislative directives should not fall solely on local government. Statewide
mandates should not be enacted unless full funding is provided or a permanent stable revenue
source is established. Cities should be given flexibility in implementing mandates to ensure their
cost is minimized.
Legislative Delegation Position:
Representative Holberg: Supports ~ity Position and opposes any state mandates without
corresponding funding.
Representative Ozment: Supports City Position and opposes any state mandates without
corresponding funding.
Senator Pariseau's staff representative: Supports City Position and opposes any state mandates
without corresponding funding.
4b) LEGISLATION AFFECTING CITY INTERESTS
City Position: The City is requesting that any legislation authored or sponsored by a member of
the City's Legislative Delegation that may affect local government interests, adversely or
otherwise, be communicated to the City Council. This will allow the City time to review and
comment on the proposed legislation. The City would encourage its state representatives to
contact local officials for information and feedback on particular issues brought to their attention
by our common constituencies.
Legislative Delegation Position:
Representative Holberg: Supports communicating with cities and encouraged the City to contact
her on issues.
Representative Ozment: Supports communicating with cities and encouraged the City to contact
him on issues. Did indicate that numerous issues come up that would prevent him from
contacting the City on all issues as a practical matter.
Senator Pariseau's staff representative: Supports communicating with cities and encouraged the
City to contact her on issues.
4c) Cable Franchise Fees
City Position: The City opposes any legislative efforts to change current law that would
effectively redirect local franchise fees to the state and significantly weaken local regulatory
control over cable franchise activities. Cities utilize franchise fees to conduct a host of local
regulatory actions relative to rights-of-way, subscriber complaints, and local cable commission
activities as well as underwrite a variety of activities associated with public information access.
Legislative Delegation Position:
Representative Holberg: Supports City Position and opposes any changes that would take local
cable funding away from cities.
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Representative Ozment: Supports City Position and opposes any changes that would take local
cable funding away from cities.
Senator Pariseau's staff representative: Staff representative indicated he was unsure as to the
Senator's position on this particular issue.
4d) SPECIAL CITY LEGISLATION
City Position: See attached communication from the City Attorney. City attorney Jamnik briefed
the legislative representatives on issues associated with the Hill Dee title concern.
Legislative Delegation Position
Representative Holberg: Indicated she would work with the City to facilitate special legislation
on this matter, and set up a meeting between the City and appropriate state officials.
Representative Ozment: Indicated he would assist the City in anyway possible.
Senator Pariseau's staff representative: Indicated that the Senator would assist In any way
possible
4e) OVERALL COMMUNICATION ISSUES
City Position: While many respected polls suggest that local government is still the most trusted
level of government, significant communication issues continue to emerge between State and
Local government. The need to maiptain a mutually respectful, and productive relationship is
especially important in terms of how the average citizen perceives their government in general.
Consequently, as state and local government serves similar constituencies, the need to build
bridges in terms of a common base of understanding is of critical importance. Legislated
solutions to local concerns should be the last step in the process. ..communication and seeking a
better understanding of the circumstances and challenges facing both levels of government
should be our first (see attachment).
Discussed the possibility of meeting on annual basis and the need to communicate on a regular
basis.
Legislative Delegation Position:
Representative Holberg: Supports communicating with cities and the need to work together.
Representative Ozment: Supports communicating with cities and the need to work together.
Senator Pariseau's staff representative: Supports communicating with cities and the need to work
together.
Sa) SMART GROWTH PRINCIPLES
City Position: The City supports Metropolitan Council "Smart Growth Principles" as adopted
(attachment). The City would contend that non-municipal growth occurring in unincorporated
fringe areas outside the regional blueprint is contrary to smart growth principles, and contributes
to urban sprawl. Smart growth principles recognize the need to properly plan urbanized
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development to ensure optimum use of limited environmental resources, and provide for cost-
effective solutions to infrastructure support needs.
Legislative Delegation Position:
Considerable discussion on the definition of what smart growth is and means. It was discussed
that growth is a complicated issue and needs to be addressed cooperatively. Communities need to
be involved. Urban growth issues will continue to provide challenges at all levels of government
in terms of preserving the natural environment and recognizing that communities need to plan
their growth wisely.
Development Director Olson presented some opening remarks on this issue.
Representative Holberg: In concept, supported smart growth principles, but needs additional
information on the implications of how smart growth would affect individual communities.
Representative Ozment: In concept, supported smart growth, but needs additional information on
the implications affecting individual" communities. Supports agricultural preserve. The loss of
township property concerned him and the fact that cities should not be able to unilaterally take
land away.
Senator Pariseau's staff representative: Not an advocate of the Metropolitan Council. Believes
there is a need to preserve agricultural qualities of township.
5b) ANNEXATION LEGISLATION
City Position: The City strongly opposes any legislation that would alter current annexation by
ordinance laws. The City supports legislative findings contained in M.S. 414.01 that cites
municipal government as the most efficient and appropriate form of government for intensive
residential, commercial, industrial development. Cities must have the ability to annex adjoining
property to ensure compatible urban design standards; the continuity of appropriate land use and
zoning controls; the preservation of clear urban-rural boundaries; and avoid the premature
development of agricultural lands. Restrictive annexation policies prevent the formulation of
efficient, strategic long-term regional land-use planning that lead to environmental degradation,
inadequate transportation planning, urban sprawl, duplication of local government services, and
premature conversion of farm land.
Legislative Delegation Position:
Representative Ozment: This issue generated considerable discussion, with Representative
Ozment expressing significant support for township government rights. Believed cities should
not be allowed to annex property by ordinance without Township jurisdiction approval
regardless of property owner desires. Indicated he would continue to bring legislation forward
that would "balance" township rights on annexation. Mayor Ristow and Councilmember
Soderberg indicated the city's needs to take actions to properly serve urban development, that
urbanized development does not belong in the township and that individual property rights
should take precedence over perceived political power and land control issues. City administrator
Erar expressed his concerns and frustration over the lack of long-term township planning, public
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service issues associated with outside jurisdiction use, and the difficulties of intergovernmental
cooperation on various issues affecting the City.
Senator Pariseau's staff representative: Indicated that Senator Pariseau supports Representative
Ozment's position.
Representative Holberg: Indicated strong support of City position on annexation for urban-type
development. Commented on the perceived inequities associated with 100 percent County
funding of township road costs.
6a) STOP LIGHT CAMERAS
City Position: Statistics show that intersections controlled by stop lights experience a higher rate
of crashes than uncontrolled intersections. Crashes at controlled intersection are the result of
stop light violations. The best way to control violations is by a managed enforcement and
education campaign. The educational aspect is best utilized on repeat or local drivers. The
educational value in stoplight enforcement is diminished due to the transient nature of traffic
using the State and County highway systems. Continuous enforcement is not a practical option
due to limitations of police resources. The availability of stop light cameras statewide would
make drivers think twice before willfully violating a stop light.
Chief Siebenaler presented additional information on this issue. Indicated that the legislative
initiative was to provide enabling legislation to cities to locally adopt ordinances on this issue at
their option.
Council comments: Councilmember Soderberg and Strachan indicated several concerns with this
issue, and a general lack of support on various grounds. Video monitoring of motorists
engendered varying degrees of concern with government intrusion and privacy rights, citing
discomfort with government monitoring. Councilmember Verch indicated support of Stop Light
cameras in terms of final outcomes to reduce accidents and personal injury. This issue will be
discussed further at the Council level.
Legislative Delegation Position:
Representative Holberg: Needs more information.
Representative Ozment: Needs additional information.
Senator Pariseau's staff representative: Needs additional information.
6b) RESIDENTIAL SPEED LIMITS
City Position: Cities have received numerous complaints about cars traveling too fast even
though they are not exceeding 30 MPH residential speed limits. Studies show typical residential
speed to fall between 22-24 MPH which appears to be an acceptable rate to most residents. In an
effort to curb urban sprawl by higher use of urban property cities are developing smaller
residential lots with narrower streets. This creates an even larger concern over "speeders" in
residential areas. Statutory authority to allow a 25 MPH residential speed limit would greatly
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assist local authorities in promoting safer driving speeds. The 25 MPH residential speed limit is
also in compliance with Department of Transportation guidelines setting speed limits at the
speed at which most drivers are comfortable (22-24MPH).
Enforcement in each of these areas is' diminished by the State of Minnesota Quota Law
prohibiting Chief Law Enforcement Officers from directing officers to write tickets. I do not
dispute that Law but law enforcement needs an alternative to ordering the issuance oftickets.
Legislative Delegation Position
Representative Holberg: Needs more information.
Representative Ozment: Needs additional information.
Senator Pariseau's staff representative: Needs additional information.
At the conclusion of the meeting, Mayor and Council thanked representatives for attending the
Council workshop and appreciated their views on these issues. Council looked forward to
working with the legislators in the next year and expressed a desire to meet on annual basis to
maintain open communications. Legislative representatives responded in a similar fashion and
thanked Council for the opportunity to express their views.
Meeting was adjourned at 9:20 p.m.
Respectfully submitted,
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John F. Erar
City Administrator
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