09/05/2007 Council Packet - Laserfiche WebLink

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Elected Met Council Every few years, proposals surface in the Legislature requiring the election of the Met CounciL This year bills calling for an elected Council with four year, staggered terms were intro- duced. The Senate bill was defeated on a 36-26 floor vote. Supporters argued that an unelected Council is taxation without representation. Many legislators think the Council needs to do more around transportation and transit. Their concerns gave the idea new life this year, and Met Council issues in general were higher on the legislative radar screen this session. Metro Cities' policies support staggered terms for Met Council members, but are silent on an elected CounciL 5250,000 5200,000 5150,000 5100,000 550,000 so Metro Cities Fund Balances 1997 through 2006 ,_7 If9f 19f! mn 211191 Inn¢ mio vn9 n15 >s.c ® FUND BALANCE Legislation Clean Water At the time this publication went to print, a Metro Cities initiative to expand the PCA's project priority list point system to include storm water projects was proceeding through both the House and Senate. The bills are the culmination of a cooperative effort to allow important storm water projects to compete on equal footing with wastewater projects for the state's primary financing programs. Metro Cities staff have been working with staff from the PCA, the MPFA and the LMC on this initiative. The initiative is intended to create funding options in anticipation of stiffer clean water require- ments that will undoubtedly be triggered by the pending completion of the Lake Pepin Total Maximum Daily Load (TM DL) analysis. Access to the state's clean water funding mechanisms for storm water projects will assure that the Metro Area will be allowed to continue to develop. Capital improvement funding to comply with Clean Water Act standards will be requested in the 2008 Legislative session. Significant funding for assessment of impaired waters and the completion of TMDL's is expected to pass this session. Economic Development Throughout the summer and fall, Metro Cities staff worked with city staff and other municipal organizations, including Minnesota Solutions and LMC, to expand tax increment financing (in-) flexibility and modify the state's Redevelop- ment Grant Program statute to allow Metro Area cities to qualify for funding. At the time this publication went to print, bills to do both were proceeding on course for passage. If passed, cities will have up to four years after approval of the '1 IF plan to start receiving increment. The legislature passed statutory amendments to equally divide future appropriations to the Redevelopment Grant Program between the Metro Area and Greater Minnesota. Taxes Property tax relief was a key goal for the House and Senate majorities this session and both bodies proposed to achieve it through a variety of mechanisms including the property tax refimd (PTR) program, as well as aids for cities, counties and schools. Metro Cities' stag along with the NMMA, cities of Minne- apolis, Saint Paul, and AFSCME, put forth legislation this year to address disparities in the distribution of LGA through a "metro need aid" that targets aid to older, fully developed cities using socio-economic criteria. Many metro cities were cut off the LGA formula in 2003 when funding reductions were made. Since then, LGA for many rural Minnesota cities has been restored, but the same cannot be said for many metro cities. Although the `metro need aid' was not included in either the House or Senate tax bills, our proposal has reso- nated with many legislators. The Legislature is poised to put additional money into LGA this year. If distributional dispari- ties are not addressed, all the new money in the world won't help those cities that need LGA but don't receive it. As of this date, we continue to advocate for the metro need aid as a compromise position. The Market Value Homestead Credit, cut several years ago and scheduled to be restored this year, was the recipient of some creative legislative energy this year. The House phases out the MVHC and repeals the PTR, replacing both with a new "homestead credit state refund" based on income and property taxes. Their direction is consistent with Metro Cities' policies that support credits being paid directly to individuals. The Senate enhanced the MVHC, but doesn't change the structure of the program. Levy Iimits (Governor's proposal) and a turbo- charge "light" truth in taxation proposal have also been part of the 2007 legislative mix. Consistent with our policies, we continue to oppose legislation that would diminish local control over the local budgeting process. Between the House and Senate tax bills, there are proposed studies in the areas of local government aid, fiscal disparities, sales and use taxes and the truth in taxation program. So, your Metro Cities staff is likely to have its hands full this summer. Transportation The end of the 2006 session left your Metro Cities staff disappointed about the lack of a comprehensive transporta- tion funding bill. However, we quickly set our sights on promoting the Motor Vehicle Sales Tax (MVST) amendment. The effort paid oft, with the metro area showing the strongest support in the state for the amendment. Overwhelming public support for the MVST amendment created a spi iugboard for transportation advocates to press a transportation friendly agenda in tare 2007 session. A change