02/08/2006 Council Packet - Laserfiche WebLink

Home Search

Memorandum - Schilling Consultant Services No double taxation occurs. The county is given the special taxing district boundaries and presumably they will not change. Parcel numbers are generated along with the total tax capacity. A levy amount is determined that will generate the appropriate amount of revenue to achieve the annual operating budget. Disadvantage The main disadvantage is that the special taxing district may appear to formalize the WMO as another layer of local government. An additional concern relates to assurances that the WMO Board is comprised of either elected officials or other interested persons who are not staff members of the respective members (M.S. 103B.227, Subd. 2). Finally, because the joint powers WMO is governed by appointed managers or commissioners, there may be a need to amend the respective JPA to require each member review and approve the WMO budget prior to submission of the levy amount to the county. What would be the legislative process for seeking special taxing district authority? As discussed previously, Minnesota Statutes, Section 275.066 defines such entities within Minnesota. Some are specific (Middle Mississippi River Watershed Management Organization) and some are generic (watershed districts). The Middle Mississippi River Watershed Management Organization sought -out and successfully received legislative authority in the 2000 legislative session. During the 2005 legislative session, three WMOs bordering the St. Croix River sought, but were unsuccessful at similar legislative authority (House File 1496). Meeting with legislators representing the VLAWMO area to explain the issue and explore their support for legislation providing such authority is a good first step. Soliciting local government unit support in the form of resolutions passed by their governing bodies is the next step in the process. Several WMOs west of the Mississippi River in the Metro Area have some similar interest in such authority. Specific legislation for VLAWMO is a simple bill adding its name to M.S. 275.066 as another special taxing district in Minnesota. A second option would be to add VLAWMO to House File 1496, thus having a bill reflecting four WMOs requesting such authority. Third would be to further explore the interest in generic authority (e.g. all joint powers WMOs would be special taxing districts) with other WMOs and the Association of Metropolitan Municipalities. This option would need careful study and discussion as it would include approximately 27 WMOs in the Metropolitan Area who would have such authority, but not necessarily be required to use it for revenue purposes. Nonetheless, a fair amount of education would be needed to reduce any misconceptions. Conclusions • Revenue generation by Joint Powers Agreement WMOs using member general fund or stormwater utility fee contributions is an effective method for relatively modest budgets. However, double taxing or charging of parcels is a problem. • Existing statutory authority in Section 103B.245 allowing establishment of a watershed management tax district has not been used by local government units in WMOs on a regular fashion for day -to -day operating funds, but has merit as a funding mechanism for occasional capital improvement projects. • Special Taxing District designation authority for VLAWMO under M.S. 275.066 is a fairly simple legislative bill for possible enactment and permanently resolves the tax inequity issue. • Seeking the same authority by combining with other interested WMOs or seeking generic authority for all joint powers WMOs will require more discussion with interested parties and legislators. 01/09/2006 46 Bertha Ct., Mahtomedi, MN 55115 -2031 4