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HomeMy WebLinkAbout1991-014 Council ResolutionCouncil Member Reinert and moved its adoption: introduced the following resolution CITY OF LINO LAKES RESOLUTION NO. 14 - 91 RESOLUTION URGING THE MINNESOTA LEGISLATURE TO RETAIN THE MINNESOTA FISCAL DISPARITIES CONTRIBUTION RATE AT ITS PRESENT FORM WHEREAS: the North Metro Mayors Association has joined together to "foster closer relationships, improve communications, and better coordination between its members, legislative delegations, elective officials and city staffs;" and WHEREAS: the North Metro Mayors Association has adopted a mission statement which will direct its efforts to initiate actions, provide leadership and commit resources necessary to ensure the equitable distribution of economic development, shared tax resources and uniform investment in public facilities throughout the metropolitan community; and WHEREAS: the State of Minnesota adopted a system designed to share tax resources in the metropolitan area known as fiscal; and WHEREAS: the Minnesota fiscal disparities law is the very first tax sharing system adopted in the United States and has become a model for other states: and WHEREAS: the idea of tax -base is to narrow the gap between communities with a strong and growing commercial - industrial tax base and communities with small or stagnated commercial -industrial tax base. To lessen the difference between these "haves" and "have-nots," the law requires that 40 percent of new commercial - industrial tax base be put back into the metropolitan pool and apportioned back to communities according to their population and overall tax base; and WHEREAS: tax base sharing makes sense because communities in the Twin Cities area are interdependent parts of a single economic entity. One city might provide a family a place to live, another a place to work, another a place to attend school, another a place to shop, another a WHEREAS: WHEREAS: WHEREAS: WHEREAS: WHEREAS: WHEREAS: WHEREAS: WHEREAS: WHEREAS: WHEREAS: place to generate the electricity to light their home, and another a location to handle waste products. the Minnesota fiscal disparities tax sharing system is working and has achieved its objective; and the economy of the State of Minnesota is currently showing signs of uncertainty and commercial -industrial property valuations may be drastically affected over the next few years as a direct result; and the State of Minnesota warns of budget problems for the 1991-1993 biennium which could result in additional cuts in local governmental aid programs. Further cuts in local governmental aid would drastically reduce the ability of cities to fund essential services; and without fiscal disparities the richest communities in the metropolitan area would have a per capita commercial -industrial tax base of 22 times as big as the smallest; and with the fiscal disparities system the spread between richest and poorest is just 4 to 1; and various recommendations to revise the current fiscal disparities law do not take into account the problems that many inner ring metropolitan cities face in terms of service delivery demands that have changed over the last ten to twenty years; and various recommendations to alter or amend the current fiscal disparities law do not specify what the fiscal impacts are on the gainers and the losers; and the largest current loser was once a gainer in the fiscal disparities system and foresees a day when once again it could be a gainer based on what is happening in the marketplace; and a reduction in the size of the fiscal disparity pool would result in increased commercial -industrial property taxes in metropolitan areas whose tax rates are already the highest and reduce commercial - industrial taxes in cities where rates are the lowest; and tax base sharing results in spreading the benefits of regional centers and facilities to communities that do not have them, but whose taxpayers support them either through sales or income taxes. Further, fiscal disparities helps promote orderly growth in the entire metropolitan area; and WHEREAS: fiscal disparities is an integral part of our tax system and is a fundamental benefit to the entire metropolitan area because it recognizes we are an interdependent economic unit; and NOW THEREFORE BE IT RESOLVED that the fiscal disparities contribution rate be retained in its present form without change. North Metro Mayors Association Membership: Anoka Blaine Brooklyn Center Centerville Champlin Robbinsdale Adopted by the Lino 1991. Columbia Heights Crystal Dayton Circle Pines Fridley Spring Lake Park Lakes City Council Minneapolis New Brighton New Hope Lino Lakes Ramsey Brooklyn Park this 25th day of February, Harold L. Bise Mar i lLyn . Anderson, Clerk -Treasurer Mayor The motion for the adoption of the foregoing resolution was duly seconded by Council Member Kuether and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Bisel, Reinert. The following voted against same: None, Council Member Bohjanen was absent. Where upon said resolution was declared duly passed and adopted.