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
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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.