06-03-1991 WS - Laserfiche WebLink

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8 * Modify the distribution formula definition of fiscal capacity to include personal property, such as utilities or manufactured homes. (The contribution side currently includes utility property.); * Direct South St. Paul to contribute to the pool using its 1989 value as the base value; *Eliminate the "factor of two" minimum distributions, and provides a phased in loss of distribution schedule; and * Direct that the distribution index now will use the same population year that the capacity calculation uses. XL Local Government Services Sharing and Combination Services This program was established to provide financial incentive to local units of government to jointly provide services or to combine their services into a single entity, as well as combine separate governments into single units. Among the highlights: * Service Sharing Grants: Any city, town or county jointly with other units(s) may apply to the Department of Trade and Economic Development(D-TED) for a grant equal to the start-up costs for shared services. The application must include: 1. the proposal for jointly providing a service,2.projections of cost savings and increased efficiency, and 3. evidence of the need for financial assistance to meet start-up costs for the new endeavor. * Cooperation and Consolidation: This program provides for two or more contiguous units to combine services for two years and then combine into a single governmental unit. The plan submitted to D-TED must describe joint activities, how the merger would be accomplished,the form of the post-merger governing body, service or facility changes,personnel and administrative changes,revenue and expenditure projections, tax levy differential and a timetable to accomplish the merger. Voters would have two years to pass a consolidation referendum. Up to $100,000 per year for four years in additional aid will be available for implementation. This money must be repaid if the merger is not accomplished per the voters. A total of$1.5 million was appropriated with at least 40 percent dedicated initially to the cooperation and combination program. XII Miscellaneous Changes l Sales_tax is extended to dedicated phone lines, telephone paging services, services and massage services. Sales tax is repealed on massage parlour admissions, and tree and shrub planting services(although sales tax does apply to landscaping items). A surcharge of$7.50 is imposed on each contract for car,van or pick-up truck leases of 28 days or less. The so-called "Yuppie" sales taxes were not enacted. Cooperative electric associations are included in the set of utilities upon which cities may impose franchise fees, but rates are not limited as they were in the initial House bill.