02-20-1996 WS - Laserfiche WebLink

Home Browse Search

taxed types of properties and does not create an unfair tax burden among taxpayers of various property classes or regions. (1989-90 Policy I-D-3 and 4, page 6 and 7) . Specifically the AMM is concerned about maintaining the status quo for 1991 until the Legislative Commission on Planning and Fiscal Policy has completed its detailed study of Local Government Aid programs. Therefore, the AMM opposes the extension of the Tax Base Equalization (TBE) aid formula to 1991 or making that formula permanent at this time. The AMM does support moving the 1990 TBE aid dollars into the LGA base thus grandfathering that distribution for future years. (1990 Board of Director Policy for TBE) 4. Tax Increment Financing. (TIF) This is the only development tool available to cities to implement the state priority to foster economic development for job creation. The AMM believes the changes made in 1988 and 1989 are correcting the alleged problems identified by TIF critics. The AMM does not believe it is prudent to make further changes until the impact of the 1988 and 1989 changes can be assessed as well as the overall impact of 1989 property tax changes can be assessed. (Policy 90-30, page 9) . 5. Solid Waste Management. Substantial changes were made to the statutes governing Solid Waste Management both during the regular 1989 Legislative Session and also in the 1989 Special Session Tax • Bill. The AMM does not expect that major change will be made during the 1990 Session but there are likely to be proposals concerning 'over ride' of local zoning ordinance for siting certain solid waste processing facilities, hauler compensation, and plastics/packaging pre-emption of local ordinances. (Policy 90-43, pages 17-23) . 6. State Budget Deficit for the current biennium. The AMM opposes any reduction of LGA or HACA from cities to reduce the budget deficit. Cities have been subjected to severe levy limits of 3% increases in the past two years as well as next year. Labor contract settlement by the state for over 5% and many schools in excess of that have driven city wage settlements above the 3% level forcing very tight budgets. To further reduce certified budget levels by withholding state funds will most certainly cause personnel cuts. Cities already have a very low ten year employment increase rate as compared to the state of Minnesota the counties, and the national average. The budget shortfall should be solved through other state expenditure cuts or the state $550 million budget reserve account which was established for just this sort of problem. • -2-