CC MINUTES 03241987 - Laserfiche WebLink

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• -3- Power of Eminent Domain and would be exempt from the open meeting process in Procedures #15. Threat of Local Government Aid Cuts and Sales Tax on City Purchases Sundland -said he perceived the Governor' s proposal for the above would just be "transferring monies around" ; -pointed out that the League of Minnesota March 23rd letter to municipalities had alerted them that the imposition of the 6% sales tax on cities would cost them $30,000, 000 a year, -twice as much as the Department of Revenue had estimated; -perceived the imposition of the sales tax on city purchases would only result in the cities having to pass these costs right back to the taxpayers. Rose -indicated he expected the legislators to give hard scrutiny to both bills; -perceived the idea behind the cuts in local aid to govern- ment had been to free up more money for the state to fund more of the educational benefits which were lost by failure of local referendums; -pointed out, however, that more state funding would surely result in more state regulation; -indicated that, from his own standpoint, if the change could get by the first biennium without inflicting great harm on communities like St. Anthony, it made more sense to force cities like Minneapolis to levy for the costs like having 45 planners on their payrolls; -said he thought the proposed sales tax legislation might not have been well thought out because although cities like MoundsView might be getting more school aid, they would also be paying back $500 ,000 in sales tax; -understood one of the motivations behind this legislation was to have non-profit organizations competing at the same level as the private sector. Impact of Non-Profits on Communities and State to Be Studied During Interim Rose -said he had authored the bill to have this study done which had been backed by the Suburban Chamber of Commerce but had • no position on it;