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CITY OF <br />BECKER <br />12060 Sherburne Ave., P.O. Box 337, Becker, Minnesota 35308 <br />Phone (612) 261-4302 <br />NIkuk-.:`ras� Aril 11, 1997 <br />Kerr, _ eCrer P <br />Fran Miron <br />5524 Upper 146th St. N. <br />Hugo, MN 55038-9367 <br />Honorable Mayor and Council: <br />The Investor Owned electricity and gas Utilities (IOU's) are asking the state legislature for an exemption <br />from personal property or machinery taxes. Our records indicate that this tax comprises 12.03% of the tax <br />capacity in your City. This represents $471,680 in tax capacity which you stand to lose under the proposed <br />legislation. <br />A bill (H.F.1298) was introduced to exempt this tax over a ten year period. Through our efforts and <br />testimony, the bill was amended to remove the exemption. However, the amendment contains two <br />provisions which are problematic for utility "host cities". The first proposes a study on this tax and <br />assumes it is the only hindrance the IOU's have to free competition. The second provision provides for <br />separating this tax out of the bill (much like the franchise fee shows up on your constituents' cable TV <br />bills). Both of these provisions are designed to focus the debate on the Cities, Counties, and Schools that <br />receive the tax and also push the blame for that portion of the rates onto us. <br />A group of cities has banded together to form the Coalition of Utility Cities (CUC) to lobby on this issue. <br />We are seeking additional cities to join our efforts and, if possible, donate financially toward our lobbying <br />costs. We are asking that you adopt a resolution formally joining the coalition. A sample resolution is <br />attached. Feel free to modify it as you see fit for your City's situation. We need to have a broad base of <br />support for our lobbying efforts. Often times, legislators respond best to calls or visits from their own <br />constituents. We need you to do what you can by talking to your local legislators and expressing your <br />concerns over this issue. <br />In addition to adopting a resolution, we are asking for member cities to donate to our lobbying efforts. To <br />date, ten cities have contributed $1,000 or more each. Please do not fell as though you cannot participate if <br />you do not donate, we need everyone's involvement. We would appreciate any financial help you can <br />contribute. However, no donation is required for joining the coalition. <br />If you have questions or concerns or need additional information, please feel free to contact me at (612) <br />261-4302. Or cantact Jeff Haubrich, CUC Treasurer (City of Red Wing) at (612) 385-3615 or Mike <br />Robertsons CUC Secretary (City of Oak Park Heights) at (612) 439-4439. <br />Sincerely:,, <br />tlRuxdberg <br />hairman (City o Becker) <br />CC. Administrators/Clerks <br />