2019.01.23 CC Packet - Goal Setting Session

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Municipal Revenue & Taxation Municipalities hosting regional facilities (such as utilities, landfills or aggregate mining) incur costs and community effects such as enviromnental damage or lost economic development opportunities. Communities should be compensated to accommodate the effects of these facilities that provide benefits to the region and state. Metro Cities supports legislative efforts to offset the negative impacts of these facilities and activities on host communities. Metro Cities would prefer that cities and townships be allowed to collect a host fee that may be adjusted when state decisions impact those fees. 1-N Sales Tax on Local Government Purchases Metro Cities supported the 2013 reinstatement of the sales tax exemption for purchases of goods and services made by cities. The reinstatement enacted in 2013 does not apply to all local government purchases. To ensure that citizens receive the full benefit of this exemption, the law should treat purchases of all local government units the same, including purchases made by special taxing districts, joint powers entities, or any other agency or instrumentality of local government. Metro Cities supports granting an extension of the motor vehicle sales tax exemption to all municipal vehicles that are used for general city functions and are provided by governmental entities. Currently, only certain vehicles, including road maintenance vehicles purchased by townships, and municipal fire trucks and police vehicles not registered for use on public roads, are exempt from the MVST. Metro Cities supports simplifying the process on the exemption for construction materials that is complex and cost ineffective, or converting the process to a refund program. 1-0 City Revenue Stability and Fund Balance Metro Cities opposes state attempts to control or restrict city fund balances. These funds are necessary to maintain fiscal viability, meet unexpected or emergency resource needs, purchase capital goods and infrastructure, provide adequate cash flow and maintain high level bond ratings. 1-P Public Employees' Retirement Association (PERA) Metro Cities supports employees and cities sharing equally in the cost of necessary contribution increases and a sixty percent employer/forty percent employee split for the PERA Police and Fire Plan. Metro Cities also supports state assistance to local governments to cover any additional contribution burdens placed on cities over and above contribution increases required by employees. Cities should receive sufficient notice of these increases so that they may take them into account for budgeting purposes. Metro Cities opposes benefit improvements for active employees or retirees until the financial health of the PERA General Plan and PERA Police and Fire Plan are restored. 2019 Legislative Policies