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HomeMy WebLinkAbout5.F.10. Consideration of City Endorsement of Transportation Amendment-Res. No. 6493 s: ~. /0. CITY OF SHAKOPEE Memorandum TO: Mayor and City Council CONSENT FROM: Mark McNeill, City Administrator SUBJECT: Transportation Amendment Endorsement DATE: September 12, 2006 INTRODUCTION: The City Council is asked to. take a position endorsing the 2006 Transportation Amendment which will be decided by Minnesota voters onNovemberih. BACKGROUND: The 2005 Legislature approved the following language being placed on the November 7, 2006 ballot: "Shall the Minnesota Constitution be amended to dedicate revenue from a tax on the sale of new and used motor vehicles over a five year period, so that after June 30,2011, all of the revenue is dedicated to at least 40% for public transit assistance and not more than 60% for highway purposes?" For some history, the Motor Vehicle Sales Tax (MVST), was established as a transportation revenue source, with 75% going to highways,.and 25%.to transit. However, due to the State's financial problems in the 1980's and 1990's, the MVST source of funding was used by the legislature to fund other general government activities (for example, funding of the Minnesota State Patrol). Currently, only about 54% of MVST monies goes towards traditional transportation purposes. Last year, the legislature approved a constitutional amendment ballot question, which would phase-in the use of additional MVST for transportation purposes over 5 years, so that by 2011, the 100% ofMVSTwill go for transit/transportation. Once fully funded, it is estimated that this would add $300 million annually to transportation/transit. There appears to be some controversy, especially in areas of greater Minnesota, who perceive the 40% funding for transit as benefiting primarily the metropolitan area, to Greater Minnesota's detriment. The Minnesota Transportation Alliance and Minnesotans for Better Roads and Transit have endorsed it, as have more than 100 cities and counties in Minnesota, as of August 23, 2006. It should be noted that the cities of Bloomington, Burnsville, Chanhassen, Chaska, Eden Prairie, and Scott County have endorsed passage of the amendment. Note that this would not increase the MVST taxes paid, but instead reallocate to where the monies would go. While the Shakopee City Council has traditionally not taken positions on political issues, this is on the agenda to provide the opportunity to consider supporting an amendment that would add significant funding that is critical to several major projects that are of critical concemto the City and Scott County, BUDGET IMPACT: It is estimated that upon full transfer, this will add $300 million annually to transit/transportation in Minnesota. However, the estimated gap between what is needed, and what is currently being provided is $1 billion annually, so the passage will not "fix everything". This legislature will have to look at other sources of revenue in order to fully fund transportation and transit needs. Locally, over the next 1 0 years, it would mean a total of $964,000 additional MSA monies to Shakopee, and $6.4 million to Scott County in CSAH funds. One common question asked is how the transfer of monies from the State's. General Fund, backto a full dedication to transportation and transit will be addressed. At a SCALE meeting on September 8th, Representative Mike Beard noted that the current estimate for the upcoming fiscal year shows a $600 million surplus, so in his opinion, the legislature would not have to make any service or tax level changes in order to fund this proposal, at least in the short term. RECOMMENDATION: I recommend that the City of Shakopee endorse the proposal, by adopting the attached resolution. RELATIONSHIP TO VISIONING: Passage of the amendment would provide for additional funding for transit and transportation projects, which would support Goal B - "High Quality of Life". ACTION REQUIRED: If the Council concurs, it should, by motion, adopt the following resolution: RESOLUTION NO. 6493 A Resolution Supporting Passage of the Minnesota Transportation Constitutional Amendment Regarding Motor Vehicle Sales Tax Dedicatio~ 1M0, ~~ Mark McNeill City Administrator MM:th LOCAL GOVERNMENT ENVO'LVEMENT IN CONSTITUTIONAL AMENDMENT INITIAT.VES....WHAT.S ALLOWED? The State Auditor and Attorney General opinions make it clear that local governments cannot spend public funds on campaigns to adopt amendments to the Minnesota Constitution. However, the opinions do not provide clear guidelines regarding what is or is not acceptable municipal activity. That being said, here are some points to consider: . Local governments are not allowed to become members. of or donate funds to independent organizations advocating for or against passage of the amendment (a group such as Minnesotans for Better Roads and Transit - Vote Yes Coalition) . However, local governments can take a position on a constitutional ballot question . Local governments can publicize their position for or against the ballot question . Further, public officials are generally free, individually and collectively, to announce their views on matters of public interest, such as a ballotquestion (Le. Op Ed pieces, city council resolutions, etc.) . The State Auditor and Attorney General opinions do not prohibit municipal expenditures on "education" of the ballot question to the public, but do prohibit funding for "advocacy" (the challenge is trying to determine what goes beyond education and is actually advocating) . Some guidelines regarding "education": ~ Avoid using or referring to the "Vote Yes" Coalition or it's website (for example, do not refer the public to the www.votevesmn.ora website for information on the ballot question in city publications such as newsletters or websites or distribute "Vote Yes" pamphlets on city property) > At this time there' is not an "independent" website or neutral group with handout materials on the MVST Ballot Question - (Nor is there an opposition website/materialsavailable at this time). > Therefore, "educational" material will need to be produced by each municipality or referenced on it's own website. The above referenced information should be used as.a "guide", questions on specific educational activity should be addressed with the city attorney. RESOLUTION NO. 6493 A Resolution Supporting Passage of the Minnesota Transportation Constitutional Amendment Regarding Motor Vehicle Sales Tax Dedication WHEREAS, Minnesota's transportation infrastructure forms the backbone of the state's economy and a has a direct impact on future economic development; and WHEREAS, increased congestion and deteriorated pavement conditions are contributing to crashes on the state's roadways; and WHEREAS, funding for highway and transit systems in Minnesota has remained stagnant and is failing to keep pace with growing population and growing demands; and WHEREAS, local governments throughout the state are struggling to maintain local transportation systems while the state's gas tax has not been increased since 1988 and transit budgets have been cut in recent years; and WHEREAS, the Minnesota Legislature has repeatedly turned to revenue from the motor vehicle sales tax, which has been viewed as user fee revenue, to fund other services, thus reducing the currentdedication to only 54% of motor vehicle sales tax now being used for transportation purposes; and WHEREAS, the legislature passed a proposed constitutional amendment during the 2005 Legislative Session that would appear on the ballot November?, 2006 asking voters if the remaining 46% of motor vehicle sales tax revenue currently used for other purposes should be used for highways and transit systems; and WHEREAS, passage of this amendment would mean an increase in stable revenue for highway and transit systems throughout the state that would rise to approximately $300 million per year once the transfer of revenue is fully phased-in by 2011. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITH OF SHAKOPEE, MINNESOTA, that it hereby endorses the Transportation Amendment as proposed to voters on the November?, 2006 ballot. BE IT FURTHER RESOLVED that all Shakopee voters are urged to vote "YES" on said question. Adopted in adjourned regular session of the City of Shakopee, Minnesota, held this 19th day of September, 2006. Mayor of the City of Shakopee ATTEST: City Clerk