HomeMy WebLinkAbout13.F.1. AMM Legislative Policies
CITY OF SHAKO PEE J3. F. L
Memorandum
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: AMM Legislative Policies
DATE: November 2, 2006
INTRODUCTION:
The Council is asked to endorse the legislative policies for 2007.
BACKGROUND:
Attached is a draft copy of the recommendation of the AMM's for Legislative Policy
Committees. The policy committees are made up of elected officials and staff from the
member AMM communities. The four policy groups are:
Municipal Revenue and Taxation
Transportation and General Legislation
Housing and Economic Development
Metropolitan Agencies
The Policy Adoption Meeting will be held on November l6t\ The Council is being
given an opportunity to endorse the policies as drafted. Knowing the interest in eminent
domain language, that is found on page 11 (Article III-J). Given the legislative action by
the Legislature in the 2006 session, this policy has been significantly changed from
previous years' language.
The Council is asked to endorse these policies, or otherwise provide direction that might
be shared with the AMM membership at the November 16th meeting.
RECOMMENDATION:
I recommend that the Council endorse the policies, or otherwise make known proposed
changes.
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ACTION REQUIRED:
If the Council wishes to endorse as written, it should pass a motion directing Shakopee
representatives at theAMM meeting to endorse themas written.
If there are needed changes, they should so indicate.
1M9-~
Mark McNeill
City Administrator
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January 2007
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Legislative
p 0 L I C I E S
Association of Metropolitan Municipalities
145 University A ve. W. . St. Paul, Minnesota 55103-2044
Phone: (651) 215-4000 . Fax: (651) 281-1299
Website: www.amm 145.org
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Table of Contents
Municipal Revenue & Taxation (I)
I-A State and Local Fiscal Relationship.................................................................. 1
I-B Levy Limits.......................................... .............................................................. 1
I-C Local GovernmentAid (LGA) ..................... ............................................. .......... 1
I-D Market Value Homestead Credit (MVHC) ......................................................... 2
I-E Fiscal Disparity Fund Distribution ............... .....................:................................. 2
I-F Limited Market Value (LMV) .......... ..............................~.......................... ...... .... 2
I-G Constitutional Tax and Expenditure Limits ......................................................... 2
I-H State Property Tax: Oppose Extension to Other Property................................... 3
1-1 Class Rate Tax System ........................................................................... .......... 3
I-J Personal Property Taxation: Electric Utility. ................................... ... ....... .......... 3
I-K Sales Tax on Local GovernmentPurchases ...................................................... 4 .
I-L City Revenue Stability and Fund Balance........................ .................................. 4
I-M Public Employees' RetirementAssociation (PERA) .......................................... 4
I-N Aggregate Mining Fee................................ ...................................................... 4
1-0 State Program Revenue Sources ............................. ...................... ................... 4
General Legislation (II)
II-A Mandates & Local Authority .............................. ............................ ... ....... .......... 5
II-B City Enterprise Activities................................................................................... 5
II-C Firearms on City Property................................................................................. 5
II-D 911 Telephone Tax ............................ ... ..... .......................... ...... ............ .......... 5
II-E 800 MHz Radio System....................... ........... ..................................................... 5
II-F Impaired Waters................................................................ ................................ 6
II-G Building Codes................................................................................................. 6
II-H Administrative Fines......................................................................................... 6
Housing & Economic Development (III)
I II-A City Role in Housing ........................... ....... .... ............... ............ ........................ 7
III-B City Role in Affordable and Life Cycle Housing ................................................. 8
III-C Inclusionary Housing......................................................................................... 8
III-D State Role in Affordable Housing ..........................;. u........................................ 8
III-E Federal Role in Affordable Housing ........... .................................................... ...9
III-F City Role in Economic Development................................................................. 9
III-G Development........ ......................... ................... .......;.................... . ............... .. 1 0
III-H Redevelopment............................................................ .................................. 10
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Contents
11I-1 Tax Increment Financing .................................................................. ............... 10
III-J Eminent Domain ............................................................................................... 11
III-K This Old HousefThis Old Shop ........................................................................ 12
III-L Business Subsidy Policy.... ......... ... ................. ............. ..............,. .... .......... ..... 12
III-M Internet Technology............................ ............................................................ .12
Metropolitan Agencies (IV)
IV-A Purpose of Metropolitan Governance ...::......................................................... 13
IV-B Roles and Responsibilities of the Metropolitan Council....:.............................. 13
IV-C Selection of Metropolitan Council Members.................................................... 14
IV-D Funding Regional Services............................................... .............................. 14
IV-E Regional Systems.............. .............................,'............................................:. 14
IV-F Review of Local Comprehensive Plans........................................................... 15
IV-G Local Zoning Authority ....................... ............................ .......... .................... .... 15
IV-H Regional Growth....... ...................................................................................... 15
IV-I Comprehensive Planning Schedule............................. ................................... 16
IV-J Natural Resource Protection .................... ............... ...... ............. ...... ....... ........ 16
IV-K Federal Clean Water Mandates ............... ............ ......... ......... .......... ....... ........ 17
IV-L Inflow and Infiltration (III) ................................................................................... 17
IV-M Water Supply.............................................. ........................................ ............ 18
IV-N Service Availability Charge (SAC) .................................................................. 19
IV-O Funding Regional Parks & Open Space.......................................................... 19
IV-P Livable Communities ............. ........... ............. .............. ............................. ...... 19
IV-Q Affordable Housing Need ............................................................................... 20
Transportation (V)
V-A Transportation and Transit Funding ................................................................. 21
V-B Regional Transit System................................................................................. 22
V-C Transit Operating Subsidies .................................... ..:.................................... 22
V-D Road Access Fee........................................................................................... 22
V-E Street Utility.................................................................................................... 22
V-F Highway Turnbacks & Funding.........................................;.............................. 23
V-G "3C" Transportation Planning Process: Elected Officials Role ......................... 23
V-H Red Light Cameras........................................................................................ 23
V-I Airport Noise Mitigation. ..... ........... ....... ....................... ................. ...... .... ... ..... 23
V-J Cities Under 5,000 Population......:................................................................. 24
V-K County State Aid Highway (CSAH) Distribution Formula .............................;... 24
V-L Municipal Input (Consent) for Trunk Highways and County Roads .................... 24
V-M PlatAuthority .................................................................................................. 25
V-N City Speed Limit Control................................. ............................................ .... 25
V-O MnDOT's Maintenance Budget..............................................;........................ 25
ii Association of Metropolitan Municipalities
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Committee Rosters
Municipal Revenue Policy Committee ............................................. ................... ........ 27
Housing and Economic Development Policy Committee ;.......................................... 28
Metropolitan Agencies Policy Committee .................................................................. 28
Transportation and General Government Policy Committee ....................................... 29
AMM MISSION STATEMENT
To serve as the primary representative of the collective interests of all metropolitan
cities on metropolitan issues and statewide issues with metropolitan significance.
AMM MEMBERS
1. Albertville * 26. Fridley 52. Plymouth
"2. Anoka 27. Golden Valley 53. Prior Lake
3. Apple Valley 28. Hastings 54. Ramsey
4. Arden. Hills 29. Hopkins 55. Richfield
5. Bayport 30. Hugo 56. Robbinsdale
6. Blaine 31. Independence 57. Rosemount
7. Bloomington 32. Inver Grove Heights 58. St. Anthony
8. Brooklyn Center 33. Lake Elmo 59. St. Francis
9. Brooklyn Park 34. Lakeville 60. St. Louis Park
10. Burnsville 35. Lauderdale 61. St. Michael*
11. Champlin 36. Long Lake 62. St. Paul
12. Chanhassen 37. Mahtomedi 63. St. Paul Park
13. Chaska 38. Maplewood 64. Savage
14. Circle Pines 39. Medicine Lake 65. Shakopee
15. Columbia Heights 40. Mendota Heights 66. Shorewood
16. Coon Rapids 41. Minneapolis 67. South St. Paul
17. Cottage Grove 42. Minnetonka 68. Spring Park
18. Crystal 43.' Minnetrista 69. Sunfish Lake
19. Dayton 44. Mound 70. Three Rivers Park District*
19. Eagan 45. New Brighton 71. Waconia
20. Eden Prairie 46. Newport 72. Wayzata
21. Edina 47. North St. Paul 73. West St. Paul
22. Excelsior 48. Oak Park Heights 74. White Bear Lake
23. Falcon Heights 49. Oakdale 75. Woodbury
24. Farmington 50. Orono 76. Woodland
25. Forest Lake 51. Osseo * = Associate Member
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Municipal Revenue &
I~_xation (I)
I-A State and Local Fiscal Relationship
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TheAMM supports a strong state and local fiscal partnership that emphasizes the following principles:
. Strong financial stewardship and accountability for public resources that emphasizes maximizing
efficiencies in service delivery and effective communication between the state and local units of
government, and to the public, about state and local roles and responsibilities;
. Certainty and predictability in revenue sources including the property tax. and local government aids;
. Adequate revenue sources available to cities that 8.Ilow the needs of cities to be met, mandates to be
funded, and that maintain our state's economic vitality and competitiveness;
. Recognition that a 'one size fits all' system that limits cities to the property tax as the major non-state
aid revenue source does not fit all and to permit access to other tax and revenue sources that are
not currently accessible as well as oppose reductions or limitations on the use of various license,
development, or other general fees to pay for related services;
. An equitable revenue and finance system that values all citizens receiving adequate levels of city
services at similar levels of taxation, provides financial assistance to compensate cities and their
taxpayers for overburdens created by non-taxpaying users of services and reduces tax burden
disparities among cities.
I-B Levy Limits
The AMM strongly opposes levy limits and urges the legislature to not re-enact them. The AMM also
opposes the imposition of artificial mechanisms such as valuation freezes, payroll freezes, reverse
referenda, super majority requirements for levy, or other limitations on the local government budget and
taxing process. Expenditures for capital improvements such as infrastructure reconstruction should not
be subject to levy limits.
I-C Local Government Aid (LGA)
Local GovernmentAid (LGA), the only remaining form of general purpose state aid to Minnesota cities,
has been systematically reduced and modified by previous legislatures, at asignificant cost to most
metropolitan communities. As a result of these changes a majority of the metropolitan area's cities no
longer receive any LGA.
. AMM supports the restoration of previous LGA cuts to fully fund the current LGA formula.
. AMM supports the continuation ofLGA to assist those cities whose public service needs and costs
exceeds their ability to pay.
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Revenue & Taxation
. AMM supports modifying LGA formula floors and caps for the purpose of reducing annual payment
distribution volatility.
. AMM supports a state-conducted analysis of the impact of including the unique needs of rapidly
growing cities on the LGA formula.
. AMM supports the inclusion of inflationary factors in the LGA formula.
I-D Market Value Homestead Credit (MVHC)
The Market Value Homestead Credit is intended to be 'a state aid to individual homestead property
taxpayers. However, the MVHC reimbursement structure undermines accountability in a number of
ways, most directly by enabling the state to reduce or even eliminate the reimbursement to local units of
government while preserving the benefit of the credit to the homeowner.
To promote transparency, the credit should be structured as a direct credit to the taxpayer rather than a
reimbursement to local units of government. Further, any savings to the state resulting from reductions in
the MVHC should be spread proportionally to all benefiting taxpayers.
I-E Fiscal Disparity Fund Distribution
TheAMM opposes the use of fiscal disparities to fund social or physical metropolitan programs since it
results in a metropolitan-wide property tax increase hidden from the public.
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TheAMM supports the continuation of the fiscal disparities program until such time as an appropriate
replacement is developed.
I-F Limited Market Value (LMV)
The AMM strongly opposes extension of artificial limits in valuing property at market for taxation
purposes to additional property classes since such limitations shift tax burdens to other classes of
property and create disparities between properties of equal value. The Legislature should monitor the
effects of the LMV phase-out to avoid excessive tax burden increases to currently benefiting properties.
The AMM believes that enhanced targeting for special circumstances better serves the tax system.
I-G Constitutional Tax and Expenditure Limits
TheAMM strongly opposes including tax and expenditure limits in the state constitution. This would
eliminate any flexibility on the part of the Legislature or local governments to respond to unanticipated
critical needs, emergencies, or fluctuating economic situations. When services such as education, public
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Revenue & Taxation
safety and health care require increased funding beyond the overall limit, experiences in at least one
other state indicate that other publicly funded services receive less than adequate resources. Constitu-
tionallimits result in a reduced base during times of economic downturn and the inability to recover to
previous service levels when economic prosperity returns.'
I-H State Property Tax: Oppose Extension to Other Property
The 2001 Property Tax ReformAct shifted general education funding to the state, and funded it, in part,
with a state property tax on commercial/industrial and cabin property. Since cities' only source of
general funds is the property tax, the AMM strongly opposes extension of a state-levied property tax to
additional classes of property.
I-I Class Rate Tax System
The AMM opposes elimination of the class rate tax system, or applying future levy increases to market
value, since this would further complicate the property tax system.
I-J Personal Property Taxation: Electricl)tility
The Minnesota Department of Revenue is reviewing it's regulations for calculating the taxable market
value of electric and natural gas utility property. This.affects property taxes paid by investor-owned
utilities (IOUs) not only to the state, but also to local governments. Provisions in the current regulations,
such as depreciation limits and prescribed weights for the cost and income approaches to value, help to
preserve the taxable value of this property over the many decades it is in service.
Investor-owned utilities enjoy a guaranteed rate of return on their capital investments, but host cities
experience the costs of environmental damage, nuisance and lost economic development as the result of
this property. IOU s argue that their property is over..,valued and that depreciation limits should be
removed. However, substantial changes to the utility property valuation rules could drastically reduce
the taxable market value that helps compensate host cities for hosting base load electric generation
:facilities.
TheAMM opposes changes to the utility property valuation rules that would result in a significant
decline in the taxable market value of utility property. . Ih the event new utility valuation rules produce a
decline, the Legislature should step in to help keep host cities financially whole as a way of compensat-
ing for the economic and environmental costs of hosting base load electric generation facilities, rather
than through increases in property class rates or other mechanisms.
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Revenue & Taxation
I-K Sales Tax on Local Government Purchases
The Legislature should reinstate the sales tax exemption for all local government purchases without
requiring a reduction in other aids.
I-L City Revenue Stability and Fund Balance
. The AMM 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.
I-M Public Employees' Retirement Association (PERA)
The AMM supports employees and cities sharing equally in the cost of necessary contribution increases.
TheAMM also supports state assistance to local governments to coveranya<iditionalcontribution
burdens placed on cities over and above contribution it1creases required by employees. Cities should
receive sufficient notice of these increases so that they may take them into account for budgeting pur-
poses~ Further, the AMM will monitor legislative proposals 'and when necessary and appropriate,
respond in a manner that supports this policy and provides for the fair treatment of employees and the
protection of municipalities'. interests.
I-N Aggregate Mining'Fee
In order to provide an incentive for the extraction oflocal aggregate resources prior to urbanized
development, and in order to help offset the negative impacts of aggregate mining on local communities,
the state should authorize cities and townships to collect a per ton host community fee from the opera-
tors of aggregate mines with the fee proceeds to be deposited in the municipality's general fund.
1-0 State Program Revenue Sources
The AMM supports continued development of the Metro area in a manner that is responsive to the
market, but is cognizant of the need to protect the water resources of the state and the Metro area. The
AMM supports the goals and objectives of the CleariWater Legacy Act. However, theAMM opposes
any attempt by the state to fInance state agencies, personnel, programs or services through municipal
utility collection or municipal property tax mechanisms. Municipal utility rates are created to operate
and maintain municipal utilities. Local property taxes are created to finance local government programs
and services. The programs and services financed through the Clean Water Legacy Act, or any future
state program, should be fInanced through traditional state revenue raising sources such as income or
sc:tles taxes. ~-- --- --- -----
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General Legislation
II-A Mandates & Local Authority
The AMM opposes statutory changes which erode local control and authority or create mandated
additional tasks requiring new or added local costs without a corresponding state appropriation or
funding mechanism. New unfunded mandates cause increased property taxes which impede cities'
ability to fund traditional service needs.
11-8 City Enterprise Activities
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The AMM supports cities' authority to establish city enterprise operations in response to community
needs, local preferences, state mandates or to ensure resident's quality oflife. Creation of an enterprise
operation allows a city to provide the desired service while maintaining fmancial and management
control. The state should refrain from infringing on this ability to provide and control services for the
benefit of community residents.
II-C Firearms on City Property
Cities should be allowed to prohibit handguns in city-owned buildings, facilities and parks. . This would
allow locally elected officials to determine whether to allow permit-holders to bring guns into municipal
buildings, liquor stores, city council chambers and city sponsored youth activities. It is notAMM's
intention for cities to have the authority to prohibit legal weapons in parking lots, on city streets or city
sidewalks.
11-0 911 Telephone Tax
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Public safety answering points (pSAP's) must be able to rely inthe future on acontinuing source of91l
revenues at the state level to pay for upgrades and modifications to local9ll systems, maintenance and
operational support, and dispatcher training. State funding should also support the technology and
training needed to provide the number and location of wireless and voice over internet protocol (VoIP)
calls to 911 on computer screens and transmit that data to police, fire and first responders.
II-E 800 MHz Radio System
The AMM supports the work of the Metropolitan Emergency Services Board (previously the Metro-
politan Radio Board) in implementing and maintaining the 800 MHz radio system, as long as cities are
not forced to modify their current systems or become a part of the 800 MHz Radio System until they so
2007 Legislative Policies 5
General Legislation
choose.. The AMM further urges the Legislature to provide cities with the financial means to obtain
required infrastructure and subscriber equipment (portable and mobile radios) as well as provide funding
for operating cost, since the prime purpose of this system is to allow public safety agencies and other
units ofgovemmentthe ability to communicate effectively.
II-F Impaired Waters
The AMM supports continued development of the Metropolitan area in a manner that is responsive to
the market,butis cognizant of the need to protect the water resources of the state and Metro Area.
Insufficient resources for impaired water assessments, total maximum daily load (TMDL) analysis, and
capital projects threaten the Metro Area's ability to respond to market demands for development and
redevelopment. Consequently,AMM supports continued funding of the Clean Water Legacy Act, with
an on~going review to assure that Clean Water Legacy Act funds are properly distributed between
assessment, TMDL development and capital projects to ensure both protection for our water resources
and support for future development and redevelopment of the Metro Area. AMM further supports the
continued use of capital funds for both storm water and wastewater projects.
II-G Building Codes
. Approximately 20,000 new housing units are constructed annually in the Metro Area. Structural and
water intrusion problems have surfaced in many homes and commercial buildings that have been built
within the past 20 years. These problems have resulted in dissatisfied homeowners and conflicts
between the state, builders and cities. At the same time, the building permit surcharge, a fee collected
by cities and deposited with the state for the purpose of financing building related information, research
and training, has been diverted to the state general fun~ for budget balancing purposes.
The AMM supports the rededication of the building pePnit surcharge for local building and construction
management purposes. AMM further supports ajoint effort by the state, cities and builders to collec-
tively identify the appropriate uses of the fund including education and analysis of new materials and
construction techniques, building code updating, building inspector training, development of performance
standards and identification of construction "best practices." AMM does not support legislative solu-
tions that fail to recognize the interrelationships between builders, state building codes and cities.
II-H Administrative Fines
Traditional methods of citation, enforcement and prosecution have met with ever increasing cost ~o local
units of government and the use of administrative fines is a tool to moderate those costs. The AMM
supports the use of administrative fines for local regulatory ordinances, such as building codes, zoning
codes, health codes, minor moving violations up to 10 mph over the limit and public safety and nuisance
ordinances. The AMM supports the use of city administrative fmes, at a minimum, for regulatory
matters that are not duplicative of misdemeanor or higher level state traffic and criminal offenses. AMM
also endorses a fair hearing process before a disinterested third party.
6 Association of Metropolitan Municipalities
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Housing & Economic
Development (III)
Introduction .'<..'
While the provision of housing is predominantly a private sector, market-driven activity, all levels of
government - federal, state and local- have a role to play in facilitating the production and preservation
of affordable housing in Minnesota.
AMM's housing policies recognize and support the intergovernmental nature of this issue - including
participation from federal, state, regional and local governments. Policies A through C outline the role of
cities; . Cities are responsible for much of the ground-level housing policy in Minnesota - including land-
use planning, building code enforcement, and often times the packaging of :financial incentives. How-
ever, the state and Metropolitan Council must also play amajorrole by empowering local units of
government and providing a variety of funding programs and tools. Policy D addresses the state's
responsibility to provide financial resources and establishes a general direction for housing policy.
Finally, Policy E speaks to the urgent need for the federal government to increase its financial support
for the production and preservation of affordable housing.
III-A City Role in Housing
In the state ofMinneso1:a; the provision of housing is ;}kdominantly a private sector, market-driven
activity. However, all cities facilitate the development of housing via responsibilities in the areas ofland-
use planning, zoning ordinances and subdivision regulations. Many cities choose to play an additional
role by providing :financial incentives and regulatory relief, participating in state and regional housing
programs and supporting either local or countywide housing and redevelopment authorities. Cities are
also responsible for ensuring the health and safety of local residents and the structural soundness and
livability of the local housing stock via building permits and inspections.
AMM stronglyopposes any effort to reduce, alter or interfere with cities' authority to cany out these
functions in a locally determined manner.
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Housing and Economic Development
11I-8 City Role in Affordable and Life Cycle Housing
AMM supports affordable and life cycle housing and recognizes that it is key to the economic and social
well being of individual communities and the region. Cities can facilitate the production and preservation
of affordable and lifecycle housing by:
. Applying for funding from applicable grant and loan programs;
. Working with developers and local residents to blend affordable housing into new and existing
neighborhoods;
. Expediting review processes; and
. Working to reduce locally imposed development costs.
III-C Inclusionary Housing
AMM supports the location of affordable housing in residential and mixed-use neighborhoods through-
out a city. However, AMM does not support passage of a mandatory inclusionary housing law that
would require a certain percentage of units in all new housing developments to be affordable to house-
holds at a particular income level because these units can't be produced without a deep developer
subsidy orcross-subsidization from the other houses inth~ development.
While AMM believes there are cost savings to be achieved through regulatory reform, density bonuses,
and fee waivers, AMM does not believe a mandatory inclusionary housing approach can achieve the
desired levels of affordability solely through these steps. The Metropolitan Council, in creating its
affordable housing targets, must recognize both the opportunities and financial limitations of cities. The
Council should partner with cities to facilitate the creation of affordable housing through direct financial
assistance and/or advocating for additional resources through the Minnesota Housing Finance Agency.
11I-0 State Role in Affordable Housing
Primarily through the programs of the Minnesota Housing Finance Agency (MHF A), the state estab-
lishes general direction and prioritization of housing issues. The state financially supports a variety of
housing types including homeless shelters, transitional housing, supportive housing, senior housing, and
family housing. The state must continue to be an active partner in addressing lifecycle and affordable
housing issues.
Particularly, the state should:
. Increase funding, including state general funds and, possibly, alternate sources of revenue for
programs that support lifecycle and affordable housing, including the proposed Housing Solutions
Act;
. Support housing programs that assist housing development throughout the low-to-moderate income
range, including the Economic Development and Housing Challenge Program.
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Housing and Economic Development
. As a means of reconciling affordable housing with community development goalsAMM supports
housing programs designed to develop market rate housing in areas with high concentrations of
affordable housing, where the private market might not otherwise invest;
. Continue the policy of using MHF A's investment earnings for housing programs;
. Amend the tax exempt bond allocation statute to maximize its availability for affordable rental
housing;
. Provide exemptions from, or reductions to sales, useand transaction taxes applied to the develop-
ment and production of affordable housing; and
. Authorize cities to amend their comprehensive plans, in order to facilitate increased lifecycle and
affordable housing; with a simple majorityvote of the city council, rather than a super majority.
III-E Federal Role in Affordable Housing
AMM encourages the federal government to maintain and increase current levels of funding for afford-
able housing. Federal investment in affordable housing will increase the supply of affordable and life
cycle housing as well as increase the inter-jurisdictional collaboration between the two levels of govem-
. ment. Federal funding plays a critical role in aiding states and local governments in their efforts to
maintain and increase affordable housing throughout the state. AMM strongly encourages the following:
. To preserve and increase funding for the Community Development Block Grant Program, which is a
catalyst for creating more affordable housing;
. To create and implement a more streamlined procedural method for local units of government to
participate and access federal funding and services dealing with grants, loans, and tax incentive
programs for economic and community development efforts;
. To preserve resources to sustain existing public housing throughout the Metro Area; and
. To commit resources to Section 8 funding. It is a flexible, cost effective, and successful program
that has helped nearly two million families find housing through promotion of self-sufficiency and
stability.
III-F City Role in Economic Development
The State of Minnesota should continue to reco~ze cities as the primary unit of government respon-
sible for the implementation of economic development and redevelopment policies and land use con-
trols. However, the state should begin to shift its focus from addressing economic needs based on
population or location to a broader statewide perspective, which is based on economic development
strategies, economic development priorities and economic impact. The state should also recognize the
additional cost cities bear when undertaking redevelopment vs. developmentprojects.
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Housing and Economic Development
III-G Development
It should be the goal of the state legislature to champion development throughout the state providing
enough sustainable funding to assure that the state remains competitive in a global marketplace.AMM
supports the following:
+ Increased funding for the Contamination Cleanup Grant Account;
+ Increased funding for the Metropolitan Council Tax Base Revitalization Program;
+ Reinstated funding for the Minnesota Investment Fund;
+ Continued funding for the Urban Initiative Program;
+ ContinuedsupportfortheBiosciencepartners~ps b~tween cities, companies, and the University of
Minnesota; and .
+ Increased funding in the livable coriununities demonstration account in order to assist communities
with development that may not be exclusively market driven or market proven in their particular
location.
III-H Redevelopment
Redevelopment allows local communities to adjust to changing market conditions, better utilize existing
public infrastructure, and maintain a viable local tax base. However, due to the higher up-front costs of
redevelopment, as compared to greenfield development, desirable redevelopment projects often require
public assistance. The State of Minnesota has a responsibility to provide cities with practical and
flexible resources that will address the challenges and take advantage of redevelopment opportunities.
AMM supports: ,
+ Increased and sustained funding of a redevelopment fund, administered by the Department of
Employment and Economic Development (DEED), dedicated to Metropolitan Area projects. This
goal can be accomplished by either amending existing statute or creating a new program exclusive to
the Metro Area. In the event that the Legislature c~ooses to amend existing statute, AMM sup-
ports a provision that any unused geographically allocated funds can be transferred back into the
account and redistributed based on need; and ',:.\1'
,+ Increased, flexible and sustained funding for the Contamination Cleanup Account for cleanup of
polluted land and the recycling of previously developed land.
III-I Tax Increment Financing
Tax Increment Financing (TIP) has been and continues to be the primary tool available to local commu-
nities for assisting economic development, redevelopment and housing. Over time, several statutory
changes have made this critical tool increasingly difficult to use, while recent property tax reform has
resulted in adecreasedstate [mancial stake in city TIF decisions. At the same time that TIP has become
more restrictive and difficult to use, federal and state development and redevelopment resources have
been steadily shrinking. Finally, the 2006 eminent domain reforms will make redevelopment significantly
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Housing and Economic Development
more expensive in some cases and impossible in others. The cumulative impact ofTIF restrictions,
shrinking federal and state redevelopment resources, and eminent domain reform will restrict a city's
ability to address problem properties and will accelerate the decline of the developed cities in the
Metropolitan Area. Without proper tools and resources to address decline, cities will be unable to stop
it. At aminimum, in response the state should authorize increased flexibility in local TIFdecisions.
AMM urges the legislature to:
. Not adopt any statutory language that would further constrain the use ofTIF;
. Incorporate the Soils Correction District criteria into the Redevelopment District criteria so that a
Redevelopment District can be comprised of blighted and contaminated parcels in addition to
railroad property;
. Expand the flexibility ofTIF to support a broader range of redevelopment projects;
. Increase the ability to pool increments from other districts to support projects; and
. Continue to monitor the impacts of tax reform on TIF districts and, if warranted, provide cities with
additional authority to pay for possible TIF shortfalls.
In addition, for sites that don't meet the restrictive blight and contamination definitions of the 2006
eminent domain reform law, the legislature should explore creating incentives to encourage owners of
properties that meet the blight definitions under chapter 469 to voluntarily sell their land for redevelop-
ment purposes. Incentives could include income tax credits, capital gains deferrals or other incentives
targeted at property owners.
Finally, the AMM encourages the State Auditor to con~inue to work towards a more efficient and
streamlined reporting process.
III.;J Eminent Domain ;.,:L:,
Eminent domain reform actions of the 2006 Legislature resulted in a significant philosophical and legal
shift in Minnesota. Whereas prior to 2006, Minnesota law provided extensive deference to local
governments, statutory changes enacted in 2006 provide significantly greater deference to property
owners. Eminent domain actions for traditional public uses such as streets, parks or sewers will cost
more. And except for the most extreme cases of blight or contamination, eminent domain for redevelop-
ment purposes will be nearly impossible at any cost.
The proper operation and long term economic vitalityof our cities is dependent on the ability of the city,
its citizens and its businesses to continually reinvest and reinvent. Reinvestment and reinvention strate-
gies can occasionally conflict with the priorities of individual residents or business owners. Eminent
domain is a critical tool in the reinvestment and reinvention process and without it; our cities will be
allowed to deteriorate to unprecedented levels before the public will be able to react. TheAMM
strongly encourages the Governor and Minnesota Legislature to revisit the 2006 eminent domain
continued.. .
2007 Legislative Policies 11
.
Housing and Economic Development
reforms to allow local governments to address blight and contamination problems before those condi
tions become financially impossible to address. Specifically, the legislature should:
. Re-write the blight and contamination definitions and standard of review sections to reflect the
deterioration conditions that currently exist in the Metro Area.
. Allow:forthe assembly of multiple parcels in order to properly and appropriately redevelop blighted
or.9g~~ated sites. .. '. . .
. Providefo:rthe ability t9 acquire land from "holdouts" who will now view a publicly funded project
as an opportUnity for unethical personal gain at taxpayer expense.
. Review the new enhanced compensation provisions to determine whether individuals are inappro-
priately enriched by the process.
III-K This Old Housel This Old Shop
AMM supports the reenactment ofthe "This Old House" law, which allowed owners of older home-
stead property to defer an increase in their tax capacity resulting from repairs or improvements to the
home. AMM also supports passage of similar legislation for owners of older commercial/industrial
. property who make improvements that increase the property's market value by at least 12%.
III-L Business Subsidy Policy
H.;'
Without a thorough study, the Legislature should not lTI,ak~ any substantive changes to the Business
Subsidy Act during the next legislative session, but shguld look to technical changes that would stream-
line both state and local processes and procedures. 1.1
III-M Internet Technology
Where many traditional economic development tools have focused on managing the costs and availabil-
ity of traditional infrastruoture-roads, rail, utilities, etc.-the new economy is increasingly dependent on
reliable, redundant, cost effective, high bandwidth telecommunications capabilities. While the United
States was once a leader among "wired" economies, its position has slipped dramatically as other
countries have facilitated investments in fiber-optic deployment (fiber to the premises), commitments to
true high speed internet capacity (100 mb to 1 gb) and improved networks (Internet 2). Recognizing
that there is a policy debate regarding the role of government versus private telecommunications compa-
nies in implementing the next generation of internet capability, bringing about such capabilities is increas-
ingly important to ensure that US companies in general and Minnesota companies in particular can
compete effectively in the global economy.
The AMM encourages the State to develop a comprehensive strategy to stimulate the implementation of
true high speed, world class, high bandwidth internet capabilities that are reliable, redundant, cost
effective and available to all properties.
12 Association of Metropolitan Municipalities
..
Metropolitan Agencies (IV)
-it:';
IV-A Purpose of Metropolitan Governance
The statutorily-defined Twin Cities metropolitan region is made up of 193 cities and townships covering
over 3,000 square miles in seven counties. The effective and efficient delivery of certain public services
and the continued economic growth of this region is enhanced by the existence of a regional entity to
provide coordination and facilitate cooperation.
Therefore, AMM supports the continued existence of a metropolitan governance system for the purpose
of.
. Facilitating long-term region-wide planning with the cooperation and consideration of the affected
local units of government; and
. Planning for and providing those public services that are needed by the region, but cannot be
effectively and efficiently provided by local governments or the state.
With or without the Metropolitan Council as it exists ~oday, the region needs some entity to perform
these functions. However, the Twin Cities' metropolitan Governance structure should not be granted,
nor should it assume, general local government or state agency powers.
IV-B Roles and Responsibilities of the Metropolitan Council
The primary responsibilities of the Metropolitan Council are to:
. Plan for the orderly and economical development of the metropolitan area by preparing a compre-
hensive development guide that includes long-range comprehensive policy plans for the transporta-
tion/aviation, wastewater treatment and recreational open space systems.
. Review local comprehensive plans for compatibility with the plans of neighboring communities,
consistency with Metropolitan Council policies and conformity with metropolitan system plans~
. Provide specific regional services and administer select regional grant programs as assigned by state
or federal law.
. Provide technical assistance, research and information to local units of government.
Overall, it is the Metropolitan Council's role, throughthe regional development guide and its accompa-
nying policy plans, to set broad regional goals and then provide cities with technical assistance and
incentives to achieve those goals. Local governments are ultimately responsible for zoning, land use
planning and development decisions within their borders.
Any additional responsibilities taken on by, or authority granted to the Metropolitan Council should be
limited to a specific statutory assignment, or grant.
2007 Legislative Policies 13
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Metropolitan Agencies
IV-C Selection of Metropolitan Council Members
'i'c;
Members of the Metropolitan Council should beselected via an open process that includes an opportu-
nity for local governments and other stakeholders to provide meaningful input. Council members should
understand and be responsive to the districts they represent while also serving the best interests of the
region. Metropolitan Council members should serve fixed, staggered terms.
IV-D Funding Regional Services
The Metropolitan Council should continue to fund its regional services and activities through a combina-
tion of user fees, property taxes, and state and federal grants.
':'--':\':;"'-'-,'-'">..:;:"'-,.,: - - - - - - - ,-",' - --.'-.:',.... - -,':, -', . ",-
...~ .- + The Metropolitan Council should setuserfees -viaan()penproFes~tl1at includes public notices and
public hearings. User fees should be uniform by type of user and set aia level that supports effec-
tive and efficient public seryicesbased on comm()nly accepted industry standards, and allows for
sufficient reserves to ensure long-term service and fee stability.
. AMM supports the use of user fees and property }liXes to fund regional proj ects so long as the
benefit conferred on the region is proportional to thefee or tax, and the fee or tax is comparable to
the benefit cities receive in return.
. AMM supports user fees for regional projects so long as the fees are not used to coerce a particu-
lar response from cities.
+ Fee proceeds should be used to fund regional services or programs for which they are collected.
IV-E Regional Systems
Regional systems are currently defined in statute as transportation (with aviation), wastewater treatment
and recreational open space. The purpose of these regional systems and the Metropolitan Council's
authority for them is clearly outlined in state statute. In order to alter the focus or expand the reach of
any of these systems, the Metropolitan Council must seek a statutory change.
The system plans/statements prepared by the Metropolitan Council for these regional systems should be
specific in terms of the size, location and timing of regional investments in order to allow for consider-
ation in local comprehensive planning. System plans should clearly state the criteria by which local plans
will be judged for consistency and the criteria that will be used to find that a local plan is more likely than
not to have a substantial impact on or contain a substantial departure from metropolitan system plans.
Additional regional systems should only be established if there is a compelling metropolitan problem or
concern that can best be addressed through the designation. Common characteristics of the existing
regional systems include public ownership of the system and its components and an established regional
or state funding source. These characteristics should be present in any new regional system that might be
established. Water supply does not meet these criteria.
14 Association of Metropolitan Municipalities
',',
"
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Metropolitan Agencies
IV-F Review of Local Comprehensive Plans
In reviewing local comprehensive plans and plan amendments, the Metropolitan Council should:
. Recognize that its role is to review and comment;unl~ssitisfo~n:dthat the local plan is more likely
than not to have a substantial impact on or contain a substantial departure from one of the system
plans;
. Be aware of the statutory time constraints imposed by the Legislature on plan amendments and
development applications;
. Provide for immediate effectuation of plan amendments that have no potential for substantial impact
on systems plans;
. Require the information needed for the Metropolitan Council to complete its review, but not pre-
scribe additional content or format beyond that whichis required by the Metropolitan Land Use
Planning Act (LUPA); and
. . When a city's local comprehensive plan is deemed, incompatible with the Met Council's systems
plans, th.eAMM supports a formal appeals process that includes a peer review and encourages
cities and the Met Council to work in a cooperative and timely fashion toward the resolution of
outstanding issues. The AMM opposes the imposition of sanctions or monetary penalties when a
city's local comprehensive plan is deemed incompatible with the Met Council's systems plans or the
plan fails to meet a statutory deadline when the city has made legitimate efforts to meet Met Council
requirements.
IV-G Local Zoning Authority
Local governments are responsible for zoning. Local zoning decisions, which are the implementation of
cities' comprehensive plans, should not be conditioned upon the approval of the Metropolitan Council
or any other governmental agency. AMM strongly opposes the creation of any appeals boards with the
authority to supersede city zoning decisions.
IV-H Regional Growth
The most recent regional population forecasts project an additional 930,000 people and 460,000
households for the seven-county metropolitan area by the year 2030.
In order to accommodate this growth in a manner that preserves the region's high quality oflife:
. natural resource protection will have to be balanced with growth and development/reinvestment;
. significant new resources will have to be provided for transportation and transit; and
. new households will have to be incorporated into the core cities, fIrst and second'-ring suburbs, and
developing cities through both development and redevelopment.
continued. .
2007 Legislative Policies 15
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Metropolitan Agencies
In order for regional and local planning to result in the successful implementation of regional policies:
. The State of Minnesota must contribute additional financial resources, particularly in the areas of
transportation and transit, reinvestment, affordable housing development, and the preservation of
parks and open space. If funding for regional infrastructure is not adequate, cities should not be
responsible for meeting the growth forecast set forth by the Metropolitan Council;
. The Metropolitan Council must work to pursue levels of state and federal transportation funding that
are adequate to meet identified transportation and,transit needs in the metropolitan area;
. The Metropolitan Council must recognize the limitations of its authority and continue to work with
cities in a collaborative, incentives-based manner;
. Metropolitan counties and school districts must be brought more thoroughly into the discussion due
to the critical importance of facilities and services such as county roads and public schools in
accommodating forecasted growth; and
. Greater recognition must be given to the fact that the "true" metropolitan region extends beyond the
traditional seven-county area and the need to work collaboratively with the twelve adjacent counties
in Minnesota and Wisconsin, and the cities within those counties. The region faces environmental,
transportation, and land-use issues that cannot be solved by the seven-county metro area alone.
IV-I Comprehensive Planning Schedule
Cities are scheduled to review their comprehensive plans and submit any necessary updates to the
Metropolitan Council in 2008.
;..~-.
Any future changes to the schedule for local comprehensive planning should be accompanied by the
statutory establishment of a complementary schedule for regional planning. This schedule should:
. Protect cities from being forced into a state of perpetual planning in response to regional actions;
and
. Ensure sufficient time for cities to understand and incorporate regional policies into their local
planning efforts.
IV-J Natural Resource Protection
The Association of Metropolitan Municipalities supports the Metropolitan Council's efforts to compile
and maintain an inventory and assessment of regionally significant natural resources for the purpose of
providing local communities with additional information and technical assistance. However, anyaddi-
tional steps taken by the Metropolitan Council regarding the protection of natural resources must
recognize that:
16 Association of Metropolitan Municipalities
, .
Metropolitan Agencies
. The state has a significant role to play in the protection of natural resources-especially when those
resources are significant to a multi-county area that is home to more than 50 percent of the state's
population and a travel destination for many more. Given the limited availability of resources and the
artificial nature of the metropolitan area's borders, neither the region nor individual metropolitan
communities would be well served by assuming primary responsibility for fmancing and protecting
these resources. AMM urges the state and/or the Metropolitan Council to provide financial assis-
tance for the preservation of regionally significant natural resources;
. The completion oflocal Natural Resource Inventories and Assessments (NRII A) is not a regional
system nor is it a required component oflocal comprehensive plans under the Metropolitan Land
Use Planning Act; and
. The protection of natural resources will have to be balanced with the need to accommodate growth
and development, reinvest in established communities, encourage more affordable housing and
provide transportation and transit connections. Decisions about the zoning or land-use designations
of specific parcels ofland not already contained within a public park, nature preserve or other
protected area are, and should remain, the responsibility oflocal units of government.
IV-K Federal Clean Water Mandates
!,f'"
Recent legal action related to impaired waters poses a ~igrlificant threat to the development and redevel-
opment interests of the Twin Cities. However, becaus~the Environmental Protection Agency measures
compliance on a statewide basis, and because watersneds and river basins transcend political bound-
aries, meeting Clean water standards is a statewide issue. Clean water requirements will affect both
wastewater treatment and storm water systems.
The Metropolitan Council should partner with federal and state agencies, as well as MetropolitanArea
cities, to arrive at solutions to current legal challenges associated with the federal Clean Water Act that
are both financially and environmentally appropriate for cities, the region and the state.
IV-L Inflow and Infiltration (III)
The Metropolitan Council's Water Resources Management Plan establishes an III surcharge beginning
in 2007 on cities that are determined to be contributing unacceptable amounts of clear water to the
MCES wastewater treatment system. Currently 56 cities have been identified as excessive III contribu-
tors. AMM recognizes the importance of controlling III because it affects the size, and therefore the
cost, of wastewater treatment systems and because excessive III in one city can affect development
capacity of another city that lies down pipe. AMM's policies supported the following criteria for a
surcharge program:
. A data supported definition of "excessive I/I" that includes data over a five year period with periodic
updates that reflect municipal mitigation efforts; continued...
2007 Legislative Policies 17
. ,
Metropolitan Agencies
. Access to all flow data that verifies that the origin of the III is within a city's collection system and
not a MCES interceptor, or not from another jurisdiction;
. The amount of the surcharge is commensurate with the cost of solving the problem;
. The surcharge is levied as a last resort and will not be charged unless a city fails to develop a
mitigationplan ina timely manner;
. The surcharge is discontinued when the city adopts a construction schedule to implement their III
mitigation plan; and
. All money collected from an individual city via the surcharge is returned to the city for their mitiga-
tion efforts.
The surcharge program will include a deferral of III surcharges over 25% of municipal wastewater
charges and additional metering ofMCES interceptors. TheAMM will continue to monitor the sur-
charge program as it gets underway, and encourages the Metropolitan Council to support state financial
assistance for Metro Area III mitigation through future Clean Water Legacy Act appropriations or
similar legislation.
IV-M Water Supply
; (,.,.,
The 2005 Legislature authorized the Metropolitan COunci~ to carry out planning activities to address the
water supply needs of the Metro Area. The Water Supply Advisory Committee, whose members
include five municipal officials, began its work in Januaiy, 2006 and will undertake the following activi-
ties:
. Technical ground water supply and use data;
. A master Metro Area water supply plan;
. Recommendations for clarifying the roles oflocal, regional and state governments;
. Recommendations for streamlining and consolidating decision making and approval processes; and
. Recommendations for funding future planning and capital investments.
In addition to the Metropolitan Council, there are currently at least five state agencies with water related
jurisdiction. There are also several federal agencies involved in water issues. AMM supports the
Metropolitan Council activities associated with clarifying local, regional and state water supply roles.
AMM also supports any analytical work that will help streamline and consolidate the myriad and often
conflicting water supply permitting processes. AMM further supports efforts to identify capital funding
sources to assist with municipal water supply projects. However, AMM opposes the insertion of the
Metropolitan Council as another regulator in the water supply arena.
The AMM further opposes the elevation of water supply to "Regional System" status, or the assumption
of Met Council control and management of municipal water supply infrastructure. At this time,AMM
opposes any regional taxes or fees for water supply planning.
18 Association of Metropolitan Municipalities
.
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IV-N Service Availability Charge (SAC)
.:f~
The Met Council proposed changes to its SAC program in 2005. The original proposal would have
disallowed the use of grandfathered (pre 1973) SAC credits. AMM opposed that change, and con-
vened a work group to review the proposals and make recommendations. As a result of those discus-
sions and subsequent meetings with MCES staff, the Metropolitan Council is considering ano-net-
credit proposal. Under this proposal, when a redeveloping property's new use requires lower waste-
water capacity than what was used in the prior seven years, SAC credits would be limited to the
amount needed on the site for the new use. A property developing at the same or lesser wastewater
demand will not incur SAC nor get credits.
TheAMM supports a SAC program that emphasizes equity, simplification and lower rates. Under a
no-net-credit structure, theAMM supports a baseline 'look back' of seven years, 10 years for phased
developments and longer time linestoge deci~ed()n acase'-by-case basis for redevelopment projects
that involve extenuating circumstances. The.Mv1M.al.sP supports astart'date of2010 to allow cities
adequate time to determine and use existing SACcredits.;
IV-O Funding Regional Parks & Open Space
In the seven-county metropolitan area, regional parks essentially serve the role of state parks. There-
fore, the state should continue to provide capital funding for the acquisition, development and improve-
ment of these parks. State funding should equal 40 percent of the operating budget for regional parks.
iIV-P Livable Communities.
The Livable Communities Act (LCA) is operated by the Metropolitan Council and provides a voluntary,
incentive-based approach to affordable housing development, Brownfield clean up and mixed-use,
transit-friendly development and redevelopment. AMM strongly supports the continuation of this
approach, which has been widely accepted and is fully utilized by local communities.
Use of interest earnings from LCA funds should be limited to covering the costs of administering the
program. Remaining interest earnings not used for program administration should be considered part of
the LCA funds and used to fund grant requests from the established LCA accounts, according to
established funding criteria
AMM supports increased funding and flexible eligibility requirements in the livable communities demon-
stration account in order to assist communities with development that may not be exclusively market
driven or market proven in their particular location and in order to support important development and
redevelopment goals.
2007 Legislative Policies 19
"
IV-Q Affordable Housing Need
The AMM recognizes and supports the role of the Metropolitan Council, under the Land Use Planning
Act, to prepare and adopt guidelines to assist local government units with the provisions of the Land
Use Planning Act, including the responsibility for planning for affordable housing.
In forecasting affordable housing need in the metro area, and determining each community's share of the
regional need, the Council must recognize both the limited opportunities and financial limitations of cities.
The Council should partner with cities to facilitate the creation of affordable housing through direct
financial assistance and advocating for additional resources.
The AMM opposes sanctions or penalties if a city fail~to meet its share of affordable housing need due
to a lack of available resources.
',..!'i
20 Association of Metropolitan Municipalities
..
Transportation (V)
V-A Transportation and Transit Funding
AMM strongly supports increased funding for transit and highways, both of which are a critical need in
the metropolitan area. In addition, funding for mass transit, including transit ways, light rail or heavy rail
in existing corridors, should be dedicated in a manner consistent with current highway funding. Funds
allocated to the metropolitan area should be flexible so that the most efficient and cost effective trans-
portation solution may be chosen and the main metropolitan problem (congestion relief) can be ad-
dressed.
AMM supports full funding of the transportation and transit needs based on proj ected growth over the
next twenty~ five years. The Metro Area is predicted to grow by one million people by 2030 with a
funding need for transportation and transit of over one billion dollars per year for the next fifteen years.
AMM feels it is important to join a coalition of organizations to better address the transportation financ~
ing needs of the entire state and will be cooperating with groups with the same mission.
For the purpose of accelerating road and transit construction projects in the metro area, AMM supports
the following list of revenue raising options in any combination, provided there is no corresponding offset
to negate any actual new revenue, which has the political and financial viability to produce improved
roads and transit.
't,',-"
. Gas Tax
. Additional Highway Bonding
. License Tab Fee Restoration
. Motor Vehicle Sales Tax Increase
. Wheelage Tax
. Street Utility Fee
. RoadAccess Fee
. Sales Tax
AMM supports the constitutional dedication of the MVST. AMMwill oppose any reduction in existing
dollars to fund transportation as a result of the dedication ofMVST dollars for transportation purposes,
All non-transportation programs should be funded from sources other than currently dedicated trans-
portation funds.
2007 Legislative Policies 21
Transportation
V-B Regional Transit System
The Twin Cities Metropolitan Area needs a multi-modal regional transit system that serves both com-
muters and the transit dependent. The transit system should be composed of a mix ofHOV lanes,
express and regular route bus service, exclusive transit ways, light rail transit and commuter rail corri-
dors designed to connect residential, employment, retail and entertainment centers. The system should
be regularly monitored and adjusted to ensure that routes of service correspond to the region's changing
travel patterns.
In order to slow the growth in congestion and provide regional residents and visitors with a realistic
alternative to the automobile, the regional transit system needs a funding source that is both stable and
capable of growing with the region. The AMM is opposed to legislative directives that constrain the
ability of metropolitan transit providers to provide a. full range of transit services, including reverse
commute routes, suburb-to-suburb routes, transit hub feeder services or new, experimental services that
may show a low rate of operating cost recovery from the fare box.
V-C Transit Operating Subsidies
The Twin Cities metropolitan area is served by a regional transit system that is now expanding to include
rail transit and dedicated bus ways.. Any operating subsidies necessary to support this system should
come from a regional or statewide funding source, The property taxpayers of individual cities and
counties should not be singled out to fund the operationof specific transit lines or routes of service
within this regional system.
V-D Road Access Fee
In order to fairly provide for major street improvements of primary benefit to a particular subdivision
development but not directly assessable and to allocate cost so that new growth pays its fair share, the
legislature should authorize cities to establish, at their option, a road development access charge to be
collected at the time that subdivisions are approved and/or at the time building permits are issued similar
to park dedication fees.
V-E Street Utility
The AMM supports legislation to authorize cities to establish a street utility for street construction and
reconstruction of aging infrastructure, similar to the existing storm water utility, so that costs of improved
facilities can be more fairly charged to the users rather than the general population as a whole.
22 Association of Metropolitan Municipalities
.
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Transportation
V-F Highway Turnbacks & Funding
The AMM supports jurisdictional reassignment or turnback of roads on a phased basis using functional
classifications and other appropriate criteria subject to a corresponding mechanism for adequate funding
of roadway improvements and continued maintenance,
Cities do not have the financial capacity, other than significant property tax increases, to absorb the
additional roadway responsibilities without new funding sources. The existing municipal turnback fund is
not adequate based on contemplated turnbacks. TheAMM supports, through the state bonding pro-
cess, additional funds for local roads and bridges. Additional funding would begin to ease the burden
municipalities are bearing due to the increase cost of road maintenance. .
The AMM supports additional funding for municipalities who are assuming the role of maintenance and
upkeep on city streets, which maintain a level of traffic consistent with state highways. Cities should be
compensated for providing a service that traditionally has been borne by the state. The state has abro-
gated its responsibility for maintaining major roads throughout the state by requiring, through omission,
that cities bear the burden of maintenance on major state roads.
V-G "3C" Transportation Planning Process: Elected Officials Role
TheAMM supports continuation of the TransportatioriAdvisory Board (TAB), with a majority oflocally
elected officials as members and participating in the process. TAB was developed to meet federal
requirements designating the Metropolitan Council as the organization that is responsible for the continu-
ous, comprehensive and cooperative (3C) transportation planning process to allocate federal funds
among metropolitan area projects. This process requirement was reinforced by the 1991 Intermodal
Surface Transportation Efficiency Act (ISTEA), the 1998 Transportation Efficiency Act for the 21 sl
Century (TEA21) and the 2005 Safe, Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users (SAFETEA-LU).
V-H Red light Cameras
Cities should be allowed to enforce traffic laws andpromote public safety on Minnesota's streets and
highways through the use of photo enforcement technology, including motion imaging recording system
technology.
V-I Airport Noise Mitigation
AMM supports noise abatement program~ and expenditures designed to minimize the impacts of the
MetropolitanAirports Commission (MAC) operated facilities on neighboring communities. The MAC
should determine the design and geographic reach of these programs only after a thorough public input
process that considers the priorities and concerns of the impacted cities and their residents. The MAC
continued. .
2007 Legislative Policies 23
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Transportation
and state should seek long-term solutions to fund the full mitigation package as adopted in 1996 for all
homes in the 64-60 DNL impact area, Noise abatement efforts should be paid for by fees and charges
collected from airport users, as well as state and federal funds. Furthermore, unless mitigation funding is
provided, AMM opposes any legislation that requires a property owner to disclose those properties that
lie within 64-60 DNL noise contours.
The AMM supports a change to the governance structure of the MetropolitanAirports Commission
(MAC), which currently consists of 15 members, all appointed by the Governor except for two, whom
are appointed by the Mayors of Minneapolis and St. Paul. Although, under statute, the MAC is
charged to "reflect fairly the various regions and interests affected by the airport system," only two of
the communities most affected by the Minneapolis/St. Paul International Airport (MSP) have direct
representation on the commission and are given the opportunity to select their district's representative.
Acknowledging thatthe communities closest to MSP and reliever airport impacted communities are
more significantly impacted by noise, traffic, and other numerous expansion-related issues, the AMM
supports the broad goal of providing MSP-impacted communities greater representation on the MAC.
V-J Cities Under 5,000 Population
"'..
Cities under 5,000 population do not directly receive any non-property tax funds for their collector and
arterial streets. Current CSAH distributions to metropolitan counties are inadequate to provide for the
needs of smaller cities in the metropolitan area. Criteria such as the number of average daily trips should
be established in a small city local road improvement program for funding qualification and a distribution
method devised. Possible funding sources included the five-percent set-aside account in the Highway
User Tax Distribution Fund, modification to county municipal accounts and/or state general funds.
V-K County State Aid Highway (CSAH) Distribution Formula
The AMM supports modification of the County State Aid Highway (CSAH) distribution formula to
more fairly account for total vehicle miles traveled on metropolitan county CSAH funded roads. Al-
though only 10% of the CSAH roads are in the metro area they account for nearly 50% of the vehicle
miles traveled. The metro counties receive less than 20% of the CSAH distribution and have instituted
city cost participation, whereby cities are now forced to pay up to 45% ofthe CSAH road project cost
In some areas.
V-L Municipal input (Consent) for Trunk Highways and County Roads
Minnesota statute directs MnDOT to submit detailed plans with city cost estimates at a point one and a
half to two years prior to bid letting, at which time public hearings are held for citizenlbusiness/municipal
input. IfMnDOT does not concur with requested changes, MnDOT may appeal. Currently, that
process would take a maximum of three and a half months and the results of the appeal board are
binding on both the city and MnDOT.
24 Association of Metropolitan Municipalities
.0
The AMM opposes any changes to the current statute that would allow MnDDT to totally disregard the
appeal board ruling for state trunk highways. The result of such a change would significantly rninirnize
MnDDT's desire or need to negotiate in good faith with the city for appropriate project access and
alignment, and it would make the public hearing and appeal process meaningless.
The AMM opposes elimination of the county road municipal consent and appeal process for the same
reasons we oppose changing the process as it applies to MnDDT trunk highway projects.
V-M Plat Authority
AMM supports the current law granting counties review and comment authority for access and drainage
issues for city plats abutting county roads. AMM opposes any statutory change that would grant the
county veto power or shorten the 120-day review and permit process time.
V-N City Speed Limit Control
AMM supports a reduction in the state-wide default speed limit from 30 to 25 mph on local residential
roads. AMM supports design standards that result in slower speeds on local roads. In the event of a
uniform speed limit reduction, AMM supports increased state funding for education and enforcement.
V-O MnDOT's Maintenance Budget
The Minnesota Department of Transportation's maintenance budget has been reduced in recent years
due to the State's lack of funding and as a result, state right of ways, roadways, and state owned
parcels are not being adequately maintained. As a result, municipalities are spending local dollars
maintaining these properties which are deteriorating at an accelerated rate. AMM supports fully funding
MnDDT's maintenance budget to relieve the financial burden on local units of government and to assure
that state highways do not deteriorate prematurely.
2007 Legislative Policies 25
,
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26 Association of Metropolitan Municipalities
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Committee Rosters (VI)
Municipal Revenue Policy Committee
Marcia Glick, City Manager, Robbinsdale (Committee Chair)
Clark Arneson, Asst. City Manager, Bloomington
Patrick Born, Finance Director, Minneapolis
Tom Burt, City Manager, Golden Valley
Teresa Daly, Councilmember, Burnsville
Lori Economy-Scholler, Chief Financial Officer, Bloomington
Jerry Faust, Mayor, Sf,Anthony
Walt Fehst, City Manager, Columbia Heights
Jim Keinath, City Administrator, Circle Pines
Tom Lawell, City Administrator, Apple Valley
Linda Masica, Councilmember, Edina
Mary McComber, Councilmember, Oak Park Heights
Bruce Nawrocki, Councilmember, Columbia Heights
Scott Neilson, Administrator, Mahtomedi
Tammy Omdal, Chief Financial Officer, Burnsville
Calvin Portner, Asst, to City Manager, Brooklyn Park
Martin Rafferty, Administrator, Lake Elmo
Don Rambow, Finance Director, White Bear Lake
Gene Ranieri, IGR Director, Minneapolis
Ryan Schroeder, Administrator, Cottage Grove
Steven Sine1l, City Assessor, Eden Prairie
Matt Smith, Dir. Office of Pin an cia I Services, Sf. Paul
Steve Stahmer, Administrator, Long Lake
Wendy Underwood, Chief Lobbyist, St. Paul
Wendy Wulff, Councilmember, Lakeville
continued. .
2007 Legislative Policies 27
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c
Committee Rosters
Housing and Economic Development Policy Committee
Janis Callison, Councilmember, Minnetonka (Committee Chair)
Bonnie Balach, Contract Consultant, Minneapolis
Karen Barton, Comm. Dev, Dir., Arden Hills
Tom Daniel, Mgr. Econ. Dev.,Minneapolis
Tami Diehm, Councilmember, Columbia Heights
Rick Getschow, City Manager, Hopkins
Tom Goodwin, Councilmember, Apple Valley
Bryan Hartman, Program Manager, Bloomington
Brian Heck, City Manager, Lauderdale
Jon Hohenstein, Community Development Director, Eagan
Dean Johnston, Mayor, LakeElmo
Anne Norris, City Manager, Crystal
Tammy Omdal, Chief Financial Offcr./Dep. City Mgr, Burnsville
Samantha Orduno, Administrator, Dayton
. Ron Rankin, Community Development Director, Minnetonka
Mark Sather, City Manager, White Bear Lake
Bob Schreier, Community Development Director, Brooklyn Park
Bob Streetar, Community Development Director, Columbia Heights
Erin Stwora, Zoning Administrator/City Planner, Dayton
Wendy Underwood, Chief Lobbyist, Sf, Paul
Craig Waldron, Administrator, Oakdale
Liz Workman, Councilmember, Burnsville
Metropolitan Agencies Policy Committee
Craig Dawson, Administrator, Shorewood (Committee Chair)
Charlie Crichton, Councilmember, Burnsville
Charles Dillerud,Planner, Lake Elmo
Cheryl Fischer, Mayor, Minnetrista
Elizabeth Glidden, Councilmember, Minneapolis
Jack Haugen, Mayor Prior Lake
Brian Heck, City Manager, Lauderdale
Dean Johnston, Mayor, Lake Elmo
Larry Lee, Community Development Director, Bloomington
Tom Link, Community Development Director, Inver Grove Heights
Terry Schneider, Councilmember, Minnetonka
Wendy Underwood, Chief Lobbyist, St. Paul
Pierre Willette, Gov 't Relations Rep., Minneapolis
Ron Wood, City Manager, Blaine
Wendy Wulff, Councilmember, Lakeville
28 Association of Metropolitan Municipalities
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Committee Rosters
Transportaton and General Government Policy Committee
Dave Osberg, Administrator, Hastings (Committee ,Chair)
DougAnderson, Mayor, Dayton
Beverly Aplikowski, Mayor, Arden Hills
Mary Burg, Councilmember, New Brighton
Sandi Dingle, Councilmember, St, Paul Park
Pam Dmytrenko, Asst, to City Manager, Richfield
Steve Elkins, Councilmember, Bloomington
Matt Fulton, City Manager, Coon Rapids
Randy Gilbert, Mayor, Long Lake
Dan Gustafson? Councilmember, Burnsville
Chuck Haas, Councilmember, Hugo
Mary Hamann-Roland, Mayor, Apple Valley
Tom Hansen, Deputy City Manager, Burnsville
Jon Haukaas, Director of Public Works, Fridley
Marv Johnson, Mayor, Independence
Dave Kelso, Councilmember, Circle Pines
Steve Lillehaug, Asst, City Eng./Traffic Eng., Minnetonka
Dean Lotter, Administrator, Minnetrista
Karen Lowery Wagner, Gov 't Relations, Minneapolis
John Maczko, Transportation Dir.--Pulic Works Dept., St. Paul
Mary McComber, Councilmember, Oak Park Heights
Mark McNeill, Administrator, Shakopee
Mike Mornson, City Manager, St, Anthony Village
Veid Muiznieks, Police Chief, Newport
Dave Pokorney, Administrator, Chaska
David Pritzlaff, Councilmember, Farmington
Martin Rafferty, Administrator, Lake Elmo
Joe Ryan, Building Official, Plymouth
Steve Stahmer, Administrator, Long Lake
Ellsworth Stein, Airport Relations Commission, Mendota Heights
Dick Swanson, Councilmember, Blaine
Wendy Underwood, Chief Lobbyist, Sf, Paul
John Wertjes, Director of Transportation Services,Minneapolis
Wendy Wulff, Councilmember, Lakeville
2007 Legislative Policies 29