Agenda - Council Work Session - 12/07/2010

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receive sufficient notice of these increases so that they may take them into account for budgeting purposes. In 2010, pension stabilization legislation was enacted to begin addressing the funding deficiency in the PERA pension plans. The modifications will increase employer contributions by $16 million annually, but the overall legislative package, including a reduction in the annual retiree adjustment, an increase in vesting to five years, and a reduction in interest rates on refunds will reduce the unfunded liability in the plans by $300 million annually. To help ensure the fiscal health of the PERA system, Metro cities supports the legislative changes made in 2010, and 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. Metro Cities supports modifications to help align PERA contributions and costs, and reduce the need for additional contribution increase, including a modification of PERA eligibility guidelines to account for temporary, seasonal and part time employment situations, the use of pro -rated service credit, and a comprehensive review of exclusions to simplify eligibility guidelines. Metro Cities will monitor legislative proposals, plan design changes and the joint study of the state's public pension plans 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 -Q Aggregate Mining Fee In order to provide an incentive for the extraction of local aggregate resources prior to urbanized development, and in order to help offset the negative impacts of aggregate mining on Iocal communities, the state should authorize cities and townships to collect a per ton host community fee from the operators of aggregate mines with the fee proceeds to be deposited in the municipality's general fund. The 2008 Legislature adopted an Aggregate Resource Preservation Act as an incentive for the extraction of local aggregate resources prior to urbanized development, as well as a modified tax structure that requires 42.5% of the aggregate tax to be distributed to host cities and townships. Metro Cities supports legislative efforts to assist aggregate host cities in offsetting the negative impacts of aggregate mining on local communities. Metro Cities would prefer that cities and townships be allowed to collect a per ton host community fee from the operators of aggregate mines with the fee proceeds to be deposited in the municipality's general fund. The Legislature may wish to consider an examination of the negative impacts of aggregate mining on cities adjacent to host cities. 6 Metro Cities