Agenda - Council Work Session - 01/21/2014

Home

LEGISLATIVE PRIORITIES ENDORSED BY THE CITY OF RAMSEY 2014 LMC LEGISLATIVE PLATFORM (6) Road Improvement Utility* (7) Levy Limits* ISSUE: Constructing and maintaining an effective roadway system is an essential function of local governments. The City of Ramsey owns, operates and maintains more than 174 miles of roadway. The cost to properly maintain existing municipal roadways in the City of Ramsey is estimated at $2.5 million annually over the next 10 years. Proper maintenance of local roadway systems extends the life of roadways and ensures the most effective application of tax payer dollars. For every one dollar spent on preventative road maintenance, local governments save seven dollars on future repairs. In many cases, similar to the City of Ramsey, other Minnesota municipalities are not dedicating adequate funding for proper maintenance on local roadway systems. Existing road maintenance funding mechanisms, such as Municipal State Aid (MSA), local property taxes and special assessments have become increasingly restrictive and less effective forcing local government to seek new road maintenance funding mechanisms. Alternative funding methods for road maintenance programs are nearly nonexistent. Historically, the State Legislature has given Cities the authority to operate utilities for essential City functions such as water supply, sanitary sewer and storm water services. The establishment of said utilities has set a precedent for a workable process of charging fees on a utility bill for City services provided through local infrastructure. Today, the authority for Cities to charge a similar utility fee for a road maintenance program does not exist. RAMSEY CITY COUNCIL RECOMMENDATION: The City of Ramsey supports enabling legislation authorizing Cities to establish roadway utility fees. *Similar language as 2014 League of Minnesota Cities Legislative Platform ISSUE: During the 2013 State Legislative session, levy limits were imposed on Cities over 2,500 population for one year. Levy limits replace local accountability with State judgment about the appropriate level of local taxation and local services. Additionally, State restrictions on local budgets can have a negative effect on a City's bond rating due to the restriction on revenue flexibility. Levy limits also fail to account for the decertification of tax increment financing districts —Upon decertification, property taxes that formerly collected and used to support public improvements in a TIF district can no longer be collected at the same rate, to support existing City operations. RAMSEY CITY COUNCIL RECOMMENDATION: The City of Ramsey supports the principle of a representative democracy that allows the Ramsey City Council to formulate local budgets without State restrictions. *Similar language as 2014 League of Minnesota Cities Legislative Platform 2014 City of Ramsey Legislative Platform