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greater stability of revenues to the recipient <br />government unit throughout the course of <br />the economic cycle. <br />Under Minn. Stat. § 297A.99, the <br />Legislature has created a set of local sales <br />tax rules and a defined process by which <br />cities and other political subdivisions can <br />impose a general local option sales tax. <br />Although the statutory process requires the <br />city council to adopt a resolution supporting <br />the local sales tax and also requires the city <br />to seek voter approval of the sales tax at a <br />general election, the process continues to <br />require the final authorization of the local <br />sales tax by the Legislature through the <br />passage of a special law. Since 2011, seven <br />additional cities have successfully sought <br />legislative authorization to impose new local <br />sales taxes. As a result, there are now 31 <br />cities that currently are authorized to impose <br />a general local sales tax. <br />Response: Cities should be able to <br />diversify their sources of revenues. The <br />League of Minnesota Cities continues to <br />support a statutory change that will allow <br />a city to enact a local sales tax for public <br />improvements, including but not limited <br />to those specified in the 2011 legislation: <br />a) Convention or civic centers; <br />b) Public libraries; <br />c) Parks, trails, and recreational <br />facilities; <br />d) Overpasses, arterial and collector <br />roads, or bridges, on, adjacent to, or <br />connecting to a Minnesota state <br />highway; <br />e) Railroad overpasses or crossing safety <br />improvements; <br />Flood control and protection; <br />Water quality projects to address <br />groundwater and drinking water <br />pollution problems; <br />h) Court facilities; <br />0 <br />g) <br />i) Fire, law enforcement, or public safety <br />facilities; or <br />j) Municipal buildings. <br />Local sales taxes would follow the process <br />outlined in Minn. Stat. § 297A.99 but <br />without the need for the approval by the <br />Legislature and governor through the <br />passage of special legislation. The League <br />supports allowing the referendum to be <br />conducted at either a general or a special <br />election. <br />State law should also be modified to <br />generally authorize any city to impose <br />other types of taxes such as a local payroll <br />tax or an entertainment tax with the <br />adoption of a supporting resolution by the <br />city council and after approval by the <br />voters at a general or special election. <br />In addition, cities should be able to <br />modify the use of their local lodging tax <br />revenues and have general authority to <br />create utilities, similar to the storm sewer <br />utility authority, in order to fund local <br />services where benefit or usage of the <br />service can be measured. <br />FF-19. City Franchise Authority <br />Issue: Under Minn. Stat. ch. 216B and <br />Minn. Stat. § 301B.01, a city may require a <br />public utility furnishing gas or electric utility <br />services or occupying streets, highways or <br />other public property within a municipality <br />to obtain a franchise to operate within the <br />community. In addition, cable system <br />operators are required to obtain a franchise <br />under Minn. Stat. ch. 238. <br />Under a franchise, the city may require the <br />utility to pay a fee to the municipality to <br />help offset public maintenance costs for the <br />public property and generate a return on a <br />publicly held asset. The fee is intended as a <br />mechanism by which gas or electric utilities <br />League of Minnesota Cities <br />2015 City Policies Page 103 <br />