Laserfiche WebLink
FF-21. Payments for Services to <br />Tax -Exempt Property <br />Issue: Taxable property in many cities is <br />being acquired by nonprofit and government <br />entities. Converting the property to tax- <br />exempt status can lead to serious tax base <br />erosion without any corresponding reduction <br />in the service needs created by the property. <br />In 2013, legislation was introduced that <br />would have broadly exempted non-profit <br />property from paying user fees or service <br />charges for any service funded in part with <br />property taxes over the previous five years. <br />Under certain circumstances, this proposal <br />could have potentially exempted non -profits <br />from paying for even utility charges. <br />Response: Cities should have the <br />authority to collect payments from <br />statutorily -exempt property owners to <br />cover costs of service similar to the <br />authority provided under the special <br />assessment law. The League of Minnesota <br />Cities opposes legislation that would <br />exempt non -profits from paying for user <br />fees and service charges that help fund <br />services these organizations use. <br />FF-22. Fire Service Taxing Districts <br />Issue: Fire service districts have the <br />potential to reduce duplication of equipment <br />purchases and services, and to improve <br />uniformity of service delivery throughout a <br />region. One obstacle to establishing fire <br />service districts is the absence of statutory <br />authority to establish fire taxing districts. <br />The Legislature has granted authority for <br />special taxing districts to provide services <br />such as watershed management and <br />emergency medical services. In spite of <br />growing funding and staffing challenges, <br />this authority does not currently exist for <br />providing fire protection services. <br />Response: The League of Minnesota <br />Cities recognizes that some regions of the <br />state could sustain or improve fire <br />protection services if fire taxing districts <br />were authorized. The League supports <br />authority for local units of government to <br />establish fire service taxing districts <br />provided that 1) participation in a district <br />is a local decision, and 2) fire taxing <br />districts must be governed by elected <br />officials representing the participating <br />entities. <br />FF-23. Housing Improvement <br />Areas/Special Service Districts <br />Issue: In 1996, cities were granted general <br />authority under Minn. Stat. § 428A.11 to § <br />428A.21 to use Housing Improvement Areas <br />(HIAs) in order to finance housing <br />improvements for condominium and <br />townhome complexes. Several cities around <br />the state have used this tool, and found it to <br />be a useful mechanism for maintaining older <br />association homes. <br />The 2013 Legislature also granted HIA <br />authority to a county Community <br />Development Authority (CDA). As part of <br />that authority, the CDA is required to gather <br />local approval before creating an HIA. <br />In 1996, the Legislature also gave cities the <br />general authority to create Special Service <br />Districts (SSDs). Cities around the state <br />have used this tool to provide an increased <br />level of service to commercial or industrial <br />areas, commonly in areas of retail <br />concentration. The 2013 legislature <br />extended the sunset for both tools for 15 <br />years, making it now set to expire on June <br />30, 2028. <br />As cities work to develop and/or redevelop <br />commercial, industrial, and residential areas, <br />new ways of paying for and providing <br />increased levels of service should be <br />League of Minnesota Cities <br />2015 City Policies Page 105 <br />