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LE -33. OSA Time Limitations <br />Issue: The Office of the State Auditor <br />(OSA) has the authority to issue <br />noncompliance notices for every existing tax <br />increment financing (TIF) district in the <br />state for alleged violations of the TIF laws. <br />This authority extends retroactively to the <br />inception of the district. Accordingly, TIF <br />authorities can receive noncompliance <br />notices for alleged violations that occurred <br />20 or more years ago. Often, staff and <br />record-keeping procedures have changed, <br />and TIF authorities find it difficult to <br />reconstruct the past in order to identify and <br />remedy these situations. Similarly, the OSA <br />claims the authority, based on the state's <br />records retention schedule, to audit TIF <br />districts for up to 10 years after <br />decertification, which requires cities to <br />expend staff resources to maintain files and <br />a working knowledge of old districts for an <br />unreasonable period of time. <br />Response: A reasonable timeframe within <br />which alleged violations are identified <br />should be established. The Legislature <br />should reasonably restrict the OSA's <br />ability to issue noncompliance notices to <br />the six-year period prior to the notice's <br />issuance date. The Legislature should also <br />require the OSA to conduct any audits on <br />decertified districts within one year of <br />decertification. <br />LE -34. Adequate Funding for <br />Transportation <br />Issue: A well -coordinated state <br />transportation policy utilizing all modes of <br />transportation in moving passengers and <br />freight will enhance the state economic <br />development of new and expanding business <br />as well as foster additional tourism <br />opportunities. <br />Response: More resources must be <br />dedicated to all components of the state's <br />transportation system, and local units of <br />government must have access to resources <br />and funding tools to meet growing needs. <br />The League of Minnesota Cities supports: <br />a) Development of a comprehensive state <br />transportation policy which provides <br />an environment where all modes of <br />transportation (motor, rail, air, water <br />and pipeline) complement each other <br />in moving passengers and freight <br />within the state. <br />b) A dedicated and sustainable state <br />revenue source for non -municipal <br />state aid city streets. <br />c) The Statewide Transportation Plan <br />2009-2028 developed by the Minnesota <br />Department of Transportation <br />(MnDOT). <br />d) MVST distribution of 60 percent for <br />roads and bridges and 40 percent for <br />transit. <br />A permanent increase in the gas tax. <br />Indexing of the gas tax, provided there <br />is a limit on how much the tax can be <br />increased for inflation in a given <br />amount of time. <br />Increases in vehicle registration taxes <br />(tab fees). <br />h) Trunk highway bonding provided the <br />Legislature implements reasonable <br />restrictions on the amount of debt <br />service the state will incur, and <br />provided the Legislature appropriates <br />funding to assist with local costs <br />related to projects funded with trunk <br />highway bonds. <br />i) General obligation bonding for local <br />roads and bridges, particularly for <br />routes of regional significance. <br />A sales tax increase dedicated to <br />transportation. <br />k) Funding to assist cities burdened by <br />cost participation responsibilities <br />imposed by improvement projects on <br />e) <br />1) <br />g) <br />j) <br />League of Minnesota Cities <br />2016 City Policies Page 68 <br />