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Municipal Revenue & Taxation <br /> districts until January, 2017. Metro Cities supports a law change to immediately <br /> effectuate the exemption for these entities. Metro Cities opposes further delays in the <br /> application of this law. <br /> Metro Cities supports granting an extension of the motor vehicle sales tax <br /> exemption to all municipal vehicles that are used for general city functions and are <br /> provided by governmental entities. Currently, only certain vehicles, including road <br /> maintenance vehicles purchased by townships, and municipal fire trucks and police <br /> vehicles not registered for use on public roads, are exempt from the MVST. <br /> Metro Cities supports simplifying the process around the exemption for <br /> construction materials,which is currently complex and cost ineffective, or <br /> converting the process to a refund program. <br /> 1-0 City Revenue Stability and Fund Balance <br /> Metro Cities opposes state attempts to control or restrict city fund balances. These <br /> funds are necessary to maintain fiscal viability, meet unexpected or emergency <br /> resource needs, purchase capital goods and infrastructure, provide adequate cash <br /> flow and maintain high level bond ratings. <br /> 1-P Public Employees' Retirement Association (PERA) <br /> Metro Cities supports employees and cities sharing equally in the cost of necessary <br /> contribution increases and a 60% employer/40% employee split for the PERA <br /> Police and Fire Plan. Metro Cities also supports state assistance to local <br /> governments to cover any additional contribution burdens placed on cities over and <br /> above contribution increases required by employees. Cities should receive sufficient <br /> notice of these increases so that they may take them into account for budgeting <br /> purposes. <br /> Metro Cities opposes benefit improvements for active employees or retirees until the <br /> financial health of the PERA General Plan and PERA Police and Fire Plan are <br /> restored. <br /> Metro Cities supports modifications to help align PERA contributions and costs, <br /> and reduce the need for additional contribution increases, including a modification <br /> of PERA eligibility guidelines to account for temporary, seasonal and part-time <br /> employment situations, the use of pro-rated service credit and a comprehensive <br /> review of exclusions to simplify eligibility guidelines. Further employer contribution <br /> rate increases should be avoided until other cost alignment mechanisms are <br /> considered. <br /> 2017 Legislative Policies 7 <br />