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League of Minnesota Cities continues to <br />support a statutory change to generally <br />allow a city to enact a local sales tax for <br />public improvements and capital <br />replacement costs, including but not <br />limited to those specified in the 2019 <br />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 />f) Transportation infrastructure <br />improvements, including construction, <br />repair of roadways, bridges and <br />airports; <br />Flood control and protection; <br />Water quality projects to address <br />groundwater and drinking water <br />pollution problems; <br />Court facilities; <br />Fire, law enforcement, or public safety <br />facilities; or <br />k) Municipal buildings. <br />g) <br />h) <br />i) <br />i) <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 />142 <br />In addition, Minn. Stat. § 469.190 should <br />amended to allow cities to impose up to a <br />five percent local lodging tax and to allow <br />cities to modify the uses of their local <br />lodging tax revenues to meet local needs. <br />Cities should also have general authority <br />to create utilities, similar to the storm <br />sewer utility authority, in order to fund <br />local services where benefit or usage of <br />the service can be measured. <br />FF-21. City Franchise Authority <br />Issue: Under Minn. Stat. ch. 216B and <br />Minn. Stat. § 3 01 B . 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 />raise revenue or to defray increased <br />municipal costs, such as maintenance and <br />reconstruction costs, accruing as a result of <br />utility operations, or both. <br />State law currently allows the franchise fee <br />to be based upon gross operating revenues <br />or gross earnings of the utility from its <br />operations in the municipality. In this <br />manner, all utility users within the <br />municipality contribute to the public costs <br />associated with the utility operation. In the <br />absence of franchise fees, municipal costs <br />resulting from utility operations are <br />currently being funded by property tax <br />payers. <br />Many cities also have policies related to <br />utility company services and products that <br />could be supported under conditions of a <br />franchise agreement, such as local <br />renewable energy and energy efficiency <br />