Agenda - Council - 02/08/2021 - Laserfiche WebLink

Home

extend beyond November 15. The League supports: a) Changes in the state requirements to allow cities to: i. Extend the allowable use of the funds to cover operating expenses through the latter of December 30, or any date provided in updated Treasury guidance or action by Congress. ii. Allow cities undertaking permitted facility upgrades, technology purchases or other allowable capital projects that will require additional completion time, to expend funds beyond the November 15 deadline for those costs. b) Action by Congress to: i. Extend the deadline on the allowable uses of CARES Act/CRF funds beyond the December 30 deadline. ii. Allow cities to use the CRES Act/CRF funds to replace losses of revenues resulting from the impact of the pandemic. iii. Provide state and local government additional financial assistance to address the long-term financial impacts of the pandemic. FF-38. Impacts of Property Tax Payment Delays Issue: Due to the severe economic impacts of the pandemic, many counties exercised their authority to temporarily waive penalties on late payments of property taxes due on May 15, 2020. In addition, the legislature discussed a state -mandated delay in property tax payments to help homeowners and businesses address the 152 financial impacts of the pandemic. Delaying property tax receipts can create cash -flow challenges for cities and can negatively impact debt service payments that are aligned with the May 15 and October 15 payment dates for most property taxpayers. With the impacts of the pandemic extending into the foreseeable future, counties may again decide to temporarily waive penalties for future property tax payment deadlines and the legislature could revive discussions of a mandatory delay in the property tax payment dates. Response: The Legislature and counties should avoid modifying the property tax payment structure to avoid creating financial problems for cities. If delays are permitted, the legislature and counties should provide cities with cash -flow assistance to avoid costly short-term borrowing and to avoid delays in debt service payments. FF-39. State Fund for Non -weather - related Disaster/Catastrophe Relief Issue: Municipalities and other governmental units are at risk of experiencing disastrous events affecting their communities beyond natural disasters, whether from civil disturbances, industrial catastrophes, or other disastrous events. Such events may result in unbudgeted and unfunded costs related to clean-up, repairs, "social" and economic recovery, infrastructure restoration, rebuilding structures, and other damage repair which may not be qualify for relief from Federal resources. While some limited State resources may be available, cities do not have the resources to respond to such disasters. Response: The League of Minnesota Cities supports the creation of a state