Agenda - Council - 01/28/2025 - Laserfiche WebLink

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Local Priority: Sales and Use Tax Exemptions for Water Treatment Plant Trunk Watermain Improvements During the 2023 legislative session, state sales and use tax exemptions were approved for the purchase of materials for the new Water Treatment Plant. Unfortunately, sales and use tax exemptions were not approved for the necessary Trunk Watermain improvements. The City sought after legislative approval in 2024 for state sales and use tax exemptions for the necessary Trunk Watermain improvements. We had success with the request in the form of budget impact from the State's perspective. When working through the request in 2024, we learned the full financial liability to the State's budget was included in the estimates that were provided in 2023 for both the physical plant and the trunk water lines. Unfortunately, at the end of session in 2024 our request was removed from the omnibus bill along with many other tax related requests from other entities. • In 2023, sales and use tax exemptions were approved for the Water Treatment Plant. • The City will work with legislators to amend the approved language to authorize applying sales and use tax exemptions to the necessary Trunk Watermain improvements. Given the project completion timeline of Summer 2025, this will be our last year to make this request. Local Priority: Tax Increment Financing District 14 (TIF 14, The COR) Language in the original 2010 legislation included, but did not limit to, the city's share of the costs necessary to provide for the construction of the Northstar Transit Station and related infrastructure as eligible expenditures. This included structured parking, a pedestrian overpass and roadway improvements. State Statute requires interfund loan resolutions when a city borrows funds to a district for improvements with plans to repay itself back through future tax increment. However, these expenses were funded without the required interfund loan resolutions pursuant to the TIF statute. Special legislation did not exempt the City from the interfund loan requirement. • The City will work with legislators to amend the special TIF 14 legislation to exempt the interfund loan requirement. Thus, creating the potential repayment of such interfund loans through TIF 14 revenue through 2040. Local Priority: Funding for continued study of Ramsey/Dayton Mississippi River bridge project The feasibility study for a new Mississippi River bridge was completed in 2021 with funds allocated by the 2020 legislature. Staff will work with local legislators to secure the funding for the next step in pursuit of this project. These next steps may include establishing a location of the crossing, in which will be used when developing parcels impacted by a future river crossing. It should be noted, the City of Dayton recognizes the likelihood of a future crossing and are developing a master plan to incorporate such crossing in the future. Other entities also support this project in a way to reduce traffic impact through their communities. The North Metro 2025 City of Ramsey Legislative Platform Page 2 of 5