Memo - Legislative Preview and Discussion
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Administrative Services -
Office of the City Manager
Memorandum
To:
From:
Date:
Subject:
Honorable Mayor and Members of the City Council
Steven C. Mielke, Hopkins City Manager.j/t1
December 29, 2000
Legislative Preview and Discussion Topics with Senator Steve Kelley and
Representative Betty Folliard.
As in previous years, the City Council will have an opportunity to discuss legislative
issues with Hopkins' State Legislators. These discussions are an opportunity to hear
from our legislators on issues that will impact the community of Hopkins as well as the
Hopkins local government. The following are a few topics of special interest to the City
of Hopkins that could be discussed.
Budget and Tax Issues:
LGA and HACA. The Governors "Big Plan" seems to suggest that a way to provide
more state financing of schools would include the possibility of taking Local
Government Aid (LGA) and Homestead and Agricultural Credit Aid (HACA) from cities
and other local governments and giving it to the schools. The result would be a
significant increase in the City's reliance on property taxes to fund programs and
services, including mandated expenses. At a time when cities are looking for less
reliance on property taxes, this seems to be the wrong approach.
L vy Limits. Consideration of re-imposing levy limits are apparently under discussion
as well. Hopkins as well as most local units of government has opposed levy limits as
an ineffective and artificial way of limiting property tax growth. Local officials are elected
to decide issues such as levels of service, taxes and related issues.
Franchise Fees. The City of Hopkins collects franchise fees from cable companies
operating within the boundaries of the City in recognition of the use of public rights-of-
way. The proceeds are used to fund our communications efforts in the City. As tele-
communications issues are addressed, Hopkins would like to see this revenue source
preserved for City use.
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Food and Beverage I Liquor and B er Taxes. Hopkins has been successful in
reinvigorating the Mainstreet area through public and private investments into the
downtown area. As the area continues to grow, the need exists to continue making
public investments into the area. As the City has studied the issue, the concept of a
local option tax on food and beverage and/or liquor and beer has been discussed as a
potential new revenue source. Hopkins would like to explore the opportunity of having
one or both of these taxes as options to our continued efforts to improve the downtown
area. We would appreciate the assistance of our legislators to look into these sources
with us and consider legislation giving Hopkins the authority to proceed, if the City
Council so chose to proceed.
Sales Tax on Local Governments. The state continues to charge local governments
for sales taxes. The effect is that the City of Hopkins has to raise property taxes about
1 % ($50 - 60,000per year) to pay tbose taxes. It seems illogical to do so, especially in
a time when the State is running budget surpluses. Please work to repeal the tax.
Community Development Issues.
Rail Yard Operations. The cities of Hopkins, Minnetonka, and S1. Louis Park have
collectively been looking at issues of railroad yard operations within the three cities
boundaries and looking for ways to improve the very real issues of noise, congestion
and aesthetics. Along with the City of Glencoe, a potential economic development
project for Glencoe (the construction of a rail yard) could provide economic benefits for
Glencoe and also improve the quality of life for the residents adjacent to the rails in the
three cities. Hopkins would ask that our legislators look into the possibility of state
assistance in solving this problem and opportunity.
Tax Increment Financing. This tool for the rehabilitation of Hopkins has been
invaluable to the success Hopkins has enjoyed in the revitalization efforts of the
community. Efforts should be taken to preserve and enhance this tool.
Other.
Information Privacy. As the City issues licenses and permits, and as we collect
information necessary to provide governmental information we also are requested to
provide the information to solicitors and businesses that then use the information for
private purposes. We would like the legislature to consider providing protection to
residents and businesses by offering an opportunity to restrict our ability to provide the
information. In essence, residents and businesses should not have to have information
provided to government be available to solicitors unless the resident or business
approves of the release of the information.