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CR 92-235 Constructional Amendment Dedicating Govmt Funds '\ y \ 0 ~ m ,y '" . November 9, 1992 0 P K \ '" council Report 92-235 CONSTITUTIONAL AMENDMENT DEDICATING THE FUNDING FOR LOCAL GOVERNMENT TRUST FUND proposed Action staff recommends the following motion: move to ado?t Resolution 92 -103 supporting a Constitutional amendment dedicatinq a fundinq for a local qovernment trust fund and requestinq the League of Minnesota cities to make such an amendment one of their priorities for 1993. If approved, the Resolution will be used in assisting in an effort to have the legislature support a constitutional amendment which would dedicate 2 cents of the sales tax now going to the Local Government Trust Fund and would rename the fund Property Taxpayers' Trust Fund. Overview The legislature has established the Local Government Trust Fund. Currently, funds go into the Legislature through 2 cents of the 6 1/2% sales tax. Even though the Trust Fund . was set up to independently fund Local Government Aids and Property Tax Relief, the fund has continually been under attack by the Governor and others who would prefer to utilize the funds for other purposes. An effort 1S underway which calls for the constitutional dedication of the Local Government Trust Fund so as to prohibit raiding of the fund for purposes other than what it was intended. staff is recommending that the Resolution be adopted and efforts be undertaken to lobby for the constitutional dedication. primary Issues to Consider o What is the process for establishing a constitutional amendment? Generally, the Legislature must pass a bill placing the issue in front of voters. If this were to occur, it would happen no sooner than 1994. o Have other cities supported this effort? This effort is being headed by the City of st. Paul. Attached you will find information relating to this effort. . A large number of other cities have passed similar resolutions. i Nov. 2,1992 I i CITIES ADOPTING RESOLUTIONS SUPPORTING A CONSTITUTIONAL AMENDMENT ! i DEDICATING 2 CENTS OF STATE SALES TAX FOR PROPERTY TAX RELIEF ITY I DATE OF DATE or' POP. ADOPTION CITY POP. ADOPTIO -.-..--.. TWO HARBORS 3,651 Aug. 24, 1992 WEST ST. PAUL 19,248 Sept. 14, 199~; . VERNON CENTER 339 Sept. 8, 1992 WHEATON 1,615 seg. 10, 199:) . VERMILLION 510 Oct. 6, 1992 WI LLM AR 17,531 ct. 7, 199. VESTA 302 Sept. 8. 1992 WINDOM 4,283 Sept. 15. 199~!: WAHKON 197 Sept. 14, 1992 WINNEBAGO 1,565 AU~.12, 1992 WARREN 1,813 Sept. 14, 1992 WINONA 25,399 Ju Y 20, 1992 WASECA 8,385 Aug. 18, 1992 WINTON 169 Oct. 5, 1992 WATKINS 849 Sept. 10, 1992 WORTHINGTON 9,977 July 27.1992 WEST CONCORD 871 Sept. 2, 1992 .- ... .~...... .... ..~~~~~I .. _P_O"__."_, _"_"_ .,_. ....~_ ".:.", . _.~_...~.._ _:" _n_ :_'_ _" ,u"__" ,_u",_ ._.._~_.._~ _:_"__" . . _,'., ., .,..,.. ...,... ......'. ...... .__........ .. .... ... .....:':: I ~Jfllgf@ii~~6~~[iit~i{~!!l.!!ij~~lIl~t~l~ I I ~ I I , ORGANIZATIONS SUPPORTING CONSTITUTIONAL AMENDMENT DEDICATING ! 2 CENTS OF STATE SALES TAX FOR PROPERTY TAX RELIEF I I ! Oraanization Notes .sociation of Metropolitan Municipalities Approved by Board; Final Policy Adoption in November ague of Minnesota Cities Approved by Board; Final Policy Adoption in November ! Range Association of Municipalities and Schools Represents 27 cities, 8 townships, and 16 school districts on the Iron Range I STATE LEGISLATORS WHO AUTHORED BILLS SUPPORTING I CONST!TUTIONALAMENDMENTS DURING THE 1992 L(::GISLATIVE SESSIO~ Legislative Legislative Leqislator District Bill Legislator District Bill : Anderson, Irv HD3A HF2289 Lessard, Bob SD3 SF2519 i Bauerly, Jerry HD18D HF2290 Mariani, Carlos HD658 HF2241 I Beard, Pat HD56B HF2241 Mllbert, Robert HD39B HF2289 Bertram, Jeff HD16B HF2405 Nelson. Syd HD12A HF2291 Betterman, Hilda HD11 B HF2241 Owen, Paul HD14A HF2289 Bodahl, Larry HD35B HF2292 o son, Katy HD28B HF2405 Brown, Chuck HD11A HF2291 Olson. Edgar HD2B HF2289 Dauner, Marvin HD9B HF2291 Ostrom, Don HD238 HF2292 Frederickson, D.J. SD20 SF2519 Rest, Ann HD2B HF2289 Garcie, Edwina HD40A HF2290 Segal. Gloria HD448 HF2626 Hasskamp, Kris HD13A HF2241 Solberg, Loren HD3B HF2405 Jacobs, Joel HD49B HF2291 Sparby, Wally HD1B HF2290 .hnson, Bob HD4A HF2290 Steensma, Andy HD27B HF2292 lis, Henry HD298 HF240S Thompson, Loren HD10A HF2241 I elso, Becky HD36A HF2292 Wenzel, Steve HD13A HF2290 I i Kinkel, Tony HD4B HF2291 Winter, Ted HD28A HF2405 ! lasley, Harold HD 19A HF2292 .. Nov. 2, 1992 CITIES ADOPTING RESOLUTIONS SUPPORTING A CONSTITUTIONAL AMENDMENT DEDICATING 2 CENTS OF STATE SALES TAX FOR PROPERTY TAX RELIEF DATE OF DATE OF CITY POP. ADOPTION CITY POP. ADOPTIQ . ADA 1,708 Sept. 8, 1992 HOWARD LAKE 1,343 Oct. 6, 1992 ADRIAN 1,141 Sept. 21, 1992 HOYT LAKES 2,348 Sept. 21, 1992 ANDOVER 15,216 Sept. 15,1992 INDEPENDENCE 2,822 Sept. 8, 1992 APPLE VALLEY 34,598 Sept. 24, 1992 KEEWATIN 1,118 July 8, 1992 ARGYLE 636 Sept. 8, 1992 KELLOGG 423 Segt. 24, 1992 ATVVATER 1,053 Seg. 18, 1992 KASOTA 655 ct. 2, 1992 AURORA 1,965 ct. 6, 1992 KASSON 3,514 seg. 11,1992 AUSTIN 21 ,907 Sept. 8, 1992 KILKENNY 167 ct. 9, 1992 BAGLEY 1,388 Oct. 13,1992 JACKSON 3,559 Aug. 4, 1992 BATTLE LAKE 698 Sept. 8, 1992 LAKE CRYSTAL 2,084 Sept. 8, 1992 BECKER 902 Oct. 6, 1992 LAKE WILSON 319 Sept. 16, 1992 BEM1DJl 11,245 Sept. 21, 1992 LAKE FIELD 1,679 Sept. 8, 1992 BIG LAKE 3,113 Sept. 21, 1992 LAPRAIRIE 438 Sept. 16, 1992 . BIGFORK 384 Sept. 8,1992 LEWISTON 1,298 Sept. 9,1992 : BIRD ISLAND 1,326 Sept. 14, 1992 LESTER PRAIRIE 1,180 Sept. 8, 1992 BOVEY 682 Sept. 9,1992 UTTLE CANADA 8,971 Sept. 23, 1992 i BRAHAM 1,139 Sept. 8, 1992 LONG LAKE 1,984 Sept. 16,1992 : BRANDON 441 Sept. 8, 1992 LONG PRAIRIE 2,786 Sept. 21, 1992 . BRICEL YN 532 Oct. 5, 1992 LUVERNE 4,382 Aug. 10, 1992 BUHL 915 July 7,1992 LYND 287 Sept. 14, 1992 CALLAWAY 212 Sept. 8, 1992 MADISON LAKE 643 Sept. 14,1992 CHAMPLIN 16,849 Sept. 14, 1992 MANKA TO 31 ,477 July 27. 1992 iCHANHASSEN 11,732 Sept. 28, 1992 MARBLE 618 Sept. 14, 1992 I CHISHOLM 5,390 Sept. 8, 1992 MARINE ON ST. CROIX 602 Segt. 10, 1992 i CLARKS GROVE 675 Seg. 14,1992 MCKINLEY 116 ct. 6, 1992 i ClOQUET 10,885 --.., ct. 6, 1992 MINNEAPOLIS 368,383 Jan. 10, 1992 i COM FRY 433 Sept. 3, 1992 MINNEOTA 1,417 Sept. 8, 1992 : COSMOS 610 Sept 10, 1992 MINNESOTA LAKE 681 Oct. 6,1992 . COTTAGE GROVE 22,935 Sept. 2, 1992 MOORHEAD 32,295 July 20, 1992 . CRYSTAL 23,778 July 21,1992 MOUNT A1N LAKE 1,906 Sept. 8, 1 DAYTON 4,443 Aug. 3,1992 MURDOCK 282 Sept. 10, 1 DEERWOOD 524 Sept. 8, 1992 NASHWAUK 1,026 Sept. 23, 1992 ; DELAVAN 245 Sept. 14, 1992 NEW MARKET 227 Sept. 9, 1992 DETROIT LAKES 6,635 Aug. 4, 1992 NORTH MANKATO 10,164 Oct. 19, 1992 . DODGE CENTER 1,954 Sept. 8,1992 NORTH ST. PAUL 12,376 Aug. 3, 1992 'DULUTH 85,493 Aug. 24, 1992 OAK DALE 18,374 Sept. 8, 1992 . EAST GULL LAKE 687 Sept. 8,1992 OTSEGO 5,219 Sept. 28, 1992 EASTON 229 Oct. 14, 1992 PELICAN RAPID S 1,886 Sept. 14, 1992 · ElLENDALE 549 Oct. 8, 1992 PINE ISLAND 2,125 Sept. 25, 1992 : ELMORE 709 Sept. 14, 1992 REDWOOD FALLS 4,859 Aug. 4, 1992 ~ ELY 3,968 Sept. 14, 1992 REMER 342 Sept. 8, 1992 ; ERSKINE 422 Sept. 24, 1992 RICE 610 Oct. 5, 1992 ~ EXCELSIOR 2,367 Sept. 21, 1992 ROYALTON 802 Sept. 8, 1992 , FAiRFAX .. r--"" Ju!y7,1992 RUSHFORD 1 ,485 C:ont 1.:1 100? 1,t::.fO -....r"'.. I 'I ,........- FAIRMONT 11 ,265 Aug. 8, 1992 RUTHTON 328 Sept. 8, 1992 FALCON HEIGHTS 5,380 Aug. 12, 1992 SACRED HEART 603 Oct. 5, 1992 FARMINGTON 5,940 Oct. 6, 1992 ST. CHARLES 2,642 Sept. 8, 1992 FERTILE 853 Sept. 14, 1992 ST. CLOUD 48 ,812 July 20, 1992 FOLEY 1,854 Sept. 21, 1992 ST. PAUL 272,235 May 26, 1992 ! GRAND MARIAS 1,171 Au~.12,1992 ST. STEPHAN 607 April 4, 1992 i GRAND RAPIDS 7,976 Ju y 27,1992 SAUK RAPIDS 7,825 sebt. 14, 1992 IGREENBUSH 800 Oct. 22, 1992 SHAKO PEE 11,739 ct. 6, 1992 : HALLOCK 1,304 Oct. 5, 1992 SLAYTON 2,147 Sept. 21, 1992 : HAM LAKE 8,924 Sept. 8,1992 STEWAR1VILLE 4,520 Sept. 22, 1992 ,HANCOCK 723 Sept. 14,1992 STOCKTON 529 Sept. 8, 1992 ,HANOVER 787 Seg. 17,1992 STRANDQUIST 98 Sept. B, 1992 I HINCKLEY 946 ct. 6 1992 THIEF RIVER FALLS 8010 Se t. 8 1992 I Continued on next page ! - .. -- ---.- -- -- e CITY OF SAINT PAUL . ..--' "--. '. . .n ...L,,:" _ OFFICE OF THE CITY COUNCIL C . . " . ". . ,,,' e 80B LONG CO un cilm em ber November 2, 19921 Nelson Berg Mayor of Hopkins 238 21st Avenue N Hopkins, MN ~5343 ~\ \j ~ ~r{'-.- Dear ayor Berg: As you may recall, I sent a resolution to you a few months ago for consideration by you and your City Council. The resolution calls for the Legislature to support a constitutional amendment dedicating the funding for the Local Government Trust Fund and requesting the League of Minnesota Cities to make such an amendment one of their priorities for 1993. The constitutional amendment would dedicate the two cents of the state sales tax now going to the Local Government Trust Fund and would rename the fund the Property Tro..-payers' Trust Fund. By guaranteeing a consistent funding source for the Property Taxpayers' Trust Fund, local governments' abilities to meet the needs of their constituents will be enhanced. . As a local government official from a city that receives Local Government Aid, I am sure you understand the destabilizing effect that the continued tinkering with the current Local Government Trust Fund has on your city. The total elimination of LGA contained in the Trust Fund, as has been proposed by the Governor and others, would be devastating. Enclosed is a list of cities that have passed this resolution. As you can see, the number of cities supporting a constitutional amendment is large and it grows every day. I am asking that your City Council consider passing a similar resolution during the next month so we can begin talking with legislators. It is extremely important to get your city to adopt this resolution to strengthen our case at the Legislature. The LMC's Revenue and Legislative Committees have supported the constitutional amendment position unanimously, and it will go before the full membership at the November policy adoption meeting. Once your city has passed the resolution, I would urge you to take your case to your local Chamber of Commerce for their support. They need to know that if LGA disappears, local property taxes on businesses will have to be increased to make up the revenue shortfall that local governments will face. As small business leaders they also know the devastating effects property tax increases can have on local economies. You should also contact your local legislators to let them know that you support continuation of the partnership between the State and Local Governments. They should know how important creation of the Property Tax Payers Trust Fund and constitutional dedication of sales tax revenue for local property tax relief programs really is. . CITY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 612/298-4473 S~45 Printed on Recycled Paper " "-- -- -- .-- . e Thank you for your consideration on this issue. Together, we can help to keep Minnesota's property taxes low and its local governments strong. When Hopkins passes the resolution, please send copies to the League of Minnesota offices and to my office so that we can keep an accurate listing of all the cities supporting this effort. If you have any questions or comments, please contact me at 298-4473. ~[dS' Bob ng City Councilmember, S1. Paul cc: Steve Mielke I i I e . ~ -,- - ---- .r CITIES SUPPORTING A CONSTITUTIONAL e AMENDMENT DEDICATING STATE SALES TAX FUNDS FOR PROPERTY TAX RELIEF Nov.2,1992 * HaDoclc * Greenbush * Slrandqulst '* Argyle . "* Thl9f River FailS ~ Wamm Erslan~ *' B1gfork Fertie* Bagl~ *BlImIdJ . McKinle~~ ~I!A:* . . Hoytlakaa '"kAda M . MWStinBu -Ii BoYey Grand RapIds .. *L.aPrabie '* Moorhead * Callaway * Remer '* Detroit l.aJc81 . '* PeliCBll Rapkk *" Oeerwood '* East Gull4ke BatUe lake *" "* Brandon * '* Long Prairie WaI1kon "* Hlnddey NIon ~oyalton * RIce t;:ClIy nMNCmESM8rnOPOUT~AR~ St Slephanslf '* '* Foley *' . SiWk RapicU "* Hancock *' St Cloud Anelov8/' Independence Apple VaDey UttIeCanada WllIkIns *- BGdlIlr Champlin Long Lake "* Ul.I'dod<: :.tr "* Big l..Jil.:e Chanhanen Marine on St Crolx Crystal MInne8poIs WllJmar* * Atwsl8r Howen.1l.B1ce ., Cottage Grove North St Paul -{:( ...... Dayton 0akd8Je ~ . 'kt.aater p~ Excelsior Otsego Saaed H&art * '* BIrd Island Falcon Heights St Paul Fal'lrlngton Shakopee *"'lr.~ '* ~~~' P-As."'kat Ha.":'ll..l!.l:. Ve!'ln~mM F~ Hanover West St Paul L""* v~ * ~ ..'" Ru1hton * Redwood Falls . .' '. 8 r ~-.**-~~~ Ut e . luv9rne L.akelIeI* ~W1 ~ llolrnri e;..o.,;pllll:aG~ '. Rusl"iard *" ~ *WOOI1Inutoo "kJ FMmanl *AuotIrI EImote"* "* Ill1cWlyn "P01U,347:963D: ,~ . CITIES REPRESENTED: 131 . CITY OF HOPKINS Hennepin County, Minnesota . RESOLUTION NO. 92-103 A RESOLUTION CONCERNING A CONSTITUTIONAL AMENDMENT TO CREATE A NEW PROPERTY TAXPAYERS' TRUST FUND IN MINNESOTA WHEREAS, The State of Minnesota enacted a 3% State sales tax in 1967 with the promise to voters that the money would be returned to them in the form of property tax relief for property tax payers; and WHEREAS, in 1991 the Governor and State Legislature approved the addition of a 1/2% increase in the State sales tax, raising it from 6% to 6 1/2% with 2 cents dedicated to fund the Local Government Trust Fund which was created to continue the State's commitment to local property tax relief; and WHEREAS, in 1992, the Governor and State Legislature extended the 6 1/2% sales tax to local government purchases with the promise of continued property tax relief through the Local Government Trust Fund; and WHEREAS each year, local governments are forced to combat continued attempts . to reduce the levels of State revenue dedicated to local property tax relief through cuts in programs such as Local Government Aid; and WHEREAS, it is anticipated that the state will face another budget deficit in 1993, making cuts in local property tax relief programs tempting ways to solve the state's budget problems; and WHEREAS, Governor Carlson has already publicly announced that he will concentrate on eliminating local property tax relief programs during the upcoming legislative session; and WHEREAS, the League of Minnesota Cities and the Association of Metropolitan Municipalities have taken positions sUJPorting a constitutional amendment dedicating 2 cents of each 6 1 2 cents collected from the State sales tax to the Local Government Trust Fund if such dedication cannot be assured statutorily; NOW, THEREFORE, BE IT RESOLVED that the City of Hopkins calls upon the State Legislature to support a constitutional amendment dedicating 2 cents of each 6 1/2 cents collected by the State sales tax to a new Property Taxpayers'Trust Fund, to guarantee continued property tax relief from the current Local Government Trust Fund; and BE IT FURTHER RESOLVED, that the City of Hopkins strongly urges that the League of Minnesota Cities and the Association of Metropolitan Municipalities . make one of their 1992 priorities support for a constitutional amendment dedicating 2 cents of each 6 1/2 cents collected by the State sales tax to a new Property Taxpayers' Trust Fund; and . BE IT FURTHER RESOLVED, that the City requests that the League of e Minnesota Cities begin coordinating a series of state-wide "Truth in Taxation" meetings with property taxpayers to be held this fall, to educate the public and candidates for State elected offices on the issues regarding the need for a constitutional amendment dedicating 2 cents of each 6 1/2 cents collected by the State sales tax a new Property Taxpayers' Trust Fund to protect local property tax relief funds from budget cuts during the 1993 Legislative Session. Passed and adopted by the City Council of the City of Hopkins this 17th day of November 1992. Nelson W. Berg, Mayor A TrEST: James A. Genellie, City Clerk . .