CR 88-196 City Contributions - Property Tax Reform
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September 29, 1988
88-196
CITY CONTRIBUTION - PROPERTY TAX REFORM PROPOSAL
Proposed ActiQD
Staff recommends adoption of the following motion: tlove that the City Council
8DproVe a contributiQn of S1.000 from the City's General Fund Contingency acco.~t
to the Association of Metropolitan MunicipalitiesjMunicipal Legislative Commisuion
Property Tax Reform P~oject.
This action will confirm the City ('If Hopkins I participation along with ma.ny other
cities throughout the state to support a $185,000 computer data update necessary to
develop a detailed property tax reform proposal for the 1989 Legislature.
Overview
The 1988 State Legislature adopted a number of property tax reform measures that
have wide and varying impact throughout the State of Minnesota. All of the lobbying
gxoups representing cities throughout the State have agreed to develop a property
tax reform proposal for 1989. The key element of the property tax reform proposal
will be the retention of the principles of Homestead Credit.
The effort to prepare a detailed and completely new property tax proposal will cost
$185,000. The suburb's share of the total cost 1s estimated to be between $35,000
and $50,000. Large suburban communities (above 20,000) 8:.re being asked to commit
$2,000 each to this effort. The cities in the 10,000 - 20,000 population category
are being asked to consider $1,000 contribution. As of this writing, a number of
suburbs already agreed to this contribution.
Prima4I Issues to Consider
o Is the City required to contribute?
The AMMfLKC group is asking for a voluntary contribution.
o What are the implications of not participating?
The City of Hopkins will certainly reap the benefits of any effort put forth on
behalf of cities, however., we will have little or no input into the process without
contributing financially. In order to protect the interests of our City, it may be
wise to contribute.
o How will the money be used?
The primary use of funds will be to upgrade computer capabilities so that a detailed
comprehensive property tax proposal can be prepared on behalf of all cities.
o Do other option exist?
The City can continue to provide input to the AMM and League of Minnesota Cities
through traditional channels. In addition, we can also attempt to influence our
local legislators. To date, these methods have been largely ineffective.
Supportin& Documents
o Letter from Association of Metropolitan Municipalities
(AMM) .
~~Craig R, Rapp, City Manager