HomeMy WebLinkAbout10B - Tas Limitation Proposals
CITY COUNCIL AGENDA REPORT
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
MEETING DATE:
AGENDA #:
PREPARED BY:
March 15, 2004 ~
10B ~
Frank Boyles, City Manager .
CONSIDER APPROVAL OF A RESOLUTION OPPOSING TAX AND
EXPENDITURE LIMITATION PROPOSALS.
AGENDA ITEM:
DISCUSSION:
History: Each state legislative session seems to include a debate about whether
and in what fashion the State should limit local government autonomy in
budgeting. Consequently, over the last decade, we have had some years with
limitations on levies and others without levy limits.
Current Circumstances: Since the legislature is once again in session, a new
limitation proposal is under consideration. This proposal would seek to amend the
state constitution to institute a tax and expenditure limitation at the State and local
levels. The expenditure limit could be over-ridden by a vote (referendum) of the
people.
Conclusion: Such legislation is contrary to various policies of the League of
Minnesota Cities and the Association of Metropolitan Municipalities. Both bodies
are asking member cities to adopt a resolution (attached) in opposition of such
legislation to be forwarded to legislators.
ISSUES:
I believe that it is accurate to say that each of us as taxpayers wants to receive
value for the tax dollars we pay. Accordingly, we expect our elected officials to act
responsibly in this regard. However, the adoption of a constitutional amendment
is not, in my opinion, the way to accomplish this objective. Here are a few of the
reasons why:
1. This legislation notwithstanding, the most effective accountability tool continues to
be the "one person, one vote" principal. If the Council, from a fiscal perspective,
conducts itself in a manner inconsistent with the community's desires, they will be
removed in favor of those who will.
2. Such legislation will undermine the ability of cities to respond in times of crisis.
3. The law undermines the concept of representative governance by eliminating one
of the most important decisions from the local arsenal - funding of community
services.
4. As a percentage of personal income, State and local spending have decreased.
I n the last decade in Prior Lake we have actually reduced our levy on two
occasions. The question then becomes "what is the problem the legislation seeks
to solve?".
5. Prior Lake has a 2020 Vision and Strategic Plan unlike most cities. Our plan calls
for fiscal responsibility and it is therefore one of the measures of our annual
success. It also calls for certain programs and expenditures which may require
www.cityofpriorlake.com
1:\CQUNCIL\AGNRPTS\2004\L1MITS Plli>hg~MJl~oY.,JiJQtax 952.447.4245
ALTERNATIVES: (1)
RECOMMENDED
MOTION:
greater financial emphasis than in other communities. This law could tie the
hands of a City Council trying to reach the goals defined by its community.
(2)
Adopt the attached Resolution opposing a constitutional amendment
regarding tax and expenditure limitation proposals and directing that the
Resolution be shared with legislators.
Take no action pending additional information.
Alternative (1). Motion and Second to adopt Resolution 04-XX opposing tax and
expenditure limitation proposals for cities and directing that the resolution be
shared with state legislators.
1:\COUNCIL\AGNRPTS\2004\L1MITS ON LOCAL AUTHORITY. DOC
RESOLUTION 04-XX
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
Motion By:
Second By:
WHEREAS, the Taxpayers League and others are endorsing proposals to amend the State Constitution
to institute tax and expenditure limitations at the state, and potentially local, levels of
government that could only be overridden by a vote of the people - an example of these
proposals is the "Taxpayers Bill of Rights"; and
WHEREAS, such proposals would tie the hands of state and local leaders in times of crisis and other
unpredictable circumstances, putting state and local governments on "auto pilot" and
circumventing thoughtful consideration of policy decisions; and
WHEREAS, such proposals would prevent state and local officials from making the tough decisions they
were elected to make; and
WHEREAS, amending the constitution is a virtually irrevocable action and should only be undertaken
when legislative remedies have proven inadequate; and
WHEREAS, such proposals are unnecessary - a "solution in search of a problem" - as demonstrated
by lawmakers in 2003 at both the state and local levels of government taking action to deal
with one of the worst budget crises to hit the State of Minnesota and, by result, Minnesota's
cities; and
WHEREAS, state and local spending as a percentage of personal income has actually declined in
recent years, even before the 2003 deficit; and
WHEREAS, TaBORITELs proposals, whether applied just to the State or to local governments as well,
would bring great harm to local communities through continued reductions in state funding,
increases in unfunded State mandates, and, potentially, direct tax and expenditure
limitations at the local level, which would severely erode local decision-making and the
ability of local governments to provide the basic services residents and businesses expect
and deserve; and
WHEREAS, such proposals contradict the fundamental principles upon which our constitution and
system of government are based - that representative, not direct, democracy is the most
effective form of government as it is most likely to result in good public policy; and
WHEREAS, states such as Colorado and others, that have adopted laws similar to the proposed
Taxpayers Bill of Rights, now face severe problems in meeting the basic needs of their
citizenry.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that:
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
1. The recitals set forth above are incorporated herein.
2. The Prior Lake City Council believes that State and local elected officials are elected to do a job-
that job is to represent the interests of their constituents, to deal with difficult decisions, to
thoughtfully debate and then to determine the best course of action for the state or the community
they serve.
3. The Prior Lake City Council opposes limits on State and/or local taxes and expenditures, whether
through constitutional amendment or other means, and supports the principle of representative
democracy as a fundamental premise of sound public policy.
PASSED AND ADOPTED THIS 15TH DAY OF MARCH, 2004.
YES
NO
Haugen Haugen
Blomberg Blomberg
LeMair LeMair
Petersen Petersen
Zieska Zieska
City Manager, City of Prior Lake
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