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HomeMy WebLinkAbout00.A 2023 Legislative AgendaFIRE STI[ r 6 aw, OWN _ �`or - - r- LEGISLATIVE AGENDA Priority: Local Option Sales Tax Legislative Direction Cottage Grove supports utilizing a local option sales tax as a means of funding long-term regional park installation and improvement projects. Relevant Information • In order to pursue a local option sales tax, the city must adopt a resolution proposing the tax, submit resolution to state tax committees, get legislative authorization, adopt a resolution accepting the new law, hold a referendum, and pass an ordinance imposing the tax. • Minnesota Statute § 297A.99 specifies that the above process requires "regional significance" of any project(s) funded by a proposed local sales tax. • Funding is primarily for capital costs and projects that need to be specifically identified. • In Cottage Grove, long-term funding for new parks and park improvement projects is a challenge using just Park Dedication Fees and cell phone tower leasing revenues. • Minnesota Legislature requires a detailed description of up to five capital projects. Staff has compiled a list of planned projects that would meet the stated criteria. These are the three proposed projects that best fulfill the criteria as regionally significant: 1. Mississippi Dunes Park (development) 2. Hamlet Park (improvements and development) 3. River Oaks Golf Course (improvements) Hamlet Park Improvements Priority Obtain $17 million in funding through a local option sales tax for improvements to Cottage Grove's oldest and largest municipal park. Legislative Direction The city supports the implementation of a local option sales tax used for long-term improvements to Hamlet Park. These will enhance what continues to be a regionally significant park. WU�� Relevant Information • The planned improvements consist of the installation of a synthetic turf field and additional fields, upgrades to many of the core park amenities, improvements to the north trail entrance, a new splash pad, and a new park building. • Hamlet Park's 150 acres of park, fields, trails, and open space already make it one of the city's major regional draws. The proposed updates would broaden regional interest and continue to make Hamlet a desired location for baseball, softball, and other tournaments. • An updated park building, i amphitheater, skating rink, and skate park would be high selling points for families and groups looking to host get-togethers and tournaments in a family -friendly city. Parks & Recreation Contact: Zac Dockter, Parks & Recreation Director �� zdockter@cottagegrovemn.gov, 651-458-2808 River Oaks Golf Course Improvements Priority Secure $6 million in local option sales tax funding for improvements to River Oaks Golf Course & Event Center. Legislative Direction Cottage Grove supports the use of a local option sales tax to make improvements to the River Oaks Golf Course. These enhancements would increase the facility's appeal to a broader audience while also diversifying business opportunities. t PRACTICE FACILITY AND HIMALAYAN GREED! Relevant Information • In 2022 alone, the golf course attracted thousands of guests who played over 40,500 rounds of golf. • To keep up with growing demand for improved facilities and features, the proposed project would draw more golfers for putting on a Himalayan green and practicing on an advanced golf simulator. • Funding would also be used for major improvements to the outdoor patio and connecting the event center to the pro shop for a more inclusive environment. • The proposed improvements would serve as an easy way to remind regional golfers that River Oaks Golf Course is one of the premiere options for golfing and entertainment in the metro. Mississippi Dunes Park Priority Secure $13 million to improve public recreational access and habitat preservation along the Mississippi River. Legislative Direction; Cottage Grove supports acquiring funding support to be used for land acquisition, land/water recreational 4'a' use development and habitat preservation and restoration. This work not only improves access to the Cottage Grove region, but it also compliments the habitat preservation efforts at the state's Grey Cloud Dunes Scientific and Natural Area be in the form of grant programs, bonding programs or other. Funding support may Relevant Information • The city has been planning for such land use at the former Mississippi Dunes Golf Course, which includes nearly 2,000 linear feet of Mississippi River shoreline. • The city is currently planning for an approximate 40-acre public park situated on the shoreline of this property. Acquisition, construction and habitat preservation/restoration costs are projected at more than $10 million. ........ :a Cottage Grove will need state and regional funding support to fulfill the master plan. The park would include 4 a year-round a sNAExPAN ,OIV building, a nature- {. ARE based playground, open lawn area, a RESIDIED NATYYE . HABITAT trail system, and space for boat and kayak docking and ' launching. l l Parks & Recreation Contact: 'l Zac Dockter, Parks & Recreation Director �, zdockter@cottagegrovemn.gov, 651-458-2808 Priority: County 19A & 100th Street Realignment Legislative Direction Cottage Grove fully supports any efforts to fund the future 100th Street arterial roadway. The city requests $25 million for design, right-of-way acquisition and construction of the arterial roadway and adjacent roadways. Relevant Information • We anticipate spending approximately $2.5 million on design, $8.4 million for the grade -separated bridge railroad crossing, and $14.1 million for the arterial roadway construction and realignment. • In 2019, Washington County began the Southwest Arterial Study to address the lack of arterial roadways critical to serve new development in the county's southwest area. • The study provided a recommended route for the future arterial roadway and reviewed the impacts and benefits. • Since completion of the study, there has been significant interest in the Cottage Grove Business Park including NorthPoint Development, which will include 3.4 million square feet of warehouse, manufacturing, distribution and office space on 252 acres. The development will create at least 1,870 full-time jobs. • The Cottage Grove Business Park is currently only served by one feasible interchange: Highway 61 at Jamaica Avenue, which is fully built out with a two- lane, six -leg roundabout that receives a significant amount of traffic. • Additional funding is needed to construct a direct extension of 100th Street to Highway 61. The project would also include construction of a bridge over the Canadian Pacific railroad track. High- level cost estimates for this project are in the range of $20 million to complete. • Completing this extension in the next five years will be critical to the ongoing success of these major development projects and relieving stress along the Jamaica Avenue interchange. •" there Pride and?,O5peritY Meet *IMP Housing and Economic Development Cottage Grove continues to experience residential, commercial and industrial growth, creating a need for legislative action regarding: • Business expansion • Job growth • Redevelopment • Housing Transportation Due to rapid yet measured growth, Cottage Grove is focusing on the following areas: • Red Rock Corridor • Lights on Highway 61 • Shoppes at Cottage View • Street improvement districts • Municipal state aid funding Public Safety Cottage Grove Public Safety remains committed to protecting the city and its citizens by focusing on: • Mental health data sharing with law enforcement • Mental Health Response Act • Officer wellness • Law enforcement training funding • Funding for mutual aid reimbursement • K-12 threat assessments • Permit to purchase fees • Catalytic converter theft legislation Cottage J Grove �� y'here Pride and Prosperity Meet Parks and Recreation Cottage Grove has the vision of giving its residents the best recreational opportunities in the state by focusing on: • Mississippi Dunes Park • Future Regional Park Trailway Connection along Highway 61 • Other park improvements Revenue and Taxation Cottage Grove is committed to maximizing citizen engagement in the budgeting process, as well as maintaining transparency and responsible stewardardship of our citizens' tax dollars by focusing on: • Truth -in -taxation process • Restrictions on local government budgets • Sales tax on local government purchases • Special assessments • Market Value Exclusion • Market Value Exclusion for Veterans with a Disability Water Quality and Sustainability Cottage Grove remains committed to delivering water that meets state guidelines and producing a long-term plan to enhance resource sustainability while meeting community needs by focusing on: • Impaired water • Stormwater and wastewater • Water conservation • Groundwater and well monitoring Administration Cottage Grove is committed to excellence in the delivery of public services to community residents, businesses and property owners. The city operates with transparency and cost-efficient communication while ensuring businesses operate safely and to the highest standards. Cottage � Grove III �� there Pride and PVosperity Meet I Historic tax credit Priority Extend the historic tax credit legislation. Legislative Direction Cottage Grove supports extension of the Minnesota State Historic Structure Rehabilitation Tax Credit as a successful economic development tool for revitalizing distressed, vacant, and underutilized historic properties throughout the state and potentially in Cottage Grove. The city supports maintaining the federal tax credit for preservation of historic properties. Relevant Information • The Minnesota State Historic Structure Rehabilitation Tax Credit sunset in May 2022. The City of Cottage Grove has many historic properties in the community that would benefit from this tax credit. Job Growth Priority Cottage Grove supports economic tools that facilitate job growth without relying solely on the property tax base. The city supports study of allowing mixed -use buildings that have commercial and residential uses to be included in a special service district (SSD). Legislative Direction Cottage Grove supports a number of existing programs offered by the state, and furthermore, supports the study of allowing mixed -use buildings, that have both commercial and residential uses, included in an SSD. Relevant Information Examples of valuable state programs include green job development and related innovation and development. Other examples are minority business start-ups, small business financing tools including new markets tax credit program mirroring a federal initiative, and maintaining existing municipal authority to establish an SSD. Business Expansion Priority Support new and expanding businesses, infrastructure development and public -private partnerships. Legislative Direction Cottage Grove supports existing programs to help businesses thrive and expand. Relevant Information Examples of state -funded programs include the Minnesota Investment Fund (MIF), Job Creation Fund (JCF) and the Angel Tax Credit. Programs using statewide funding should award funds equitably between the metro region and greater Minnesota through competitive funding as opposed to direct legislative appropriations. Redevelopment Priority Begin implementation of redevelopment plans to reinvigorate a tax base that is not fulfilling its potential. Legislative Direction Cottage Grove supports the growth of current programs that help facilitate redevelopment and reinvestment in our residential, commercial and industrial sectors. Relevant Information The city supports: • The allowance of a maximum levy amount for the Livable Communities Act and increased general fund and state bond funds for DEED -administered programming. • Financing, regulatory tools and increasing flexibility in the use of Tax Increment Financing (TIF) for Transit -Oriented Development (TOD) and values funding for Transit Improvement Areas (TIAs). • Programs to correct unstable soils and allow cities to redevelop land previously used as landfills. • Initiatives helping cities/development authorities assemble small properties and ready them for business expansion and future development. • The city opposes any statutory language that would further constrain or reduce the effectiveness of TIF. • The city asks lawmakers to revisit eminent domain laws to allow local governments to address redevelopment issues before conditions become financially impossible to address. Community Development Contact: �- Jennifer Levitt, City Administrator jlevitt@cottagegrovemn.gov, 651-458-2890 Housing Priority Diversify the city's housing stock to ensure it is serving all demographic and socio-economic communities. Legislative Direction Cottage Grove supports state programs that allow municipalities to facilitate full -spectrum housing growth and rehabilitate older housing stock for residents in all stages of life. Relevant Information The city supports: • The location of affordable housing in residential and mixed -use neighborhoods throughout the city. The City does not support passage of a mandatory inclusionary housing state law imposed on local governments that would require a certain percentage of units in all new housing developments to be affordable to households at specific income levels. • The Metropolitan Council's affordability policy and allocation, as long as it recognizes the individual needs of each city and the need for significant financial assistance from the federal and state government, as well as the Metropolitan Council, to make progress toward creating additional affordable housing and preserving existing affordable housing. • The Metropolitan Council, with input by local government representatives, examining the allocation of need methodology with respect to the relationship between the regional allocation and the local share of the need. The formula should also be routinely evaluated to determine if market conditions have changed or if underlying conditions should prompt readjustment • Housing programs that assist housing development, preservation and maintenance of existing housing stock, including unsubsidized, naturally occurring affordable housing that is affordable to residents throughout the low -to -moderate income range. • Preserving and increasing funding for the Community Development Block Grant Program (CDBG) and the federal HOME program that are catalysts for creating and preserving affordable housing. • Removing the Metropolitan Council's review and comment authority connected to housing — revenue bonds. The City would like to see the Metropolitan Council work in partnership with local governments to ensure the range of housing needs for people at various life cycles and incomes can be met. Im' Community Development Contact: Jennifer Levitt, City Administrator �Av jlevitt@cottagegrovemn.gov, 651-458-2890 Red Rock Corridor Priority Give businesses the ability to attract talent from the surrounding community through transportation into the City of Cottage Grove. Legislative Direction Cottage Grove supports implementation of the Red Rock Corridor Bus Rapid Transit. Relevant Information • The Metropolitan Council projects the southeast metro will grow by at least 100,000 people over the next 20 years while 94% of the jobs will stay in Minneapolis and St. Paul. �4 RRI.15fY / COUNTY I MINNEAPOL4$, Aft— EIENHEPIN +; .l COUNTY WASHINGTON COUNTY Newpare s_ — _��- gt ➢nut Park 41 CeYtng.Graee #9 _. Cott.g. Croy. #4 Ha"inq, Hnalinga Depot RED ROCK sw.���o • Cottage Grove businesses have indicated in multiple Business Retention and Expansion interviews that they are having a harder time attracting talent without a reliable transportation network into the city. • The Red Rock Corridor is a 20-mile stretch serving the southeast Metro, which is part of the National Highway and National Scenic Byway systems. • Communities along the corridor have conducted a thorough investigation of transit needs and produced a phased approach with a near -term need for new local bus service and a long-term plan for bus rapid transit (including high -frequency service, robust stations, and enhanced parking facilities). Lights on Highway 61 Priority Acquire $4 million for funding corridor lighting along Highway 61 from the interchange with Washington County State Aid Highway 22 to the intersection with Trunk Highway 95. Legislative Direction Cottage Grove fully supports any efforts to fund highway lighting and increased safety on an increasingly busy stretch of highway serving one of the fastest growing areas of the state. Relevant Information • The only interchange lighting that exists is at 80th Street South, Jamaica Avenue South and County State -Aid Highway 19 (Innovation Road South). • There is no lighting from County State -Aid Highway 19 to Township Highway 95 and there are several unrestricted local access intersections present. Street Improvement Districts Priority Address the limited funding mechanisms for maintaining aging streets. Legislative Direction 1. Cottage Grove supports the authority of local units of government to establish street improvement districts, allowing cities in developed and developing areas to fund reconstruction and maintenance efforts. 2. Cottage Grove also supports changes to special assessment laws to make assessing state-owned property a more predictable process regarding the payment of assessments. Relevant Information • Funding sources for local transportation projects are limited to the use of Municipal State Aid (MSA), property taxes and special assessments. • The street improvement district is designed to allow cities to create a district(s) where fees will be raised on all properties in the district and must be spent within specific boundaries. • The city supports the modification of state laws to clarify the definition of "benefits received" as it relates to special assessments. Municipal State Aid Funding Priority Cottage Grove, like many growing communities, struggles to fund major roadway projects, creating costly delays and decreased motorist safety. Legislative Direction Cottage Grove requests the Municipal State Aid (MSA) formula and funding levels be reviewed as the current system is not sufficient to keep up with growing demands for maintenance, coupled with expanding MSA roadway systems in growing communities. Relevant Information MSA offers an advance to fund larger projects that creates delays for future MSA projects for several years. Thus, rehabilitation projects (like mill and overlay) cannot occur, reducing the useful life of a road and accelerating the cost of reconstruction projects. • The city anticipates reduced funding due to the pandemic, which will further challenge the city's ability to maintain our aging infrastructure. Transportation Contact: Ryan Burfeind, P.E., Public Works Director/City Engineer �%\� rburfeind@cottagegrovemn.gov, 651-458-2899 Shoppes at Cottage View Infrastructure Priority Secure funding for Shoppes at Cottage View infrastructure. The city requests $5 million to support the design and construction of this collector roadway and adjacent roadways. Legislative Direction Cottage Grove supports any efforts to fund the construction of public infrastructure to serve the Shoppes at Cottage View development. Relevant Information The Shoppes at Cottage View is a 73-acre site located in the northwest corner of East Point Douglas Road and Keats Avenue (County Road 19) in Cottage Grove. The city envisions the project area as a gateway into the community from westbound Highway 61/10. The project will provide Cottage Grove many opportunities such as an improvement in the quality of life of residents by creating jobs, increasing the local tax base, providing a safe, efficient, and interconnected network of local and collector streets, providing pedestrian connections to regional and local recreational amenities, public utility extensions, as well as housing opportunities for individuals at all income levels. The Shoppes at Cottage View site has been vacant since the early 2000s and developing the site will bring many public benefits. The city has produced several planning documents for this area of the city. One of the major features to emerge from the planning process was Ravine Parkway, which provides a connecting link for the entire East Ravine community. A portion of Ravine Parkway would be constructed with this project and would provide direct and efficient access for the community to this commercial area. Public utilities would be extended throughout the site to serve the adjacent properties with city water and sanitary sewer service. The site is also adjacent to Washington County's Cottage Grove Ravine Regional Park and the project provides pedestrian and bicycle access improvements across County Road 19 to the regional park. The development of the Shoppes of Cottage View will place the 73-acre site back into productivity by being on the city's tax rolls, as well as providing opportunities for employment, housing, and recreation, thus strengthening the local economy, and providing the residents and visitors of Cottage Grove a quality of life where they can live, work and play. Fire Mutual Aid Issue Priority Develop a mutual aid agreement for when city and township fire departments assist each other. Legislative Direction Cottage Grove supports developing a mutual aid agreement that would reflect Minnesota Statute § 12.331, which provides a framework for how worker's compensation, liability, property claims, insurance, and charges between fire departments will be handled in mutual aid situations. Relevant Information • Following the Red River floods and the St. Peter tornados, emergency responders helped pass Minnesota Statute § 12.331. • Many cities have entered into similar area -wide mutual aid agreements. To provide uniformity, the Legislature should pass a statute that includes definitions and clarifications for: a) Who commands in a mutual aid scene. b) Who will cover the firefighters for worker's compensation. c) How liability and property claims will be handled. d) Who will pay for expendable supplies such as foam. e) When fire departments will charge each other for these services. f) The ability for fire departments to opt out by having a separate written agreement. Mental Health Response Act Priority Fund multi -jurisdictional co -responder programs. Legislative Direction Cottage Grove supports legislation to fund multi -jurisdictional co -responder programs or embedded social workers. Additionally, Cottage Grove supports making changes to current policy and practices to better share information amongst first responders, medical professionals and human services representatives. Relevant Information • The goal is to improve the response to, and outcomes of, mental health calls for service. Public Safety Contact: Pete Koerner, Public Safety Director/Police Chief pkoerner@cottagegrovemn.gov, 651-458-6003 Officer Wellness Priority Understand and deal with the effects of common stressors facing our law enforcement professionals. Legislative Direction Cottage Grove supports legislation that would provide law enforcement agencies with training for emotional resiliency and understanding of responder trauma. Additionally, Cottage Grove supports a requirement for public employers to provide treatment for those diagnosed with PTSD and ensure the person remains financially whole while receiving 32 weeks of treatment. Relevant Information • This would create support groups, mental health checks and therapy, suicide prevention, awareness and family support. Law Enforcement Training Funding Priority Continue to fund training mandated by the Minnesota Police Officer Standards and Training Board (MN POST Board). Legislative Direction Cottage Grove supports continuing the MN POST Board training reimbursement allocation to local agencies, which began 1'f 04-11 Relevant Information The Peace Officer Training Fund is for mandated training in the areas of recognizing and valuing diversity and cultural differences, conflict management and mediation, crisis intervention and mental illness crises. Funding For Mutual Aid Reimbursement Priority Support funding mutual aid reimbursement requests. Legislative Direction Cottage Grove supports funding to provide mutual aid reimbursements. As civil unrest becomes more common, larger agencies in the metro are reaching out to Anoka, Dakota and Washington counties. Providing assistance costs agencies additional money for training, staffing and equipment. Relevant Information • Currently approved reimbursement was used for federal Emergency Management Assistance Compact (EMAC), Minnesota DNR and Minnesota State Patrol. No funds were allocated for local jurisdictions requested for mutual aid. K-12 Threat Assessments Priority Support mandated K-12 threat assessments teams. Legislative Direction Cottage Grove supports legislation requiring school districts to establish a team of trained subject matter experts to examine and address school safety issues based on the national best practice known as behavioral threat assessment. Relevant Information • This legislation would move our state beyond physical school safety measures, such as infrastructure improvement grants, passed by the Legislature in 2018. • Threat assessment is an evidence -based way to identify, assess, and manage threatening situations away from violence. • Threat assessment, properly done, is considered a standard-of-care/best practice by numerous organizations and advocacy groups including the U.S. Department of Education, National Association of School Psychologists, and the Federal Bureau of Investigation. • K-12 threat assessment teams and legislation have been officially supported by the MN Chiefs of Police Association and the MN Sheriff's Association. Public Safety Contact: Pete Koerner, Public Safety Director/Police Chief pkoerner@cottagegrovemn.gov, 651-458-6003 Permit to Purchase Fees Priority Allow agencies to charge a reasonable fee for processing a permit to purchase. Legislative Direction Cottage Grove supports allowing local municipal police departments to charge a reasonable fee for processing a permit to purchase an application. Relevant Information Currently Minnesota Statue § 624.7131 Subd 3. states there shall be no charge for forms, reports, investigations, notifications, waivers or any other act performed, or materials provided by a government employee or agency in connection with application for or issuance of a transferee permit. The permits and their renewal shall be granted free of charge. Ambulance Service Costs and Liability Priority Require Medicare to set ambulance payment rates to cover the cost of providing services. Legislative Direction Cottage Grove supports federal legislation that would require Medicare to set ambulance payment rates to cover the cost of providing service for transport and non -transport care of patients, require adequate reimbursement for ambulance providers, require Medicare to reimburse 911 ambulance transports regardless of medical necessity, and make it easier for providers to file claims by eliminating Medicare's processing system. Relevant Information The cost of providing ambulance care has increased steadily over recent years due in part to changes in Medicare and Medicaid reimbursement. The federal Balanced Budget Act of 1997 made two significant changes to ambulance billing. First, the act mandated that ambulance services cannot bill the Medicare or Medicaid patient for any unpaid balance beyond the Medicare or Medicaid assignment. Second, the act mandated a uniform fee schedule that was implemented in 2002; the new fee schedule significantly reduced reimbursement levels for many ambulance services. In most cases, Medicare does not pay for costs related to treatment of patients that are not transported. The loss of revenue due to reimbursement changes is affecting the ability of many ambulance service providers to deliver emergency care, particularly in rural Minnesota. All ambulance services and personnel must comply with the same licensing, training, and equipment -related requirements, regardless of ownership. Future State/County Recreational Trail Connection Priority Secure funding for a trail connecting Cottage Grove Ravine Regional Park to Point Douglas Regional Park. Legislative Direction Cottage Grove supports the planning, design, and future funding of a Highway 61 Trailway connection between Cottage Grove Ravine Regional Park and Point Douglas Regional Trail/Park. Relevant Information • A trail along Highway 61 from Cottage Grove Ravine Regional Park to Point Douglas Regional Trail/Park would be a unique recreational experience for the region, state and outstate visitors. Highway 61 is both historic and scenic but has no recreational trail access. The trailway would connect Cottage Grove's Ravine Lake to the confluence of the Mississippi and St Croix rivers as well as historic Hastings downtown via the Highway 61 arch bridge trail. Parks & Recreation Contact: Zac Dockter, Parks & Recreation Director f` zdockter@cottagegrovemn.gov, 651-458-2808 Truth -in -Taxation Process Priority Evaluate the effectiveness of the summary budget information requirement. Legislative Direction The summary budget information requirement enacted under the 2021 omnibus tax bill should be evaluated for effectiveness and value to taxpayers. The requirement should be converted to a suggested option and cities should be able to substitute their established local process and format to explain their proposed budget to taxpayers. Relevant Information • The requirement to include summary budget information has been a significant and complicated internal process without a noticeable value to taxpayers. Restrictions on Local Government Budgets Priority Maintain city autonomy in deciding the appropriate level of local taxation and services. Legislative Direction Cottage Grove strongly opposes levy limits, reverse referenda, super majority requirements for levy, and valuation freezes, or other restrictions on local government budgeting and taxing processes. Relevant Information These types of restrictions undermine local budgeting and taxing processes, planned growth and the relationship between locally elected officials and their residents. Revenue and Taxation Contact: Brenda Malinowski, Finance Director bmalinowski@cottagegrovemn.gov, 651-458-2832 Sales Tax on Local Government Purchases Priority Secure sales tax exemption for purchases of goods and services made by cities. Legislative Direction Cottage Grove supports the 2013 reinstatement of the sales tax exemption for purchases of goods and services made by cities, specifically granting an extension of the motor vehicle sales tax (MSVT) exemption to all municipal vehicles that are used for general city functions and are provided by governmental entities. Relevant Information • Currently, only certain vehicles, including road maintenance vehicles purchased by townships and municipal fire trucks and police vehicles not registered for use on public roads, are exempt. Special Assessments Priority Clarification of "benefits received" regarding special assessments. Legislative Direction Cottage Grove supports modifications to state laws governing special assessments for construction projects or other improvements arising from legislative authority to clarify the definition of "benefits received" Relevant Information • When property owners challenge special assessments based on application of the special benefit test, some courts have interpreted "benefits received" to mean the one-year increase in property value that is directly attributable to a construction project. • There is currently no consistency between state laws and rulings by some courts on the term "benefits received" • The modified definition should more closely align with how special assessments are calculated and recognize that the benefit of the improvement to a property may be realized over time and not within one year. bmalinowski@cottagegrovemn.gov, 651-458-2832 Homestead Market Value Exclusion Priority Increase the benefits of the homestead market value exclusion program and the similar veterans' program Legislative Direction Due to the recent rapid increase in home values, the city supports modifications to the homestead market value exclusion program to increase the benefit of the exclusion to qualifying homeowners. Changes to the homestead market value exclusion should be considered in concert with the impact of the homestead credit refund program. Relevant Information 35,000 30,000 EE 25,000 G 20,000 v15,000 E 10,000 5,000 Homestead Market Value Exclusion P � °P' ° O °��.­� ,i O°°'� � P'�p�..6 °O° .yA. by titi9 q5 .�.�0 P"�. Homestead Estimated Market Value In 2011, the legislature repealed the existing homestead market value credit program and replaced it with a new Homestead Market Value exclusion (Minnesota Statute § 273.13, subd. 35). The State of Minnesota encourages home ownership by providing owner -occupied properties a reduction in their property taxes. The amount of the homestead exclusion varies depending on the market value of the property. The maximum value amount of the exclusion is $30,400 for residential properties with a market value of $76,000. As the property's market value increases above $76,000, the amount of the exclusion decreases. As home values increase in excess of $76,000 of market value, the exclusion phases out until it completely ceases for homes valued over $413,800. The general parameters of the program have not changed since 2011. Trends in residential home values have significantly reduced the value of the exclusion for many homeowners. According to the Minnesota Association of Realtors, in 2021 the median sales price was $306,750, which received an exclusion of $9,633, or just 3.1 percent of the total value of the home. During the 2022 legislative session, legislators considered proposals to increase the homestead market value exclusion. The House would have increased the exclusion to 40 percent of the value on the first $80,300 of value and extended the full phase -out to homes valued up to $437,100. The Senate would have increased the exclusion to 40 percent of the value on the first $95,000 of value and extended the full phase -out to homes valued up to $517,200. In addition to increasing the benefit of the exclusion to qualifying homeowners, the market value exclusion for veterans should be increased. These exclusion for veterans have not changed since 2011 (Minn. Stat. § 273.13, subd. 34). The current exclusion is $150,000 for a partial disability and $300,000 for a full disability. During the 2022 legislative session, there were proposals to increase the exclusion to $200,000 and $400,000. Revenue and Taxation Contact: Brenda Malinowski, Finance Director bmalinowski@cottagegrovemn.gov, 651-458-2832 4 Street Reconstruction Bond Approval Priority Amend the laws governing issuance of bonds to maintain streets. Legislative Direction Cottage Grove supports amending the laws governing issuance of bonds to maintain streets to allow the approval of the bonds by a simple majority of the council. The existing reverse referendum process allows taxpayers to trigger a referendum on the bond issuance if they can meet a five percent petition threshold. Relevant Information • Under Minnesota law, financing the maintenance of streets can be a challenge for city councils. Minnesota Statute § 475.58, subd. 3b, authorizes a city council, by two-thirds vote, to approve the issuance of bonds to finance street reconstruction or bituminous overlays without voter approval. The two-thirds council approval requirement is further subject to a reverse referendum process whereby a number equal to five percent of those voting in the last municipal general election can petition for a referendum to approve the issuance of the bonds. Local Option Sales Tax and City Revenue Diversification Priority Adopt a balanced revenue system to avoid the problems created by excessive reliance on any single tax. Legislative Direction Cottage Grove supports a statutory change to allow the City to enact a local sales tax for public improvements and capital replacement costs. Relevant Information L Under current state law, the property tax is the only generally accessible form of local tax revenue for cities. Allowing the city to diversify its revenue stream would help prevent rapid additional future reliance on the property tax. Each tax has unique strengths and weaknesses. The more intensively any single tax type is used, the more obvious its shortcomings become. A balanced and diversified revenue system may create a more favorable business climate and provide for greater stability of revenues throughout the course of the economic cycle. Brenda Malinowski, Finance Director bmalinowski@cottagegrovemn.gov, 651-458-2832 Impaired Water Priority Support continued metropolitan development while protecting all water resources. Legislative Direction Cottage Grove supports continued funding to improve the region's ability to respond to developmental market demands including, but not exclusive to, surface water impairment assessments, Total Maximum Daily Load (TMDL) development and stormwater or wastewater construction grants. Relevant Information • Cottage Grove supports and values initiatives aimed at protecting water resources at the municipal, county, state and federal level, which includes the Clean Water Act. • Cottage Grove opposes entity -specific exemptions from fees because every type of property is required to pay stormwater fees. Groundwater and Well Monitoring Priority To support water quality and well monitoring efforts in accordance with the EPA Safe Drinking Water Act. Legislative Direction Cottage Grove strongly encourages continued funding of grant money through the Minnesota Department of Health (MDH) to assist communities in implementing their wellhead protection plans (specifically drilling additional sentinel wells to monitor aquifer levels and contamination plumes). Relevant Information • Cottage Grove supports additional funding for Perfluorochemicals (PFC) Biomonitoring in the area. • The city supports working with the MDH on the continuous monitoring of city groundwater and wells for Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS), having completed part one of our Wellhead Protection Plan in August 2015 and part two in March of 2017. Water Quality and Sustainability Contact: �- Jennifer Levitt, City Administrator jlevitt@cottagegrovemn.gov, 651-458-2890 i Water Conservation Priority Contribute to a statewide effort to promote water conservation while providing municipal autonomy relative to individual communities. Legislative Direction Cottage Grove supports legislation promoting aquifer recharge, change in water use practices, development of minimum irrigation standards, applying technology for smart water use, additional scientific data collection and exploring water reuse options at contaminated sites that rely on water extraction or pollution containment. Relevant Information A single "catch-all" option should not be applied to a region or sub -region. • The city opposes funding of any implementation cost involved with the DNR North & East Metro Groundwater Management Area if it does not directly result in supplying water to the City of Cottage Grove and its residents. Stormwater and Wastewater Priority Ensure attempts to address water supply sustainability take all water users (and variables) into account, including municipalities, industry, private wells, agriculture and contamination containment. Legislative Direction Cottage Grove supports the removal of barriers to wastewater and stormwater re -use and advocates for improved interagency coordination on all levels, including on the state level. Relevant Information Water regulation is complex and compartmentalized, requiring strategies to cross agency jurisdictions through improved coordination and cooperation. �- Water Quality and Sustainability Contact: Jennifer Levitt, City Administrator �` jlevitt@cottagegrovemn.gov, 651-458-2890 Newspaper Notification Requirement Priority Replace the requirement of a local newspaper notification with electronic notices on the city website and other social media platforms. Legislative Direction Cottage Grove requests the state repeal the newspaper notification requirement due to the costs for municipalities, the decline of local newspapers and the increase and proliferation of technology information tools. Licensure of Massage Therapists Priority Seek state to establish a state requirement for licensure of massage therapists. Legislative Direction Cottage Grove requests the implementation of a statewide licensing system for massage therapists, ensuring minimum competency requirements are met. Administration Contact: Jennifer Levitt, City Administrator jlevitt@cottagegrovemn.gov, 651-458-2890