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HomeMy WebLinkAbout2020-01-22 City Council Work Session Meeting PacketAgenda City Council Work Session City of Edina, Minnesota Community Room, City Hall Wednesday, January 22, 2020 5:30 PM I.Call To Order II.Roll Call III.Infrastructure Funding with Local Option Sales Tax IV.2020 State Legislative Priorities V.Adjournment The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing ampli(cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: January 22, 2020 Agenda Item #: III. To:Mayor and City Council Item Type: Reports / Recommendation From:Scott H. Neal, City Manager Item Activity: Subject:Infrastructure Funding with Local Option Sales Tax Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Discussion only. INTRODUCTION: At the Sept. 4, 2019 Work Session staff presented for discussion the potential to fund local and Municipal State Aid street reconstruction using a Local Option Sales Tax (LOST ). At the Nov. 6, 2019 Work Session, staff presented the business response to potential funding of infrastructure with Local Option Sales Tax (LOST). At that time staff indicated that a revised plan for the use of LOST to fund infrastructure improvements, including park amenities and transportation would be developed and brought for City Council consideration. Staff will discuss this plan. ATTACHMENTS: Description Staff Report: Infrastructure Funding with Local Option Sales Tax Resolution No. 2020-15: Infrastructure Funding with Local Option Sales Tax January 22, 2020 Mayor and City Council Scott Neal, City Manager Resolution No. 2020-15: Infrastructure Funding with Local Option Sales Tax Information / Background: At the Sept. 4, 2019, Work Session, staff presented the potential to fund local and Municipal State Aid (MSA) street reconstruction using a Local Option Sales Tax (LOST). The presentation included an analysis of estimated contributions of both residents and non-residents by the University of Minnesota Extension for the City of Edina. The study included a summary document that described the methodology used, analysis by merchant category and research on effects of implementing LOST. At the Nov. 6, 2019, Work Session, staff presented the business response to potential funding of infrastructure with LOST. One outcome of that meeting was while park amenities and MSA street reconstruction is a valid use, local street spending is not an eligible use for LOST. Staff indicated that a revised plan for the use of LOST to fund infrastructure improvements, including park amenities and transportation, would be developed and brought for City Council consideration. Recommended Projects The revised proposal for the use of LOST offers residents a method to invest in new and enhanced community park and recreational assets while preserving the ability to fund MSA street reconstruction with remaining sales tax revenues. The recommended projects will result in benefits to Edina residents, businesses and regional visitors. These projects have been previously discussed either as strategic initiatives for the city, through an adopted master planning process, been identified in the capital improvement program or been established as future priorities. They are currently unfunded from a budget standpoint but are ready for future implementation. Staff recommends that the following projects be pursued with LOST funding: • Fred Richards Park Master Plan ($17.7M) • Braemar Park Master Plan and Ice Arena Improvements ($20.9M) • Weber Woods Park and Storm Water Facilities ($2M) STAFF REPORT Page 2 • MSA Street Reconstruction (Projects total $39.2M) Fred Richards Park Master Plan ($17.7M) Fred Richards Park is being created from the former Fred Richards Golf Course, which closed in 2014. The 43-acre site, almost double the size of Centennial Lakes Park, will become a multi-use park for a variety of activities year-round. This site is connected regionally by the Nine Mile Creek Regional Trail Corridor, built in partnership with Nine Mile Creek Watershed District and Three Rivers Park District, which bisects the site. Fred Richards Park will subtly divide into sections, providing different experiences for people and nature. The vision includes features and amenities envisioned for the site to meet current and anticipated park and recreational demands. The Master Plan adopted July 2017, includes: Central Green – ($9.9M) Nature Bank – ($1. 9M) Great Lawn and Loop Area ($5.9M) Regionally, this community asset is directly connected via the Nine Mile and Three Rivers Park District Trail to Minnetonka, Hopkins and Richfield. The park is also connected to the Minneapolis Grand Rounds, Nokomis-Minnesota River Regional Trail, Minnesota River Bluffs Regional Trail, Cedar Lake LRT Regional Trail and Lake Minnetonka LRT Regional Trail. The park is adjacent to the Pentagon Park office project, home to numerous business organizations and employees. Braemar Park Master Plan including Braemar Arena Complex ($20.9M) At 500 acres, Braemar Park is the largest recreational space in the City of Edina. It is home to Braemar Golf Course, Braemar Golf Dome, Braemar Arena, Braemar Sports Dome and Field, and Courtney Fields. Improvements to the park includes improving the connectivity of trail systems, access, and wayfinding to park amenities and facilities; providing separated use trail systems to accommodate walkers, mountain bikers and cross-country skiers; identifying new site improvements and recreational amenities to enhance existing facilities; developing and improving the quality of natural resources in the park; incorporating sustainable site improvements to promote land water resources; and investing in facility infrastructure are goals of the masterplan. Masterplan adopted January 2018, includes: Master Plan – ($8.1M) Arena Complex Infrastructure – ($12.8M) Home to Edina High School, the Edina Youth Associations and the Braemar City of Lakes Figure Skating Club, regionally, this community asset draws recreational visitors from the entire Metro area, Greater Minnesota, Wisconsin, Illinois, Iowa and Canada. These park and recreation amenities are available for use by residents, business community members and school programs. Weber Woods Park and Storm Water Facilities ($2M) At just over 14 acres, Weber Woods was jointly purchased by the City of Edina and the City of St. Louis Park in 2016. The site is located adjacent to and between Weber Field Park in Edina and Minikahda Vista Park in St. Louis Park. Over 9 acres of the site is located within the City of Edina and its intended use is restricted to park, recreation, open space or storm water management. In 2019, The Edina City Council approved a flood reduction task force, to address the impacts of storm water throughout the city and Weber Woods was a focus area as it is adjacent to St. Louis Park and the City of Minneapolis. By developing park amenities at this location, the residents, businesses and visitors of Edina, St. Louis Park and Minneapolis would be served by these offerings. STAFF REPORT Page 3 Municipal State Aid Street Reconstruction (Projects total $39.2M) MSA street reconstruction is an eligible use of LOST funding. Staff projects little to no growth in the Highway Users Tax Distribution Fund, from which MSA funding originates. Without an increase in funding, the pace and scope of these projects will slow. Engineering staff identifies approximately 28 miles of future MSA street reconstruction projects estimated at $56M. LOST Funds could cover approximately $39.2M, with the remaining $16.8M covered by existing MSA Funds. Required LOST Statutory Process To impose a local sales tax, the City of Edina must obtain enactment of a special law authorizing it to do so by taking the following steps (in the order listed): 1) The Edina City Council must pass a resolution proposing the tax and include the following: a. the proposed tax rate; b. a detailed description of no more than five capital projects to be funded by the tax; c. documentation of the regional significance of each project including the benefits to non- local persons and businesses; d. the amount of revenue to be raised for each project and the estimated time to raise that amount; and e. the total revenue to be raised and anticipated expiration date for the tax. 2) The City of Edina must submit the resolution and documentation on regional significance of the project(s) to the chair and ranking minority member of the House and Senate tax committees by January 31 of the year that it is seeking the special law. 3) Working with a legislator, the City must request and get enacted a special law authorizing imposition of the tax. 4) The City of Edina must file local approval with the Secretary of State before the start of the next regular legislative session after the session in which the enabling law is enacted. 5) The City of Edina must receive voter approval at a general election within two years of receiving the local sales tax authority before it can impose the tax. A separate question must be held for each project and only the ones approved by voters may be funded by the sales tax. The authorized revenue to be raised and length of time that the tax is imposed is reduced for any project that is not approved by the voters. 6) The City of Edina must pass an ordinance imposing the tax and notify the Commissioner of Revenue at least 90 days before the first day of the calendar quarter on which the tax is to be imposed. Implementation of LOST Funding The projected sales tax rate of 0.5% would generate approximately $4M annually for project implementation. Based on a 20-year collection period, total revenue is projected to exceed $80M. Assuming that the three parks projects would proceed immediately and that the MSA street projects would occur over time, staff asked the City’s financial consultant to prepare a debt projection for the issuance of bonds for both $30M and $40M. Staff also asked them to base their projections on both a 10-year maturity and a 20-year maturity. For 20-years, annual debt service payments are $1.9M and $2.5M for bonds totaling $30M and $40M respectfully. This leaves about $1.5M - $2M for MSA street projects each year. A 10-year term would only allow for the issuance of $30M. STAFF REPORT Page 4 Action Requested: Staff recommends adopting the attached resolution supporting the authority to impose a local sales tax to fund the Fred Richards Park Master Plan, Braemar Park Master Plan including the Braemar Arena Complex, Webber Woods Park and Storm Water Facilities and the balance to support Municipal State Aid Street Reconstruction at a local sales tax rate of 0.5% generating $80,000,000 over 20 years. This resolution is required to be submitted to the State Tax Committee by Jan. 31, 2020. RESOLUTION NO. 2020-15 SUPPORTING THE AUTHORITY TO IMPOSE A LOCAL SALES TAX TO FUND SPECIFIC CAPITAL IMPROVEMENTS PROVIDING REGIONAL BENEFIT, TO ESTABLISH THE DURATION OF THE TAX AND THE REVENUE TO BE RAISED BY THE TAX, AND TO AUTHORIZE THE CITY OF EDINA TO ISSUE BONDS SUPPORTED BY THE SALES TAX REVENUE WHEREAS, the City of Edina has engaged the business community and identified four projects; 1. Fred Richards Park Master Plan ($17.7M) Fred Richards Park is being created from the former Fred Richards Golf Course, which closed in 2014. The 43-acre site, almost double the size of Centennial Lakes Park, will become a multi-use park for a variety of activities year-round. This site is connected regionally by the Nine Mile Creek Regional Trail Corridor, built in partnership with Nine Mile Creek Watershed District and Three Rivers Park District, which bisects the site. Fred Richards Park will subtly divide into sections, providing different experiences for people and nature. The vision includes features and amenities envisioned for the site to meet current and anticipated park and recreational demands. The Master Plan adopted July 2017, includes: Central Green – ($9.9M) Nature Bank – ($1. 9M) Great Lawn and Loop Area ($5.9M) Regionally, this community asset is directly connected via the Nine Mile and Three Rivers Park District Trail to Minnetonka, Hopkins and Richfield. The park is also connected to the Minneapolis Grand Rounds, Nokomis-Minnesota River Regional Trail, Minnesota River Bluffs Regional Trail, Cedar Lake LRT Regional Trail and Lake Minnetonka LRT Regional Trail. The park is adjacent to the Pentagon Park office project, home to numerous business organizations and employees. 2. Braemar Park Master Plan including Braemar Arena complex ($20.9M) At 500 acres, Braemar Park is the largest recreational space in the City of Edina. It is home to Braemar Golf Course, Braemar Golf Dome, Braemar Arena, Braemar Sports Dome and Field, and Courtney Fields. Improvements to the park includes improving the connectivity of trail systems, access, and wayfinding to park amenities and facilities; providing separated use trail systems to accommodate walkers, mountain bikers and cross-country skiers; identifying new site improvements and recreational amenities to enhance existing facilities; developing and improving the quality of natural resources in the park; incorporating sustainable site improvements to promote land water resources; and investing in facility infrastructure are goals of the masterplan. Masterplan adopted January 2018, includes: Master Plan – ($8.1M) Arena Complex Infrastructure – ($12.8M) Home to Edina High School, the Edina Youth Associations and the Braemar City of Lakes Figure Skating Club, regionally, this community asset draws recreational visitors from the entire Metro area, Greater Minnesota, Wisconsin, Illinois, Iowa and Canada. These park and recreation amenities are available for use by residents, business community members and school programs. 3. Weber Woods Park and Storm Water Facilities ($2M) At just over 14 acres, Weber Woods was jointly purchased by the City of Edina and the City of St. Louis Park in 2016. The site is located adjacent to and between Weber Field Park in Edina and Minikahda Vista Park in St. Louis Park. Over 9 acres of the site is located within the City of Edina and its intended use is restricted to park, recreation, open space or storm water management. In 2019, The Edina City Council approved a flood reduction task force, to address the impacts of storm water throughout the city and Weber Woods was a focus area as it is adjacent to St. Louis Park and the City of Minneapolis. By developing park amenities at this location, the residents, businesses and visitors of Edina, St. Louis Park and Minneapolis would be served by these offerings. 4. Municipal State Aid Street Reconstruction (Projects total $39.2M) MSA street reconstruction is an eligible use of LOST funding. Staff projects little to no growth in the Highway Users Tax Distribution Fund, from which MSA funding originates. Without an increase in funding, the pace and scope of these projects will slow. Engineering staff identifies approximately 28 miles of future MSA street reconstruction projects estimated at $56M. LOST Funds could cover approximately $39.2M, with the remaining $16.8M covered by existing MSA Funds. WHEREAS, the project(s) will result in benefits to both the residents and businesses of the city of Edina and to non-resident visitors and businesses; and, WHEREAS, funding the project(s) with a local sales tax will more closely distribute the cost of the project(s) to the users of the facilities; and, WHEREAS, the project(s) are estimated to cost approximately $79,800,000; and, WHEREAS, the city estimates that a local sales tax of 0.5 percent would generate $4,000,000 over ; and, WHEREAS, the city has provided documentation of the regional significance of each project, including the share of the economic benefit to or use of each project by persons residing, or businesses located, outside of the jurisdiction; and, WHEREAS, the estimated local sales tax revenue and estimated time needed to raise that amount of revenue for each project is as follows: • For Fred Richards Park Master Plan: The city will collect $17,700,000 over 20 years. • For Braemar Park Master Plan including Braemar Arena complex: The city will collect $20,900,000 over 20 years. • For Weber Woods Park: The city will collect $2,000,000 over 20 years. • For Municipal State Aid Street Reconstruction: The city will collect $39,200,000 over 20 years. WHEREAS, Minn. Stat. § 297A.99 authorizes the imposition of a general sales tax if permitted by special law of the Minnesota Legislature; and, WHEREAS, Minn. Stat. § 297A.99 requires the City to pass a resolution authorizing such a local tax and to obtain Legislative approval prior to approval by the local voters to enact the local tax; NOW, THEREFORE, BE IT RESOLVED THAT 1. The city council supports the authority to impose a general local sales tax of 0.5 percent for a period of 20 years to fund the aforementioned project(s); 2. Upon approval of this resolution, the city will submit the adopted resolution and documentation of regional significance to the chairs and ranking minority members of the House and Senate Taxes committees for approval and passage of a special law authorizing the tax, by January 31 of the year that it is seeking the special law. 3. Upon Legislative approval and passage of the special law authorizing the tax, the city will adopt a resolution accepting the new law, which will be filed with a local approval certificate to the Office of the Secretary of State before the following Legislative session. 4. The city will put a detailed ballot question(s), which includes separate questions for each project, on a general election ballot for local voter approval. This will be done within two years of receiving legislative authority. 5. If one or more ballot questions pass, the city will also pass an ordinance imposing the tax and notify the commissioner of Revenue at least 90 days before the first day of the calendar quarter that the tax will be imposed. 6. Upon completion of the aforementioned requirements, the local sales tax will commence and run twenty (20) years or until a sum sufficient to fund the voter approved project(s), including related debt costs, is raised, whichever comes first. Passed and adopted this 22nd day of January, 2020. Attest: Sharon Allison, City Clerk James B. Hovland, Mayor STATE OF MINNESOTA ) COUNTY OF HENNEPIN) SS CITY OF EDINA ) CERTIFICATE OF CITY CLERK I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of January 22, 2020, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this day of , 2020. City Clerk Date: January 22, 2020 Agenda Item #: IV. To:Mayor and City Council Item Type: Reports / Recommendation From:Casey Casella, City Management Fellow Item Activity: Subject:2020 State Legislative Priorities Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None; discussion only. INTRODUCTION: The State legislature will reconvene on February 11, 2020. Staff prepared the attached documents that highlight the City of Edina's legislative priorities. At tonight's work session, staff is available for questions or discussions regarding the priorities. As the 2020 legislative session progresses, additional issues may arise that can be addressed as necessary. ATTACHMENTS: Description Staff Report: 2020 State Legislative Priorities DRAFT Summary Handout: 2020 State Legislative Priorities January 22, 2020 Mayor and City Council Casey Casella, City Management Fellow 2020 State Legislative Priorities Information / Background This staff report provides detail to legislative priorities the City of Edina will watch for the 2020 State legislative session. The 2020 legislative session begins on February 11th. This staff report corresponds with a summary handout. The summary handout displays the priorities. The staff report provides background and detail for each priority. Association Legislative Priorities The City of Edina belongs to three legislative associations. Each has a set of legislative priorities adopted annually. Please see the organization’s legislative policies by visiting their website for more information. 1. The Municipal Legislative Commission 2. Metro Cities (Association of Metropolitan Municipalities) 3. The League of Minnesota Cities Edina-Specific Legislative Priorities City staff identified the following priorities in the 2020 legislative session. These priorities are in addition to supporting the three association policies above. Development of Parks Park Dedication Fees for Multifamily Redevelopment Projects • Support legislation to provide authority for statutory cities to collect fees for park improvements if a property is redeveloped and creates new demands on the park system. • Current state law does not allow statutory cities to capture park improvement district fees from certain types of multifamily buildings because they are not subdivisions. Multifamily buildings and apartments generate significant demands to parks and outdoor amenities. • By changing the legislation around the park improvement funds, cities could more evenly distribute the costs for maintaining and creating new parks. REPORT / RECOMMENDATION Page 2 Local Option Sales Tax • City of Edina seeks legislative authorization to use a local option sales tax to fund regionally significant parks and street reconstruction projects. • Edina is home to three regionally significant parks that have substantial funding needs in their master plans. The three parks are: Fred Richards, Braemar and Weber Woods. • Edina is also home to regionally significant roads. The City supplements Municipal State Aid (MSA) funding with a 20 percent assessment to property owners adjacent to the street reconstruction. Current funding only reconstructs one mile every other year on Edina’s MSA system. A local option sales tax will help meet street reconstruction needs on regionally significant MSA roads. Local Authority Motor Vehicle Lease Sales Tax Allocation • In 2015, state legislation was passed to reallocate $32 million of the sales tax collected from leased vehicles from the State’s general fund, 50 percent to Greater Minnesota and 50 percent to metro counties through the County State Aid Highway fund. To balance funding for transit and roads/bridges, the new law excluded Hennepin and Ramsey counties from receiving their percentage of funding. Instead, the other five metro counties split the proceeds generated in Hennepin and Ramsey counties. With the elimination of the Counties Transit Improvement Board (CTIB) in 2017, all seven metro counties now collect their own local transportation sale tax, but the exemption still blocks Hennepin and Ramsey counties. • The City of Edina advocates for returning to the original intent by eliminating the exemption of Hennepin and Ramsey counties and distributing the sale tax on lease vehicles, per the county state aid formula, to all metro counties. Distributing Hennepin and Ramsey county proceeds to the other five metro counties puts cities in Hennepin county at a disadvantage when it comes to accessing county funds for road and bridge projects. This change would provide an estimated $10.7 million in additional funding to Hennepin County to be used on roads and bridges. Utility Franchise Fees • Preserve current legal structure for utility franchise fees for local governments. Utility franchise fees allow costs to be shared by all users versus only property owners. • Edina uses utility franchise fees for the Pedestrian and Cyclist Safety (PACS) and Conservation and Sustainability (CAS) funds. Both funds are vital to the City’s progress in sustainability and pedestrian/cyclist safety. Municipal Liquor • Continue support of municipal liquor stores and recognize their ability to generate profit that is transferred back into local community programs and amenities. • Edina has operated a municipal liquor since 1948. The liquor operation generates over $1 million annually in profit. Much of these profits go toward Edina’s enterprise and recreation facilities, such as the ice arena and aquatic center. The City recreation programs serve children and families from all over the metro area. • Oppose proposals that diminish the ability of municipal liquor stores to provide fiscal and local control benefits to their community. Public Notices in Newspapers • The Legislature should eliminate outdated and unnecessary city publication requirements that are no longer relevant or representative of the technology that has significantly increased access to government. These requirements are unnecessarily costly to the city. In 2018, Edina spent approximately $36,000 on 143 public notices. Cities should have the authority to determine REPORT / RECOMMENDATION Page 3 whether web publication should replace or supplement newspaper publication based on the unique needs of each community. • Cities should have the authority to a) Determine whether web publication should replace or supplement newspaper publication. b) Designate an appropriate publication that reaches the maximum number of residents possible. c) Use alternative means of communication to fulfill statutory requirements such as city newsletters, cable television, video streaming, email, blogs and city websites. d) Expand the use of summaries where information is technical or lengthy by removing the requirement for Council approval of summary publications. Increase City Manager Purchasing Agency to Adjust for Inflation • The City Manager is the chief purchasing agent of statutory cities. Purchases and contracts over $20,000 are recommended by the manager but require additional approval by the City Council. In Edina, this approval is obtained through Requests for Purchase on the Consent agenda. • The $20,000 statutory threshold has not been raised since 2004. This does not account for standard inflation over the past 15 years. • The City of Edina supports a raise in City Council approval threshold to adjust for inflation. Repeal Statutory Salary Limitation on City Employees • Minnesota law limits the salaries of city employees to 110% of the Governor’s salary, with an annual inflationary adjustment based on the Consumer Price Index. Locally elected city councilmembers and mayors are in the best position to determine the needs of their communities, including the compensation of city employees. • The artificial cap on salaries places Minnesota cities at a disadvantage when recruiting and retaining talented individuals. Minnesota law already requires that each political subdivision post the salaries of its three highest-paid employees on its website, so the salaries of key employees are readily known to the local taxpayers and voters who provide the ultimate check on the actions of city councils. • Between 1998 and 2003, the Legislature exempted entities including school districts, hospitals, clinics and health maintenance organizations owned by a government organization from the salary limitation. During the 2018 session, the Legislature expanded that exemption by allowing the Metropolitan Airports Commission to be exempt from the salary limitation. • The Legislature should end the salary cap altogether and be consistent with all political subdivisions. Environment Advanced Energy Standards • Support the work cities have done around Advancing Building Performance Standards that would apply to any newly constructed and renovated commercial and multifamily development. • Buildings account for about 40 percent of all the energy used in Minnesota. Energy codes are among the most cost-effective way to impact the energy use and greenhouse gas emissions of new construction. Since 2009, Minnesota’s energy code has saved homeowners and businesses, reducing energy bills by about $160 million. While the Minnesota energy code is a mandatory statewide code, local governments are restricted from setting more ambitious standards. If Minnesota wants to meet state climate goals, cities need other options for improving the baseline energy requirements for buildings. • Bloomington, Edina, Minneapolis, Rochester, Saint Louis Park, and Saint Paul with over 20 engaged cities have convened city-led workshops to identify common interest and solutions. This work is being shared with elected officials in January 2020. Limited Liability for Private Commercial Salt Applicators • To address the growing levels of chloride pollution in water resources, legislation was proposed at the 2018 Minnesota Legislature to encourage commercial salt applicators to adopt winter REPORT / RECOMMENDATION Page 4 maintenance best management practices. The City supports limited liability for commercial applicators who complete the Minnesota Pollution Control Agency’s (MPCA) Smart Salting Certification Program. • The City of Edina passed Resolution 2018-18 supporting legislation to provide limited liability to commercial salt applicators that are certified through the MPCA program. Local Environmental Public Health Programs • The City of Edina supports the authority and opportunity of all cities and counties to locally operate delegated food, pool and lodging establishment regulatory programs supported by a local fee structure. • The City of Edina supports legislation that provides continued support of locally delivered environmental public health services. • The City of Edina supports a unified retail food safety system in a single state agency, which supports delivery of food safety program activities by local jurisdictions. Building Energy Benchmarking • Maintain authority for cities to create building energy benchmarking programs and ordinances. • Edina and St. Louis Park passed ordinances that would require buildings over 25,000 square feet to benchmark their energy data, like the current Minneapolis policy. Over 30 cities and a few states across the country have similar ordinances and see energy savings and emission reductions post ordinance. Inflow and Infiltration (I/I) Municipal Grant Program • Inflow and infiltration are terms for the ways that clean water (ground and storm) makes its way into sanitary sewer pipes and gets treated, unnecessarily, at regional wastewater plants. • The Metropolitan Council identifies cities contributing excessive inflow and infiltration (I/I) into the regional wastewater system and charges the city for the excess. • The City of Edina supports state financial assistance to cities for metro area I/I mitigation, such as the Municipal State Bond Grant Program. Transportation Municipal State Aid (MSA) Funding • The state aid road system was developed to provide vital, high-quality connections necessary for the overall state highway network to work well. The roads that are on the state aid system typically carry heavier traffic volumes, connect major points of interest and provide an integrated and coordinated road system. • The City of Edina has 40.85 miles of roads designated as MSA. The funding is a vital part of maintaining these high-quality connections. The City of Edina asks for continued support of municipal state aid funding. Street Improvement Districts • Enable legislation that would allow cities to create street improvement districts as a long-term replacement plan of special assessment financing of street improvement projects. • Almost 85 percent of municipal streets are ineligible for municipal state aid (MSA) funds and must be paid for with property taxes, special assessments or other funding sources such as franchise fees. Maintenance costs increase as road systems age, and no city is spending enough on roadway capital improvements to maintain a 50-year lifecycle. For every $1 spent on maintenance, a road authority, and therefore taxpayers, save $7 in repairs. • Cities need greater resources and flexible policies in order to meet growing demands for street improvements and maintenance. Enabling legislation that would allow cities to create street REPORT / RECOMMENDATION Page 5 improvement districts (like sidewalk improvement districts already allowed under Minn. Stat. § 435.44) would allow cities to use this tool as a long-term replacement plan of special assessment financing of local street improvement projects. Local Bridge Replacement Program (LBRP) Funding • The Local Bridge Replacement Program provides local agencies transportation funding for the reconstruction, rehabilitation or removal of bridges or structures. The City of Edina has 27 local bridges. • The program is financed by the passage of specific legislation allocating general obligation state bond funds. The program does not receive enough funding. In 2019, there were $36 million dollars in waitlisted unfunded bridge projects, including a request from the City of Edina on the Minnehaha Creek and Wooddale Ave bridge. • The City of Edina supports funding dedicated to the Local Bridge Replacement Program to provide safe bridges. Public Safety Bonding Request for the South Metro Public Safety Training Facility • The South Metro Public Safety Training Facility (SMPSTF) is a Joint Powers Agreement between the Metropolitan Airports Commission, and the Cities of Bloomington, Eden Prairie, and Edina. Since 2004, SMPSTF provides training space and opportunities for public safety personnel, and maintains ongoing contracts with the City of Minnetonka, Department of Homeland Security, Federal Air Marshal Service, and the Veteran's Affairs Police Department. • The SMPSTF has regional appeal because of its convenient location, multiple classrooms, fire training tower, firing ranges, defensive tactics gym, and a variety of training courses. • To continue providing state-of-the-art training facilities and services for emergency personnel, and as part of its strategic planning, the SMPSTF Board of Directors has identified multiple capital improvement projects totaling $5.7 Million. The Board of Directors submitted a bonding bill request for 2020. Funding of Fire Resources, Training and Statewide Response Teams • The Edina Fire Department relies on State funding for training through the Minnesota Board of Firefighter Training and Education (MBFTE). Edina is one of the primary departments that makes up the MN Task Force 1 Statewide Response Team. • The department relies on the appropriation of the dedicated revenue funds from insurance surcharge proceeds to fund vital functions of the Minnesota Fire Service. This funding has been approved by the Minnesota Legislature in the past. The MN Fire Service requests approximately $13 million to be appropriated from the dedicated revenue account to fund the State Fire Marshal’s office, the Minnesota Board of Firefighter Training and Education (MBFTE) and the Statewide Response Teams (HAZMAT, Task Force 1 Structural Collapse Team and Air Rescue Team). • The City of Edina supports broader discretion in the use of the Fire State Aid it receives. Railroad & Hazardous Substance Safety Training and Funding • Support railroad safety by requiring railroads to continue to provide training to responders and to share planning, response and rail line activity information with responders and emergency managers. • Edina has one active railway that carries two freight trains a day through the city. Residential Fire Sprinklers • Oppose efforts to statutorily limit the use of residential fire sprinklers. Sprinklers protect occupants, firefighters and property from fires. Recent Minnesota studies show the cost of installing residential REPORT / RECOMMENDATION Page 6 fire sprinkler systems averages $1.15 per sprinklered square foot, or approximately 1 percent of new home construction • Support the inclusion of professionals and industry experts in the creating or writing of any code parameters, particularly as it relates to the installation of fire suppression systems in residential building code. Retail Fireworks Sales • Oppose the expansion of legal firework sales in Minnesota. Fireworks cause injury and pose a serious fire risk to humans and animals. Oppose expansion of aerial and audible fireworks in Minnesota to protect residents from serious risk of injuries and property damage. Housing Protect Low- and Moderate-Income Tenants • Tenant Protection in Affordable Housing Property Ownership Change o Support city’s ability to enact tenant protections to support access to affordable housing and housing stability for tenants. Amend State statute 471.9996 to allow for a 90-day tenant protection period following the transfer of Naturally Occurring Affordable Housing (NOAH) property ownership. o Currently state statute prohibits any local adoption of an ordinance to control rents on private residential properties unless the ordinance is approved in a general election. Investment buyers have been purchasing NOAH multi-family residential properties, rehabbing properties and increasing rents. In some cases, new owners have non-renewed the leases of existing tenants with minimal notice and/or implemented substantial rent increases with minimal notice. A 90-day period that would prohibit rent increases and non- renewals would allow time for existing residents in these situations to seek alternative housing. • Eviction Expungement Reform o Records of unlawful detainer filings remain on a tenant’s public record regardless whether the matter was settled or dismissed prior to the court hearing or if the tenant prevails at the hearing. In these cases, the eviction record is not a reasonable predictor of future tenant behavior and should be expunged since the existence of this record impedes the ability of the renter to secure suitable rental housing in the future. o In 2019, Rep. Hassan introduced HF 1972 that would allow for expungement of the eviction record in the cases noted above. In addition, the courts could grant an expungement if an eviction case is three years old and the court finds that the court case is no longer a reasonable predictor of future tenant behavior and the expungement is in the interest of justice and those interests are not outweighed by the public’s interest in knowing about the record. o The City supports legislation that would expand the eligibility for discretionary and mandatory expungements for eviction case court files. Support Regulatory Tools for Affordable Housing • 4d Tax Classification Tax Rate Program o The 4d low-income property tax program is run by the state and provides a property tax benefit to qualifying low-income rental properties. The program provides an incentive for market-rate properties to designate a portion of their units as rent-restricted and provide tax relief to existing rent-restricted properties. o Although preservation of the program is the top priority, the City supports evaluating the 4d low-income property tax program to determine how program changes could affect REPORT / RECOMMENDATION Page 7 renters, landlords and property taxpayers. Studies should include participation and input from metropolitan local government representatives. • Land Trust Tax Reduction o Edina has 16 land trusts residential properties, with property values in the city rapidly increasing. The high property values and corresponding taxes are impacting the ability for land trust homeowners to remain in their home. o The city supports reducing property taxes for owners of land trust housing. • Inclusionary Zoning Ordinances o Inclusionary zoning ordinances allows for cities to require the development of affordable and workforce housing in market rate and commercial developments. o Inclusionary zoning ordinance are not allowed by statue for statutory cities. o City supports changing the statute to allow statutory cities to adopt inclusionary zoning ordinances. This will allow the city to address the growing need for affordable housing for our workforce and keep the city economically competitive. • Affordable Housing Fee on Development o The City of Edina requires a contribution into the Affordable Housing Trust Fund on new multi-family residential development. A contribution for all new development, including single-family homes or non-residential development, would help increase the trust fund for future housing projects and initiatives. o The city supports legislation that would allow for the collection of a permitting fee to contribute to affordable housing on all new development. Create New Funding Sources for Affordable Housing • Affordable Housing Financing Bonding Authority o The legislature provides bonding authority to construct affordable housing. The demand for affordable housing continues to rise, meriting the need for additional financing. o The city supports an effective bonding bill that provides Housing Infrastructure (HIB) and General Obligation (GO) Bonds to fund affordable housing to serve low-income households. • Establish Revenue Resource for Affordable Housing o The need for affordable housing in the State has grown to crisis proportion, requiring a larger response than local jurisdictions can provide on their own. Increased State level funding is critical to enable local jurisdictions to enact programs to facilitate the creation and preservation of affordable housing, including subsidized and Naturally Occurring Affordable Housing (NOAH). o The City supports establishment of a financing source to fund local and regional programs to facilitate the creation and preservation of affordable housing. • Affordable Housing Trust Funds o In the 2017 session, the legislature passed language that enables cities to set up and resource Affordable Housing Trust Funds (AHTFs). The City of Edina created an Affordable Housing Trust Fund in 2019. o The City supports legislation that establishes a dedicated revenue source for AHTFs, including a state match for local and regional housing trust fund investments and policies in support of affordable housing. • Tax Credit Contribution Fund o The housing market depends on federal tax credits to build affordable housing. Federal funding is increasingly volatile. A state-run program would simplify and increase participation in supplying adequate housing for all. The Minnesota Tax Credit Contribution Fund incentivizes private investment and promotes community and economic development. o The program is capitalized by contributions from taxpayers that have state income or corporate/insurance premium tax liabilities. In exchange for contributions to affordable housing, participating taxpayers receive credit against their state income tax liability equal to REPORT / RECOMMENDATION Page 8 their contribution to a specific development or the general loan pool. Participation in the program is simple, and the credit is flexible, easy to use statewide, leverages significant private equity, and boosts local businesses. o The city supports the establishment of a tax credit contribution tool to incentivize private investment and promote community and economic development. • Use of Pooled Tax Increment Financing (TIF) for Affordable Housing o Currently, state statute allows for the pooling of tax increment financing to be utilized for affordable housing within the defined redevelopment area of the city. However, the pooled TIF must be maintained in a separate fund with ongoing annual reporting requirements. o Allowing cities with established Affordable Housing Trust Funds to deposit the pooled TIF in those funds will allow for greater flexibility in the use of the pooled TIF for qualified costs to facilitate the construction and rehabilitation of affordable housing while alleviating the administrative burden of annual reporting. o Support legislation that would allow the City to deposit pooled TIF for affordable housing in Edina’s Affordable Housing Trust Fund. Development of Parks • Allow cities to collect park dedication fees for multifamily redevelopment projects • Support an Edina Local Option Sales Tax Local Authority • Eliminate the exemption of Hennepin/Ramsey counties in the Motor Vehicle Lease Sales Tax Allocation • Preserve utility franchise fees • Support municipal liquor operations • Eliminate city requirements for public notices in newspapers • Increase City Manager purchasing agency to adjust for inflation • Repeal statutory salary limitation on city employees Environment • Support advanced energy standards for commercial buildings • Support limited liability for private commercial salt applicators • Support local environmental public health programs • Maintain local authority for building energy benchmarking • Support Inflow and Infiltration (I/I) Municipal Grant Program Transportation • Support Municipal State Aid (MSA) funding • Support cities’ ability to create street improvement districts • Support Local Bridge Replacement Program Funding Public Safety • Support a bonding request for the South Metro Public Safety Training Facility • Support funding of fire resources, training and statewide response teams • Support railroad and hazardous substance safety • Oppose statutory prohibition of residential fire sprinklers • Oppose the expansion of retail fireworks sales Housing • Protect low- and moderate-income tenants o Tenant protection in affordable housing property ownership change o Eviction expungement reform • Support regulatory tools for affordable housing o 4d tax classification tax rate program o Land trust tax reduction o Inclusionary zoning ordinances o Affordable housing fee on development • Create new funding sources for affordable housing o Affordable housing financing bonding authority o Establish revenue resource for affordable housing o Support affordable housing trust funds o Tax credit contribution fund o Use of pooled tax increment financing (TIF) for affordable housing EDINAe CITY of 2020 State Legislative Priorities