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