02-07-94 agenda~~~.~
CITY OF RICHFIELD
MONDAY, FEBRUARY 7, 1994
CITY COUNCIL STUDY SESSION
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
I. 7:00-8:00 P.M. REVIEW OF RICHFIELD 1994 LEGISLATIVE
INITIATIVES AND POLICIES PACKAGE
STUDY SESSION LETTER N0. 2
II. 8:00-8:30 P.M. DISCUSSION OF POLICY AND STRATEGY
RECOMMENDATIONS FOR AIRPORT RELATED ISSUES
STUDY SESSION LETTER N0. 3
III. 8:30-8:45 P.M. DISCUSSION OF 1994 STRATEGIC GOALS
STUDY SESSION LETTER NO. 4
IV. 8:45-9:00 P.M. REVIEW OF SNOW EMERGENCY ORDINANCE
STUDY SESSION LETTER NO. 5
V. 9:00-9:15 P.M. DISCUSSION OF FEES FOR THE 1994 SUMMER
PLAYGROUND PROGRAM
STUDY SESSION LETTER N0. 6
VI. 9:15-9:30 P.M. DISCUSSION OF UTILITY BILL PENALTIES AND
CERTIFICATION
STUDY SESSION LETTER NO. 7
9:30 P.M. ADJOURNMENT
AUXILIARY AIDS .FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE
UPON REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN
ADVANCE TO THE ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702.
CITY OF RICHFIELD, MINNESOTA
Study Session Letter No.7
Agenda February 7, 1994
Issue Statement•
Discussion of utility bill penalties and certification.
Background•
During the•course of budget sessions in 1993 utility billing
penalties and certification fees were discussed. Subsequent to
those discussions, a Council Memo (No. 104) was prepared which
reviewed the current penalty structure and presented issues for
consideration.
No action was taken in 1993 to change the current penalty and
certification fees. If City Council Members would like to make
changes for 1994,. now would be the appropriate time to initiate
such changes. This would allow ample time to give notice to
residents of a change and implement it in time for the 1994
certification process.
Council Memo No. 104 (1993) is attached to this Council Letter.
It presents the issues for discussion and suggests some possible
changes. If no changes are desired, no further consideration of
this matter is necessary at this time.
Recommended Motion:
Review the attached information concerning utility billing
penalties and certification fees.
Basis of Recommendation:
1. Council Members previously indicated an interest to review
the utility billing penalties and certification fees, in
order to decide if changes are needed.
2. If changes are desired, it would be timely to begin that
process now.
Alternative Recommendation:
1. If no changes are desired in the penalty or the certification
fee, no further discussion is needed at this time.
Discussion/Decision Mode:
Any changes which may be desired for the utility billing
penalties and/or certification fees should be acted upon at a
Council meeting in February in order to allow ample time to
notify residents .and implement the changes.
Res lly submitted,
Ja a D. Prosser
City Manager
JDP:ds
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
November 12, 1993
Council Memorandum No. 104
The Honorable Mayor
and
Member of the City .Council
City of Richfield
Subject: Utility Bill Penalties and Certification
Council Members:
The City Council recently discussed the current penalties and
certification fees assessed to delinquent accounts. At the
conclusion of that discussion, .staff indicated that the exact
calculations for a sample delinquent account would be presented
in a future memo. This memo presents that information as well as
some additional considerations for changes in the penalties and
certification structure.'
Attachment A describes a sequence of events for a hypothetical
account which becomes delinquent in January and stays delinquent
until certification of the account. The example assumes a fixed
$50 per quarter utility bill. In the final analysis, under the
current system the City recovers the delinquent charges for the
year in addition to .$15.51 in late penalties and the $20
certification fee.
Richfield has not charged an additional interest penalty for the
15 months that the certified account is going through the special
assessment process. This is also true of LHN and nuisance
assessments. All other assessments carry an additional interest
charge for the period the respective assessment is in the special
assessment process. As a matter of practice, many cities charge
an additional interest rate from the time of certification to the
time of collection for delinquent utility accounts.
Another penalty consideration which was suggested by a Council
Member was changing the certification fee of $20 to a percentage
of the delinquent amount of each account. Under MN Statute, the
fee assessed for certification must be justified to reimburse the
municipality for processing of certification. The cost of
processing, certifications is the same irrespective of the
delinquent amount. Thus, a percentage certification fee would
not be justifiable. However, other interest penalties could --
address this concern.
Issues For Consideration
After comparing the process Richfield uses with a number of other
cities and reviewing Richfield's certification history data, a
number of issues may warrant consideration.
• The 5$ penalty amount could be raised to 6.5~ which is more
of a reflection of market interest rates at this time. Even
at 6.5~, Richfield would not be on the high end of interest
penalties charged.
• Assess interest on the certified delinquent utility
assessment at the rate of 8$, which is used for most City
assessments. In the example illustrated in Attachment A,
this additional interest would equal $18.55 (8$ at 15
months).
• The certification fee could remain at $20. Computerization
of duties in the next year will allow-the certifications to
continue to be processed at $20 per transaction.
Postscript to 1993 Utility Certifications
At the September 13, 1993 City Council meeting, a resolution
certified 438 utility accounts totaling just over $120,000.
Since that date, 113 accounts have been paid in full including
penalties and certification fees and will not be specially
assessed. The paid up accounts reflect $26,380 of the total
certified amount.
Of the total certified, four utility accounts represent a
significant portion of the total. One 46 unit apartment
.building is $11,418 delinquent, a 28 unit building is $5,255
delinquent and a 23 unit building is $5,151 in arrears. The
fourth major account is an industrial property which is $6,462
delinquent. The four accounts total $28,286
If the City Council would like to change the penalty amounts,
please let me know within the next few weeks. Notices to our
customers regarding interest and certification penalty changes
for 1994 should be given to customers very early in the year.
R p ully submitted,
Jam D. Prosser
City Manager
JDP:ff
y
Attachment A
January 1993 $ 50.00
2.50
S 52.50
April 1993 $-52.50
50.00
5.13
.5107.63
Charge for service
5~ late penalty
Total delinquent
Past Due
Current charge for service
5~ late penalty
Total delinquent
July 1993 5107.63 - Past. Due
50.00 - Current charge for service
7.88 - 5-°s late penalty
5165.51 - Total delinquent
August 1993 5165.51 - ,Past due
Certification 20.00 - Certification charge
5185.51 - Certification to property tax
Breakdown of 5150.00 - Charge for service
Certified 15.51 - Late penalty
Total °>20.00 - Certification fee
CITY OF RICHFIELD, MINNESOTA
Study Session Letter No. 6
Agenda February 7, 1994
Issue Statement•
Discussion of fees for the 1994 summer playground program.
Background•
Over the past. several years, staff has received citizen requests
for playground sites at parks in their neighborhoods where there
has not recently been a playground. During neighborhood meetings
for both Nicollet and Washington Parks, neighbors asked if there
would be a summer program in their park now that it was being
built. Neither park has had a summer playground or winter
skating rink for at least eight years. Fremont Park neighbors
have also requested a summer playground program. Most residents
requesting park programs suggested that they would be willing to
pay a nominal fee to have a playground in their neighborhood.
With budget cuts over that same period of time, it has been
difficult to maintain the same level of programs. Programs have
been maintained for two reasons. In 1992, Jefferson Park, which
has had a program, was closed for construction. In 1993,
playground programs were cut from eight to seven weeks. In 1994,
Madison Park, which has also had a program, will be under
construction.
Staff began discussing these requests during preparation of 1994
budgets. A variety of ways that more sites could have
playgrounds were reviewed, including reducing the number of hours
per week at each site, alternating sites on a daily or
morning/afternoon basis, reducing the number of weeks, or
charging a minimal fee to provide sufficient revenue to cover the
costs of additional sites. The Commission reviewed several
options over meetings from August through November. At their
meeting of November 30, the Commission voted to recommend to the
Council that they authorize a charge of $15 per person for a
seven week summer playground program, and give staff the
authority to determine which playgrounds would have programs
based on a minimum registration necessary to provide that
service.
In a separate action, at the Council's request, one of staff's
proposals to reduce budget costs was a $15 a person charge at
established summer playgrounds to provide additional revenues.
This would not have expanded programs to any additional sites.
The Council did not choose to use that suggestion. At this time,
staff is requesting direction from the Council on a fee for
summer playgrounds.
Recommended Motion:
This is a study session item, so there is no recommended motion.
Basis of Recommendation:
Council has been asked to ..provided some direction to staff.
Alternative Recommendation:
None.
Discussion/Decision Mode:
In order to plan, hire and publish program changes, staff needs a
decision by the end of February. Mid-February would be helpful.
Respectf~i~ly submitted,
Jamey D. Prosser
City nager
JDP:ds
CITY OF RICHFIELD, MINNESOTA
.Study Session Letter No. 5
Agenda February 7, 1994
Sackground•
Staff has been requested to review the City's snow emergency
ordinance (1305.13) with the City Council and recommend any'
changes deemed necessary.
Background•
For a number of years, Public Safety and Community Services have
been working to accomplish a quick and thorough snow removal on
City-owned streets. This process is .performed by street crews
and police officers who enforce the ordinance which states:
"No person may park or leave standing any vehicle
upon any street or highway in the City after a
snowfall of at least three inches. Parking may be
resumed on such streets or highways after the snow
has been removed or plowed to the curb lines."
Typically when three or more inches of snow falls, the City
declares a "snow emergency" which is relayed to residents by:
• Richfield cable channel 34
• WCCO-AM radio
• Snow emergency phone message number (-861-9178)
In addition, several times during the winter season, articles are
published in the Richfield Sun and the City's newsletter.
In enforcing. the ordinance, several hours are generally provided
before tagging begins. At that time, tickets are issued and red
tags are put on cars indicating the vehicle must be removed
within 48 hours or it will be towed. The tickets are S12 and the
towing cost is $50 or more.
In an effort to get streets cleaned, this system seem to work
well. Perhaps the only confusion that could occur is that the
recording is removed from the snow emergency phone message number
(861-9178), yet some streets are not plowed curb-to-curb, due
primarily to cars being parked inhibiting snow removal.
To remedy this, internal procedures can be changes, keeping the
recording on until street crews say they are "completely done,"
which means continued enforcement action. However, to staff's
recollection, the current procedure seems to have worked other
than one or two exceptions. Generally, staff received two kinds
of calls during snow emergencies:
• Those who get tickets and feel unfairly treated.
• The City doesn't ticket enough.
Recommended Motion:
Review the City's snow emergency ordinance.-
Basis of Recommendation:
1. Staff has been requested to review the City's snow emergency
ordinance.
Alternative Recommendation:
1. The Council may decide to defer this discussion to another
time.
Discussion/Decision Mode:
Council has requested that this issue be discussed at a Study
Session. Community Services and Public Safety can provide
additional dialogue. The Council may consider other policies
after review.
Respectfully submitted,
~.._ _.
Jame . Prosser
City anager
JDP:cak
CITY OF RICHFIELD, MINNESOTA
Study Session Letter No. 4
Agenda February 7, 1994
Issue Statement:
Discussion of 1994 strategic goals.
Background•
The Council has recently completed a team building/goal setting
session for 1994. ,The Council established goals for 1994.
Recommended Motion:
1. Discuss the goals with City staff:
2. Develop a list of high priority/low-urgency issues for future
discussion at Study Session.
Basis for Recommendation:
1. It is appropriate for the Council to review the goals with
staff.
2. It is appropriate that the Council decide which high
priority/low urgency should be discussed at future meetings.
Alternative Recommendation:
1. ,The Council may decide to defer this matter to another time.
Discussion/Decision Mode:
This matter will be. presented at the Study Session of February 7,
1994.
Respectfully submitted,
Jam s D. Prosser
Cit anager
JDP:ds
i
CITY OF RICHFIELD STRATEGIC GOALS FOR 1994
1. Brainstorm development opportunities and implement the best ideas in
the marketplace.
2. To expand our remodeling efforts, transformation, and Ford Town
relocation efforts to keep our community standards high and attract
residences and businesses.
3. Obtain Federal/State approval for a high speed bus initiative to reduce
traffic on local streets and prevent a loss of homes due to potential
freeway expansion.
4. Develop and implement a communication strategy that provides
general information to the public with detailed back up information for
those that want or need it.
5. To provide resources to the City. Commissions to improve their
effectiveness and build improved communication between the
Commissions/citizens and the Council.
6. Develop a contingency plan with alternatives in the event of significant
funding reduction from other jurisdictions.
8
CITY OF RICHFIELD, MINNESOTA
Study Session Letter No. 3
Agenda February 7, 1994
Issue Statement•
Policy and strategy recommendations for airport related issues.
Background•
Recent developments regarding airport issues include the
following:
• New Ford Town and Rich Acres Acquisition
W.D. Schock & Co. has released its Phase I timeline for the
NFT/RA land acquisition .and relocation. Agreements are in place
between Schock and the appraisal firms. Initial interviews have
already begun, and appraisals for hardships will begin the second
week of February. Closings are targeted for the beginning of
April, with the first relocations scheduled for the end of April.
Schock has assured City staff that the relocation teams will have
specific instructions to promote Richfield housing .programs to
NFT/RA residents. City staff provided the relocation teams with
a bus tour of Richfield Rediscovered homes, as well as some
examples of Transformation Housing projects. Initial interviews
have shown positive interest by NFT/RA residents to relocate
within Richfield; three of five interviewed desired to remain in
the City.
City staff met with Tom Anderson, legal counsel for MAC, and Jim
Fortman, MAC Director of Airport Development, to discuss service
provision of NFT/RA following the buyout. Among the issues
discussed was who would be responsible for service expenses
incurred, rate of service decommissioning, and which entities
would be responsible for different services.
Fortman will be proposing to the MAC Planning and Environment
Committee on Tuesday,. February 8, that they recommend to the full
commission early purchase of two HUD Homes located in New Ford
Town. HUD had applied for Hardship Status on both homes, which
was subsequently denied for not meeting hardship specifications.
Further review by MAC and City staff determined it was in the
best interests of all parties to pursue early purchase. The
fiscal dividend of the purchase is a long term savings of roughly
$100,000.
• 4-22 Extension
City Staff met with MAC Chair Richard Braun to discuss the
Revised Draft Environmental Impact Statement for Runway 4-22.
"This Week Burnsville" reported that Burnsville officials are
calling for suspension of plans for the extension (Jan. 2, 1994).
Their contention is that the environmental study is flawed
because it didn't analyze the added impact of the proposed north-
south runway.
• MSP Long Term Comprehensive Plan
MAC selected Site 3 as the relocation area for an alternative
airport, as prescribed by the Dual Track Planning Process. Site
3 is located southwest of Hastings on the Vermillion River. The
State Legislature will begin debate on the merits of relocating
MSP in 1996.
e FAA Airport Capacity Design Team
FAA released the MSP Capacity Enhancement Plan, developed by the
Airport Capacity Design Team, on Thursday, January 27. The plan
recommended 12 airfield improvements and .runway reconfigurations,
7 facilities and equipment improvements, and 4 operational
improvements. All recommendations were made to increase capacity
and reduce delay at MSP. It is important to note that none of
the recommendations was favored.
• Part 150 Sound Insulation Project
The MAC Planning and Environment Committee will be asked to
recommend approval by the commission of bids received for the
Sound Insulation Program. There are 51 homes participating in
this phase of the project.
Recommended Motion:
.Discuss current airport policy issues.
Basis for Recommendation:
It is important for the council to provide direction to staff on
airport policy.
Alternative Motion:
Defer discussion to another date.
Discussion/Decision Mode:
This matter will be discussed at the Study Session of February 7,
1994.
Respe ully submitted,
J D. Prosser
C'ty Manager
JDP:ds
CITY OF RICHFIELD, MINNESOTA
Study Session Letter No.2
Agenda February 7, 1994
Issue Statement•
Review of the City of Richfield 1994 legislative initiatives and
policies package.
Background•
The attached City of Richfield legislative initiatives and
policies are based upon Council policy and direction as
previously established. Policies will be presented to the
Council and to our legislative representatives at the Study
Session of February 7. The legislative initiatives which have
been prepared are a condensed version of some problems facing the
City with some proposed solutions. The legislative initiatives
have been previously provided to the Legislature so that they may
review these issues prior to the Study Session of February 7.
Recommended Motion:
The legislative initiatives and policies will- be presented for
discussion purposes with Council Members and Legislators. No
formal action is required at this meeting.
Basis for Recommendation:
1. Prior discussions with Council on legislative issues.
2. Recommendations by League. of Minnesota Cities and Association
of Metropolitan Municipalities.
Alternative Recommendation:
1. The Council may choose to revise, delete or add policies at
their pleasure.
Discussion/Decision Mode:
This matter. will be presented to the Council at the Study Session
of February 7.
Res tf ly submitted,
Ja a D. Prosser
Ci y Manager
JDP.:ds
Attachment
Copy: State Representative Edwina Garcia
State Representative Mark Mahon
State Senator Phil Riveness
State Senator Jane Ranum
County Commissioner Randy Johnson
.Metropolitan Council Representative Sondra Simonson
CITY OF RICHFIELD
1994 LEGISLATIVE INITIATIVES 6~ POLICIES
TABLE OF CONTENTS
RICHFIELD'S 1994 LEGISLATIVE INITIATIVES ...................... 1
1. RESOURCES OF VITALITY ............... ............... ..... 2
A. CITY/SCHOOL IMPACT AID
B. LOCAL GOVERNMENT AID (LGA)
C. HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA)
D. SUSTAIN LEVY LIMITS REPEAL
E. CITY FUND BALANCES
F. PENALTIES AND INTEREST ON DELINQUENT PROPERTY TAXES
G. SUPPORT FISCAL DISPARITIES
H. EXPAND T.I.F. FUNDING USES
I. SPECIAL ASSESSMENT ADMINISTRATION
2. RESOURCES FOR REDEVELOPMENT ............................... 5
A. T.I.F. - INCENTIVE FOR FISCAL DISPARITIES GAINERS
B. T.I.F. - MODIFY USE DEFINITION
C. T.I.F. - RESTRICTIONS ON USE OF T.I.F.
D. T.I.F. - EVALUATE FUTURE WINDFALL OF EXPIRED T.I.F.
DISTRICTS
3. RESOURCES FOR RENTAL-HOUSING......... ................... 6
A. "THIS OLD HOUSE" - RENTAL PROPERTY
B. MHFA RENTAL LOAN PROGRAMS
C. REVENUE SOURCES FOR SELECTIVE REHABILITATION
4. RESOURCES FOR SINGLE FAMILY HOUSING ....................... 7
A. BLIGHTED PROPERTIES PROGRAM
B. MHFA HOUSING TRUST FUND
C. "THIS OLD HOUSE" MODIFICATIONS
5. NEW RESOURCES FOR VITALITY ............... ... ............... 8
A. AIRPORT
1. HOUSING REPLACEMENT
2. NOISE .ABATEMENT
3. OFF-SITE AIRPORT NOISE MITIGATION
- 4. MAC COMMISSIONER TO SOLELY REPRESENT RICHFIELD
B. REVENUES FOR REDEVELOPMENT
C. COMMUNITY DEVELOPMENT FEE -
D. RECREATION APPROPRIATION BONDING BILL
i
6. RESOURCES FOR TRANSPORTATION ............................ 10
A. HIGHWAY FUNDING
B. LIGHT RAIL TRANSIT (LRT)
C. HIGH SPEED BUS
D. HIGHWAY IMPROVEMENT PRIORITIES
E. MUNICIPAL STATE AID (MSA)
F. STREET~UTILITY FUND
G. DEMONSTRATION PROJECT FUNDING
7. COMMUNITY ENVIRONMENTAL PROTECTION ........................ 12
A. WATER MANAGEMENT ORGANIZATION
B. HOUSEHOLD HAZARDOUS WASTE
C. MANDATORY NOISE BUDGET ORDINANCE AT MSPS
8. COMMUNITY GOVERNANCE .......... ........................... 13
A. ELECTIONS (ABSENTEE VOTING)
B. ELECTIONS (GENERAL)-
9. COMMUNITY AFFORDABILITY ................................... 14
A. MANDATES
B. -PAY EQUITY
C. EMPLOYEE BENEFITS
D. LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATIONS
E. INTEREST ARBITRATION
F. WORKERS'. COMPENSATION
G. VETERAN'S PREFERENCE
H. LIQUOR ISSUES
I. TEMPORARY EMPLOYEES
J. ADMINISTRATIVE FEE FOR DNR TRANSACTIONS
K. WORTHLESS CHECKS
L. POLICE MINORITY RECRUITMENT
M. --CRIME PREVENTION
N. STATE BUILDING PERMIT SURCHARGE
O. FIREARM TRANSFER PERMIT FEES
P. CABLE TELEVISION REGULATION -
ii
RICHFIELD'S 1994 LEGISLATIVE INITIATIVES
First-ring .suburbs such as Richfield continue. to find themselves
in a unique position. Many first ring suburbs have now reached a
critical stage in their development. The repositioning and
revitalization of their housing market requires extensive effort.
At the same time, we are faced with the-need to develop and
strengthen a viable commercial tax base. Both are necessary to
maintain the overall viability and livability of these
communities. -
First ring suburbs cannot be placed in the same category as other
newer, growing suburbs. Cities such as Richfield can also not
expect to compete for legislative attention in the same manner as
core cities. Without special attention, first ring suburbs such
as Richfield can become our "throw away" suburbs. However, with
proper ;attention, these communities can continue to support their
center cities and maintain an important role in the stability of
regional development.
Richfield is responding to the .challenge of maintaining its long
standing position in the metropolitan area. Some of the primary
efforts that support Richfield's successful response to this
challenge include:
• commercial redevelopment;
• installation. of planned public improvements now, at current
costs;
• selective clearance and replacement of properties with obsolete
conditions with more appropriate land uses;
• rehabilitation of existing single family housing;
• rehabilitation of existing multifamily housing;
• renovation of parks, playgrounds and-other community -
facilities;
• implementation of neighborhood crime watch/fix up campaigns;
• social service support for growing segments of the community;
• proactive response to airport operations and planning; and
• participation in transportation planning issues which will
affect the entire metro area.
The following initiatives summarize Richfield's most acute
problems and recommend legislative solutions. The objective is
to remain progressive and proactive to the challenges facing the
community. Resources must be of a sufficient quantity to have a
positive impact on the needed redevelopment, maintenance and
essential services. A response to Richfield's vitality must
recognize the need for resources now to deal with the impact of
issues facing Richfield today.
1
CHALLENGE 1 - RESOURCES OF VITALITY
New and modified revenue sources are needed to ensure that
resources are of~a sufficient quantity to have a positive impact
on housing, redevelopment, maintenance and essential services in
Richfield. Of particular concern are the impacts due to airport
operations and long range planning.
RESPONSE:
1.A. CITY/SCHOOL IMPACT AID
The City of Richfield and School District should be made
whole for. the net loss of revenue because of the buyout
of the New Ford Town and Rich Acres neighborhoods. In
February 1992, the .total net annual loss was calculated
to be .$350,000 for the School District and $50,000 for
the City, totalling $400,000 per year, assuming airport-
related uses govern the future use of the property.
The City supports reimbursing local units of government
for a period of ten years for property acquired for
public purposes. Eligible projects are identified only
as property which has a total tax capacity equal to l$ of
the impacted city or town, at least 300 housing units are
involved and the property will be used for a public
purpose. This legislation will compensate the City and
School District for the lost. state aid/property taxes as
a result of the buyout of the New Ford Town and Rich
Acres neighborhoods for a period of ten years.
1.B. LOCAL GOVERNMENT AID (LGA)
The City strongly supports the League of Minnesota Cities'
(LMC) and Association of Metropolitan Municipalities
position which guarantees that .the Local Government Trust
Fund (LGTF) revenues continue to be used for property tax
relief. The key features of the position are as~follows:
•~Funding for city LGA will grow at the same rate as
revenues into the LGTF.
• The city LGA. share of LGTF revenue growth will be
distributed to compensate for differences in need and
differences in tax base.
• The new formula will correct perceived inequities in the
current .distribution of aid over time as increased
funding permits. The formula will not cut current aid
amounts for any city.
2
1.C.
1.D.
1.E.
1.F.
l.G.
• Future aid increases will be based on objective factors
outside the control of local officials, and will not be
based on historical spending.
• The new formula will automatically distribute the
increased LGTF revenue available for city aid and will
not encourage or require annual legislative "tinkering.
This will help assure stability in future city aid.
HOMESTEAD AND AGRICULTURAL CREDIT .AID (RAGA)
The City opposes payment of additional HACA for property
class rate reductions from the Local Government Trust Fund
beyond those rate reductions already in law through taxes
payable in 1994.
SUSTAIN LEVY LIMITS REPEAL
The City supports the Legislature's repeal of City levy
limits. Removal of levy limits enhance local
accountability, allow cities to plan for and respond to
changing financial conditions and the increasing costs of
state and federal mandates. Levy limits have been
inconsistent with the principles of local self-government
and accountability.
CITY FUND BALANCES
The City supports the .position that the Legislature should
not attempt to control or restrict city fund balances.
These funds are necessary to maintain the fiscal viability
of city governments to purchase capital goods and
infrastructure to maintain high level bond ratings, and to
pay the operational costs of administration of local
government prior to the time that the tax settlements are
received by the City. Cities must have adequate fund
balances at the beginning of each fiscal year to finance
expenditures for the first full six months of .the year.
PENALTIES AND INTEREST ON DELINQUENT PROPERTY TAXES
counties and school districts receive penalty and interest
payments on delinquent property taxes.
The City urges the Legislature to pass legislation that
would. provide that cities receive their proportionate
share of revenues from penalties and interest collected on
delinquent property taxes. These revenues should not be
deducted from State aid payments. Under current law, only
SUPPORT FISCAL DISPARITIES
The City urges the Legislature to continue to support the
Fiscal Disparities Program. This program offsets some of
the financial differential between developed and
developing communities and acknowledges the greater needs
of developed areas.
3
l.H. EXPAND T.I.F. FUNDING USES
The City urges the Legislature to modify the definition of
administrative services within Tax Increment Financing
(T.I.F.) Districts to include health and safety support
services identified by the redevelopment district plan and
budget..
1.I. 'SPECIAL ASSESSMENT ADMINISTRATION
The City urges the Legislature to repeal authority for
counties to assess a separate charge to administer special
assessments.
4
CHALLENGE 2 - RESOURCES FOR REDEVELOPMENT
Richfield has made significant progress in reversing the
deterioration and decline in commercial-retail areas of .the City.
Market conditions, the significant lead time required for
development, and the considerable expense to address the .
remaining blighting conditions and planned public improvements
requires additional resources. Richfield demonstrates a prudent
and proper use of Tax Increment Financing.
RESPONSE:
2.A. ~ T.I.F. - INCENTIVE FOR FISCAL DISPARITIES GAINERS
Develop and support legislation that would provide special
financing incentives unique to communities that are
significant fiscal disparities gainers. This would help
balance the concerns of fiscal disparities losers who
believe that they are supporting commercial/industrial tax
base poor communities to a greater extent than necessary.
2.H. T.I.F. - MODIFY USE DEFINITION
Support modifying the definition of administrative
services. within Tax Increment Districts to include health
and safety support services identified by the
redevelopment district plan and budget.
2.C. T.I.F. - RESTRICTIONS ON THE USE OF T.I.F.
Resist further restrictions on the use of Tax Increment
Financing given that it remains one of the only ways for
Richfield to finance the expensive redevelopment of
deteriorated commercial areas.
2.D. T.I.F. - EVALUATE FUTURE WINDFALL OF EXPIRED T.I.F.
DISTRICTS
Request House Research to evaluate the windfall in
property tax receipts that Hennepin County will receive
after the year 2000. Those resources could provide a long
term reduction in the amount of resources needed for state
funded and County administered human service and other
important programs and reduce the property tax burden for
Hennepin County property owners.
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CHALLENGE 3 - RESOURCES FOR RENTAL HOUSING •
Richfield has approximately 4,600 rental units (63 percent one
bedroom, 29 percent two bedroom)., which were built primarily .from
1960 to 1970. .The apartments require investment and. repair to be
livable and desirable. Vacancy rates are variable.. The rental
housing investment climate does not make owner investment
attractive. MHFA rental housing loan programs require rent
control and income qualifying which are disincentives to owner
participation.. An increasingly lower income and more diverse
population causes concentration and places greater demands on
health and safety programs. Approximately $100,250,000 is
estimated to be required to revitalize the existing rental
housing stock. Richfield is presently developing a coordinated
apartment owner/manager/tenant program of information sharing,
image and marketing, communication and community service support.
RESPONSE'
3.A. "THIS OLD HOUSE" - RENTAL PROPERTY '
Support a legislative delay in property tax assessment
increases for improvements made to rental housing. A
class rate change for a specified period of time could be
provided if a rental property owner agrees to certain
improvements and management guidelines. The agreement
would specify type and schedule for completion of
improvements. The class rate would equal the subsidized
class rate.
3.B. MHFA RENTAL LOAN PROGRAMS
Support modification of MHFA rental loan programs to
"`provide opportunities to achieve broader economic
integration of rental occupancy.
3.C. REVENUE SOURCES FOR SELECTIVE REHABILITATION
Support new revenue sources which can be used for the
selective rehabilitation or the. acquisition and clearance
of deteriorating buildings and. replacement with more
appropriate land uses. A metropolitan area wide revenue
source should be sought to be targeted to housing problems
in the suburban core.
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CHALLENGE 4 - RESOURCES FOR SINGLE FAMILY HOUSING
Richfield has approximately 11,200 single family homes (5 percent
built prior to 1939, 62 percent build prior to 1960).. Many
single family homes require renovation and repair. Many more can
benefit from additional home improvements and remodeling which
provides features desirable to today's home owners and buyers.
Resources are insufficient to counter flight to developing
suburbs and potential abandonment. It is estimated that it would
cost $212,979,200 to revitalize the existing single family
housing stock.
RESPONSE:
4.A. BLIGHTED PROPERTIES PROGRAM
Support the continuation of the MHFA Blighted Properties
and Richfield's New Home/Richfield Rediscovered Prog"rams
which provide .funds for acquisition and demolition of
blighted neighborhood conditions. Approximately 200
Richfield homes are program candidates.. Approximately
$500,000 annually .removes eight to nine homes and provides
new housing opportunities. The Governor vetoed an
additional appropriation. to the Blighted Properties
program at the close of the 1993 legislative session.
4.B. MHFA HOUSING TRUST FUND
Support changes to MHFA's Housing Trust Fund which place
greater emphasis on large family ownership and rental
opportunities. in the suburban core. Persons with incomes
up to 30 percent of median ($15,300) presently benefit
from affordable housing opportunities in other parts of
the state. A. change of income limits, an increase to 50
percent of median ($25,500), would assist the HRA in the
acquisition and clearance of substandard housing and the
development of family ownership housing in cooperation
with a nonprofit housing developer such as Habitat for
Humanity.
4.C. "THIS OLD HOUSE" MODIFICATIONS
Modify the "This Old House".legislation. Richfield has
single family homes built between 1940 and 1960.
Richfield is promoting the remodeling, investment and
value added improvements to these 33 and 53 year old
homes. The present legislation caps the property tax
benefit to 50 percent of the value added improvements up
to $25,000. This deferral. lasts for ten years and then is
phased out over five years. It is proposed that the full
value be deferred for five years and then phased out with
a maximum deferral of $50,000.
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CHALLENGE 5 - NEW RESOURCES FOR VITALITY
Support a package of new .and modified revenue
that resources are of a sufficient quantity to
impact on housing, redevelopment, maintenance
services in Richfield. Of particular concern
to airport operations and long range planning.
RESPONSE:
5.A. AIRPORT
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sources to ensure
have a positive i
and essential
are the impacts due ~
Support immediate mitigation of the growing pressures of
airport operations and expansion plans by securing
legislative support to:
1. HOUSING REPLACEMENT
Finance the development in Richfield of 30 homes
annually for five years as a housing replacement
resource for residents impacted by the Metropolitan
Airports Commission's acquisition program in New Ford
Town and Rich Acres neighborhoods of Richfield. It is
estimated that blighted property site assembly cost
(acquisition, relocation, demolition) followed by
coordinated development will approximate $8,964,000..
2. NOISE ABATEMENT
Finance noise abatement for housing and schools that
are located in the 1996 Ldn 65 noise. contour and
eligible for the Metropolitan Airports Commission's
MSP Part 150 Airport Noise and Land Use Compatibility
Program. Funding for the program is provided by the
FAA (80 percent) and the MAC (20 percent).
Finance noise abatement: for sound insulation in
schools in communities near the airport that
experience disruptive aircraft noise and are located
outside the 1996 65 Ldn noise contour. Special state
legislation is needed fund these projects because
building structures located outside the 65 Ldn noise
contour are not eligible for federal funding according
to FAA Part 150 Program guidelines.
3. OFF-SITE AIRPORT NOISE MITIGATION
During the 1992 legislative session, a bill was passed
requiring the MAC to dedicate nearly $30 million over
.the next four years from Passenger Facility Charges
(PFC's) for noise .mitigation projects around the
airport (State Statutes Sec. 473.661, Subd. 4). The
legislative intent of the law 'is to require-the MAC to
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spend certain increasing percentage minimums of its
annual capital improvements budget for noise
mitigation in communities surrounding the airport in
addition to Part 150 funds. The additional funds
available through this bill will allow more homes and
schools to be.serviced in a shorter period of time.
The Legislature should monitor the MAC's
implementation of the law to ensure adherence to its
requirements.
4. MAC COMMISSIONER TO SOLELY REPRESENT RICHFIELD
Richfield is significantly impacted by MAC activities.
Minneapolis and St. Paul have MAC representatives
selected by each city. All other appointments are.
made by the Governor. It. would be appropriate to
endorse legislation that would permit appointment of a
Richfield MAC representative by the City of Richfield.
5.B. REVENUES FOR REDEVELOPMENT
Support a metropolitan .area-wide revenue source to finance
the redevelopment of deteriorating commercial and housing
areas.
5.C. COMMUNITY DEVELOPMENT FEE
.Support legislation which would enable the City to impose
an annual fee for community development activities. The
fee would be used for housing, neighborhood preservation
and redevelopment initiatives of the HRA.
5.D. RECREATION APPROPRIATION BONDING BILL
The City strongly supports the Department of Natural
Resources proposed capital budget which includes a request
that $7 million be appropriated for the next fiscal
biennium for outdoor recreation grants to local.
governments. The Outdoor Recreation Grant Program, which
was recently transferred from the Department of Trade and
Economic Development, would administer this matching grant
program in addition to the Federal Land and Water
Conservation Grants.
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- RESOURCES FOR TRANSPORTATION
CHALLENGE 6
Richfield is~significantly impacted by proposed improvements to
I-494, I-35W, 62 Crosstown and TH77. Richfield has been directly
involved with monitoring and influencing the planning for these
roadway improvements. Careful attention must be given to
balancing regional and local interest. Richfield understands
that lack of additional capacity for these roadways would likely
generate additional pollution, force more traffic onto
neighborhood streets and decrease traffic safety within the i
community. However, the loss of homes and encroachment in I
residential areas must be carefully considered.- _
RESPONSE:.
6.A. HIGHWAY FUNDING
The City urges the Legislature to identify and support a
clear funding mechanism for improvements to I-35W, I-494
and TH77.
6.B. LIGHT RAIL TRANSIT (LRT)
The .City urges the Legislature to oppose funding for LRT
in the I-35W corridor. It is the City's position that
the diamond lanes alternative is the most responsive
solution to the corridor's. transportation needs. .
6.C. HIGH SPEED BUS
Support development and funding of a comprehensive high
speed bus transit plan alternative as the most responsive
solution to the I-35W corridor's transportation needs.
This concept is consistent with the diamond lane
alternative.. The concepts also provide more benefits than
LRT with less expense and can be implemented sooner.
6.D. HIGHWAY. IMPROVEMENT PRIORITIES
The City .urges the Legislature to support funding for the
reconstruction of the I-35W/I-494 interchange as part of
the first stage of the I-35W improvements..
6.E. MUNICIPAL STATE AID (MSA)
The City supports increasing the Municipal State Aid
system limit to 3,000 miles. The increase is necessary
to ensure that adequate funding is available to maintain
streets.
6.F. STREET UTILITY FUND
The City supports the. legislation which would permit
cities to establish the Street Utility Fund as an option
funding source for street maintenance. _
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The. League of Minnesota Cities has urged the Legislature
to permit cities to create a transportation utility. Such
authorization would address:
• Reduced revenues available for local street and .road
improvements.
• The benefits to all taxpayers of a properly maintained
local transportation system.
• The severe limitations of existing special assessment
authority.
6.G. DEMONSTRATION PROJECT FUNDING
The City strongly supports Demonstration Project Funding
for 77th Street. Richfield will be seeking funding
through Congressman Sabo. Support from Legislators would
be very helpful.
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CHALLENGE 7 - COMMUNITY ENVIRONMENTAL PROTECTION
Richfield recognizes the need to protect our fragile environment.
There are a number of issues of special concern regarding the
environment including:
RESPONSE:
7.A. WATER MANAGEMENT ORGANIZATION
Minnesota Statute Chapter 509 requires Water Management.
Organizations (WMOs) to prepare Water Management Plans.
Cities are then required to prepare Local Water Management
Plans. Richfield is in support of legislation to allow
cities to be the .permitting authority rather than WMOs
once the cities have Local Water Management Plans
consistent with WMO plans.
7.B. HOUSEHOLD HAZARDOUS WASTE
Richfield currently permits a system of open competition
;for residential waste haulers. Our perception is that
people of Richfield believe that the current system works
well but that there is a need to increase the convenience
of household hazardous waste disposal. We also agree that
legislation should continue to fund educational and
operational pilot program efforts on the subject of solid
and hazardous waste disposal including alternatives for
the. disposal of household waste such as those promoted by
the Household Hazardous Waste Reduction.Pro~ect.
7.C. MANDATORY NOISE BUDGET ORDINANCE AT MSP
The Metropolitan Airports Commission (MAC) is responsible
for: minimizing environmental impacts from air
transportation and navigation activities on communities
near the airport. MAC announced last fall that the
aircraft noise levels at MSP were in violation of a
voluntary Noise Abatement Ordinance that was established
in 1987.
The City of Richfield requests MAC to take a more
aggressive position and adopt a mandatory Noise Budget
Ordinance that would provide more effective noise relief
to communities near the airport. The MAC has been
reluctant to enact such an ordinance at MSP. The
Legislature should require the MAC to adopt the mandatory
ordinance at MSP to ensure meaningful air noise reduction
in communities near t;he airport .
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CHALLENGE 8 - COMMUNITY GOVERNANCE
The need to develop accountable .governance systems which permit
free and open access to the political process as well as
developing affordable systems are priorities for our community.
Of special interest to Richfield are the following issues:
RESPONSE:
8.A. ELECTIONS (ABSENTEE VOTING)
The City urges adoption of the League of Minnesota Cities
recommendations for simplifying the absentee voting
process and making it easier to conduct absentee voting.
B.B. ELECTIONS (GENERAL)
The City urges the Legislature to fund the full cost of
conducting state primary, special and general elections at
the local. level. The legislative reimbursement of the
1992 presidential primary election demonstrates that
cities can. accurately document and account for the costs
of such election.
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CHALLENGE 9 -.COMMUNITY AFFORDABILITY
There area number of issues of particular to the City because
they affect the affordability of City services. Those include:
RESPONSE:
9.A. MANDATES
The City opposes any additional mandates. All branches of
federal and state government should adopt a policy which.
requires a direct link between funding responsibility for
programs with the level of government that creates the
program. The City also urges the Legislature and the
Congress to review, repeal or revise current mandates.
9.B. PAY EQUITY
The City supports efforts to eliminate any sex based
differences in compensation to public employees but asks
the Legislature to revise the Pay Equity Statute to limit
the law's applicability to only full. time employees. The
rules used to. compute pay equity for seasonal and part
time employees generally do not support the basic pay
equity policy.
9.C. EMPLOYEE BENEFITS
The City supports legislation promoting the efficient and
economical provision of employee benefits including life,
health and dental care.. The City specifically opposes
legislation which would authorize employees or groups of
-employees to unilaterally select particular care
providers. The City further asks that the Legislature not
mandate or grant additional benefits to public employees.
9.D. LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATIONS
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The City supports the merger of local Police and Fire
Relief Associations into PERA Police and Fire Fuhds under
the uniform policy enacted in the 1987 Legislature. Any
amendments to the policy should lower City consolidation
costs while fully protecting the solvency of the PERA
Police and Fire Fund.
The City supports:
• Changes in the actuarial assumptions relating to
salaries and investment return to more truly reflect
. experience.
The City opposes
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• The payment of any type of bonus to active or retired
members such as the "13th Check."
• The establishment of any multiple mechanism for
inflation or post-retirement adjustments.
9.E.. INTEREST ARBITRATION
The City supports legislation which modifies the existing
interest arbitration process to require arbitrators to
give primary consideration to internal equity comparisons
and the impact of an arbitration on the personnel
compensation systems of the city involved.
9.F. WORKERS' COMPENSATION
The City supports modifications to the workers'
compensation statutes which would restrict presumptions of
occupational. disease to apply only after an employee can
establish an absence of personal risk factors that could
have caused the disease or illness. The law now allows
for the .legal presumption that Police and Fire personnel.
contract certain diseases or illnesses due to their
employment.- Employers must then rebut the presumption by
introduction of evidence. The burden is difficult and
increases the chance that employees receive compensation
for non-work related illness and disease.
Currently, the law provides the following presumptions for
the following personnel:
Police and Fire: Myocarditis, Coronary Sclerosis,
Pneumonia or its sequel, and infections
or communicable disease (exposures
outside of a hospital) and for Fire
only - cancer.
All of the listed diseases or illnesses are common to the
entire population and an equal or greater correlation may
exist between the specific illness and the individual's
personal. risk factor such as smoking, diet, exercise,
heredity and life styles and the correlation between the
job and the illness.
9.G. VETERAN'S PREFERENCE
The City supports amending the Veteran's Preference Act to
provide that a veteran must select one and only one
hearing procedure under a grievance procedure within a
collective bargaining agreement.
The City supports clarifying the Civil Service Statute,
specifically removing medical disability suspension,
demotion and termination actions from Civil Service
Commission authority.
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9.H. LIQUOR ISSUES
The City strongly opposes the establishment of one class
of beer and the offsale of wine in other than liquor
stores. The establishment of one class of beer in
Minnesota would cause substantial problems in controlling.
the sale of beer in .filling stations, grocery stores, drug
`stores and elsewhere where 3.2 beer is now sold.
9.I. TEMPORARY EMPLOYEES
The City recommends that the Legislature reinstate the
previous. definition. of employees covered by PELRA to
employees who are employed for more than 100 working days
in a calendar year. This. is very important to the
operation of City services. The current legislative
language is confusing. Reestablishing the previous
language which would provide 100 workinct days .instead of
the 100 calendar days would greatly improve Richfield's
ability to provide services to the community and would not
encourage the inappropriate use of seasonal workers. Many
of the workers used for these programs are students. The
100 calendar day limitation does not accurately reflect
the time that many of these workers have available to
serve the community.
9.J. ADMINISTRATIVE FEE FOR DNR TRANSACTIONS •
The City urges an increase in the administrative fee
(deputy registrar fee.) for processing Department of
Natural Resources (DNR) boat and snowmobile transactions
be enacted. The current fee of 504 per transaction has
not been changed since 1971 and does not cover the
administrative cost of providing the service.
9.K. WORTHLESS CHECKS
The City urges the Legislature to support worthless check
legislation. In the past, legislation has been introduced
but never passed which would, provide that any person who
pays for a driver's license with a bad check shall have
their driver's license revoked. If a person pays for
license plates with a bad check, their motor vehicle
registration certificate would be revoked. And finally,
if a person would pay for a certificate of title with a
bad check, the certificate of title would be revoked.
When the liability on a bad check is discharged or payment
made, the Department of Public Safety .would reinstate tY*~e
person's driver's license, motor vehicle registration
certificate or motor vehicle certificate of title upon
payment of a $20 fee. The City of Richfield each year is •
burdened .with making good on bad checks that are paid for
motor vehicle registration license fees.
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9.L.
9.M.
9.N.
9.0.
POLICE MINORITY RECRUITMENT
The City urges the Legislature to provide funding for
cities like Richfield to establish a cooperative "cadet"
program. The program would recruit minorities out o.f high
school, provide them with law enforcement training and
provide a subsistence type of income for them while they
were in the training program. The goal would be to hire
the minority candidates for police positions in the
participating communities upon the completion of the
training.
CRIME PREVENTION
Violence is increasing in urban areas and throughout the
United States. While the police continue to respond and
provide a number of programs, Richfield is stretched to
the limit. The solution to this and other crime programs
is prevention education. Furthermore, crime is mobile:
many crimes are not committed by persons from Richfield.
Because of this, it is not a Richfield problem but the
state's. Therefore, the Legislature should provide for
innovative programs that will give Richfield and other
communities the resources necessary to educate our
citizens on good crime prevention and safety awareness .
programs. .
STATE BUILDING PERMIT SURCHARGE
Prior to 1991, cities collected a one-half percent
surcharge on all building permits which were sent into the
state. However, a large portion of that was returned to
the local governments.
Since 1991, the Governor, as part of his budget balancing
bill, kept all surcharge monies collected by local
governments to help fund the Building Codes Division of
the State Department of Administration. This resulted in
Richfield losing between $5,000 and $10,000 annually.
Richfield supports the LMC initiative to restore the
excess fees generated by the surcharge which exceed_ the
costs of the State Building Code Division to local
governments.
FIREARM TRANSFER PERMIT FEES
The City urges the Legislatur
enable cities to collect a fe
transfer permits. Currently,
approximately 900 permits per
permit and is prohibited from
e to enact a law that would
e for processing firearm
the City processes
year at a cost of $5 per
collecting a fee.
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9.P. CABLE TELEVISION REGULATION
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The City urges the Legislature to adopt an amendment to
Chapter 238, the cable communications law, governing cable
communications in Minnesota to extend the authority
granted to municipalities to all telecommunication
providers who utilize rights of way of cities to the
extent not inconsistent with the existing state regulatory
authority granted to the Public Utility Commission. ~
The City is concerned that unless the Legislature takes
steps to update the existing Cable Act to ensure that all
telecommunication providers seeking to utilize rights of
way of cities for the delivery of voice., video or data
communications when not inconsistent with the requirements
set forth under the Public Utility Commission's rules and
regulations must comply with certain standards and
requirements of a uniform nature pursuant to franchise
requirements and based on the model established in
Minnesota in the Minnesota Cable Act.
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