League Advocates for City Street Funding

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Cory Sharp
6 years ago
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2 Page 2 of 13 League Advocates for City Street Funding The League and others support a measure that would impose a $10 surcharge on license tab fees and on motor vehicle title transfers to be dedicated to city-owned streets. A group of city transportation lobbyists has been making the rounds with key legislators to advocate for passage of an omnibus transportation funding bill that provides additional dedicated state funding for city streets, including funding that can be used for non-municipal State Aid (MSA) city street maintenance, construction, and reconstruction. This proposal was initiated in 2015 and was the catalyst behind the creation of the Small Cities Assistance Account, which provided funding to help cities with populations under 5,000 with street maintenance costs. The group, made up of representatives of the League, the Coalition of Greater Minnesota Cities, the Minnesota Association of Small Cities, Metro Cities, and the cities of Minneapolis and St. Paul, is seeking support for a measure that would impose a $10 surcharge on license tab fees and on motor vehicle title transfers to be dedicated to city streets in large and small cities. The provision raises approximately $57 million annually. Half of the funds would be directed to the Small Cities Assistance Account, established by the 2015 Legislature, and half would be dedicated to a new Larger City Streets and Bridges Account. The funds would not be subject to the constraints of the MSA funds dedicated in the Minnesota Constitution. Language related to this initiative is currently being drafted into a bill that will be introduced in the coming weeks. The League will make bill numbers, authors, and key committee information available as soon as possible. Why is the legislation needed? Though city streets are essential to mobility and economic vitality in Minnesota communities, funding for those streets has remained unaddressed in transportation funding bills for decades. City revenues are not keeping pace with needs for municipal street maintenance, construction, and reconstruction. Currently, nearly 84 percent of city streets are funded only with property taxes and special assessments. Further, when state and county highway investments occur, cities have the added burden of cost participation, which diverts dollars from city streets. The bulk of the 22,500-mile city street system is not eligible for MSA, and non- MSA city streets are without any dedicated funding sources. According to a report

3 Page 3 of 13 released in 2012 by the Transportation Finance Advisory Committee, cities collectively need an additional $400 million per year to bring city streets up to an economically competitive standard. Background Just as the state has fallen behind in making transportation investments, some cities faced with budget challenges have made the difficult decision in recent years to hold off on scheduled street improvement projects. Maintenance projects, such as seal coating and overlays, can prolong the lifecycle of streets 50 to 60 years. Without ongoing maintenance, the average life expectancy of local streets is approximately 25 to 30 years. For the same reasons, cities are also falling behind on the reconstruction projects necessary to help keep property values stable, and cities lack viable options for building new transportation infrastructure to attract and retain the investments by businesses that keep Minnesota s economy strong. Existing funding mechanisms for city street maintenance and reconstruction are inadequate. Special assessments can be onerous to property owners and are difficult to implement for some cities. Property tax dollars are generally not dedicated and are sometimes diverted to more pressing needs, such as public safety, water quality. and cost participation in state and county highway projects. MSA is limited to cities over 5,000 in population 147 of 853 cities in Minnesota and cannot be applied to more than 20 percent of an MSA city s lane miles. Get involved Support from cities for this initiative will be critical to its success. Please consider communicating with your legislators about the need for this legislation. A number of city councils passed resolutions of support for the same proposal in the last legislative biennium, and the League continues to use this list of cities to support advocacy efforts. The League would like to grow the list to include additional supportive cities. Please see the League s City Transportation Advocacy Toolkit (Link to: to learn more and download the model resolution. Read the current issue of the Cities Bulletin (Link to:

4 Page 4 of 13 Advisory Council Approves Workers Compensation PERA Offset Compromise Two state Supreme Court Decisions ruled that PERA retirement benefits may not be offset against worker s compensation benefits, which reversed a longstanding interpretation of state law and is very costly to LMCIT. (Published Jan 17, 2017) The Workers Compensation Advisory Council (Link to: (WCAC) last week approved proposed legislation that would create an optional compromise solution to the issues created by the Minnesota Supreme Court s Hartwig and Ekdahl decisions in In those decisions, the Supreme Court ruled that Public Employees Retirement Association (PERA) retirement benefits may not be offset against workers compensation permanent and total disability (PTD) benefits. These decisions reversed a longstanding interpretation of Minnesota law by the Workers Compensation Court of Appeals. Part of the fallout from the Supreme Court s decision was significant uncertainty as to whether that ruling applies retroactively to injuries that occurred and were settled many years ago, and whether the ruling requires that settlement agreements reached on those old injuries must now be reopened. As a result of this uncertainty, the League of Minnesota Cities Insurance Trust (LMCIT) is exploring options, including a possible legislative solution. Compromise agreement The compromise arrangement in the proposed legislation was the result of negotiations between LMCIT and the Department of Labor and Industry (DLI) on behalf of the Special Compensation Fund (SCF). Under that compromise, LMCIT would agree to pay claimants any increased benefits they would be entitled to if PTD benefits are recalculated without a PERA retirement offset, both retrospectively and prospectively. In return, the SCF would not pursue recovery of past over-reimbursements of supplementary benefits that are arguably due because past supplementary benefits were now recharacterized as PTD benefits. In addition, LMCIT would not be required to pay SCF assessments on the increase in future PTD benefits which result from eliminating the offset. The legislation would also make this same arrangement available as an option to other self-insurers and self-insured groups. Reduced costs for LMCIT This compromise arrangement would reduce LMCIT s cost appreciably, although

5 Page 5 of 13 LMCIT would still be incurring significant costs. Perhaps as importantly, the compromise arrangement would avoid the long and expensive litigation that would otherwise be needed to resolve the legal questions about how the 2014 Supreme Court rulings apply. This legislation will now be incorporated into a broader bill sponsored by DLI that will include other changes to the workers compensation statutes. City officials with questions or comments about this legislation can contact LMCIT Administrator Pete Tritz at (651) or ptritz@lmc.org (Link to: mailto:ptritz@lmc.org). Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Pete Tritz LMCIT Administrator (651 ) or (800) ptritz@lmc.org (Link to: mailto:ptritz@lmc.org) Contact Gary Carlson IGR Director (651) or (800) gcarlson@lmc.org (Link to: mailto:gcarlson@lmc.org)

6 Page 6 of 13 Apply Now for Seat on Peace Officer Standards & Training Board Elected city officials from Greater Minnesota cities with populations under 5,000 are encouraged to apply. (Published Jan 17, 2017) The Minnesota Board of Peace Officer Standards and Training (Link to: (POST) has a vacancy for an elected official from a Greater Minnesota city with a population under 5,000. This position was vacated by Winsted Mayor Steve Stotko on Jan. 2. The POST Board licenses peace officers; establishes minimum qualifications and standards of conduct; and regulates professional and continuing education for peace officers. Members are expected to have a working knowledge of state government in general, the POST Board s scope and mission, administrative rules, the POST Board s bylaws, and rules of the organization. Members should strive to maintain the best interests of the citizens of the state in their decision-making. Powers, duties, and membership The powers and duties of the POST Board are to: Administer a professional licensing program, which includes examination development and administration, licensure, and re-licensure. Develop, coordinate, and approve continuing education programs for peace officers and part-time peace officers. Work cooperatively with law enforcement trainers, educators, and practitioners to develop in-service training programs. Help offset local governments expenses for peace officer training through administration of a reimbursement program. Develop learning objectives for and certify the Professional Peace Officer Education programs at participating colleges and universities. Provide technical assistance to colleges, universities, law enforcement agencies, and other groups involved in the practice of law enforcement and law enforcement education. Conduct studies and research projects that relate to peace officer education and the practice of law enforcement. Establish and implement professional policy standards of conduct for agencies. Process allegations of professional misconduct and the unauthorized practice of law enforcement.

7 Page 7 of 13 Prepare and transmit annually to the governor and Legislature a report of activities. Membership includes: Two sheriffs. Four municipal police officers (at least two chiefs of police). Two peace officers, one who is a member of the Minnesota Trooper s Association. Two peace officers or former peace officers currently employed in a professional peace officer education program. One administrator of a Minnesota college or university that offers professional peace officer education. One elected city official from a city under 5,000 in population. Two members of the general public The superintendent of the Bureau of Criminal Apprehension is an ex-officio member. See a list of the current POST Board members (Link to: Meetings The Board meets four times a year. The 2017 meetings will be on Jan. 26, April 27, July 27, and Oct. 26. All meetings are at 10 a.m. at the POST Board offices in St. Paul. POST Board members are paid $55 per diem. To apply, submit an application through the Secretary of State s appointment process (at the link below) as soon as possible. Interested city officials are strongly encouraged to also let League staff know if they intend to apply. Contact League staff member Heather Corcoran at hcorcoran@lmc.org (Link to: mailto:hcorcoran@lmc.org) or (651) Apply for the position Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Contact Heather Corcoran IGR Member Relations Coordinator

8 Page 8 of 13 (651) or (800) hcorcoran@lmc.org (Link to: mailto:hcorcoran@lmc.org) For More Information Contact Nathan R. Gove Executive Director, POST Board (651) nathan.gove@state.mn.us (Link to: mailto:nathan.gove@state.mn.us)

9 Page 9 of 13 Many Underserved Cities Receive DEED Broadband Grants A total of 42 projects were awarded funding to develop broadband infrastructure in Minnesota. (Published Jan 17, 2017) The Minnesota Department of Employment and Economic Development (DEED) last week announced grants totaling $34 million to help 42 entities in Minnesota develop broadband infrastructure in their communities. The awards will help serve 16,627 households, 71 community institutions, and 2,240 businesses in unserved or underserved regions of the state. See a map showing the location of each project and the amount awarded (pdf) (Link to: Get a complete list and more details about the broadband grant awardees (Link to: DEED awarded the funding from its Border-to-Border Broadband Development Grant Program, which Gov. Dayton signed into law in May of The grants will provide up to 50 percent of the cost of developing broadband for improved high-speed Internet in communities across the state. DEED s Office of Broadband Development, which directs broadband planning and policy statewide, managed the grant program and application process for projects. Projects were selected by a DEED team based on several criteria, including: Percentage and number of unserved or underserved households and businesses in the project area. Amount of funding requested. Project readiness and sustainability. Community support and partnerships. The economy of the area. Technical assistance and other support available in each project area. Altogether, DEED received funding requests for $55.5 million from around the state. Read the current issue of the Cities Bulletin (Link to:

10 Page 10 of 13 Your LMC Resource Contact Laura Ziegler IGR Liaison (651) or (800) (Link to:

Page 11 of 13 League-Supported REAL ID Bill Flies Through House Committees Without passage of the bill, Minnesotans will not be able to use their driver s licenses to board airplanes or enter federal

11 Page 11 of 13 League-Supported REAL ID Bill Flies Through House Committees Without passage of the bill, Minnesotans will not be able to use their driver s licenses to board airplanes or enter federal facilities beginning next year. (Published Jan 17, 2017) Rep. Dennis Smith (Link to: (R-Maple Grove) reintroduced a REAL ID bill (HF 3 (Link to: b=house&f=hf0003&ssn=0&y=2017) ) on Jan. 5 that would make Minnesota compliant with the federal REAL ID law. Last session, the REAL ID bill died in conference committee. Consistent with House Republican leadership s promise to pass a REAL ID bill by the end of January, the bill has quickly moved through two House committees Civil Law and Data Practices (Link to: and Transportation and Regional Governance Policy (Link to: The next stop is the House Transportation Finance Committee (Link to: on Jan. 18. The Senate introduced a companion bill (SF 166 (Link to: ) authored by Sen. Eric Pratt (Link to: (R-Prior Lake) on Jan. 13. Generally, the bill provides two driver s license options for Minnesotans: REAL ID compliant and REAL ID non-compliant. Minnesotans who would like to continue to use their driver s license to board airplanes or enter federal facilities could opt for the REAL ID compliant license, and Minnesotans who don t want to use their licenses for those purposes could opt for the non-compliant licenses. Concerns about the bill At both hearings, the main concern by some Democratic legislators was the bill s requirement for proof of lawful immigration status for both types of licenses. If enacted, this bill would prohibit undocumented immigrants from getting even noncompliant licenses. There were also concerns about: The federal government potentially expanding the purposes of REAL ID in the future. Data privacy. Federal interference with the state function of issuing driver s licenses.

12 Page 12 of 13 What if Minnesota Legislature doesn t act this session? The federal Department of Justice has been clear that it will not extend the compliance deadline without Minnesota passing a law that is in compliance with federal requirements. But if Minnesota does pass such a law, the federal government may extend full compliance to If Minnesota doesn t pass a law, Minnesotans will not be able to use their driver s licenses to board airplanes or enter federal facilities beginning in January Instead, they would need to show an alternative form of identification, such as a passport or an enhanced driver s license/identification card. Background The federal REAL ID Act enacted the 9/11 Commission s recommendation that the federal government set standards for the issuance of sources of identification, such as driver s licenses. The act establishes minimum security standards for license issuance and production and prohibits federal agencies from accepting, for certain purposes, driver s licenses and identification cards from states not meeting the act s minimum standards. The purposes covered by the act are: accessing federal facilities, entering nuclear power plants, and boarding federally regulated commercial aircraft. In 2009, the Minnesota Legislature enacted a law that prohibited implementation of the federal REAL ID Act due to cost and privacy concerns. In 2016, the Legislature allowed the Department of Public Safety to only plan, but not implement, REAL ID compliance. League support The League has a legislative policy that requests the Legislature to (1) comply with the federal REAL ID Act; (2) make compliant driver s licenses available to Minnesota residents in convenient locations statewide; (3) proactively publicize the change to REAL ID and the process and necessary documents needed for residents to obtain it; and (4) if necessary, adjust the cost of a Minnesota driver s license to cover the cost of implementation. Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Contact Irene Kao IGR Counsel (651) or (800)

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14 Webinar: Preventing Workplace Violence & Surviving an Active Shooter Event Page 1 of 2 Webinar: Preventing Workplace Violence & Surviving an Active Shooter Event This LMC webinar explains ways to detect and prevent workplace violence from occurring and how to respond if it does happen. The recorded presentation discusses several issues, including: Building security and personal safety. Types of workplace violence. Signs of escalating behavior and how to respond. Surviving an active shooter event: Run, hide, fight. Ensuring safety at council meetings. Police response: What to expect. Being prepared: Response plan, training and policies. Watch the webinar (Link to: #violenceprevention) Additional resources: De-escalation scenarios (for small group discussion) (pdf) (Link to: OSHA workplace violence Fact Sheet (pdf) (Link to: Workplace security checklist (pdf) (Link to: MN Department of Labor & Industry zero tolerance of workplace violence sample policy and plan (pdf) (Link to: MN Workplace Safety Consultation Workplace Violence Prevention Resource Center (Link to: Each video is approximately 30 minutes. Your LMC Resource Contact Rachel Carlson Loss Control Manager (651) or (800) rcarlson@lmc.org (Link to: mailto:rcarlson@lmc.org) Meet our city vendors!

House Begins Unveiling Omnibus Tax Bill

Page 2 of 19 House Begins Unveiling Omnibus Tax Bill The League opposes several provisions that are being recommended for the omnibus tax bill. The House Property Tax and Local Government Finance Division