Governor Vetoes Supplemental Budget Bill and Second
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2 Governor Vetoes Supplemental Budget Bill and Second Tax Bill Page 1 of 3 Governor Vetoes Supplemental Budget Bill and Second Tax Bill Some city provisions died with the tax bill, including several sales tax exemptions for specific construction projects, and local sales tax adjustments for certain cities. (Published May 29, 2018) Two major bills the omnibus supplemental budget bill and the second omnibus tax bill were vetoed by Gov. Dayton on May 23. Although a few city provisions were included in the bills, the vetoes will not have a major impact on city operations. The two omnibus bills were approved and sent to Gov. Dayton on the final day of the 2018 legislative session, along with 13 other pieces of legislation, including the omnibus bonding bill, and the omnibus pensions and retirement bill. The vetoes were no big surprise. The governor had warned legislators that he had serious reservations about the budget and tax bills. Per the constitutional requirement, the governor expressed his objections to the bills in his omnibus tax bill veto letter (Link to: and his omnibus supplemental budget veto letter (Link to: Gov. Dayton said he will not call a special session to renegotiate the bills. Budget bill not essential The omnibus supplemental budget bill included several initiatives that had broad support, but given the state s budget was enacted in 2017, the bill was not essential for the continued operation of state government. Tax bill veto presents problems The veto of the omnibus tax bill could be more problematic. The focus of the bill was a series of personal income tax and corporate income tax conformity changes necessary in the wake of the 2017 federal tax reform legislation. Without an agreement on a package of tax conformity adjustments, the 2018 income tax filing season will almost certainly be more complicated for tax filers. Legislators could initiate a package of conformity changes when the Legislature reconvenes next January, but making modifications to the Minnesota tax structure at that late date could be challenging for the Department of Revenue as well as tax accountants and tax filing software companies. Although the omnibus tax bill focused primarily on federal tax conformity, it did include some provisions impacting cities, including an expanded local excise and food packaging fee prohibition; LGA increases for Lilydale and Hermantown; sales tax exemptions for construction projects in Minnetonka, Inver Grove Heights, Virginia, and Elko- New Market; local tax provisions for St. Cloud, St. Paul, Minneapolis, Excelsior, and Cloquet; and tax increment financing special laws for Bloomington and Champlin. Decisions on other major bills yet to be announced As of today, May 29, Gov. Dayton has yet to take final action on the omnibus capital projects bill and the omnibus pension bill. Under the Minnesota Constitution, he has 14 days, or until June 3, to sign the bills. Without his signature, the bills will be pocket vetoed. Based on comments made before the end of the session, he is expected to sign the omnibus pension bill. It is possible he will also sign the capital projects bill, but he could line-item veto portions of the bill.
3 Governor Vetoes Supplemental Budget Bill and Second Tax Bill Page 2 of 3 More information about vetoed bills Find out more about the city-specific provisions in the second omnibus tax bill (Link to: Learn more about the omnibus supplemental budget bill (Link to: Read the current issue of the Cities Bulletin (Link to: * By posting you are agreeing to the LMC Comment Policy (Link to: 0 Comments MinnesotaCities 1 Login Recommend Share Sort by Best Start the discussion LOG IN WITH OR SIGN UP WITH DISQUS Name? Subscribe d Add Disqus to your siteadd DisqusAdd Disqus' Privacy PolicyPrivacy PolicyPrivacy Your LMC Resource Contact Gary Carlson IGR Director (651) or (800) gcarlson@lmc.org (Link to: mailto:gcarlson@lmc.org) Reach Minnesota Cities!
4 Governor Vetoes Supplemental Budget Bill and Second Tax Bill Page 3 of 3 (Link to:
5 With Veto of Tax Bill, LGA Program Remains Unchanged Page 1 of 3 With Veto of Tax Bill, LGA Program Remains Unchanged Estimates of 2019 local government aid are available from the House of Representatives Research Department. (Published May 29, 2018) Although neither of the vetoed omnibus tax bills included an appropriation increase for the local government aid (LGA) program, both bills would have resulted in small changes for most cities due to one-time increases in the 2019 distribution of LGA for two cities Lilydale and Hermantown. If you are interested in finding an estimate of your city s 2019 LGA distribution, the Minnesota House of Representatives Research Department posted an early estimate of the distribution under the existing formula and appropriation, which was frozen at the 2018 level of $534.4 million. See the estimates for 2019 (pdf) (Link to: Final LGA certifications from the Department of Revenue will be announced around July 31, Tax bill changes will impact 2019 LGA Keep in mind that under the 2017 omnibus tax bill, 14.6 percent of each city s 2019 LGA will be paid on or before June 15, The second distribution of 35.4 percent of the city s LGA will occur on or before July 20, 2019, and the remaining 50 percent will be distributed on or before Dec. 26, An additional provision embedded in the 2017 omnibus tax bill required that each city register an official address with the commissioner of Revenue prior to receiving LGA. This change is effective for the 2018 distribution. s needed During this year s annual city information update, the League collected addresses for all but 16 cities, and has already submitted those addresses to the Department of Revenue. The cities that have not yet confirmed addresses are: Borup Boy River Donaldson Elmdale Evan Felton Funkley Johnson Kinbrae Magnolia Nimrod
6 With Veto of Tax Bill, LGA Program Remains Unchanged Page 2 of 3 Pierz Regal Sargeant Trommald Urbank The League will reach out to these cities to obtain an address. If you are a city official in one of these cities, please contact Gary Carlson (651) or gcarlson@lmc.org (Link to: mailto:gcarlson@lmc.org) to submit information. Read the current issue of the Cities Bulletin (Link to: * By posting you are agreeing to the LMC Comment Policy (Link to: 0 Comments MinnesotaCities 1 Login Recommend Share Sort by Best Start the discussion LOG IN WITH OR SIGN UP WITH DISQUS Name? Subscribe d Add Disqus to your siteadd DisqusAdd Disqus' Privacy PolicyPrivacy PolicyPrivacy Your LMC Resource Contact Gary Carlson IGR Director (651) or (800) gcarlson@lmc.org (Link to: mailto:gcarlson@lmc.org) Meet our city vendors!
7 With Veto of Tax Bill, LGA Program Remains Unchanged Page 3 of 3 (Link to:
8 Transportation Constitutional Amendment Fails to Reach Finish Line Page 1 of 2 Transportation Constitutional Amendment Fails to Reach Finish Line The measure, which would have placed a question about transportation funding on the 2018 general election ballot, was passed by the House, but did not reach the floor of the Senate. (Published May 29, 2018) Bills that would seek public approval to modify the Minnesota Constitution to dedicate the sales tax on auto parts to roads and bridges continue to advance in the House and Senate. The measures, HF 4437 (Link to: authored by House Transportation Finance Committee Chair Paul Torkelson (Link to: (R-Hanska), and SF 3837 (Link to: authored by Senate Transportation Committee Chair Scott Newman (Link to: (R-Hutchinson), have advanced in spite of missing deadlines self-imposed by the Legislature. SF 3837 was given permission by the Rules and Administration Committee (Link to: on April 23 to advance to the Committee on Taxes (Link to: HF 4437 was heard in the House Transportation Finance Committee (Link to: on April 26, where it was advanced to the Committee on Taxes (Link to: comm=90023). Presumably, the House version will need to travel to the Rules and Legislative Administration Committee (Link to: to get permission to advance after the deadline. The bills do not match up, but both create a new Road and Bridge Fund in the Minnesota Constitution. This fund would receive the revenue from the sales tax on motor vehicle repair and replacement parts and rental vehicles. The League does not have a position on the measure, but will be monitoring it in the legislative process. If the bills pass off the floors of both bodies, differences will need to be resolved in a conference committee. For more background information about this bill, read a previous Cities Bulletin article (Link to: Read the current issue of the Cities Bulletin (Link to: * By posting you are agreeing to the LMC Comment Policy (Link to:
9 Transportation Constitutional Amendment Fails to Reach Finish Line Page 2 of 2 0 Comments MinnesotaCities 1 Login Recommend Share Sort by Best Start the discussion LOG IN WITH OR SIGN UP WITH DISQUS Name? Subscribe d Add Disqus to your siteadd DisqusAdd Disqus' Privacy PolicyPrivacy PolicyPrivacy Your LMC Resource Contact Anne Finn Assistant IGR Director (651) or (800) afinn@lmc.org (Link to: mailto:afinn@lmc.org) Meet our city vendors! (Link to:
10 Sign Up Now for 2018 Policy Committees Page 1 of 2 Sign Up Now for 2018 Policy Committees Dates are set for the 2018 League legislative policy committee meetings. Join your city colleagues for great discussion about municipal legislative issues. Last year, more than 150 city officials from all around the state participated in the four committees that set the legislative policies for the League s lobbying efforts. Sign up for a policy committee now (Link to: Important note for members who served last year: Please sign up to confirm your participation again this year, even if you served last year. Here are answers to some common questions about policy committees: Who can be on a policy committee? Current city officials and staff are eligible. City councilmembers, mayors, city administrators, assistant city administrators, clerks, human resource staff, municipal elections officials, public safety staff, engineers, finance directors, economic development staff, and others have been members of the committees. Committee members can be new to their city position, have many years of experience, or be somewhere in between. While any member city may have more than one person serving on a committee, each city will have only one vote on policies or other committee business. What typically happens during each of the three committee meetings? At the first meeting in July, members hear a briefing of the previous legislative session from LMC staff, network with one another by sharing issues of interest that are related to the committee, and begin to look at policies to edit, delete, or add. At the second meeting in August, members usually hear from guest speakers from state agencies, interest groups, legislators, and other local officials to learn more about a specific issue of interest to the group. During the third meeting in September, members continue their work discussing edits to existing or new policies and vote to approve their policies. What happens after the third policy committee meeting? The League s Board of Directors hears about the work of each policy committee during a fall meeting, typically in October. Then, the draft policies are open for comment by all League members. Member comments are compiled in early November, and then the LMC Board makes the final adoption of the policies. During the next legislative session, the League s IGR staff use the policies to guide the League s legislative efforts at the Capitol. When and where are the meetings? Improving Service Delivery Committee (Link to: Monday mornings: July 30, Aug. 27, Sept. 17, 9:30 a.m.-12 p.m. Improving Local Economies Committee (Link to: Tuesdays mornings: July 31, Aug. 28, Sept. 18, 9:30 a.m.-12 p.m. Human Resources & Data Practices Committee (Link to: Tuesdays afternoons: July 31, Aug. 28, Sept. 18, 1:30-4 p.m. Improving Fiscal Futures Committee (Link to: Wednesday mornings: Aug. 1, Aug. 29, Sept. 19, 9:30 a.m.-12 p.m. All policy committee meetings are in the St. Croix Room, which is located on the first floor of the League building in St. Paul.
11 Sign Up Now for 2018 Policy Committees Page 2 of 2 What if I can t attend each meeting in person? We offer GoTo Meeting, which is an online option for all meetings. Many members use this option to remain involved in committee discussions, regardless of their ability to come to the League s office in St. Paul. What topics does each committee address? The topics include, but are not limited to, the following: Improving Service Delivery Committee: unfunded mandates, environmental mandates, elections, charter law, data privacy, government innovation and cooperation, and public safety. Improving Local Economies Committee: growth management, land use, boundary adjustments, housing, transportation, economic development, and telecommunications. Improving Fiscal Futures Committee: municipal financial management, property and other taxes, state aid programs, and financial reporting requirements. Human Resources & Data Practices Committee: employment law, labor relations, data practices, Open Meeting Law, personnel, and pensions. Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Contact Laura Ziegler Sr. IGR Liaison (651) or (800) lziegler@lmc.org (Link to: mailto:lziegler@lmc.org) Contact Heather Corcoran IGR Member Outreach Coordinator (651) or (800) hcorcoran@lmc.org (Link to: mailto:hcorcoran@lmc.org) Meet our city vendors! (Link to:
12 Apply by June 1 to Serve on the League Board Page 1 of 2 Apply by June 1 to Serve on the League Board Apply now to serve on the League of Minnesota Cities (LMC) Board of Directors and partner with other city officials to oversee an organization that represents 833 diverse member cities throughout the state. Serving on the LMC Board of Directors is both an honor and responsibility. LMC s ability to serve members needs and exhibit leadership by anticipating and proactively addressing city challenges, result from Board guidance that is strategic, responsible, and representative of all cities interests. (The League is also accepting applications to serve on the Nominating Committee (Link to: that selects Board candidates.) Board responsibilities If you are interested in serving on the LMC Board, please review the Board s Governance Handbook before submitting an application to ensure you are aware of the roles and responsibilities: The League of Minnesota Cities Governance Handbook (Link to: was developed by the Board to guide the manner in which Board business is conducted and to outline the expectations of Board service. Board meetings are typically held at League offices in St. Paul during the day on the third Thursday of the month. In addition, this year s board planning retreat is scheduled for Sept at Grand Ely Lodge in Ely. The League reimburses all direct meeting expenses of Board members. Mileage is reimbursed at the federally approved rate. Selection process A Nominating Committee appointed by League President Jo Emerson will interview candidates on June 20 at the LMC Annual Conference in St. Cloud. The nominated candidates will be presented to members for final consideration at the annual business meeting on June 21. The League strives to balance our Board membership by gender, location and population of candidates cities, position held within the city (elected and appointed), League experience and involvement and a diversity of races and ethnicities representative of our state s population. League members will elect a president, first vice president, second vice president, and at least three directors during the annual business meeting If a current Board member is elected to an officer position, there would be an additional opening for a director position. How to apply To request an application packet, contact Kellie Sundheim, LMC, at (651) , (800) , or ksundheim@lmc.org (Link to: mailto:ksundheim@lmc.org). The deadline to apply is June 1. If you have questions about the Board, its role, and work, please contact LMC Executive Director David Unmacht at (651) or dunmacht@lmc.org (Link to: mailto:dunmacht@lmc.org). Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Interested in applying for the LMC Board of Directors? Contact Kellie Sundheim Assistant to the Executive Director
13 Apply by June 1 to Serve on the League Board Page 2 of 2 (651) or (800) ksundheim@lmc.org (Link to: mailto:ksundheim@lmc.org) New LMC Blog - The Pipeline (Link to:
14 Help Select 2018 League Board of Directors Page 1 of 2 Help Select 2018 League Board of Directors Do you want to have an important role in the selection of new members for the 2018 League of Minnesota Cities (LMC) Board of Directors? If so, apply by June 1 to be part of the Nominating Committee that interviews and recommends Board candidates. The Nominating Committee is made up of eight to 12 individuals, consisting of both elected and appointed city officials, from throughout the state. Any city official interested in serving is encouraged to apply. LMC President Jo Emerson, mayor of White Bear Lake, will choose committee appointees by June 4. (The League is also accepting applications for the Board of Directors (Link to: Important dates Once the Nominating Committee has been selected and members have been notified, there will be an hour-long conference call to provide information on the selection process and guidelines for conducting the board candidate interviews, deliberations, and decision-making steps. The call is scheduled for June 13, 11:00 a.m. to 12 p.m. The committee will convene on the morning of June 20 at the LMC Annual Conference in St. Cloud, and will interview candidates for the positions of president, first vice president, second vice president, and three director positions. The committee s recommendations will then be presented to the entire League membership at the Annual Conference during the annual business meeting on June 21. The League reimburses Nominating Committee members for expenses incurred for serving on this committee. Applying for the committee If you are providing a letter of reference for an individual who plans on applying to the Board of Directors, we ask that you refrain from applying to be on the Nominating Committee. This ensures that no conflicts of interest arise during the process. City officials interested in serving on the Nominating Committee should contact Kellie Sundheim, LMC, by June 1 at (651) , (800) or ksundheim@lmc.org (Link to: mailto:ksundheim@lmc.org). If you have questions about the committee or the process, contact Kellie Sundheim (contact info above) or Executive Director David Unmacht at (651) or dunmacht@lmc.org (Link to: mailto:dunmacht@lmc.org). Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Interested in serving on the Nominating Committee? Contact Kellie Sundheim Assistant to the Executive Director (651) or (800) ksundheim@lmc.org (Link to: mailto:ksundheim@lmc.org) Reach Minnesota Cities!
15 Help Select 2018 League Board of Directors Page 2 of 2 (Link to:
16 LMC Staff News Page 1 of 1 LMC Staff News New employees Yamilez Ordoñez joined the League on May 23 as an intergovernmental relations and LMCIT intern. She is a recent graduate of Richfield High School and is currently attending the University of Minnesota. Ordoñez has a vast background in volunteering, including as canvasser and phone bank volunteer for the 2016 presidential election, member of the Richfield Human Rights Committee, and science tutor for immigrant youth. She is fluent in Spanish and has experience in interpreting. **************************** McKayla Collins joined the League on May 21 as a communications intern. She is a recent graduate of St. Mary s University of Minnesota in Winona, where she majored in public relations and minored in general business. Collins work experience includes several positions for St. Mary s University of Minnesota including, resident assistant for the Office of Residence Life, a tour guide for prospective students and their families, and an orientation leader. She has various internship experiences, including as editor-in-chief for the Cardinal Newsblog at Saint Mary s University of Minnesota and as a programming and marketing intern for the Parks Division of Washington County. Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Contact Donyelle Mikacevich HR Manager (651) or (800) dmikacevich@lmc.org (Link to: mailto:dmikacevich@lmc.org)
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