4.2. SR 10-27-1997 - Laserfiche WebLink

Home Browse Search

JOINT POWERS AGREEMENT The parties to this Agreement are all governmental units existing pursuant to the laws of the State of Minnesota. This Agreement is made and entered into pursuant to Minnesota Statutes, Section 471.59. WITNESSETH: WHEREAS, pursuant to Minnesota Statutes, Section 471.59 (Joint Exercise of Powers), local government units may enter into an agreement through the action of their respective governing bodies to jointly or cooperatively exercise any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised; and WHEREAS, the parties hereto derive significant revenues in the form of personal property taxes levied on electric generation or distribution facilities located in their respective jurisdictions; and WHEREAS, the Minnesota Department of Revenue, in conjunction with the Public Utilities Commission (PUC) and the Department of Public Service, has issued a study dated January 15, 1997 entitled "Analysis of Utilities Taxation in Minnesota" and has presented such information before the Senate Subcommittee for Property Tax and Local Government Budget Division, Senator Sandra L. Pappas, Chair, on February 5, 1997; and WHEREAS, the above-referenced study by the Department of Revenue has in fact recommended the decreased use or elimination of personal property tax as a source of revenue for local government units; and WHEREAS, Investor Owned Utilities (IOU's) have proposed legislation which would remove personal property tax from the available tax capacities of the affected local government units; and WHEREAS, local government units who lose tax capacity as a result of the elimination or decreased use of personal property tax as a source of revenue could see significant increases in property taxes at the local level as a result of such legislation without the replacement of such revenues; and WHEREAS, proposed replacement revenues such as a "meter" tax would not provide the same assurance of cash flow since such revenues would be collected and administered outside of local control thereby decreasing the reliability and security of the revenues; and WHEREAS, with the loss of the personal property tax as a revenue source, the affected local government units will experience an adverse impact in their ability to bond, bond ratings, long-term debt, and problems with outstanding debt including issues concerning on-going bond disclosure requirements.