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imams Ap.q <br /> IVIIVIU2J Position Statement <br /> Local Government Salary Cap Relief Needed <br /> Background <br /> Minnesota Statutes Section 43A.17 imposes a salary <br /> cap on the total wages and compensation most <br /> units of local government can pay their employees. =eog rrw 60o.iroo Mw I 1 <br /> Municipal utilities are subject to this restriction and Nuclear Plant """ <br /> are beginning to encounter challenges in recruiting Coat Plant ` <br /> Extra High Voltage =200 AM Irymu-6lectnc Pie <br /> and retaining high-level employees, particularly in 265 to 275 RV <br /> (mostly AC,somi HVDC1 <br /> upper management positions, due to competition from <br /> electric cooperatives and investor-owned utilities b =,so Mw <br /> whose employees are not subject to statutorily imposed <br /> =3G NW Medium sl:ea <br /> compensation limits. meuev:al Power Plam Power Plant <br /> 110kV sa¢up <br /> Current Status Factory <br /> The cap is currently set at 110 percent of the Governor's <br /> salary, and is adjusted annuallybased on the Consumer Distribution Grid <br /> Low ValtageT <br /> Price Index(CPI). up to <br /> o =,sg rend <br /> CD <br /> For 2019, the cap is $175,621 based on a 2.5 percent ; ft it 6 6 Power cos,.et <br /> increase to the CPI. City Network subst <br /> atIIIions :©w IIIYei dliei <br /> re.eaners <br /> T <br /> eD Mil <br /> A waiver request can be made to the Department of t, 6 6 6 <br /> It I Management and Budget, but theprocess takes time, I) �'` Al <br /> g g I Ili I S 11 I F,li <br /> offers no certainty, and increases costs for both the ® III 1 ill I' il� <br /> Soler FawnState and local governments. o <br /> AN <br /> U Rural Rehear* <br /> The salary cap fails to take into account that municipal Farm kW �` it <br /> utilities are responsible directly to their customers, _e j <br /> most of whom are the residents of their communities, ® farm <br /> and are not directly supported by tax dollars. <br /> Many Minnesota municipal utilities are multi-million dollar <br /> Municipal electric, gas, and water utilities are complex businesses,and require business, personal and political <br /> businesses, requiring special skills to manage, and thus acumen to successfully manage.This graphic only displays <br /> there is a limited number of qualified persons to lead the electrical system. Most municipal utilities also provide <br /> them. water service,and many others provide a variety of other <br /> utility services, including: natural gas,district heating, <br /> Highly valued employees sometimes leave for higher wastewater and telecommunications. <br /> paying positions with utilities whose employees are not <br /> subject to compensation limits. <br /> Requested Action <br /> Artificially suppressing a top salary results in'wage MMUA calls for the repeal of Minnesota Statutes (2018) <br /> compression,' and lower wages for other workers. This Section 43A.17 as it applies to local governments, and <br /> can result in other qualified municipal utility employees in particular, municipal utilities. <br /> leaving for other opportunities, and making it, in <br /> turn, difficult to attract qualified employees to fill that <br /> position when higher salaries can be offered by entities <br /> not subject to the compensation limit. <br /> 8/2019 State Position Statements <br /> 112 <br />