5.4. SR 04-14-2003 - Laserfiche WebLink

Home Browse Search

Item 5.4. MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor and City Council Pat Klaers, City Administ~.~ j~ April 14, 2003 District 48 State Senator Mike Jungbauer - Legislative Update A representative from Senator Mike Jungbauer's office contacted City Clerk Sandy Peine regarding the Senator coming to this meeting for a discussion with the City Council on current legislative issues. One of the big local issues that has surfaced this legislative session is the potential closing of the Kelley Farm due to a shortage of funds. Attached is the resolution which the City Council recently approved in support of the Kelley Farm. I understand that Sherburne County has adopted a similar resolution. The big State Legislative issue that most everyone has heard about is the state financial problem and the resulting impact on municipalities. A number of proposals are moving forward that call for a reduction in local government aid and in the market value homestead credit program. The Governor has a proposal, the House Representatives have a proposal, and most recently, the Senate Democrats have a proposal. The Governor's proposal contains the most severe reductions in aids to municipalities. Another big £mancial issue for municipalities that is being discussed at the State Legislature is levy limits. The levy limits law was due to sunset this year but there are a number of bills that have been proposed which extend levy limits. An important levy limit issue for the City of Elk River is allowing some increase in the limit due to growth factors. The city would have a very difficult time in 2004 if the levy was frozen and no increase in taxes was allowed. A freeze by the State Legislature on municipal wages and benefits has been discussed. At this time, I am not sure of the status of any bill regarding this issue. One bill that has been introduced relates only to state employees.