8.4. SR 07-31-1995 - Laserfiche WebLink

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~a ~lk Ri ver Tom: MEMORANDUM Mayor & City Council TTi?M R _ !i _ FROM: Pat Klaers, City Admi or DATE: July 31,1995 SUBJECT: Legislative Update Attached for your review is the June 9, 1995, League of Minnesota Cities Legislative Update. This material has previously been distributed to the City Council, but is offered again as a reminder of what happened at the Legislature earlier this year. The highlight for municipalities is the fact that not very much bad happened as it relates to municipal finances. Elk River is scheduled to have a loss in the amount of money we receive through the homestead and agricultural credit aid (HACA) program (currently estimated at a loss of $21,000). If we are to proceed with an ice arena project, the city did receive good news in terms of the Mighty Ducks legislation being approved. This legislation makes it possible to receive some grant monies to assist in this building project. Up to • $250,000 may be available to municipalities and, if the city cooperates with the school in a joint powers agreement, we may also be able to get the materials tax free. One of the most volatile issues at the Legislature this year was Tax Increment Financing (TIF), and actually the municipalities received good news in that we now have another option to the LGA loss of funds provision. This other option is a local match rather than losing LGA funds. Some of the proposals that were looked at regarding TIF dramatically affected future TIF projects and use of available funds from past TIF projects. We can anticipate some of these proposals being approved into law in 1996 and Elk River should take action in 1995 on how it wants to spend any available TIF funds. The city should decide how to spend these monies by September or October in order to complete the process before the end of 1995. The TIF discussion is mainly on page LS3 and 4. The Mighty Ducks discussion is on pages LS3 and LSS. This Legislative Session is really highlighted at the end of this attachment by what was proposed but did not become law. These items are listed on page LS16. Please review the attached law summaries and I will hopefully be able to answer questions you may have about any new laws that affect Elk River. If I can't address your questions at the 7/31 meeting, then I will have to obtain more information from the League and get back to the Council on their issues or questions. We can discuss the 1995 . Legislative Session in as much detail as desired by the Council. council:legupd 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425