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JAN 22 '99 02: :IPM LERGUE OF MN CITIES P.1 . FR/DAYF/ lX Number A weekly legislative update from the League of Minnesota Cures January 22, 1999 This week at the Capitol . Veteran's Preference Peter), Otremba (DFL -Long Arai- ment revenue sources for affected Provisions Extended to rie), and Gleason (DFL- RIchfleld). communities. One of the aid State Agencies The bills have not yet been ached- payments, called utility replace - A Pm autnored by Sen. Jim uleJ to a hearing. moat aid, would replace lost Viokerman (DFL - Tracy) would property tax revenues in cities extend veteran's preference Limited Market Value where the exemption represents termination procedures to state Several bills have been Introduced more than 10 percent of the tax agencies. Currently, these provi- that would restrict Increases on base. This aid would be phased - sions only apply to local units of properties' market values for tax out over 10 years. The second aid, government. purposes. One bill would outright called debt replacement aid, would freeze market value at 1998 levels help cover current debt obligations Design -Build 8111 Introduced for homesteads, nonhomestead of certain affected communities. A Longue- supported bill to autho- residential properly, end cabins. rize the use of design -build in Another bill would limit market The first section would be contin- addition to the traditional competi- value increases on all types of gent on the passage of the second Live bid process in certain circum- property to the greater of 5 percent section, which would provide for stances was introduced this week or the rate of inflation (CPI). A third actual consumer choice in electric by Sen. Janet Johnson (DFL -North would limit increases on all prop- energy providers. We expect Branch) and Rep. Loren Jennings erty to the CPI. The League has legislation in be Introduced in the (DFL - Harris). The bill is similar to policy opposing expansion of the next several weeks. We will sum - the Legislation offered by Jul u WWI limited market value. Thoco bilie marize the legislation in the Cities and Jennings last legislative will likely have hearings in both the Bulletin. session with a few modifications to House and Senate tax committees address various concerns. this year. Municipal Community Sales Tax Repeal NSP Meeting Mourns Losses With the introduction of four more This marring, NSP convened a Two long -time city officials bills this week, the House and meeting of interested local govern- died this week. Former Fertile Senate now have 14 bills that manta to discuss their proposal to Mayor Duane Knutson died on would exempt purchases made by exempt electric utility generation Monday. On Wednesday, Pat luuai ywen nr lenta from the salon personal property from tha pain Bvrn riweti, Ii n ear ciarWadmini� tax. Several of these buts would erty tax. Although legislators have trator of Deese', died after a also reduce the state sales tax rate hardly discussed the issue of battle with cancer. Both Knut- from 6 14 percent to 6 percent. deregulating the electric energy son and Bonniwell were active Authors of the latest bills Include industry yet this session, NSP in the League of Minnesota Reps. Ozment (R- Rosemount), announced they would proceed Cities and the Association of Rest (DFL -New Hope), Erhardt with their plans to introduce legis- Small Cities. Both services will (R- Edina), Schumacher (DFL- lation in the near future. be held on Saturday at 11 a.m., Princeton), Juhnke (DFL - Willmar), with Knutson's service in Fertile Kuoly (DFL - Granite Fah), ONais The proposal is divided into two ana tionniwelt's se Vine in (DFL -St. Cloud), Chaudhary (DFL- broad sections. The first section Dassei. Fridley), Lindner (R- Corcoran), includes the exemption for per - Buesgens (R -Jordan), Storm (R -St. sonai property and two ropiaoe- I