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�001 MLC LEGISLATIVE PROGRAM GUIDING PRINCIPLES The Municipal Legislative Commission (MLC) was established seventeen years ago to provide a voice at the �Ainnesota Legislature for the 650,000 residents that live in our thirteen suburban communities. From its inception, the MLC has held, as its guiding principle, that the property tax system should be fair, equitable, simple and accountable. The Commission has devoted a tremendous amount of effort toward achieving this goal. Prior to casting a vote on property tax reform, local government finance or regional growth initiatives, the MLC asks each member of its legislative delegation to consider the following principles: • Tax polic�es adopted by the Legislature should provide cities with stability that allows them to plan for the future with a high level of financial confidence. Unfunded mandates, levy limits, and property 'tax freeze initiatives should not be adopted by the Legislature to solve political problems. • Policies adopted by the Legislature should consider that all cities, including " suburban communities with high property-tax bases, have diverse populations. These populations include retirees on fixed incomes, single parents, young apartment dwellers, and widows and widowers. Policies that ignore this diversity often penalize more vulnerable residents. For example, there may be less affordable housing in MLC communities because of fiscal disparities, school aids and local government aid distribution formulas. • True property tax reform will create tax burden shifts. These shifts arel acceptable, in fact required, if the current system is to be overhauled. To avoid undue hardships for taxpayers and local governments, property tax reform should be phased in and should grant cities the flexibility to offset revenue shortfalls that may develop. • The major policy rationale of any property tax system should be to assess taxes based upon benefits received. To use the property tax system as a hidden income tax is misdirected and reduces accountability and fairness. • Local governments should be provided with the economic tools and flexibility necessary to build new housing, maintain and preserve existing housing stock, and create a healthy and competitive business environment.