HomeMy WebLinkAbout93- 141 - ADMIN Resolution - City Council - 1993/09/07CITY OF ST. LOUIS PARK
Hennepin County, Minnesota
RESOLUTION NO.
93-141
RESOLUTION REGARDING HENNEPIN COUNTY
FUNDING OF COOPERATIVE HIGHWAY PROJECTS
WHEREAS, in a policy dated June, 1978, Hennepin County established
parameters for determining an appropriate division of cost participation to be
used by the County in funding cooperative roadway and street construction
projects with municipalities; and
WHEREAS, since 1978 municipalities within the County have accepted said
policy and cooperated with the County in the construction and reconstruction
of County roads and highways; and
WHEREAS, municipalities have established Capital Improvement Programs
which contemplate the improvement of County roads and highways based upon the
receipt of County funds as outlined in said policy; and
WHEREAS, in a draft policy dated June, 1993 the County proposes a number
of changes to the established parameters contained in the June, 1978 policy;
and
WHEREAS, most of changes between the existing June, 1978 policy and
draft June, 1993 policy provide for a reduction of the County's cost
participation in the funding of cooperative roadway and street construction
projects within municipalities; and
WHEREAS, the draft June, 1993 policy includes a provision which, by the
County's own admission, is intended to discourage the use of tax increment
financing for the municipal share of a project, and when used, to require a
higher municipal cost share; and
WHEREAS, the cost division parameters contained in the June, 1978 policy
have been accepted as an appropriate division of cost participation to be used
by the County and as a result has been the basis for long range capital
improvement planning by the City of St. Louis Park; and
WHEREAS, the implementation of this policy will encourage development in
the rural or underdeveloped areas of the County and cause disinvestment in the
developed areas as well as deterioration of existing facilities due to the
County's disparate funding formula. This disparity is due to the reduction in
the percentage of funding for the developed areas of the County versus the
rural areas; and
WHEREAS, the County's claim that a reduction in cost participation by
the County is justified because of the fact that County property tax funds are
becoming increasingly limited is, in fact, unjustified because in reducing its
participation, the County would shift the tax burden to the City; and
WHEREAS, the County's proposed policy relative to the use of tax
increment financing is a misguided attempt to punish municipalities attempting
to improve conditions in areas of need, when in fact, the expenditure of tax
increment financing will ultimately result in higher property tax receipts for
the County. Further, if tax increment financing is utilized, the costs of the
project to the City will increase, thereby potentially increasing the amount
of tax increment financing used, which in turn may delay the time period upon
which properties can be returned to the tax rolls.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St.
Louis Park that for the'aforementioned reasons, the Hennepin County
Commissioners are urged to reject the proposed June, 1993 policy and retain
the June 1978 policy as an equitable means of establishing an appropriate
division of cost participation to be used by the County in funding cooperative
roadway and street construction projects with municipalities.
BE IT FURTHER RESOLVED that the City of St. Louis Park will assist
Hennepin County officials to obtain increased funding through the County State
Aid formula which is currently an unfair allocation according to population.
Adopted by the City Council September 7, 1993
Attest:
4. a,,,
City Cle
Reviewed for administration:
Go 9044,4,,,
Approved as to form and execution:
City Xigig4rdney