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HomeMy WebLinkAbout1993-160 CCR1 1 1 Member Dave Rosen introduced the following resolution and moved its adoption: RESOLUTION NO. 93 160 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 and revised in August 1993, the County proposes a number of changes to the established parameters contained in the June, 1978 policy; and WHEREAS, all of the changes between the existing June, 1978 policy and draft 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 statement, 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 Brooklyn Center; and WHEREAS, the implementation of this policy will encourage development in the rural or underdeveloped areas of the County and cause disinvestment in the development 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 1 1 RESOLUTION NO. 93 -160 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 Brooklyn Center, Minnesota, that: For the aforementioned reasons, the Hennepin County Commissioners are urged to reject the proposed 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 Brooklyn Center will assist Hennepin County officials to obtain increased funding through the County State Aid formula which is currently an unfair allocation according to population. September 27, 1993 ATTEST: ii,a/2Ayt kruttaix Deputy Clerk Date Todd Paulson, Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott and upon vote being taken thereon, the following voted in favor thereof: Todd Paulson, Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted.