Putting this project on ice

I’m a hockey fan. I grew up with a Rangers fan father, saw the short-lived Kansas City Scouts lose many games, watched the Flyers on (black and white) TV with my husband before we were married, received Flyers season tickets as a wedding present, had a subscription to the Hockey News for a decade, shivered in the Northfield arena while my daughter played Mite and U10 hockey, and now go to Gophers Womens Hockey games. No matter how much I like the game, I think the proposed referendum to finance the new ice arena via a sales tax and $17.8 million in new debt is not a responsible choice for the City no matter how great a game it is.

The issue on the table and the ballot.

On Tuesday, June 19, 2018, the City Council will vote to approve this ballot question:

Or, in plainer terms, the City will

  • Sell $17.8 million in bonds (debt financing) to raise the cash to finance construction of the arena.
  • Pay annual principal & interest of approximately $1.5 million for the 20 year life of the bonds (that’s about $30 million in debt service payments).
  • Create a new sales tax plus a motor vehicle excise tax to offset about 30% of the debt service payments. 
  • Bottom line: Property taxes will need to rise to pay for the $1 million of debt service not offset by the sales tax; the cost of buying things will rise as business owners pass the cost of the sales tax on to consumers.

Dundas is also planning on asking its residents to approve the sales tax; the Northfield Council will choose between two resolutions – one which makes the project dependent upon Dundas voters’ approval and the other which is silent on that issue.

One view is to relax and let the voters decide; if a majority of Northfield (and maybe Dundas) voters decide they want to pay for this project, then so be it. If they agree with me, then it will be voted down.

I’d like to argue, however, that putting the issue on the ballot at all presumes the city is prepared to follow through on the results and being willing to take on a significant financial obligation (risk) that is disproportionate relative to other important city projects, benefits relatively few people, and does not appear to support the city’s declared policies on equity, inclusion, and good fiscal management.

This is a huge amount of money

Not only is $17.8 million siginificant on its own, it is also near or more than many other important projects, so compare this to:

Schools: The 2017 Referendum asked for $23.5 million for replacing Greenvale Park Elementary School; the bond levy which also included a new high school failed. The Greenvale Park replacement may be on the November ballot along with the ice arena. So, the proposed ice arena will cost about as much as an elementary school.

NCRC (1999): Approved by (a tiny proportion of) voters in a special election in 1999, the NCRC cost was $2.7 million. Being approved by voters does not make a project a good deal; the facility was intended to be largely self-supporting, yet the City has been subsidizing the facility and looking for ways to decrease its obligations from renegotiating leases to selling the building to tenants.

Soccer (2002): The Spring Creek Soccer fields were budgeted at $150,000; the Northfield Soccer Association developed and paid for the fields on land donated by the City. The NSA also pays for field maintenance. Between the in-house and traveling teams, soccer dwarfs hockey participation, includes many more from usually underserved groups.

Outdoor Pool (2006): The new pool cost between $2-3 million financed by EDA lease revenue bonds (no referendum required). The pool is intended to be revenue neutral, but income from pool fees and concessions does not cover operating costs.

Safety Center (2012): $6.28 million financed with lease-revenue bonds + approx. $6.25 K land purchase. A similar .5% sales tax was briefly considered to offset debt service payments, but met with swift, negative responses from the Chamber of Commerce and business owners.

Northfield Public Library expansion (2015): The addition and remodeling of the Northfield Public Library cost approximately $3 million. $1 million was allocated from the City General Fund, additional money from the Library Gift Fund, but about 1/3 was raised privately by the Friends and Foundation of the NPL.

These are not apples to apples comparisons. Like the ice arena, the pool has use charges intended to offset costs, but Northfield has multiple pools which extend the swimming season year-round. The Safety Center and Library are core public services which do not charge fees at the point of use and are intended to be funded by taxes. The soccer (and baseball) facilities are both city parks, but the sports organization pays on-going costs and passes costs along to players. However, such a large bonding request plus instituting a new sales tax makes me pause to ask what else Northfield can do for the same amount of money and how does this recreation project serve Northfield better than others, like the soccer fields, which cost so much less (but serve more people)?

What else could we spend $17.8 million on?

Northfield has other needs it has identified where $17.8 million could be very useful and, I’d say, are either significantly more important to the community than an ice arena or yield a higher return on investment. Here are three:

246/Jefferson Parkway intersection (and related transportation connections): Northfield has studied this intersection and tentatively planned a roundabout at this location. The City applied to MnDOT for funding, but did not receive it in the last round of funding. The City has long recognized the street network in this area does not work. Driving to the Middle School, Bridgewater and High School is bad; walking and biking are almost impossible yet it serves three schools (thousands of children), the NCRC (seniors), and soccer fields (500 youth soccer players. I’ve already had much (critical) to say about this intersection and the history of planning decisions which have put much pressure on this link. From choices made when planning the Middle School (Schools and where to put them) to more recent efforts to improve safety (Still Not a Safe Route to School), to looking to change the conversation about streets from vehicle traffic to community connections (Reimagining Woodley).

Jefferson Parkway/TH 246 intersection

Mill Towns Trail through Northfield (and fixing the segment to Dundas): Building the Mill Towns Trail has been inching along for decades, but Northfield could kickstart things by completing the segment through town from the Cannon River to the east and with a better connection into the heart of downtown. The trail is planned to cross 246 at Jefferson Parkway so it dovetails with that improvement. There is a whole subdivision of economic development literature devoted to “trail-based economic development” recognizing the impact a trail can have (like the Root River Trail). Would the tourism impact of a trail be a better deal?

Mill Towns Trail proposed alignment

 

Flood control through downtown and river enhancement: Recent flooding has highlighted how vulnerable downtown is. The Cannon River and the riverfront are prized assets cited for defining Northfield’s sense of place (and its place in history), as economic drivers, as recreational delights, and in need of enhancement, protection, and redevelopment (like in the Strategic Plan).

Questions the Council has not asked

Perhaps most surprising of the Council discussion to date is how few questions have been asked about the project. Councilors who are usually vocal when it comes to spending money have said little. Here are questions I’m still hoping will be asked at tonight’s meeting:

How much debt is too much? This project asks Northfield to issue a large amount of debt; I have not yet heard a discussion of how this fits into the overall financial plan for the city.

Has Northfield developed a plan and budget for maintaining and replacing facilities as they age?  Northfield has waited for facilities to nearly or completely fail, then made decisions in haste. The current arena has been inadequate for years, the swimming pool was leaking and had to be shut down for a season forcing quick replacement decisions, and the Safety Center was overcrowded and subject to flooding requiring quick action.

What happens if the naming rights and fundraising aren’t as successful as planned? Current financial planning depends on advertising, naming rights, and private fundraising. Will the project depend on a certain amount of money being raised before ground is broken like the skatepark?

What happens if the projected revenue does not cover costs? Will the City subsidize the arena as it does the pool? How much is it willing to pay?

Who pays for the Riverview Drive street extension to the arena?  An extension of Riverview Drive to reach the service area for the arena is on the plans, but not in the budget.

Are the additional spending and lodging tax revenue projected a good return on investment? The economic boost projected because of the increased ability to host tournaments and other events is not being compared to other economic development efforts the city might make, the amount generated by other city attractions (like bike trails, for example) nor does it directly help pay for the debt.

Why should we pay this much money to improve our other parks? There is a red herring in the logic of this project where the ice arena is being touted as being a way we can pay for on-going park maintenance because 30% of the funds may be used for other recreation spending. There are other, much cheaper, ways to manage our park and trail system without spending the 70% on an ice arena. If funding parks is a priority, there are better ways.

November

Obviously, I’m voting no and urge fellow taxpayers to think hard about how our City government allocates our tax dollars.

2004 Jamboree – I bought warmer clothes to watch U10 hockey because the arena was delapidated 15 years ago; Northfield could have planned better for improvement or replacement.

What would happen if we treated sidewalks like streets?

Perhaps I am getting grumpy as winter drags on here in Minnesota, but as I was picking my way on the ice, trudging through the snow, and climbing over the snowplow mountains at intersections after the last big snowfall, I thought (again, for I think this every winter):

The City should treat sidewalks like streets.

That is, the City should “plow” the sidewalks rather than relying on individual property owners’ initiative to shovel the snow.

Why have property owners do the work of maintaining public property?  The only benefits I can identify are (1) heart-warming stories of neighborly generosity where people clear the snow from elderly neighbors sidewalks, cookies are baked for the nice folks shoveling their friends’ walkways, and the camaraderie as we get to know each other as we share the burden, and (2) the City (that is, taxpayers) don’t have to pay for it. Yet we do pay for it with our time, money (snowblowers are not cheap and even snow shovels cost something), and limitations in transportation choice.

Helpful neighbor doing the City’s work

Why have the City clear the sidewalks? I believe Northfield could find ways to manage both the cost and logistics (perhaps a snow removal utility – rates would be higher if you live on a cul de sac, but lower on a snow emergency route), so that’s not my central concern.

Sidewalks are critical public transportation infrastructure, not amenities. Whether we cannot drive, cannot afford to drive or choose to walk to carry out our daily activities, we rely on a safe sidewalk network to get around just as much as others rely on the motor vehicle spaces. City maintenance of the sidewalks network (and filling in gaps in the network) would be a strong statement of the importance of transportation choice and do much to implement our environmental, age-friendly, multi-modal transportation policies.

Piecemeal snow removal on sidewalks limits mobility and increases risk for everyone, but particularly older adults. Reading comments on the Age-Friendly Northfield survey recently, snow on sidewalks was mentioned by multiple people as an obstacle to getting around as they age.

Snow removal is one of the biggest objections to adding new sidewalk. Attend any public meeting for a street project where sidewalk is proposed to be built where none currently exists and you’ll hear a concern about the burden of snow removal. Since snow is a problem for less (often much less) than half the year, this means fear of snow shoveling has helped create gaps in the sidewalk network itself which persist year-round. Northfield could remove this excuse my removing the snow.

Snow removal by property owners is not always equitable. In areas with neighborhood associations, the association removes the snow. In others, like mine, my family can buy a big and expensive snowblower; my neighbor can pay for a snow removal service. The rental properties in my neighborhood are rarely shoveled and neighbors who work out of town (or work long hours) often do not have time to clear the snow promptly or effectively. Any one of the properties which doesn’t clear the sidewalk interrupts the network for the block. Maintaining a transportation network should not depend on individuals’ affluence, work schedule, means of paying for housing, or sense of civic responsibility.

Wait, would the City have to clear all the sidewalks at once? No, the City could prioritize sidewalks the same way it does streets as long as it provides a connected, clear sidewalk network in a timely manner (here’s a similar argument for bike lanes). My local street is appropriately plowed later than nearby collectors; my sidewalk can wait, too. Some special cases might include ensuring snow is removed quickly near schools and facilities serving older adults.

What about sidewalk maintenance more generally? The City is will discuss its Pavement Management Index on Tuesday which maps the condition of driving surfaces of City streets. If the City treated sidewalks as transportation infrastructure, sidewalks (and gaps in sidewalks) would be included in their inventory.

Nicely cleared multi-use path in Lapland

Dear Mike Obermuller (or your favorite candidate)

 

Mike Obermuller

Mike Obermuller is running for Congress here in CD2 looking to unseat John Kline.  At a campaign event last night, an interesting exchange and opening for new conversation emerged –

Dear Mike Obermuller,

I enjoyed having the chance to talk to you again at the campaign event in Northfield last night and was impressed at how you’ve evolved as a candidate since 2012. I’m writing to follow up on your responses to questions about carbon and the environment.

You talked a bit about carbon taxes and reducing subsidies to oil as ways to address climate change.  Two bits of your remarks caught my attention

(1) Addressing climate change will require decisions for actions which (far) exceed election cycles.  Bravo!  Making decisions to minimize the impact on the immediate bottom line limits the innovation and action which could make for significant change in environmental policy…and many other policy areas.

(2) You’re working to change the conversation on the environment to help more people understand why action is critical (and long-term).

(1) should be obvious. The desire to package policy for (quickly) deliverable results leads to simplifying complex issues, isolating problems and siloing information to be able to formulate the quick fix and deliverable project while ignoring long term or downstream costs.  I don’t tend to be a one issue voter, but if there is one issue which will ensure not only my vote but my commitment and energy, this is it.

As for (2), here’s how I’d like to see the conversation change. Most of the time, I advocate for better transportation and land use policy and spending. In these areas, as with the environment, decisions tend to be isolated – approving this development, designing that road segment, and funding a particular non-motorized project.  In thHowever, the bigger picture of the pattern in which we guide the growth of our cities (I do remember you once said you were interested in seeing cities grow up and not out), how we reverse the trend of designing transit, cycling and walking out of our transportation system, and how we think through our incentives for more sprawling, car dependent land uses and transportation is going to impact the environment.

So, you can talk about carbon taxes or we can reframe the conversation about how we build sustainability and equity into our places by connecting fossil fuel use, air quality, transportation, land use and public health.  Right now, messages are mixed – charge a carbon tax, but keep building roads and encouraging sprawl.  Fret about obesity, but make active transportation fight for funding crumbs. How about we look to how to get the incentives for sustainable, healthy development aligned and funding aligned for incremental change for better air, water, and health.

Many thanks for being willing to serve,

Betsey Buckheit

 

More TIGER news

“MnDOT recognizes the impact Hwy. 3 has on the divide between the two halves of the city. They want to see this project happen”

Public Works Director Joe Stapf was quoted as saying in the Northfield News.  MNDoT has demonstrated their recognition by agreeing to fund 80% of the cost of the TIGER trail over the original estimate currently estimated at about $600,000.

Wow.  The money is very helpful, of course, but I’m really more impressed with the rationale which is the clearest statement of a change of philosophy at MNDoT I could imagine.

But back to the money.  Grant funding has its problems, certainly, and is probably worth a blog post itself.  Biggest problem is the risk evaluation – my sense is that projects are chosen for grant applications not because they are considered essential and would be funded by the local government anyway, but because if we win the grant lottery we’ll get free money for a one-off special project.  But grants, like tax breaks and statutes, are also tools to carry out policy by awarding grants to particular projects, the Federal government picks what it wants to encourage (but that’s the ideal – see another TIGER criticism at Strong Towns of the Feds not applying their own policy rationally).

The TIGER grant project, according to the grant guidelines,

“is multi-modal, multi-jurisdictional or otherwise challenging to fund through existing programs. The TIGER program enables DOT to use a rigorous process to select projects with exceptional benefits, explore ways to deliver projects faster and save on construction costs, and make investments in our Nation’s infrastructure that make communities more livable and sustainable.”

Northfield’s trail is multi-modal (bike/pedestrian – and “multi-modal” really just means “not cars), multi-jurisdictional (city, state and railroad) and it is challenging to fund given MNDoT’s previous planning and construction of TH3 and by adding value to the core of the city and connecting the two sides of town, I believe it does make Northfield more liveable and sustainable with a very small bit of actual infrastructure construction.  The faster, cheaper requirement seems to have been negated by the multi-jurisdictional component, but it’s still moving pretty quickly for a complicated project.

I fully accept the Strong Towns criticism of the teeny tiny amount of funding for Safe Routes to School or Complete Streets or multi-modal TIGER projects – yes, the grants and special programs (can) miss the larger point that Federal funding of massive highway expansion and car-only planning (along with mortgage interest deductions and more policies) has massively contributed to the problem we are now trying to solve (or at least mitigate).

However, Federal transportation funding will not be revised or rescinded quickly nor will attitudes be changed overnight (and however much I like the Hatch/Baucus proposal to start tax reform with a blank slate, I cannot believe it will happen that way).  So, for the short term, I’m in favor of these programs to help raise consciousness, publicize noteworthy projects, and gradually change the state of transportation in the US.  I’m in favor of this project in particular because it is so well grounded in city policy and earlier projects (read the history in the grant application) and not just plucked out of the air.  MNDoT’s decision to help with funding underwrites this gradual shift in design and planning and gives Northfield a little boost in the right direction.  Not perfect, but a good step forward.

Now we wait for the bids and the Council must act to move forward, but in the meantime:

Thanks, MNDoT!

 

Could Northfield be the next Vancouver?

I’ve never been to Vancouver, BC, although it’s been on my “to go” list for a long time.  Now, even more, I’d like to visit.  Why?  Their transportation policy (and the cross country skiing in BC is excellent).

Here in Northfield, we’ve struggled to make even small changes in policy to help Northfield grow in ways which encourage active transportation, productive land use, and a viable transit system.  Even so, every policy gets challenged (or simply ignored) when a new small decision needs to be made.  Complete Streets?  Great, until a street project must be approved.  GreenStep Cities and sustainability?  Wonderful, but seldom considered.  Smart Growth Comprehensive Plan?  Super, until we try to take steps to implement it.

Vancouver, however, thinks big and has since 1997 when it approved an influential Transportation Plan which prioritized – rank ordered – modes of transportation.  Vancouver has just approved Transportation 2040 which affirms the priorities for moving people (for moving goods, etc. there are separate rankings): Walking, Cycling, Transit, Taxi/Commercial Transit/Shared Vehicles, and Private Automobiles.

The hierarchy is intended to help ensure that the needs and safety of each group of road users are sequentially considered when decisions are made, that each group is given proper consideration, and that the changes will not make existing conditions worse for more vulnerable road users, such as people on foot, bicycle, and motorcycle. Each time a new roadway is designed or an existing one changed, opportunities for improving walking and cycling will be reviewed…This is a general approach and does not mean that users at the top of the list will always receive the most beneficial treatment on every street. In highly constrained urban environments, it is not always possible to provide the ideal facilities for all users’ needs.

Even better, Vancouver links transportation and land use (“Use land use to support shorter trips and sustainable transportation choices”), does not flinch from saying the goal is to reduce auto-dependence (“Manage the road network efficiently to improve safety and support a gradual reduction in car dependence. Make it easier to drive less”) and understands that the economic vitality and emergency response must also be part of the overall plan (“Support a thriving economy and Vancouver’s role as a major port and Asia-Pacific gateway while managing related environmental and neighbourhood impacts. Maintain effective emergency response times for police, fire, and ambulance”).

Here in Northfield, we need to try to be more Vancouverish (at a scale appropriate for a community of our size/location) for the long term health (financial, physical, environmental) of the city.  

Dear Representative Bly

A very nice deck chair from the Titanic

Still a very nice deck chair from the Titanic

So, Senator Kevin Dahle’s tweet about LGA sparked a recent post and now my state representative David Bly’s newsletter has me blogging on a related issue.

Really, the issue is how can the public conversation begin to address the relationship between property taxes and their friends (LGA, tax relief of various kinds, business subsidies), the crumbling infrastructure and the services taxes must fund, and what spending decisions we can make to change this landscape for the better.  Perhaps Rep. Bly and Sen. Dahle understand these issues very well, but so far they are only choosing to write the quick and easy stuff for constituents.

Dear Rep. Bly,

Congratulations on your return to the legislature and thank you for your continued service. Just as I took your senate colleague Kevin Dahle to task over his tweet about increasing LGA in response to requests from district mayors, I’m writing to challenge you to consider and, even more important, talk about the larger picture.

In your weekly newsletter of February 8, you said:

I agree with the Governor on his assessment that we need to reduce property taxes. The consistent increase hits low and middle-income earners much harder. Middle class families have been squeezed too much in the last ten years. Wages have remained flat while the cost of living has steadily increased. Many Minnesotans are finding it harder to save for retirement and send their kids to college. As the Governor said, this is not the Minnesota we want to leave our children. We need Minnesota to be a state that invests in its people and provides quality, efficient services.

Your remarks indicate you are concerned about equity for middle and lower income families.  I agree, but question the strategy you endorse for achieving it.  As with my letter to your colleague Senator Dahle, I question whether you are going for the quick fix without even attempting to figure out how to improve the tax system in the longer term for a sustainable state budget.

In particular, the relationship among taxes, local government costs, and policy choices which have skewed the market and the landscape remains unexamined, but it is these structural issues which desperately need your attention. My vote in the next election for you or any politician depends entirely on your contribution to shifting the conversation from short term fix to sustainable policy.  In addition the issues I raised for Senator Dahle, I have these questions:

How regressive are MN property taxes?  A new report Who Pays? evaluates state tax systems for regressiveness; sales taxes are much more regressive than property taxes, but I urge you to take a look at Minnesota’s overall tax burden on its residents and how regressive it is.  Minnesota’s sales tax was created to fund property tax relief back in 1967; this seems like a very inequitable method for change.  Please also consider how previous legislatures have tried to shift the burden to commercial/industrial property with higher class rates and the state general tax; this shift creates superficial equity for homestead tax payers while imposing an obstacle to our economic drivers who, typically, require fewer city services.  Again, please evaluate how the system is balanced rather than simply reducing one component.

Property taxes, housing costs and location: The size of homes has been increasing since the 1950s and, as a result, so have the taxes.  Part of the housing and transportation cost equation depends on where we live relative to where we work, too.  Since your district has Northfield, Londsale and other communities which became more attractive to commuters to the metro area in the last decade, there are also many homeowners who pay a great deal in transportation plus housing.  “Drive ’til you qualify” may have yielded more house for the money for individuals, but also increased household costs. So, it is not too surprising to read that housing and transportation costs taken together are outpacing incomes.  If households are paying more of their income for housing and transportation, then property taxes will be more of a burden.  Before cutting taxes, think about how the incentives for more efficient and economical development can help reduce both government and homeowner costs.

How good is Governor Dayton’s plan?  I’m not impressed.  MinnPost’s Steve Dornfeld critiques the plan and finds 3 big issues: increased complexity (see the final report from the Property Tax Working Group, too), creating new inequities, and providing incentives for local governments to raise taxes in the future. I’d add that Gov. Dayton’s plan adds economic development policies which will continue to incentivize the race to the bottom which will continue to use tax dollars to lure business to Minnesota through tax abatement and infrastructure subsidies while also including new sales taxes for business services which follows the historical pattern of trying to offset property tax issues with sales tax.

As I said to Senator Dahle, I’m counting on your leadership to help develop policies which benefit all Minnesotans for the long term, not just the constituents yelling at you right now.  Of course, I also know that change happens incrementally as you work to build support and make compromises (and that’s just within the DFL) and that I am asking for a staggering amount of reform, but I am looking for you to shift the conversation away from reactive government to thoughtful, sustainable policy-making.  Good luck!

Sincerely,

Betsey Buckheit

Rarely economical disappointing development

First, the NY Times series on subsidies and now the Strib has Art Rolnick (former head of research at the Minneapolis Fed) and business writer Mike Meyers bringing the Times’ information back to Minnesota in the context of Governor Dayton’s tax plan in The Subsidy Bonanza.

A few highlights:

  • Stadium subsidies are “part of a national pattern of taxpayers subsidizing some of the richest people in America.”
  • Minnesota outpaces the nation in job growth, but is not a big subsidizer.  So adding more taxpayer money to lure companies hasn’t proven effective, although it is expensive even for the small players (about 1 cent of every dollar in the Minnesota state budget).  Yet, “Study after study has shown the education of Minnesota’s workforce has been the key to the growth of high-quality jobs for the last half-century.”
  • A catalog of the Twin Cities projects which have been subsidized and not delivered on the promises: Best Buy, stadiums, City Center, Lawson Software…

Rolnick also commented on the Mayo deal over in Minneapolis/St Paul Business Journal comparing Mayo to the Vikings stadium deal.

 

 

Dear Senator Dahle

With the power shift in the state legislature, I’m looking forward to the legislative session with a teeny tiny bit of hope and a whole lot of apprehension.  My apprehension level rose precipitously yesterday when I read my new state senator’s tweet (@KevinDahle) that he’d been meeting with a district mayor as part of working to increase local government aid.  Oh dear, Senator Dahle, but that’s starting at the wrong end of the policy process and so early in the session, too.

Dear Senator Dahle,

A very nice deck chair from the Titanic

A very nice deck chair from the Titanic

Congratulations on your election and the start of the new session!  As a recovering local government official, I know that the state legislature has a great influence on how cities can do their business. I write today to offer a few ideas about how the state could help rather than hinder local governments.  I encourage you (indeed my support in any future election depends on it) to look at the larger, longer term policy picture rather rearranging the deck chairs on the titanic ship of the state of Minnesota.

More than 20 years ago, the Citizens’ League published Remaking the Minnesota Miracle which studied the state/local fiscal system to determine what “realigning of responsibilities and revenue raising authority would have to occur” to finance state and local services and increase accountability.  Although the specific recommendations are interesting (the report calls for eliminating LGA), I hope you’ll consider the 4 principles for evaluating the fiscal system which seem very relevant and not time-bound:

Accountability: Responsibility for services should be assigned to the entity that is accountable to the electorate, the recipient of the service, and the governmental unit or persons paying for the service

Effectiveness: Responsibility for services should be assigned to the entity, public or private, that gets the job done well and measures for results.

Economy: Responsibility for services should be assigned to the entity, public or private, that can supply the service at the lowest possible cost.  For instance, in developed areas, water treatment and sewage facilities can be provided less expensively on a regional basis than on an individual city basis.

Equity: Responsibility for services should be assigned to the entities that can finance the service equitably and ensure equity in the delivery of services to all persons.

Certainly, almost any proposal will address some of these values strongly and others more tentatively or will demonstrate the tension between values.  Equity or accountability might strain economy, for example.  Still, these values can help think about what level of government or what private entity is best situated to deliver or fund services and, as a result, where decision-making control should reside.

I hope you have received a copy of the Property Tax working group’s report which also addresses what property taxes are intended to fund and to disentangle state control from local functions.  The history of the development of the property tax in Minnesota is well worth reading as “You may ask yourself, well, how did I get here?”

Finally, consider how other regulation affects the tax picture and how the state legislature can incentivize better spending strategies and foster innovation at the local level.

  • The “grow our way to prosperity” model must be reexamined to allow cities, counties and the state to maximize their existing investment in infrastructure rather than expanding infrastructure (and the obligation to maintain it) in the hope of attracting enough new business to pay for the existing system.  There is a burgeoning amount of data showing the cost of this strategy to local and state government.
  • Consider school siting philosophies which demand open space and favor new schools rather than renovation also make it harder for children to walk to school (adding busing costs and congestion).  
  • Think about how state government, with its larger scope, can help local entities work collaboratively (especially those outside the Metro Council’s jurisdiction) to deliver services efficiently and economically rather than pitting them against each other or forcing a sort of local protectionism.  We need to be able to develop shared solutions for transportation, land use, resource protection, and service delivery.
  • Transportation and infrastructure spending is a big deal at all levels of government.  Land use, environmental regulation, public health and quality of life are deeply intertwined with transportation policy; please try to see the whole landscape to make policy which helps local and state government invest wisely, support productive growth patterns, and build places where we want to live, work and invest time and effort.

Thanks for reading and I await your updates and other news of what’s happening in St. Paul.  I’m counting on your leadership to help develop policies which benefit all Minnesotans for the long term, not just the ones yelling at you right now.  Of course, I also know that change happens incrementally as you work to build support and make compromises (and that’s just within the DFL), but I am looking for the conversation to shift away from reactive government to thoughtful, sustainable policy-making.  Good luck!

Yours sincerely,

Betsey Buckheit

 

 

 

Revenue handcuffs on local government

Thanks, Minneapolis Fed!   Latest issue of FedGazette has a piece on unfunded mandates and other ways local government is burdened by the folks upstairs:

Even the most flexible, forward-thinking government can run into roadblocks not of its own making. Numerous local government sources said unfunded state and federal mandates often prevent cities, counties and school districts from cutting costs and becoming more efficient.

Don’t believe it? Here’s a simple example, born of tradition: Many states still require local governments to post meetings and other official news in a printed newspaper, when web posting is readily available, free and arguably more accessible to the public.

Northfield’s Council brought up the printed official newspaper problem at its organizational meeting a few weeks ago with the plan to follow up with state legislators, but that’s just the tip of the iceberg.  Property tax class rates, sales tax paid by local government, local government aid (and levy limits), and more.  I hope state and federal legislators are listening and will attempt thoughtful reform, rather than continuing to balance state budgets on the backs of cities or simply adding regulations without considering the downstream consequences.