09-25-2018 CCM Workshop (CGMC Workshop)HUTCHINSON CITY COUNCIL
SPECIAL WORKSHOP
MEETING MINUTES
TUESDAY, SEPTEMBER 25, 2018, AT 4:30 PM
CITY CENTER — COUNCIL CHAMBERS
Call to Order
Mayor Forcier called the meeting to order. Members present were Mary Christensen, Steve Cook,
Chad Czmowski and John Lofdahl. Other present was Matt Jaunich, City Administrator
DISCUSSION/REVIEW ITEMS
1. Coalition of Greater Minnesota Cities Annual Update
Bradley Peterson, Coalition of Greater Minnesota Cities, presented before the Council. Mr.
Peterson updated the Council on activities of the CGMC throughout the year. Mr. Peterson
reminded the Council that the CGMC represents 97 cities across the state in the areas of
LGA/property taxes, economic development, annexation and land use, transportation and
environmental regulation.
Mr. Peterson noted that the legislature's to-do list during the short session had a significant focus
on the state's response to federal tax changes made at the end of 2017. Other focuses were on the
need for a significant bonding bill, the supplemental budget with a $329 million surplus and the
pension bill. Mr. Peterson also noted many obstacles that barred a smooth session. The strategy
and goals of the CGMC related to the legislature's focus on the bonding bill and positioning
issues for elections and the 2019 session included: bonding bill focused on water and wastewater
infrastructure; continue to educate legislators on the high cost of regulatory compliance; continue
LGA advocacy; monitor Corridors of Commerce awards for fairness toward Greater Minnesota;
continue city -street funding advocacy and highlight child care shortage issue and begin to
advance solutions.
The CGMC did advance water and wastewater infrastructure by gaining the largest amount of
PFA funding in 2017 and for 2018 proposed 5167 million for PFA grant and loan programs. In
addition a supplemental grant program was established to help pay high costs where PFA
programs are not adequate. The current PFA grant programs are capped by a dollar amount or a
total percentage of the project which often leaves cities trying to figure out how to pay high cost
even with grant money from the state. The CGMC developed a supplemental grant program
whereby the State pays at least half of the project cost or buys down project cost so rates are no
more than two times the metro average, whichever is more. Mr. Peterson outlined the
lobbying/media efforts of the CGMC to advance this issue. The outcomes of the wastewater
infrastructure included 5123 million in the bonding bill; funding included new appropriation
bonds backed by the Environment and Natural Resources Trust Fund; despite significant interest
from legislature, administration opposition killed the supplemental grant program.
Another notable topic at the legislature was transportation. Mr. Peterson explained that the House
and Senate took different approaches to transportation in the supplemental budget. The Senate
expressed no funding for roads and the House expressed funding for roads out of the surplus
budget. The CGMC supported the House bill which included ongoing funding for city streets for
small cities and included $155 million for Corridors of Commerce. There was aproposed
constitutional amendment to dedicate a portion of sales tax attributable to sales from auto parts to
roads and bridges; approximately $300 million a year would be taken from the general fund;
included new dedication for small -city streets; the amendment was chief authored by House and
Senate transportation chairs. It was opposed by CGMC, education, health and human services,
public employee unions. The amendment was passed in the House but stalled in Senate Tax
Committee. Mr. Peterson also noted that in 2017 $400 million was appropriated to Corridors
program with direction for MnDOT to come up with more transparent, objective, criteria -driven
process for project selection. The CGMC submitted comments on draft scoring system — some of
which were adopted, many of which were not. MnDOT announced their projects on May ls`
CGMC was severely critical of MnDOT's project selection as well as greater Minnesota's media.
CGMC and other groups are working on Corridors provision in bonding bill to direct funds to
next highest scoring Greater Minnesota projects. $400 million was allocated in the bonding bill.
Mr. Peterson noted that the process reveals flaws in the scoring system.
Mr. Peterson then reviewed the LGA and tax bill. The federal conformity was a significant focus
of tax committees and the governor. CGMC's goal is to get the LGA allocation back to the 2002
level which would require a $30.5 million increase.
Another issue that CGMC has been working on is child care. The CGMC and its sister
organization, the Greater Minnesota Partnership, worked with stakeholders to bring attention to
the growing child care shortage — and its impact on economic growth. In 2018, the CGMC and
GMNP advocated for grant funding to expand/build child care facilities, and train more child care
providers. Funding for childcare grant program contained in vetoed supplemental budget.
Mr. Peterson spoke about the Greater Minnesota Business Development Public Infrastructure
Grant Program. In 2017 $12 million was allocated to the program. By the beginning of the 2018
session half of the money was already spoken for. CGMC sponsored a bill for $20 million,
however $5 million was secured in the bonding bill.
Mr. Peterson spoke about 2019 and significant changes to come with a new governor, the election
in the House could flip the majority, the Senate special election could flip the majority, it's a
budget year and it is hard to predict surplus or deficit at this point. Mr. Peterson explained how
the CGMC has been and will be active in the election season
The opportunities for next session include a push for LGA increase; develop comprehensive
package to address child care shortage; continue to make water and wastewater infrastructure a
priority; and permanent additional funding for city streets.
Mr. Peterson reviewed upcoming events such as the Fall Conference in Alexandria in November;
Legislative Action Day in St. Paul in January and Summer Conference in Bemidji in July.
Discussion was held regarding affordable workforce housing and MPCA permit requirements for
water/wastewater.
Morgan Baum asked if the CGMC had a template that could be used by the City when they go
out to businesses to inquire about child care needs. Peterson noted that First Children's Finance
is a great agency to work with on this issue.
Motion by Czmowski, second by Christensen, to adjourn at 5:25 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier Matthew Jaunich
Mayor City Administrator