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CGMC Programs

For Immediate Release
Contact: Julie Liew, jlliew@flaherty-hood.com

Below is statement from CGMC President and Bemidji City Council Member Ron Johnson regarding today’s announcement that Minnesota’s budget surplus has increased to $1.5 billion:

“With the state clearly on solid financial footing, I’m hopeful that Governor-elect Walz and the new Legislature will seize this opportunity to strengthen communities across the state by increasing Local Government Aid. City leaders in Greater Minnesota were encouraged that Walz frequently campaigned on the idea of boosting LGA, and this new budget forecast will allow him to make good on that promise.

“The CGMC’s top priority for the upcoming legislative session is a $30.5 million LGA increase, which is the amount needed to bring the program back up to its 2002 high-water mark. LGA is the most important state program to help cities restrain property taxes and afford essential services like public safety, libraries and snow removal. As city officials, we try our best to craft responsible budgets, but it has been a struggle in recent years as LGA funding has failed to keep pace with rising costs. We are eager to work with Walz and the new Legislature to make an LGA increase a reality this session.”

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The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing 97 cities outside of the Twin Cities metropolitan area. The Coalition educates legislators about issues important to Greater Minnesota. Visit the CGMC online at greatermncities.org and follow us on Twitter @greatermncities.

Before sitting down for Thanksgiving dinner last week, the new Minnesota House DFL majority announced its committees and chairs for the 2019 legislative session. Most notable for CGMC priorities is that Rep. Paul Marquart (DFL-Dilworth), a longtime advocate for the Local Government Aid program, will serve as chair of the House Tax Committee.

The DFL made a few structural changes relevant to CGMC priorities, including the creation of a Greater Minnesota Jobs & Economic Development Division. The new Greater Minnesota committee will be chaired by Rep. Gene Pelowski (DFL-Winona). The new majority also combined the Transportation Finance and Transportation Policy committees. This new joint committee will be chaired by Rep. Frank Hornstein (DFL-Minneapolis), who also served as transportation finance chair last time the DFL held the House majority. There was also a shake up on the bonding committee, where longtime Rep. Mary Murphy (DFL-Hermantown) will now serve as chair, with former chair Alice Hausman (DFL-St. Paul) moving over to chair a newly created Housing Finance & Policy Division.

Here are a few of the committee chairs most relevant to CGMC’s priorities:

  • Taxes – Rep. Paul Marquart (DFL-Dilworth)
  • Capital Investment – Rep. Mary Murphy (DFL-Hermantown)
  • Environment & Natural Resources Finance Division – Rep. Rick Hansen (DFL-South St. Paul)
  • Environment & Natural Resources Policy – Rep. John Persell (DFL-Bemidji)
  • Subcommittee on Water – Rep. Peter Fischer (DFL-Maplewood)
  • Transportation Finance & Policy – Rep. Frank Hornstein (DFL-Minneapolis)
  • Jobs & Economic Development Finance Division – Rep. Tim Mahoney (DFL-St. Paul)
  • Greater Minnesota Jobs & Economic Development Finance Division – Rep. Gene Pelowski (DFL-Winona)
  • Government Operations – Rep. Michael Freiberg (DFL-Golden Valley)

A full list of House committee chairs can be found HERE. The full membership of these committees will likely be named in mid-December.

The Minnesota Senate also made committee announcements this week. Although the majority party in the Senate has not changed, the departure of Senate President Michelle Fischbach (R-Paynesville) from the Legislature led to some minor shake ups in the committee structure. Sen. Jeremy Miller (R-Winona) was chosen to take Fischbach’s place as Senate President, leaving a vacancy in the Senate Jobs and Economic Growth Committee. Taking Miller’s place as chair of that committee will be Sen. Eric Pratt (R-Prior Lake). Pratt, who has served in the Senate since 2012, chaired the E-12 Policy Committee during the 2017-18 biennium and did not serve on the Jobs Committee during that span.

Thank you to everyone who attended the CGMC Fall Conference last week at Arrowwood Resort & Conference Center. More than 100 city leaders representing 50 cities attended the conference — setting an attendance record for the second straight year!

The conference kicked off Thursday afternoon with a presentation by Minnesota Management and Budget Commissioner Myron Frans, who shared insights into his past eight years as a member of Gov. Dayton’s administration and the ups and downs our state budget faced during that time. He also provided information on the state’s current economic outlook and what could be in store for the budget in the near future. You can read Frans’ presentation here.
 
Following Frans’ presentation, we delved into a panel discussion on the rural/urban divide and the role city leaders can play in helping to bridge the gaps between the various and diverse communities in Minnesota. Panelists included Ben Schierer, mayor of Fergus Falls; Suzanne Hilgert, mayor of Olivia; Peter Lindstrom, mayor of Falcon Heights, and Brad Tabke, former mayor of Shakopee and a newly elected state representative. The panelists shared examples of ways they have learned from leaders in other parts of the state and discussed the issues in which they wish there was better understanding between rural and urban communities. Conference attendees also participated in small group discussions where they brainstormed ideas on steps they can take within their cities to help bridge the rural/urban divide.
 
With the conference being held just a little over a week after the midterm elections, it would not have been complete with a good ‘ole CGMC election recap. CGMC Executive Director Bradley Peterson provided in-depth analysis of the 2018 election results — particularly the race for governor and the Minnesota House — and what they could mean for CGMC priorities and other issues in the upcoming legislative session. You can read Bradley’s presentation here.  
 
After the election analysis, we welcomed several legislators for a panel discussion on one of the most critical issues currently impacting Greater Minnesota: the child care shortage. Nicole Griensewic Mickelson, executive director of Region Nine Development Commission and president of the Greater Minnesota Partnership, moderated the discussion featuring Sen. Kent Eken (DFL-Twin Valley), Sen. Mark Johnson (R-East Grand Forks), Sen. Erik Simonson (DFL-Duluth) and Rep. Joe Schomacker (R-Luverne). You can watch video of the discussion here.
 
Annexation is another important topic explored at the conference. CGMC lobbyist Elizabeth Wefel informed attendees about some looming concerns, particularly the possibility that the CGMC and cities may need to play defense on legislation being proposed by township groups that could thwart cities’ ability to pursue annexations. You can read Elizabeth’s Power Point presentation here.
 
In the evening, attendees enjoyed a cocktail reception and dinner followed by an excellent presentation by Emmy-award winning reporter Tom Hauser of ABC 5 Eyewitness News. A veteran political reporter, Hauser shared his take on the national and state election results and some of the issues that could be on the horizon in the future.
 
Friday morning kicked off with a presentation/discussion led by Brandon Fitzsimmons, a labor and employment attorney with Flaherty & Hood, on how to effectively evaluate the performance of city administrators and managers. Waite Park City Administrator Shaunna Johnson and Mayor Rick Miller shared their stories on this issue and provided advice on how to help performance evaluations run smoothly. You can read Brandon’s Power Point presentation here.

In addition to speakers and presentations, the conference also included a membership meeting Friday morning during which members discussed and adopted the CGMC’s 2019 legislative policy positions. To review the adopted positions, click on the following subject areas:

Members also discussed the CGMC’s legislative priorities for 2019 and learned about our initial messaging and strategy plans for the upcoming legislative session.

Thanks again to everyone who attended our 2018 Fall Conference. We look forward to seeing you again at our next CGMC event – Legislative Action Day on Jan. 30 in St. Paul. We will send out registration information for Legislative Action Day soon!

For Immediate Release
Contact: Julie Liew, jlliew@flaherty-hood.com
PDF version

With first Greater Minnesota governor in decades, city leaders see major opportunity with Walz Administration

ALEXANDRIA, MINN.—For the first time in more than three decades, Minnesotans have elected a governor who resides in Greater Minnesota. With Governor-elect Tim Walz’s outstate roots and campaign-trail focus on uniting rural and urban interests into “One Minnesota,” rural city leaders are optimistic that the upcoming legislative session will see a renewed emphasis on advancing Greater Minnesota priorities.

“It’s no secret that a strong Greater Minnesota strengthens the entire state,” said Audrey Nelsen, a member of the Willmar City Council and vice president of the Coalition of Greater Minnesota Cities (CGMC). “Tim Walz didn’t shy away from that message on the campaign trail. As city leaders and residents of Greater Minnesota, it is our job to make sure he doesn’t lose that focus when he takes office.”

That message reverberated this week as more than 100 mayors, city councilors and city staffers from across Greater Minnesota convened in Alexandria for the CGMC’s annual two-day fall conference. At the event, CGMC members adopted the organization’s policy positions and discussed priorities for the 2019 legislative session, including securing an increase in Local Government Aid (LGA), funding for wastewater infrastructure and finding solutions to the state’s child care shortage. They also emphasized the need to work closely with Walz and the Legislature to ensure that Greater Minnesota has a seat at the table when it comes to crafting the state budget and other legislative priorities.

While the 2018 election appeared to highlight Minnesota’s so-called rural/urban divide—with rural areas continuing to lean heavily Republican and Democrats picking up 16 seats in the suburbs and strengthening their hold on the urban core—many city leaders say talk of the divide is overblown.

“Everyone is sick of the divisiveness,” Nelsen said. “There are so many issues that matter to all Minnesotans, not everything has to be red versus blue. We all need safe roads, clean water and good jobs. There is plenty of common ground to be found if our state lawmakers are willing to look for it.”

For CGMC members, the main issue in which they hope Walz, the GOP-led Senate and the DFL-led House can come to agreement is on a boost in Local Government Aid (LGA). With the tax bill slated to be one of the main items on the agenda when the Legislature convenes in January, the CGMC is seeking a $30.5 million LGA increase, the amount needed to bring the program back to its 2002 level. Because the costs for cities continue to rise each year, the organization is also seeking to add a permanent annual inflationary increase for LGA into law.

“There is probably no single issue that embodies the concept of ‘One Minnesota’ as clearly as Local Government Aid,” said Bradley Peterson, executive director of the CGMC. “The exact purpose of the program is to level the playing field to make sure that all communities can provide essential services and quality-of-life amenities regardless of their wealth.”

CGMC members have reason to be optimistic about the prospects of an LGA increase this year. Walz repeatedly affirmed his support for bolstering the program during the gubernatorial race, and there is strong bipartisan support for LGA among rural, urban and suburban legislators alike.

“LGA is a great example of a program that bridges the divide between large cities like St. Paul and small ones like St. Charles,” Nelsen said. “If the push for ‘One Minnesota’ is going to work, Governor Walz and the Legislature will have to look for issues like LGA where they can put politics aside and work together to improve our communities and state.”

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The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing 97 cities outside of the Twin Cities metropolitan area. The Coalition educates legislators about issues important to Greater Minnesota. Visit the CGMC online at greatermncities.org and on Twitter @greatermncities.

The American Society of Civil Engineers (ASCE) released a report card on Minnesota’s infrastructure this week, and it’s not one we’ll want to take home and display on the refrigerator. Overall, Minnesota’s infrastructure received a “C” grade from the group, with grades in the nine individual categories ranging from a “B” in aviation to a lowly “D+” in roads.

When comes to our roads, CGMC In Brief readers are familiar with the surprising statistic that despite ranking 22nd in population and 12th in land mass, Minnesota is home to the fifth-most road miles of any state. Maintaining that large of a system is a huge challenge, the ASCE notes, and Minnesota’s funding shortfall continues to grow with no clear or easy answers in sight.

Other grades in the report included a “C” in wastewater and “C-“ in drinking water, which further highlights one of the CGMC’s top goals in recent years — the need for more state investment in clean water infrastructure.

You can see all of the grades and the full report card here.

During the last legislative session, the Legislature funded $98 million worth of projects in the bonding bill through a new type of revenue bond to be paid back using the Environmental and Natural Resources Trust Fund (ENRTF). The projects funded using these bonds includes $38.3 million for the Point Source Implementation Grant Program (PSIG), $14.6 million for the Water Infrastructure Fund (WIF) for wastewater projects, and $6 million in matching funds for U.S. EPA funding — all programs that the CGMC supports and are widely used by our member cities.

Last week, a coalition of eight environmental groups served the State of Minnesota with a lawsuit challenging the constitutionality of the funding source for these projects. The environmental groups claim that financing these projects with bonds paid for out of the ENRTF violates the State Constitution. 

We are in the process of investigating this matter on behalf of the CGMC and its members. There is still some uncertainty, but we do know is that this lawsuit endangers the PSIG and WIF funding contained in the 2018 bonding bill and could impact several of our members who were slated to receive this funding. Sale of the bonds to fund these programs could be postponed or even cancelled as a result of the proposed lawsuit, delaying important wastewater and related projects for multiple CGMC members.

You can read more about the lawsuit in this Star Tribune article and this article from MPR.

We will continue to monitor this situation. If you have any questions, please contact Elizabeth Wefel at eawefel@flaherty-hood.com.

Registration is now open for the CGMC Fall Conference! The conference will be held Nov.15-16, 2018 at Arrowwood Resort & Conference Center in Alexandria and will feature presentations, discussions and speakers on a number of important topics. The packed agenda includes:

  • Luncheon presentation by Myron Frans, commissioner of Minnesota Management and Budget
  • Keynote dinner featuring Tom Hauser, chief political reporter for ABC5 Eyewitness News
  • Legislative panel discussion on child care
  • 2018 election recap and analysis
  • A discussion featuring Greater MN and metro-area elected officials who are working to bridge the rural/urban divide
  • Presentation on annexation and why could be a significant issue in the next legislative session
  • Full membership meeting to discuss and adopt the CGMC’s policy positions and priorities for the upcoming legislative (it’s critical that your city lend its voice to this discussion!)
  • …and more!

CONFERENCE DETAILS
See this CONFERENCE AGENDA & VENUE INFORMATION for full details.

REGISTER TODAY!
Please register online at greatermncities.org/FallConf18. The deadline to register is Nov. 7. 

HOTEL INFORMATION
* Please note that attendees are responsible for their own hotel reservations.*

Arrowwood has a block of rooms reserved for CGMC Fall Conference attendees at a discounted rate of $94 (plus tax). Call Arrowwood at 320-762-1124 by Nov. 1 to book a room under the CGMC’s block.

Note: There are plenty of rooms available at Arrowwood on the night of Nov. 15, but only a limited number of rooms are available on Nov. 14 (the night before the conference). In order to accommodate those who wish to come to Alexandria on Nov. 14 (and may be unable to stay at Arrowwood), we have reserved a small block of rooms for the CGMC at Hampton Inn & Suites in Alexandria. The cost is also $94. Call Hampton Inn at 320-763-3360 by Oct. 29 to make a reservation (rooms are available both Nov. 14 and Nov. 15).

QUESTIONS?
If you have any questions about the conference, please contact Julie Liew at jlliew@flaherty-hood.com or (651) 259-1917.

Newly elected CGMC President Ron Johnson was recently featured in an article in Prairie Business, a monthly magazine that focuses on business and economic development issues pertaining to Minnesota, North Dakota and South Dakota.

In an interview with editor/reporter Tom Dennis, Johnson discussed his nearly two decades of service on the Bemidji City Council, his long-time involvement with the CGMC (including the fact that he has only missed one CGMC conference in 18 years!) and the important role the CGMC plays in keeping Greater Minnesota strong. Johnson also spoke at length about how many of the issues that the CGMC works on – such as LGA, child care and transportation – have a major impact on economic development and business growth in Greater Minnesota.

The Minnesota Environmental Science and Economic Review Board (MESERB), a joint powers organization to which many CGMC cities belong, is hosting a free workshop on “Wastewater Permitting: Solutions to Address Chloride & Other Salty Parameters” on Sept. 27 in Hutchinson.

Public works directors, wastewater operators and other city officials are invited to this informational meeting and discussion to learn about some of the concerns MESERB has identified in regard to Minnesota Pollution Control Agency (MPCA) permit limits related to chloride and/or other salty parameters. The meeting will also provide information on ways in which cities and water districts can address these limits.

If you would like to attend, please register online at bit.ly/SaltyParameters by Monday, Sept. 24. We encourage you to share this meeting information with other public works and wastewater officials in your city.

Meeting Details:
11:30 a.m. – 2 p.m., Thursday, Sept. 27
Hutchinson Event Center
1005 MN-15
Hutchinson, MN 55350
*Lunch will be provided*

The CGMC is hosting a breakfast on Friday, June 22 as part of the League of Minnesota Cities conference in St. Cloud. CGMC transportation lobbyist Shane Zahrt will lead a discussion, titled “Pile-up at Funding Junction,” focusing on the past, present, and—most importantly—the future of transportation funding in Minnesota. The emphasis will be on why current funding is falling short and what responsible, sustainable funding might look like.

The CGMC breakfast will be held from 7:30-8:30 a.m. at the Bell/Alexander Rooms on first floor of River’s Edge Convention Center. The breakfast is free and open to both CGMC members and non-members, so we encourage you to invite others to attend as well. Registration is not required, but please let us know if you are planning to join us by sending an email to RSVP@flaherty-hood.com.