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For Immediate Release
April 11, 2018
Contact: Julie Liew, jlliew@flaherty-hood.com
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CGMC city leaders to Legislature: State must take action on clean water funding crisis
High infrastructure costs could cripple rural communities unless state steps in

ST. PAUL—With cities across the state facing billions of dollars in costs to upgrade wastewater infrastructure to replace aging equipment and comply with new regulations, city leaders held a press conference today to call on the state to play a larger role in tackling Minnesota’s clean water funding crisis.

“I don’t use the word ‘crisis’ lightly, but that is exactly what towns across Minnesota are facing right now,” said Lakefield City Clerk Kelly Rasche. “Extremely high water infrastructure costs will cripple our communities unless the state ups its game and provides more funding.”

Rasche and other city leaders with the Coalition of Greater Minnesota Cities (CGMC) joined together at the press conference to ask the Legislature to support two bills that aim to address the massive expenses being piled on cities to repair or replace their water treatment facilities.

The first bill, SF 2668/HF 3122, authored by Sen. Gary Dahms (R-Redwood Falls) and Rep. Dean Urdahl (R-Grove City), allocates $167 million in state bonding for three key grant and loan programs administered by the Public Facilities Authority (PFA).

However, city officials say that caps and limitations on the PFA funding programs mean that they are no longer sufficient to meet the needs of communities across the state. Moreover, the growing need equates to more cities vying for the limited pool of state dollars. More than 300 cities are currently planning for upcoming water infrastructure projects, while the Minnesota Pollution Control Agency estimates it will cost $5 billion statewide over the next 20 years to pay for wastewater infrastructure alone.

That is why the CGMC is also spearheading efforts on a second bill, SF 3075/HF 3332, authored by Sen. Torrey Westrom (R-Elbow Lake) and Rep. Urdahl, that would provide supplemental grant funding to increase the state’s share of the costs for wastewater infrastructure.

“The current bonding proposal for $167 million is a good start, but with hundreds of cities seeking funding, it’s not going to go very far,” said Glencoe City Administrator Mark Larson. “Clean water is a state and local responsibility, but right now too much of the burden is falling on city residents and businesses.”

The city of Glencoe is facing $22.3 million in costs to replace portions of its facility that are more than 50 years old, adhere to new pollution discharge limits, build a new lift station and other upgrades. Under the current grant programs, the city only qualifies for approximately $5.5 million in state funding, which means the city and its ratepayers will be on the hook for the rest of the project costs unless the state steps up with more money.

Lakefield, a small city with a population of 1,691, is also bracing for potentially massive rate increases to pay for a $22 million upgrade to its wastewater system in order to comply with new permit requirements. According to Rasche, the city’s average residential water and sewer rates would have to nearly double to $190 a month to cover this cost without financial assistance from the state.

“Our rates are already higher than most other cities,” Rasche said. “The potential increases are so high that we are concerned people won’t want to live in our town. How do they expect our small cities to survive?”

While cities across the state have water infrastructure needs, those in the metro area are able to keep rates down because of the lower cost of serving a highly concentrated population. This is not an option for most Greater Minnesota communities.

For example, Albert Lea needs to undergo a project that is estimated to cost $72.5 million. Without state help, the city’s wastewater rates would have to nearly triple to an average of $1,082 a year. In contrast, the average annual residential rate in the metro area is only $274.

“These costs are hitting Greater Minnesota cities especially hard,” said Albert Lea City Manager Chad Adams. “That is why we need a benchmark, a limit to how much local businesses and homeowners can reasonably be expected to pay.”

The CGMC’s supplemental grant bill (SF 3075/HF3332) would set that benchmark by either limiting the local costs for wastewater treatment to 50 percent of the total project costs or by limiting the local wastewater rates to no more than double the average annual costs in the metro area. Cities would receive additional state funding based on the option that results in a greater amount. 

“Yes, it is going to be expensive for the state to provide additional funding. But if it’s too expensive for the state, it’s definitely too expensive for our small communities,” Rasche said. “This is a wake-up call to our legislators to let them know that our cities need their help and we need it now.”

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News Advisory
Coalition of Greater Minnesota Cities
Contact: Julie Liew
jlliew@flaherty-hood.com
651-259-1917

As cities across Minnesota face billions of dollars in wastewater infrastructure costs, rural communities simply cannot afford to upgrade or rebuild aging facilities without additional financial assistance from the state

Who:  Kelly Rasche, Lakefield city clerk; Chad Adams, Albert Lea city manager; Mark Larson, Glencoe city administrator; Bradley Peterson, CGMC executive director, and other Greater Minnesota city leaders

What:  Press conference about the need for a bonding bill that addresses wastewater infrastructure costs in Greater Minnesota

When:  1:30 p.m., Wednesday, April 11, 2018

Where: Press Conference Room B971, Minnesota State Capitol

For Immediate Release
March 8, 2018
Contact: Julie Liew, jlliew@flaherty-hood.com
PDF version

Bill to increase city aid finds strong bipartisan support at Legislature
Mayor: LGA is the ‘unsung hero of Greater Minnesota communities’

ST. PAUL—As discussions about the projected state budget surplus and potential changes to the tax code heat up the Capitol, city leaders from Greater Minnesota are calling on lawmakers to pass legislation introduced today that would increase funding for critical state aid to cities.

The bill, SF 3082/HF 3493, boosts funding for the state’s Local Government Aid (LGA) program by $30.5 million. Chief authored by Sen. Bill Weber (R-Luverne) and Rep. Paul Anderson (R-Starbuck), two long-time advocates for LGA, the legislation has bipartisan support in both houses and a long list of Republican and Democrat co-authors who represent a wide mix of rural, suburban and urban cities.

“Sen. Weber and Rep. Anderson are veteran legislators and great champions for Greater Minnesota. We are grateful they are taking the lead on this issue and continuing to fight on behalf of the nearly 90 percent of Minnesota cities who receive LGA,” said Dave Smiglewski, mayor of Granite Falls and president the Coalition of Greater Minnesota Cities (CGMC).

Securing additional LGA funding is a top legislative priority for the CGMC this session. While small increases in recent years have begun to make up for drastic cuts made to LGA in the mid-2000s, the program still receives less funding than it did in 2002. At the same time, inflation and hefty increases in costs such as employee health insurance premiums and construction materials have caused cities to struggle to provide the services and amenities residents depend on while keeping property taxes in check.

“The average Minnesotan might not know anything about LGA, but it is absolutely vital to keeping our cities strong and providing a good quality of life for our residents,” Smiglewski said. “Every time you drive down a plowed street, call emergency services or visit a city park, there is a good chance you are experiencing the benefits of LGA. It is the unsung hero of Greater Minnesota communities.”

Lawmakers have been vocal about the need to pass a tax bill in order to deal with issues that have sprung up due to the recent federal tax overhaul. Since changes to LGA funding are typically addressed in the tax bill, Smiglewski said this focus on the state’s tax situation provides an opportunity to pass an LGA increase this session.

“Our communities have waited long enough. Now that the economy is strong and Minnesota is on the right track, it is time to restore LGA funding,” Smiglewski said. “As our legislators debate tax changes and plans for the budget surplus, we are counting on them to make sure LGA is a major part of the conversation.”

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The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing 96 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.

 

For Immediate Release
Feb. 26, 2018
Contact: Julie Liew, jlliew@flaherty-hood.com
PDF version

Water infrastructure funding bill bolstered by strong bipartisan support
Bill would allocate $167M to state grant & loans programs that help cities pay for critical water infrastructure projects

ST. PAUL—City leaders in Greater Minnesota are lauding legislation introduced today that would boost state funding for grant and loan programs that help cities pay for expensive wastewater and drinking water infrastructure projects.

The bill, SF 2668/HF 3122, spearheaded by chief authors Sen. Gary Dahms (R-Redwood Falls) and Rep. Dean Urdahl (R-Grove City), allocates $167 million in state bonding for three key grant and loan programs administered by the Public Facilities Authority (PFA). The proposal has broad bipartisan support, with a wide mix of legislators from both parties and from every corner of the state signed on as co-authors of the legislation. Gov. Mark Dayton has also shown support for the plan by including it in his bonding proposal and touting it again at a Governor’s press conference last week.

“We’re really thankful to have a strong, bipartisan group of lawmakers come together to support legislation that provides funding for water infrastructure,” said Dave Smiglewski, mayor of Granite Falls and president of the Coalition of Greater Minnesota Cities (CGMC). “This is a critical need for communities across the state. Every Minnesotan deserves access to clean water, but cities can’t afford to bear the high construction and technology costs alone.”

The CGMC, which is comprised of 96 cities outside the metro area, has determined that funding for the PFA grant and loan programs is its top bonding bill priority this session.

“Cities have no choice but to upgrade their water facilities and fix broken sewer pipes. Unless they get financial help from the state, these costs all fall on local residents and businesses,” Smiglewski said. “When citizens are hit with water bills that have doubled or tripled, it really puts a strain on the whole community.”

Due to the need to replace aging infrastructure and comply with new, stricter water-quality regulations, the number of cities and sanitary sewer districts currently planning to rebuild or upgrade their drinking water or wastewater infrastructure has jumped in recent years. More than 300 cities, the bulk of which are in Greater Minnesota, currently have projects on the PFA’s Project Priority List which identifies potential wastewater, drinking water and storm water projects that are eligible to receive funding through PFA programs. The Minnesota Pollution Control Agency has estimated that local governments and the state are facing $5 billion in wastewater infrastructure costs over the next 20 years, while the Minnesota Department of Health estimates it will cost an additional $7.4 billion to upgrade and repair drinking water infrastructure over that same time period.

The legislation introduced today, SF 2668/HF 3122, has not yet been scheduled for a hearing. However, the House Capital Investment Committee will hold an informational hearing on Wednesday to learn more about the state’s water infrastructure needs and costs. City officials from at least two Greater Minnesota cities, Pipestone and Little Falls, are expected to testify about the specific needs facing their communities.

“We are glad that legislators are listening to our concerns and taking steps toward getting more funding for these important projects,” Smiglewski said. “I hope this spirit of bipartisanship will continue and lead to the passage of a bonding bill this year. These projects and our communities can’t wait.”

For more information on this bonding bill proposal and why it is important to Greater Minnesota communities, please see this CGMC Info Sheet.

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The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing 96 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.

 

For immediate release
Feb. 15, 2018
Contact: Julie Liew, jlliew@flaherty-hood.com
PDF version

Legislature needs to build on progress for Greater Minnesota
LGA, infrastructure, child care among issues that demand attention this session

ST. PAUL—As the Minnesota Legislature prepares to head into session next week, Greater Minnesota city leaders are urging lawmakers to put aside the growing partisan divide and focus on the “bread and butter” issues that keep communities across the state healthy.

“The Legislature has a strong opportunity to address key issues like Local Government Aid funding, infrastructure repairs and the child care shortage. The greatest danger this session is that legislators will squander this moment of economic strength in our state,” said Bradley Peterson, executive director of the Coalition of Greater Minnesota Cities (CGMC), during a pre-session conference call with statewide media this morning.

“Legislators have a prime opportunity to build on progress made over the last couple of sessions. They can’t let partisanship or the distraction of the upcoming elections stand in the way of getting work done,” he said.

David Smiglewski, mayor of Granite Falls and president of the CGMC, added, “As city leaders and as Minnesotans, we have to demand that they stay focused, buckle down and do their jobs.”

Tax bill talks must include LGA

Leading into the session, legislators have been vocal about the need for tax bill to address issues that have sprung up due to the recent federal tax overhaul. Peterson said this focus on taxes creates an opportunity for the Legislature to address Greater Minnesota cities’ needs by passing an increase in Local Government Aid (LGA). The CGMC is seeking a permanent $30.5 million increase, the amount needed to bring LGA back to its 2002 high-water mark.

“If legislators are serious about passing a tax bill, it must include LGA,” Peterson said.

Ron Johnson has served for 18 years on the city council of Bemidji, a growing community for which LGA is particularly important because nearly half of property in the city is tax-exempt. He has seen LGA funding ebb and flow through the years and says it has a direct impact on the health of his community.

“Our city is prudent — we squeeze extra mileage out of our vehicles and try to be mindful about the amount our residents pay in fees and taxes — but we have necessary expenses. Nothing costs the same as it did in 2002 when there was more LGA to go around,” Johnson said.

The 2017 Legislature passed a modest $15 million LGA increase, which Bemidji used to hold down its property tax levy. Other communities used the extra funds on needs like fire equipment or park improvements, while numerous cities found that higher employee health insurance costs more than ate up any LGA increase.

If the Legislature passes the desired $30.5 million increase, Johnson said his city has discussed hiring a community development director — a position eliminated due to LGA cuts in the mid-2000s — to help take advantage of opportunities for economic growth. For Granite Falls, Smiglewski said an LGA increase would likely be used to replace outdated equipment.

“We have a list of needs a mile long — and we’re not talking about $100,000 waterfalls here,” Smiglewski said.

Costly water infrastructure upgrades can’t wait

Due to aging infrastructure and new water quality regulations, hundreds of cities in Greater Minnesota are currently faced with having to invest millions in expensive upgrades to their wastewater and drinking water facilities. The CGMC is requesting $167 million in bonding for state grant and loan programs that help cities meet these astronomical costs.

Little Falls is among the cities relying on a bonding bill to pass this year. The city needs to renovate its wastewater treatment plant, a project estimated to cost more than $17 million. It is currently on the list to receive a $7 million grant through the state’s Point Source Implementation Grant Program, but that money will only come into fruition if the program is funded in the bonding bill.

“If we don’t receive grant funding, our rates will nearly triple,” said City Administrator Jon Radermacher. “We have no choice but to upgrade our plant, so this funding is absolutely critical. There is no question Little Falls and other cities in our position need the Legislature to pass a bonding bill with substantial funding for water infrastructure.”

Budget constraints force cities to take a slow path on street repairs

Another infrastructure concern that has dogged cities for years is the struggle to keep up with street repairs and maintenance. The CGMC is seeking $50 million for city streets, divided equally between cities with populations greater than 5,000 and those under 5,000.

The city of Granite Falls has identified at least 27 city blocks that need be rebuilt or overlayed, a list that grows each year. Due to budget constraints, the city plans to fix only six blocks in 2018, which is estimated to cost $927,000. In contrast, the city received only $24,635 in city-street funding through the Small Cities Assistance Program, which the 2017 Legislature funded at $8 million over two years.

“Our ‘to-do list’ is long and what can actually afford to do is surprisingly short,” Smiglewski said. “We can only do a block or two here, a block or two there. It’s not very efficient.”

Cities with populations over 5,000 receive some funding through the Municipal State Aid Street (MSAS) system, but Johnson says larger cities — particularly regional centers like Bemidji, whose daytime population nearly doubles — need more resources.

“At our rate, we aren’t keeping up,” Johnson said, noting that his city is able to budget for about one mile of street repairs a year. “We try to repair the worst, but we should be doing much more.”

Child care shortage needs attention

In addition to advocating for funding for LGA and infrastructure, the CGMC also wants legislators to pay closer attention to the growing child care shortage in Greater Minnesota. For many communities, the lack of child care has become a serious barrier to economic growth.

As a father of a 3-year-old with another child on the way, Radermacher has first-hand knowledge of the problem. When he was offered the city administrator job a couple years ago, he said the “very first question” he asked was if there child care was available in Little Falls. Ultimately, he had to live away from his wife and child for three months until they were able to obtain child care in the city.

According to a needs assessment performed by First Children’s Finance, Little Falls currently has a need for 144 more child care spots, a number that jumps to 475 when counting the adjoining zip codes. Other cities in Greater Minnesota have reported similar deficits.

“We are on the cusp of a real critical issue here,” Radermacher said. “I know people who won’t take a job because they can’t find child care. Businesses want to come here or expand, but it’s hard to do that when the workforce has child care needs.”

The CGMC is supporting legislation that provides funding to the state’s initiative foundations to encourage more in-home child care providers. It also hopes the Legislature will further explore the causes of the shortage and review whether there are any onerous or unnecessary regulations that may be preventing people from entering into the child care businesses.

“The child care shortage is a complex issue and it’s not going to be solved in one session,” Peterson said. “Legislators need to know that this is not just a family issue, it’s also an economic development issue.”

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The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing 96 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.

 

Below is statement from CGMC President and Granite Falls Mayor Dave Smiglewski regarding Gov. Dayton’s $1.5 billion public works proposal, which was unveiled this morning. A PDF version of this statement is available here.

“It is promising to see that Governor Dayton’s bonding proposal includes $167 million for clean water infrastructure programs. Clean water is a vital part of a healthy community, yet wastewater and drinking water facilities throughout the state are aging and in dire need of expensive repairs and upgrades. Cities are facing astronomical costs and many simply cannot afford to make these needed infrastructure improvements without assistance from the state. We are pleased to see that Gov. Dayton’s bonding plan recognizes this need.

Clean water infrastructure grant and loan programs have consistently received bipartisan support at the Legislature, and we are hopeful that will continue in 2018. As we move into the legislative session, we hope the Governor and Legislature will be able to put their other squabbles aside and pass a bonding bill that promotes economic development, strong infrastructure and thriving communities.”

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For Immediate Release
Nov. 17, 2017
Contact: Julie Liew, jlliew@flaherty-hood.com 

A PDF version of this press release is available here.                                                                            

Greater Minnesota city leaders to state lawmakers: Now is not the time to press the pause button

ALEXANDRIA, MINN.— As the legal fight over funding for the Legislature drags on and the 2018 governor’s race heats up, Greater Minnesota city leaders are urging lawmakers to keep their focus on the upcoming legislative session and not fall prey to distractions. 

More than 100 other city officials from throughout Greater Minnesota convened in Alexandria this week for the CGMC’s annual two-day fall conference. At the event, CGMC members adopted the organization’s policy positions and discussed legislative priorities for the 2018 legislative session. While a bonding bill, local government aid (LGA) and city streets were among the top issues, city leaders also stressed the importance of making sure legislators stay on task.

“Now is not the time to press the pause button,” said Granite Falls Mayor Dave Smiglewski, who serves as president of the Coalition of Greater Minnesota Cities (CGMC). “Greater Minnesota still has a lot of unaddressed needs. We are counting on our legislators to stay focused on their jobs and their commitment to strengthening our communities.”

Bemidji City Councilor Ron Johnson voiced concern that with an election looming, legislators may be more interested in touting accomplishments from last session than passing new legislation in 2018.

“The Legislature may have passed tax, transportation and bonding bills last year, but that doesn’t mean their job is done for the biennium,” said Bemidji City Councilor Ron Johnson. “Truth is, the progress made in 2017 only scratches the surface when it comes to meeting all of the ongoing and growing needs in our city and others in Greater Minnesota.”

City officials who attended the conference agreed that a bonding bill likely poses the best hope for passing a piece of major legislation in 2018, noting that many legislators have voiced a desire for a large public works bill to make key investments in the state’s infrastructure. While each city has its own individual needs, a recurring theme throughout Greater Minnesota is the need for additional state bonding dollars to help repair or replace aging waste water treatment facilities.

In addition to bonding, the CGMC plans to advocate for an LGA increase to help cities make up for inflation and increasing costs, as well as funding to assist with much-needed repairs to city streets. There are also a number of issues on the horizon that the CGMC hopes the Legislature will keep on its radar, including the impact a national tax overhaul could have on local communities and the growing child care shortage in Greater Minnesota.

“Legislators and the Governor will have plenty of work to cram into a few short weeks,” Smiglewski said. “Residents of Greater Minnesota expect our state leaders to set their squabbles aside, buckle down and pass legislation that will invest in the future of our communities.”

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For Immediate Release: May 11, 2017
Contact: Julie Liew, jlliew@flaherty-hood.com

A PDF version of this press release is available here.

ST. PAUL—With the session deadline looming and little progress thus far on key legislative priorities for rural communities, Greater Minnesota city leaders held a press conference today to caution legislators against repeating last year’s failures on taxes, bonding and transportation.

“Exactly one year ago today, we held a press conference urging legislators to pass an increase in Local Government Aid, a fair and balanced bonding bill and a transportation bill that funds city streets and the Corridors of Commerce program,” said Sara Carlson, Mayor of Alexandria and President of the Coalition of Greater Minnesota Cities (CGMC). “Here we are 365 days later and we are still asking for the same things. What does it take for Greater Minnesota’s needs to be addressed?”

Carlson said that rural Minnesota voters sent a strong message in the November election that their needs and concerns had been ignored for too long. At the start of the session, many city leaders were hopeful that Greater Minnesota issues would get more attention this year since rural legislators make up the majority of the Republican caucus in both the House and Senate. However, with less than two weeks left in the session, serious questions remain about the Legislature’s willingness to invest in rural priorities.

At the top of that list is an increase in Local Government Aid (LGA), the state program that provides property tax relief and allows cities of all sizes to have a similar level of services regardless of their wealth. Nearly 96 percent of Greater Minnesota cities, and 89 percent of cities statewide, receive LGA.

The CGMC is seeking a permanent $45.5 million increase in LGA funding, the amount needed to bring the program back to its 2002 level. The joint House and Senate tax bill doesn’t come close to this benchmark — it includes just a $6 million one-time increase for 2018. Under the bill, LGA would revert back to the 2017 funding level the following year.

“The Legislature’s tax bill fails on LGA,” Carlson said. “No state program does more to improve the quality of life and economic competitiveness of Greater Minnesota communities than LGA. I am perplexed as to why our legislators are not investing more into the program.”

Carlson noted that Gov. Dayton has already pledged to veto the tax bill, a decision the CGMC supports. “The Governor should demand a significant and permanent LGA increase in the final tax bill,” she said.

City leaders are also united in their support for a bonding bill this session. For Greater Minnesota cities, the most critical item in this bill is additional money for grant and loan programs that provide funding for wastewater infrastructure.

There is broad bipartisan support for this funding: the Governor’s bonding proposal includes $167 million, while the Senate bill has $133 million and the House bill has $105 million. However, with vastly different ideas about the overall size of the bonding bill — the House bill totals only $600 million, while the Governor’s plan is nearly $1.5 billion — passing a bill could be difficult.

“We cannot wait another year for a bonding bill,” said Austin City Administrator Craig Clark.  “Like many cities in Greater Minnesota, we are facing massive costs to repair and upgrade our water treatment facilities. If we don’t receive more financial help, cities have no choice but to pass those costs onto our residents and businesses.”

Another long-standing area of concern is transportation. Although city officials want the state to invest more in transportation — particularly city streets and the Corridors of Commerce program — they cautioned the Legislature and Governor against relying too heavily on the general fund.

“Taking too much general fund money for transportation could have a harmful effect on other important priorities like LGA, education and public safety,” said Granite Falls Mayor Dave Smiglewski. “A smart transportation plan that looks out for the long-term success of our state should include a mix of new revenue along with a modest amount of general fund dollars.”

In the waning days of session, the city leaders said they plan to be in frequent contact with their local legislators and other key lawmakers to encourage them to take action on key Greater Minnesota priorities.

“No one wants a repeat of last year,” Smiglewski said, referring to the last-minute failure of several key bills. “Luckily, there is still time for our legislators to make this session a ‘win’ for Greater Minnesota.”

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News Advisory
Coalition of Greater Minnesota Cities
Contact: Julie Liew
jlliew@flaherty-hood.com
651-259-1917

Rural voters sent a loud message last fall that they felt left out and left behind. State legislators should be deeply concerned about the lack of progress on rural priorities.

Who: Sara Carlson, Mayor of Alexandria and CGMC President; Dave Smiglewski, Mayor of Granite Falls and CGMC Vice President; Craig Clark, Austin City Administrator, and other Greater Minnesota city leaders

What: Coalition of Greater Minnesota Cities Press Conference

When:  11 a.m., Thursday, May 11

Where: Press Conference Room B971, State Capitol basement

For Immediate Release: May 4, 2017
Contact: Julie Liew, jlliew@flaherty-hood.com

A PDF version of this press release is available here.

ST. PAUL—City leaders in Greater Minnesota are voicing frustration with their legislators this week after the Tax Conference Committee unveiled a tax bill proposal that fails to adequately invest in rural communities.

The tax plan, released Monday night by the joint House and Senate conference committee, includes a meager $6 million increase in Local Government Aid (LGA) funding for 2018. Because it is just a one-time, one-year increase, LGA would revert back to its current funding level in 2019. City leaders argue this low amount does little to address their cities’ growing needs and is especially unacceptable given the state’s current solid financial footing.

“Greater Minnesota is once again left out and left behind in the tax bill,” said Sara Carlson, mayor of Alexandria and president of the Coalition of Greater Minnesota Cities (CGMC). “With a $1.65 billion budget surplus and in the context of a $1.15 billion tax plan, the Legislature can and should do better for LGA.”

An LGA increase is the number one priority for the CGMC this legislative session. The organization is advocating for a $45.5 million increase for the 2018-19 biennium, the amount needed to bring the program back to its 2002 funding level. Since the Legislature has not passed an LGA increase in the past two years, the token $6 million bump in this year’s conference committee tax proposal would not even begin to cover a basic inflationary increase.

“Rural Minnesotans and Greater Minnesota cities should be and will be upset if this LGA situation is not rectified,” Carlson said. “LGA is essential to keeping our communities healthy and our property taxes down. With just over two weeks left in session, now is the time to speak up and let our legislators know that LGA is too important to be ignored. Before the session ends, the Legislature and Governor must come to an agreement on a significant permanent increase.”

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