HomeMy WebLinkAbout15-04-19 RESOLUTION 15-04-19
A RESOLUTION BY THE CITY COUNCIL FOR THE CITY OF OAK PARK HEIGHTS
DEMONSTRATING SUPPORT FOR SENATE BILL 1636(SKOE) RELATING TO ELECTRIC
GENERATION PROPERTY VALUATION AND ITS TAXATION.
WHEREAS,Allen S. King PIant, (the"Facility') is located in the City of Oak Park Heights, (the"City");
and
WHEREAS,the current valuation of the energy producing equipment(the"Equipment")of the Facility
significantly contributes to the tax base of the City; and
WHEREAS,the valuation of this Equipment varies according to its upgrade and depreciation schedule;
and
WHEREAS, SF 1636 is pending in the 2015 Legislature which would change the taxation of the Facility,
eliminate the personal property tax on the Equipment,and replace it with a new method of determining
market value based on energy capacity,energy production, and spent nuclear fuel storage; and
WHEREAS, the bill provides a more stable tax base over time,eliminating the volatility caused by the
upgrade/depreciation cycle; and
WHEREAS, for those cities whose tax base decreases as a result of the new energy tax base valuation,the
state provides transition aid to hold local property taxpayers harmless; and
WHEREAS, the bill provides for an increase in value over time based on increases in the retail price of
electricity(the"Rate Adjustment"); and
WHEREAS,transition aid will continue until such time as the electric generation machinery tax base
exceeds the 2015 taxable value of electric generation equipment(the"Transition Aid");
NOW,THEREFORE,BE IT RESOLVED: THE CITY COUNCIL OF OAK PARK HEIGHTS
supports the change in electric generation taxation as articulated in SF 1636(Sen. Skoe),provided the
legislation continues to include the Rate Adjustment and the Transition Aid.
This Resolution is adopted by the City Council of the City of Oak Park Heights, Minnesota, this
28th day of April,2015. 1
M4 omb r,Mayor
ATT T,J
ri 'Jo son, City Administrator