HomeMy WebLinkAbout19-01-09 RESOLUTION 19-01-09
A RESOLUTION BY THE CITY OF OAK PARK HEIGHTS RELATING TO UTILITY VALUATION
REFORM
WHEREAS,Allan S.King Plant(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,the Minnesota Legislature has recently considered legislation, such as a bill introduced in 2015 as SF
1636,and later introduced in 2017 as HF 1985,that would alter the system by which the state assesses the value 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 where relevant;and
WHEREAS,it is anticipated that the proposed legislation provides a more stable tax base over time,eliminating the
volatility caused by the upgrade/depreciation cycle;and
WHEREAS, the legislation provides for an increase in value over time based on increases in value tied to an
inflationary adjustment(the"Inflationary Adjustment");and
WHEREAS,the legislation provides for year-to-year stability by including a"rolling average" of production value
(the"Rolling Average");and
WHEREAS,for those cities whose tax base decreases as a result of the new energy tax base valuation,the State is to
provide transition aid to hold local property taxpayers harmless;and
WHEREAS,the legislation includes transition aid to provide predictability and a smooth transition in their tax base
at the time of eventual plant retirement;and
NOW,THEREFORE,BE IT RESOLVED by the City Council for the City of Oak Park Heights that the City Council
of supports the proposed legislation changing the process of valuing electric generating property, provided the
following are ensured:(1)the legislation continues to include inflationary adjustment,rolling average,or other similar
measures to stabilize and increase value over time; (2) the legislation includes Transition Aid that will hold host
communities and local property taxpayers harmless in the transition to the new system; (3) includes aid that will
provide a smooth transition for city revenues and property tax payments at the time of plant retirement.
BE IT FURTHER RESOLVED that at this time the City Council authorizes the Coalition of Utility Cities and that
group's representatives at Flaherty&Hood,PA,to represent the City in this matter and asks that the Investor Owned
Utilities and state policymakers work with them to achieve passage of this legislation and that achieves such goals as
outlined herein
Passed by tVCouncilthe City of Oak Park Hei s �"� f Jan 2019
az cCo er,Mayor
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