City Council Minutes 01-10-2000 SpeciaMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday, January 10, 2000 - 6:15 p.m.
Members Present: Roger Carlson. Clint Herbst. Brian Stumpf and Bruce Thielen
Members Absent: Roger Belsaas
Acting Mayor Clint Herbst called the meeting to order at 6:15 p.m. and declared a quorum present.
Tim Flaherty, lobbyist for the Coalition of Utility Cities was present and summarized the efforts of the 13
cities that make up the coalition to minimize the impact to the cities if the legislature enacts legislation
that would change the tax status for utility companies. Mr. Flaherty explained the impact of deregulation
and restructuring of utilities noting that the terms deregulation and restructuring are used interchangeably.
The question is whether the utility companies need a tax break and if they do, how can that tax break be
provided with minimum impact to the utility cities. The legislature has set up an utility rate structure
committee and the meeting process has just started. It is their aim to work together to resolve this issue
by consensus. Tim Flaherty discussed the proposal that have been submitted and the advantages and
disadvantages of each. The Coalition of Utility Cities' position is that there is no reason to do anything
before deregulation takes effect. After deregulation takes place it can be determined whether NSP
actually needs the tax break.
Roger Carlson asked what is motivating the legislature to look at this issue at this time. Mr. Flaherty felt
that because there is currently a budget surplus is one reason the legislature is looking at this issue. There
was general discussion on the position of the utility companies, the position of the utility cities and the
position of the legislature as it relates to the tax status for utility companies.
Tim Flaherty explained a proposal offered up by the Red Wing Chamber of Commerce which is not
supported by the Coalition of Utility Cities. Under this proposal new plants are exempt from property tax
on equipment but the city can place a fee on the utility. This fee is negotiated with the utility company
before the site for the new utility plant is selected.
The City NN -111 be meeting with representatives from NSP in the near future to further discuss this issue.
The special meeting closed at 6:50 p.in.
Recordin` Secretary