City Council Resolution 2001-16CITY OF MONTICELLO
RESOLUTION NO. 2001-16
RESOLUTION IN SUPPORT OF HOUSE FILE 2339 (MCELROY)
AND SENATE FILE 2191 (METZEN)
(providing a partial exemption from the utility personal property tax,
and replacement of lost revenues to host communities)
WHEREAS, the City of Monticello has hosted an electric utility generation facility since 1971; and
WHEREAS, the City of Monticello depends upon revenues from the personal property tax on electric
utility attached machinery to compensate the community for hosting this generation facility; and
WHEREAS, the investor-owned utilities have sought to exempt electric utility attached machinery at
their generation facilities from the personal property tax; and
WHEREAS, the City of Monticello joined with other generation facility host communities to express
our belief that the personal property tax provides a critical source of revenue for host communities; and
WHEREAS, the City of Monticello, as a member of the Coalition of Utility Cities, joined with the
Coalition of Utility Counties and Xcel Energy to negotiate these issues and resolve their concerns; and
WHEREAS, Allete, formerly known as Minnesota Power, was invited to join the Coalition of Utility
Cities, the Coalition of Utility Counties, and Xcel Energy in these negotiations, but Allete chose not to
participate; and
WHEREAS, the Coalition of Utility Cities, the Coalition of Utility Counties and Xcel Energy have
reached an agreement by which the State of Minnesota would partially exempt electric utility attached
machinery from the personal property tax; and the State of Minnesota would issue revenue bonds to
create trust funds for each host community, so that these trust fiends might be invested and the earnings
from them would replace the personal property tax revenues, and
WHEREAS, the Coalition of Utility Cities. the Coalition of Utility Counties and Xcel Energy have each
agreed to support this proposal and introduce it as legislation during the 2001 session of the Minnesota
Legislature; and
WHEREAS, the proposal has been introduced as House File 2339 (McElroy) and Senate File 2191
(Metzen) during the 2001 session of the Minnesota Legislature; and
WHEREAS. the Coalition of Utility Cities has requested that each city member review the proposal and
enact a resolution to support the proposal;
XOT , THEREFORE, BE IT RESOLVED by the City Council of the City of Monticello, County of
Wright, Minnesota that the City of Monticello hereby approves the agreement to exempt the personal
property tax and establish a trust fiend to compensate host communities, as contained in House File
2339 (McElroy) and Senate File 2191 (Metzen). and requests that the Minnesota Legislature support
and pass this legislation during the 2001 legislative session.
Adopted by the City Council of the City of Monticello, County of Wright, Minmsota, this 9"
day of April, 2001.
Rog r Belsaas, Mayor
ATTEST:
r
Rick Wolfsteller, City Administrator