City Council Resolution 2015-38CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2015-038
IN SUPPORT OF THE CHANGE IN ELECTRIC PRODUCING SYSTEM TAXATION
AS ARTICULATED IN SF 1636
WHEREAS, The Monticello Nuclear Power Plant (the "Facility ") is located in the City of
Monticello (the "City "); and
WHEREAS, the current valuation of the energy producing equipment (the "Equipment ") of the
Facility contributes significantly to the tax base of the City; and
WHEREAS, the valuation of this Equipment varies according to its upgrade and depreciation
schedule; and
WHEREAS, every session of the Minnesota Legislature brings the risk of legislation that would
rcducc or eliminate the ability of the City to tax the value of this equipment; and
WHEREAS, there is a bill pending in the 2015 Legislature which would change the taxation of
the Facility, eliminating the tax on the Equipment and creating an "electric generation tax base ";
and
WHEREAS, this electric generation tax base will be measured by nameplate capacity, average
energy production and spent nuclear fuel storage; and
WHEREAS, this bill reduces the risk of losing tax base due to legislative changes; and
WHEREAS, the bill evens out the tax base valuation over time, eliminating the volatility caused
by the upgrade /depreciation cycle; and
WHEREAS, the bill provides for an increase in value over time based on increases in the retail
price of electricity (the "late Adjustment "); and
WHEREAS, financial models show that the new electric generation tax base will increase the tax
base of the City; and
WHEREAS, the bill addresscs the tax burden oflong ter-in nuclear waste storage; and
WHEREAS, in the event the new electric generation tax base decreases the tax base of the City,
the State of Minnesota will provide transition aid at a level to hold the city tax base harmless
until such time as the value of the electric generation tax base exceeds the 2015 taxable value of
electric generation equipment (the "Transition Aid ");
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2015-038
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY
RESOLVES to support the change in electric producing system taxation as articulated in
SF1636, Skoe 2015, provided the legislation continues to include the Rate Adjustment and the
Transition Aid as herein defined.
ADOPTED BY the Monticello City Council this l Ph day of May, 2015.
CITY OF MONTICELLO
nan Stumpf, Mayor
ATTEST:
Kerry Burn, Interilm City Clerk
CERTIFICATION
STATE OF MINNESOTA
COUNTY OF WRIGHT
I hereby certify that the foregoing is a true and correct copy of Resolution No. 2015 -038
duly passed, adopted and approved by the Monticello City Council at their scheduled meeting of
May 11 h, 2015, and recorded in minutes of said meeting.
Kerry Burr', Interi City Clerk
Notary Public:
Date: 5-
(STAMP)
VICKI JAN LEERFIOFF
Notary Publio- Minnesota 2
My Commission EXPIM Jen 31, 2018
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