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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